NEW URANIUM MINE TO GENERATE WEALTH

Released on December 21, 2004

The Saskatchewan government welcomes today's announcement of development of the Cigar Lake mine, the world's second largest, high-grade deposit of uranium.

Cameco announced earlier today that it will proceed with the joint venture project that includes Cogema Resources and two Japanese companies. The Canadian Nuclear Safety Commission gave its approval for the mine construction yesterday.

The Cigar Lake mine will result in $450 million worth of surface and underground construction. Although production isn't slated to begin until 2007, northern contractors and the service industry have already benefited from over $50 million invested in 2004 alone in surface construction.

"Saskatchewan is a global leader in the uranium industry," Industry and Resources Minister Eric Cline said. "We have the resources to continue in this role for a very long time, providing valuable wealth to our province and a stable source of energy to consumers."

The uranium industry generates more than $540 million a year in provincial economic activity, and a further $40 million in direct taxes and royalties. It also accounts for 4,800 direct and indirect jobs. The Cigar Lake project will generate up to 350 jobs during the construction phase and another 250 permanent jobs after production begins.

The spot price of uranium has doubled since early 2003. The combination of high prices and government-generated incentives for junior companies has resulted in a modern-day staking rush in the uranium-rich Athabasca basin. This amount of activity in the region 660 kilometres north of Saskatoon has not been seen in 25 years.

Uranium exploration and mining companies are expected to invest approximately $30 million in exploration in 2005.

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For More Information, Contact:

Bob Ellis Industry and Resources Regina Phone: (306) 787-1691