##### 



EXHIBIT 99.3




---



##### 



2006 MANAGEMENTS DISCUSSION & ANALYSIS (MD&A)
MARCH 16, 2007
   The following is a list of the key sections of this MD&A.
 Overview
    
    
    2Camecos Businesses
    
    
    2Growth Strategy
    
    
    4Trends in the Nuclear Power Industry
    
    
    4Uranium Business
    
    
    9Fuel Services Business
    
    
    35Nuclear Electricity Generation Business
    
    
    41Gold
    
    
    452006 Fourth Quarter Consolidated Results
    
    
    482005-2006 Quarterly Consolidated Financial Highlights
    
    
    492006 Consolidated Results
    
    
    50Consolidated Outlook for 2007
    
    
    53Liquidity and Capital Resources
    
    
    542004-2006 Consolidated Financial Highlights
    
    
    58Outstanding Share Data
    
    
    59Reserves and Resources
    
    
    60Qualified Persons
    
    
    68Risks and Risk Management
    
    
    68Disclosure Controls and Procedures
    
    
    88Critical Accounting Estimates
    
    
    88Caution Regarding Forward  Looking Information
    
    
    89Additional Information
    
    
    90




---



##### 



OVERVIEW
 Vision
 Mission
   Values  Safety and Environment
 
    
    The safety of people and protection of the
environment are the foundations of our work. All
of us share in the responsibility of continually
improving the safety of our workplace and the
quality of our environment.
 People
 
    
    We value the contribution of every employee and we
treat people fairly by demonstrating our respect
for individual dignity, creativity and cultural
diversity. By being open and honest we achieve the
strong relationships we seek.
 Integrity
 
    
    Through personal and professional integrity, we
lead by example, earn trust, honour our
commitments and conduct our business ethically.
 Excellence
 
    
    We pursue excellence in all that we do. Through
leadership, collaboration and innovation, we
strive to achieve our full potential and inspire
others to reach theirs.
 CAMECOS BUSINESSES
  
    
    uranium,
 
    
    fuel services,
 
    
    nuclear electricity generation, and
 
    
    gold.
  2




---



##### 



3 8
 Uranium
 Fuel Services
 3 3 6 2 6 6 3 6 6 2
  Nuclear Electricity Generation
 Gold
 3




---



##### 



GROWTH STRATEGY
  
    
    maintain our competitive advantage in uranium and conversion,
    
    maximize growth in uranium markets,
    
    continue vertical integration, and
    
    promote growth in the nuclear energy industry.
   
    
    add significantly to shareholder value, through new opportunities within the nuclear fuel cycle,
    
    secure projects that have an attractive rate of return and provide a basis for long-term
profitability,
    
    supply fuel, engage Camecos operational and management expertise, and achieve synergies
in fuel supply logistics and market position,
    
    capture the value added to uranium in each step of the fuel cycle, including its
enormous energy value in the final generation of electricity,
    
    strengthen Camecos foundation for further expansion in the nuclear fuel cycle, and
    
    ensure each investment has a prudent risk/reward ratio.
  
    
    maximize choice by considering acquisition and investment opportunities in all aspects
of the nuclear fuel cycle,
    
    seek opportunities to facilitate change in the nuclear industry by supporting or leading
the development, assessment, or licensing of new technology,
    
    evaluate and encourage BPLPs growth strategy,
    
    pursue partnering opportunities throughout the nuclear fuel cycle by leveraging
fuel-supply relationships, and by enhancing relationships with industry leaders in nuclear
technology,
    
    seek active ownership by structuring each investment to allow participation in
management and, where possible, operational involvement, and
    
    seek to maximize nuclear powers contribution to global energy supply by:
 
    
    promoting industry initiatives to position nuclear power as a major part
of the solution in addressing clean air and climate change by providing leadership
and resources to key industry associations and by developing government
relationships, and
    
    diversifying into related technologies that support nuclear energy
development.
 TRENDS IN THE NUCLEAR POWER INDUSTRY
  4




---



##### 



Reactors  Operating, Planned and Under Construction
 
    
    59 reactors are scheduled to be built in Asia, as energy demand is driven by rapid
economic expansion. More than 65% of this growth will occur in China and India which have
plans to build 24 and 15 reactors respectively,
    
    in Russia, Ukraine and several other eastern European countries, it is anticipated that
14 reactors will be built, offset by one closure in Armenia,
    
    in Finland, a new European Pressurized Water Reactor (EPR) is being constructed and when
completed, will bring the countrys total to five nuclear reactors,
    
    France has announced the construction of a new EPR beginning in 2007, and
    
    in Canada, Bruce Power A Limited Partnership (BALP) is refurbishing two A units which
had previously been shutdown, and both Bruce Power and Ontario Power Generation Inc, (OPG)
have initiated the regulatory process for new generating units.
 Reactors  Pending
 5




---



##### 



World Nuclear Reactors (Cameco estimate, March 2007) 1
 Outlook to 2016NuclearElectricity
    
    
    Operating
    
    
    
    
    
    
    
    
    
    
    Operating
    
    
    GWe2005 2 (%)
    
    
    2007
    
    
    New
    
    
    Shutdown
    
    
    2016
    
    
    ChangeArgentina
    
    
    7
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    1.6Brazil
    
    
    3
    
    
    
    2
    
    
    
    1
    
    
    
    0
    
    
    
    3
    
    
    
    1.3Canada
    
    
    15
    
    
    
    18
    
    
    
    3
    
    
    
    1
    
    
    
    20
    
    
    
    2.2Mexico
    
    
    5
    
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    0.0USA
    
    
    19
    
    
    
    103
    
    
    
    6
    
    
    
    0
    
    
    
    109
    
    
    
    6.0Americas Total
    
    
    
    
    
    
    127
    
    
    
    12
    
    
    
    1
    
    
    
    138
    
    
    
    11.1China
    
    
    2
    
    
    
    9
    
    
    
    24
    
    
    
    0
    
    
    
    33
    
    
    
    20.4India
    
    
    3
    
    
    
    16
    
    
    
    15
    
    
    
    0
    
    
    
    31
    
    
    
    7.0Iran
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    0
    
    
    
    2
    
    
    
    1.9Japan
    
    
    29
    
    
    
    55
    
    
    
    5
    
    
    
    1
    
    
    
    59
    
    
    
    5.9Korea (South)
    
    
    45
    
    
    
    20
    
    
    
    8
    
    
    
    0
    
    
    
    28
    
    
    
    9.2Pakistan
    
    
    3
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    0.6Taiwan
    
    
    20
    
    
    
    6
    
    
    
    2
    
    
    
    0
    
    
    
    8
    
    
    
    2.6Turkey
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    1.0Asia Total
    
    
    
    
    
    
    108
    
    
    
    59
    
    
    
    1
    
    
    
    166
    
    
    
    48.5Belgium
    
    
    56
    
    
    
    7
    
    
    
    0
    
    
    
    0
    
    
    
    7
    
    
    
    0.0Czech Republic
    
    
    31
    
    
    
    6
    
    
    
    0
    
    
    
    0
    
    
    
    6
    
    
    
    0.0Finland
    
    
    33
    
    
    
    4
    
    
    
    1
    
    
    
    0
    
    
    
    5
    
    
    
    1.6France
    
    
    79
    
    
    
    59
    
    
    
    1
    
    
    
    1
    
    
    
    59
    
    
    
    1.6Germany
    
    
    31
    
    
    
    17
    
    
    
    0
    
    
    
    0
    
    
    
    17
    
    
    
    0.0Hungary
    
    
    37
    
    
    
    4
    
    
    
    0
    
    
    
    0
    
    
    
    4
    
    
    
    0.0Lithuania
    
    
    70
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    0.4Netherlands
    
    
    4
    
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    0.0Romania
    
    
    9
    
    
    
    1
    
    
    
    3
    
    
    
    0
    
    
    
    4
    
    
    
    1.3Slovakia
    
    
    56
    
    
    
    5
    
    
    
    2
    
    
    
    1
    
    
    
    6
    
    
    
    0.4Spain
    
    
    20
    
    
    
    8
    
    
    
    0
    
    
    
    0
    
    
    
    8
    
    
    
    0.0Slovenia
    
    
    42
    
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    0.0Sweden
    
    
    45
    
    
    
    10
    
    
    
    0
    
    
    
    0
    
    
    
    10
    
    
    
    0.0Switzerland
    
    
    32
    
    
    
    5
    
    
    
    0
    
    
    
    0
    
    
    
    5
    
    
    
    0.0UK
    
    
    20
    
    
    
    19
    
    
    
    0
    
    
    
    4
    
    
    
    15
    
    
    
    -1.4Europe Total
    
    
    
    
    
    
    148
    
    
    
    8
    
    
    
    7
    
    
    
    149
    
    
    
    3.9Russia
    
    
    16
    
    
    
    31
    
    
    
    9
    
    
    
    0
    
    
    
    40
    
    
    
    7.6Armenia
    
    
    43
    
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    0.0Bulgaria
    
    
    44
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    1.9Ukraine
    
    
    49
    
    
    
    15
    
    
    
    3
    
    
    
    0
    
    
    
    18
    
    
    
    2.9Russia and Eastern
Europe Total
    
    
    
    
    
    
    49
    
    
    
    14
    
    
    
    1
    
    
    
    62
    
    
    
    12.4South Africa
    
    
    6
    
    
    
    2
    
    
    
    7
    
    
    
    0
    
    
    
    9
    
    
    
    1.9World Total
    
    
    
    
    
    
    434
    
    
    
    100
    
    
    
    10
    
    
    
    524
    
    
    
    77.8
 1
    
    Estimated by Cameco, March 2007. Based on public announcements made prior to
March 2007.2
    
    World Nuclear Association (WNA).
 6




---



##### 



Nuclear Power Share
 
  Plant Performance
 Safety
 Operating Costs
 Nuclear Acceptance
 Positive Trends
 North America
 7




---



##### 



Europe
   India
 Negative Trends
 8




---



##### 



URANIUM BUSINESS
 Worldwide Uranium Supply and Demand
 
 Uranium Demand
 9




---



##### 



Uranium Supply
 Mine Production  3 8
  
    
    the strength of uranium prices,
 
    
    the efficiency of regulatory regimes in various regions,
 10




---



##### 




    
    currency exchange rates in producer countries compared to the US dollar,
 
    
    prices for other mineral commodities produced in association with uranium (i.e. byproduct or co-product producers), and
 
    
    the quality and size of the ore reserve.
 
 Secondary Sources
    11




---



##### 



Uranium Markets
   Uranium Spot Market  3 8
  12




---



##### 



Long-Term Uranium Market
 3 8
 3 8
  
 Uranium Business  Key Performance Drivers
  
    
    prices  spot and long-term,
    
    volume  sales, production and purchases,
    
    costs  production and purchases, and
    
    the relationship between the US and Canadian dollars.
 
 13




---



##### 



Prices  Spot/Long-Term
 Background
 3 8
       Volume  Sales, Production and Purchases
 Sales Volume
  3 8
 14




---



##### 



6
    Production Volume
 Uranium Operations
 Camecos share of production(million lbs U3O8)
    
    2007 Planned
    
    2006 Actual
    
    2005 ActualMcArthur River/Key Lake
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1Rabbit Lake
    
    
    5.5
    
    
    
    5.1
    
    
    
    6.0Smith Ranch/Highland
    
    
    1.6
    
    
    
    2.0
    
    
    
    1.3Crow Butte
    
    
    0.8
    
    
    
    0.7
    
    
    
    0.8Total
    
    
    21.0
    
    
    
    20.9
    
    
    
    21.2
  3 8
   15




---



##### 



3 8
     16




---



##### 



3 8 3 8
  3 8
    Uranium Projects
   17




---



##### 



Forecast Cigar Lake Costs 1
 PriorCapital costs
    
    construction($ millions)
    
    costs
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    TotalMine
    
    
    203
    
    
    
    68
    
    
    
    99
    
    
    
    71
    
    
    
    
    
    
    
    
    
    
    
    441Mills
    
    
    31
    
    
    
    6
    
    
    
    5
    
    
    
    9
    
    
    
    5
    
    
    
    11
    
    
    
    67Total
    
    
    234
    
    
    
    74
    
    
    
    104
    
    
    
    80
    
    
    
    5
    
    
    
    11
    
    
    
    508
 Remediation expenses1
    
    2006
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    Total($ millions)
    
    
    5
    
    
    
    32
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    46
 
 1
    
    Future costs are in constant 2007 dollars.   18




---



##### 



.
   Phase 2
    
    Dewatering the underground development, verifying the water inflow
has been sufficiently sealed, and initiating the installation of
surface freezing infrastructure  expected to be completed by the
end of the third quarter 2007.Phase 3
    
    Completing any additional remedial work identified in phase two
such as determining if additional reinforcement is required in
higher risk areas  expected by the end of 2007.Phase 4
    
    Completing underground rehabilitation that includes securing areas
to prevent ground fall or water inflow, re-establishing mine
ventilation, installing pumping capacity and re-establishing the
ore freezing program  expected to be completed by the summer of
2008.Phase 5
    
    Resuming construction activities that will lead to scheduled
completion of the mine-targeted for 2010.
    3 8
 19




---



##### 



Cigar Lake Reserves and Resources at March 16, 2007
 Total
    
    Camecos ShareTonnes
    
    Grade
    
    lbs U3O8
    
    lbs U3O8Category
    
    (thousands)
    
    %U3O8
    
    (millions)
    
    (millions)ReservesProven reserves
    
    
    497
    
    
    
    20.7
    
    
    
    226.3
    
    
    
    113.2ResourcesIndicated resources
    
    
    61
    
    
    
    4.9
    
    
    
    6.6
    
    
    
    3.3Inferred
    
    
    317
    
    
    
    16.9
    
    
    
    118.2
    
    
    
    59.1
 
  1
    
    Cameco reports reserves and resources separately. The amount of reported resources does
not include those amounts identified as reserves.2
    
    Camecos share is 50.025% of total.3
    
    Total pounds U3O8 for reserves are contained pounds before mill
recovery of 98.5 % has been applied.4
    
    Inferred resources have a great amount of uncertainty as to their existence and as to
whether they can be mined legally or economically. It cannot be assumed that all or any part
of the inferred resources will ever be upgraded to a higher category.5
    
    Mineral reserves have been estimated at a minimum mineralized thickness of 2.5m and a
cut-off grade of 5.9 % U3O8applied to the mineral resource block model.
Indicated mineral resources have been estimated at a cut-off grade of 1.2 %
U3O8and minimum mineralized interval of 2.5m. Inferred mineral
resources have been estimated at a cut-off grade of 5.9 % U3O8.6
    
    The geological model employed for Cigar Lake involves geological interpretations on
section and plan derived from core drill hole information.7
    
    Mineral reserves have been estimated assuming an allowance of 0.5 m of dilution above
and below the deposit, plus 5% external dilution and 5% backfill dilution at 0%
U3O8.8
    
    Mineral reserves have been estimated based on 90% mining recovery. No allowance for
mining recovery is included in mineral resources.9
    
    Mineral reserves and mineral resources were estimated based on the use of the jet
boring mining method combined with block freezing of the orebody. Jet boring produces an ore
slurry with initial processing consisting of crushing and grinding underground, leaching at
the McClean Lake mill and yellowcake production split between the McClean Lake and Rabbit lake
mills. Mining rate assumed to vary between 80 and 140 t/d and mill production rate of 18
million pounds of U3O8per year based on 98.5 % mill recovery.10
    
    Mineral reserves and resources were estimated using a two-dimensional block model.11
    
    For the purpose of estimating mineral reserves in accordance with NI 43-101, a uranium
price of $38.50 (US)/lb U3O8 was used. For the purpose of estimating
mineral reserves in accordance with US Securities Commission Industry Guide 7, a uranium price
of $32.30 (US)/lb U3O8was used. Estimated mineral reserves are almost
identical at either price because of the insensitivity of the mineral reserves to the cut-off
grade over the range of these two prices.12
    
    The key economic parameters underlying the mineral reserves include an exchange rate of
$0.91 US=$1.00 Cdn.13
    
    Environmental, permitting, legal, title, taxation, socio-political, marketing or other
issues are not expected to materially affect the above estimate of mineral reserves and
resources.14
    
    Mineral resources that are not mineral reserves do not have demonstrated economic
viability. 3 8
 Camecos share of Cigar Lake production
    
    2010
    
    2011
    
    2012
    
    2013
    
    2014(million pounds U3O8)
    
    
    1.5
    
    
    
    4.5
    
    
    
    8.8
    
    
    
    9.0
    
    
    
    9.0
 20




---



##### 




    
    Cigar Lake is a challenging deposit to develop and mine. These challenges include
control of groundwater, weak ground formations, and radiation protection. The sandstone
overlying the basement rocks contains significant water at hydrostatic pressure. Freezing
the ground is expected to result in several enhancements to the ground conditions,
including: (1) minimizing the risk of water inflows from saturated rock above the
unconformity; (2) reducing radiation exposure from radon dissolved in the ground water; and
(3) increasing rock stability. However, freezing will only reduce, not eliminate, these
challenges. There is also the possibility of a water inflow during the drilling of holes to
freeze the ground. Therefore, the risk of water inflows at Cigar Lake remains. The
consequences of another water inflow will depend upon the magnitude, location and timing of
any such event, but could include a significant delay in Cigar Lakes remediation,
development or production, a material increase in costs, a loss of mineral reserves or
require Cameco to give notice to many of its customers that it is declaring an interruption
in planned uranium supply. Such consequences could have a material adverse impact on
Cameco. Water inflows are generally not insurable.
    
    Cigar Lakes remediation and production schedules are based upon certain assumptions
regarding the condition of the underground infrastructure at the mine. The condition of
this underground infrastructure, however, will not be known until the mine is dewatered. If
the underground infrastructure has been impaired, this could adversely impact our schedules
and cost estimates.
    
    The outcome of each phase of remediation will impact the schedule of each subsequent
phase of remediation and the planned commencement of production in 2010. For example, if
the plug is not successful in securing the inflow area, then ground freezing, already
incorporated in the remediation plan, will be utilized to secure the inflow area. If this
situation occurs, there could be a delay in the remediation schedule and the commencement
of production.
    
    Remediation and production schedules will be impacted by regulatory approvals. We have
not yet received regulatory approval to drill four drill holes for dewatering the mine
during the first phase of the remediation plan. This approval is required to move forward
with our planned dewatering strategy. We believe that each phase of remediation falls
within the scope of the environment assessment of the Cigar Lake project. If regulatory
authorities do not agree, this could impact our remediation and production schedules. In
addition, working with the regulatory authorities to receive approvals for additional
corrective actions which may result from current inflow investigations may impact our
remediation and production schedules. Readers are cautioned that conclusions, projections
and estimates set out in the section above under the heading Cigar Lake are subject to
the qualifications, assumptions and exclusions which are detailed in the technical report.
To fully understand the summary information set out above, the technical report that will
be filed on SEDAR should be read in its entirety.
  
    
    Alain G. Mainville, a professional geoscientist employed by Cameco as director, mineral
resources management.
    
    Barry W. Schmitke, a professional engineer employed by Cameco as the general manager of
the Cigar Lake project.
  21




---



##### 



Inkai
  3 8
   Purchase Volumes
 6
 Costs
   3 8
 22




---



##### 



3 8
 3 8
  Foreign Exchange
       2007
    
    2008
    
    2009
    
    2010$ millions (US)
    
    
    584
    
    
    
    375
    
    
    
    270
    
    
    
    135EUR millions
    
    
    32
    
    
    
    13
    
    
    
    10
    
    
    
    3
 23




---



##### 



Deferred Gains (Charges)
    
    2007
    
    2008
    
    2009
    
    2010$ millions (Cdn)
    
    
    15
    
    
    
    9
    
    
    
    2
    
    
    
    0
   Uranium Strategies
  
    
    remain one of the low-cost producers,
    
    expand our market position, and
    
    increase supply flexibility.
     24




---



##### 




    
    expand market position,
    
    optimize price realization over time, and
    
    improve supply flexibility.
     
    
    additional production from the successful expansion of existing production, startup
of mines currently under construction and development of existing deposits yet to be
developed,
    
    the success of exploration programs in identifying new commercial uranium deposits
that can be developed in a reasonable period of time,
    
    the exchange rate in various producer country currencies relative to the US dollar,
    
    the timing and extent of expansion of uranium produced as a byproduct or co-product
of other commodities, particularly in Australia and South Africa,
    
    availability of existing and possible new secondary materials, such as blended down
uranium from military stock including dismantled weapons,
    
    the manner in which investment funds liquidate their holdings,
    
    ultimate sales by the US Department of Energy (DOE),
    
    the extent enrichment services are substituted for natural uranium feed, and
    
    the growth rate of nuclear power.
 25




---



##### 



Capability to Deliver Results
  
    
    transitioning successfully from current mining areas to new ones,
    
    advancing other mining methods and technologies,
    
    proceeding with revitalization plans for our milling operations,
    
    obtaining timely regulatory approvals under an increasingly stringent regulatory regime,
    
    securing adequate human resources to replace an aging workforce, including ensuring
skilled tradespeople continue to be available,
    
    ensuring capital is readily available over the longer term given our expansion plans,
    
    allocating adequate resources to exploration, and
    
    evaluating and acting upon opportunities that we expect to add value.
 transition to new mining areas
  26




---



##### 



Mining Methods
   27




---



##### 



Revitalization of Mills
 Regulatory Approval
  Human Resources
 Ready Access to Capital
 Exploration Programs
    28




---



##### 



Uranium Business Results
 Uranium Business Highlights
 2006
    
    2005
    
    % ChangeRevenue ($ millions)
    
    
    803
    
    
    
    690
    
    
    
    16Gross profit ($ millions)
    
    
    237
    
    
    
    159
    
    
    
    49Gross profit %
    
    
    30
    
    
    
    23
    
    
    
    30Earnings before taxes ($ millions)1
    
    
    181
    
    
    
    134
    
    
    
    35Average realized price($US/lb)
    
    
    20.62
    
    
    
    15.45
    
    
    
    33($Cdn/lb)
    
    
    24.72
    
    
    
    20.14
    
    
    
    23Sales volume (million lbs) 2
    
    
    32.1
    
    
    
    34.2
    
    
    
    (6
    )Deferred sales volume (million lbs)
    
    
    4.0
    
    
    
    0
    
    
    
    Production volume (million lbs)
    
    
    20.9
    
    
    
    21.2
    
    
    
    (1
    )
 
 1
    
    Excludes $69 million in earnings related to the gain on sale of Energy Resources
of Australia Ltd shares for the year ended December 31, 2005.2
    
    Total delivered volumes for 2006 was 36.2 million pounds. Revenue on 4.0 million
pounds was deferred due to standby product loans. 3 8 6
  3 8
   3 8 3 8
 29




---



##### 



Revenue
  Cost of Products and Services Sold
 Depreciation, Depletion and Reclamation
 Gross Profit
 2007 Outlook for Uranium
   30




---



##### 



3 8
  31




---



##### 



Calculation of Tiered Royalties
  
    
    based on 100,000 pounds U3O8sold, and
    
    no capital allowance are available
 Sales Price
    
    Tier 1
    
    Tier 2
    
    Tier 3Realized ($ Cdn)
    
    Royalty1
    
    Royalty2
    
    Royalty3
    
    Total Tiered Royalty$25.00
    
    $
    53,040
    
    
    $
    3,040
    
    
    
    
    
    
    $
    56,080$35.00
    
    $
    113,040
    
    
    $
    43,040
    
    
    $
    13,350
    
    
    $
    169,430$45.00
    
    $
    173,040
    
    
    $
    83,040
    
    
    $
    63,350
    
    
    $
    319,430$55.00
    
    $
    233,040
    
    
    $
    123,040
    
    
    $
    113,350
    
    
    $
    469,430$65.00
    
    $
    293,040
    
    
    $
    163,040
    
    
    $
    163,350
    
    
    $
    619,430$75.00
    
    $
    353,040
    
    
    $
    203,040
    
    
    $
    213,350
    
    
    $
    769,430$85.00
    
    $
    413,040
    
    
    $
    243,040
    
    
    $
    263,350
    
    
    $
    919,430
 
 1
    
    6% x (Sales Price  $16.16) x 100,000 pounds U3O82
    
    4% x (Sales Price  $24.24) x 100,000 pounds U3O83
    
    5% x (Sales Price  $32.33) x 100,000 pounds U3O8  
    
    no significant changes in our estimates for sales volumes, costs, purchases and prices,
as discussed above,
    
    no disruption of supply from our mines or third-party sources, and
    
    a US/Canadian dollar spot exchange rate of $1.16.
 Uranium Exploration
   32




---



##### 



2006 Exploration Results
 Brownfield Exploration
 3 8
  Regional Exploration
    Junior Exploration Companies
   33




---



##### 




    
    As long as Cameco continues to hold 10% of UNORs outstanding common shares, it will
have the right to nominate one person for election to UNORs board of directors, and UNOR
will consult with Cameco on its exploration and development programs;
    
    As long as Cameco continues to hold 16% of UNORs outstanding common shares, it will
have the right to participate in any future equity issues, match equity or debt required
for mine development, operate any mine developed on UNORs properties and market any
uranium produced; and
    
    Cameco and UNOR each have a right of first refusal on each others uranium projects in a
specified area of Nunavut and the Northwest Territories.
  2007 Exploration outlook
 Brownfield Exploration
   34




---



##### 



Regional Exploration
  FUEL SERVICES BUSINESS  6 2
 3 8 3 8
 Conversion Demand  6 2
  Conversion Supply  6 6 6 6 6
  35




---



##### 



6
 Conversion Markets  6 2 2 3 8 6 2
 Spot/Long-Term Conversion Market  6
 Dec 31/06
    
    Dec 31/05
    
    % ChangeAverage spot market price ($US/kgU)· North America
    
    
    11.75
    
    
    
    11.50
    
    
    
    2· Europe
    
    
    12.38
    
    
    
    11.50
    
    
    
    8
  Dec 31/06
    
    Dec 31/05
    
    % ChangeAverage long-term price ($US/kgU)· North America
    
    
    12.25
    
    
    
    12.00
    
    
    
    2· Europe
    
    
    13.75
    
    
    
    12.88
    
    
    
    7
 2
 Conversion Business  Key Performance Drivers
 
    
    prices  spot and long-term,
    
    volume  sales, production and purchases,
    
    costs  production and purchases, and
    
    the relationship between the US and Canadian dollars.
 Prices  Spot/Long-Term  6
 36




---



##### 



Volumes  Sales, Production, Purchases
 Sales Volume
  Production Volume  6 2
  3
   Purchase Volume  6
 Costs
 37




---



##### 



6
 Foreign Exchange
 Fuel Fabrication
   Fuel Services Strategies
 
    
    remain one of the low-cost producers,
    
    expand market position, and
    
    increase supply flexibility.
  
    
    improve its margins,
    
    ensure adequate production, and
    
    grow its market position.
  38




---



##### 



Capability to Deliver Results
 
    
    community relations at Port Hope continue to strengthen,
 
    
    adequate human resources are available to replace an aging workforce,
 
    
    capital is available over the longer term given our expansion plans, and
 
    
    adequate resources are allocated to maintain and grow our fuel services business.
 Community Relations
 Human Resources
 Ready Access to Capital
 Adequate Resources
 Fuel Services Business Results
 39




---



##### 



Conversion Highlights
 2006
    
    2005
    
    % ChangeRevenue ($ millions)
    
    
    224
    
    
    
    158
    
    
    
    42Gross profit ($ millions)
    
    
    25
    
    
    
    28
    
    
    
    (11
    )Gross profit %
    
    
    11
    
    
    
    18
    
    
    
    (39
    )Earnings before taxes ($ millions)
    
    
    22
    
    
    
    25
    
    
    
    (12
    )Sales volume (million kgU) 1,2
    
    
    18.5
    
    
    
    16.6
    
    
    
    11Production volume (million kgU)2
    
    
    13.2
    
    
    
    11.4
    
    
    
    16
 
 1
    
    Kilograms of uranium2
    
    Includes Zircatec sales and production in 2006   Revenue  6
 Cost of Products and Services Sold
 Depreciation, Depletion and Reclamation
 40




---



##### 



Gross Profit
 Fuel Services Outlook for 2007
   
    
    no significant changes in our estimates for sales volumes, costs, and prices, as discussed above,
 
    
    no disruption of supply from our facilities or third-party sources, and
 
    
    a US/Canadian dollar spot exchange rate of $1.16.
 Fuel Services Price Sensitivity Analysis
 NUCLEAR ELECTRICITY GENERATION BUSINESS
 Nuclear Electricity Generation Business Results
  41




---



##### 



Bruce Power Limited Partnership (100% basis) 1
 2006
    
    2005
    
    % ChangeOutput  terawatt hours (TWh)1
    
    
    25.8
    
    
    
    30.8
    
    
    
    (16
    )Capacity factor (%) 2
    
    
    91
    
    
    
    79
    
    
    
    15Realized price ($/MWh)
    
    
    48
    
    
    
    58
    
    
    
    (17
    )Average Ontario electricity
spot price ($/MWh)
    
    
    46
    
    
    
    68
    
    
    
    (32
    )($ millions)Revenue
    
    
    1,242
    
    
    
    1,787
    
    
    
    (31
    )Operating costs 3
    
    
    807
    
    
    
    1,202
    
    
    
    (33
    )Cash costs
    
    
    701
    
    
    
    1,008
    
    
    
    (31
    )- operating & maintenance
    
    
    523
    
    
    
    779
    
    
    
    (33
    )- fuel
    
    
    65
    
    
    
    73
    
    
    
    (11
    )- supplemental rent 4
    
    
    113
    
    
    
    156
    
    
    
    (28
    )Non cash costs (amortization)
    
    
    106
    
    
    
    194
    
    
    
    (45
    )Income before interest
and finance charges
    
    
    435
    
    
    
    585
    
    
    
    (26
    )Interest and finance charges
    
    
    47
    
    
    
    65
    
    
    
    (28
    )Earnings before taxes 5
    
    
    388
    
    
    
    520
    
    
    
    (25
    )Cash from operations
    
    
    514
    
    
    
    771
    
    
    
    (33
    )Capital expenditures
    
    
    103
    
    
    
    323
    
    
    
    (68
    )Operating costs ($/MWh)
    
    
    31
    
    
    
    39
    
    
    
    (21
    )Distributions 6
    
    
    480
    
    
    
    1,033
    
    
    
    (54
    )
 
 1
    
    In 2006, BPLP consists of the four B units, while in 2005 it included six units
(four B and two A units) for the first 10 months and four B units for the remainder of the
year.2
    
    Capacity factor for a given period represents the amount of electricity actually
produced for sale as a percentage of the amount of electricity the plants are capable of
producing for sale.3
    
    Net of cost recoveries.4
    
    Supplemental rent is about $28.3 million per operating reactor for 2006.5
    
    Excludes $149 million loss recorded on the restructuring of BPLP on October 31, 2005.6
    
    Distributions in 2005 include $633 million due to the Bruce Power restructuring.
Camecos share was $200 million. Camecos Earnings from BPLP
 $ millions
    
    2006
    
    2005
    
    % ChangeBPLPs earnings before taxes (100%)1
    
    
    388
    
    
    
    520
    
    
    
    (25
    )Camecos share of pre-tax earnings
before adjustments
    
    
    122
    
    
    
    164
    
    
    
    (26
    )Proprietary adjustments
    
    
    6
    
    
    
    6
    
    
    
    Pre-tax earnings from BPLP
    
    
    128
    
    
    
    170
    
    
    
    (25
    )
 
 1
    
    Excludes $149 million loss recorded on the restructuring of Bruce Power on
October 31, 2005. Nuclear Electricity Generation Business Highlights
 Earnings Before Taxes
 42




---



##### 



output
 price
  Costs
 Cash from Operations
 Capital Expenditures
 Cash Distributions
 BPLP Outlook Considerations
 43




---



##### 



BPLPs Outlook for 2007
     2007 BPLP Capital Expenditures (100% Basis)
  2007 BPLP Capital Plan
    
    Bruce B
    
    Common$ millions
    
    Specific
    
    Capital
    
    Total BPLPCategoryMajor Projects
    
    $
    17
    
    
    $
    16
    
    
    $
    33Improvement
    
    
    15
    
    
    
    
    
    
    
    15Sustaining
    
    
    23
    
    
    
    32
    
    
    
    55Total Capital Plan
    
    $
    55
    
    
    $
    48
    
    
    $
    103
  44




---



##### 



Electricity Price Sensitivity Analysis
 New Fuel Program
   GOLD
 Centerra
  
    
    Centerras growth strategy is to increase its reserve base and expand its current
portfolio of gold mining operations by:
 
    
    developing new reserves at existing mines from in-pit, adjacent and
regional exploration,
    
    advancing late stage exploration properties by additional drill programs,
and feasibility studies as warranted, and
    
    actively pursuing selective acquisitions or mergers primarily in Central
Asia, the former Soviet Union and other emerging markets.
 
 45




---



##### 



Gold Operating Results
 Gold Highlights
    
    2006
    
    2005
    
    % ChangeRevenue ($ millions)
    
    
    414
    
    
    
    412
    
    
    
    1Gross profit ($ millions)
    
    
    101
    
    
    
    107
    
    
    
    (6
    )Gross profit %
    
    
    24
    
    
    
    26
    
    
    
    (8
    )Realized price ($US/ounce)
    
    
    597
    
    
    
    433
    
    
    
    38Sales volume (ounces)
    
    
    610,000
    
    
    
    781,000
    
    
    
    (22
    )Production (ounces)
    
    
    587,000
    
    
    
    787,000
    
    
    
    (25
    )
 Gold Financial Results
  46




---



##### 



Gold Outlook for 2007
 
    
    Centerras forecast production is achieved,
    
    spot gold price of $600 (US) per ounce, and
    
    a US/Canadian dollar spot exchange rate of $1.16.
  Gold Price Sensitivity Analysis
 Qualified Person
  47




---



##### 



2006 FOURTH QUARTER CONSOLIDATED RESULTS
 Financial Highlights
    
    Three months($ millions except per share amounts)
    
    ended Dec 31
    
    % Change2006
    
    2005Revenue 1
    
    
    512
    
    
    
    522
    
    
    
    (2
    )Earnings from operations
    
    
    36
    
    
    
    59
    
    
    
    (39
    )Cash provided by operations 2
    
    
    13
    
    
    
    91
    
    
    
    (86
    )Net earnings
    
    
    40
    
    
    
    83
    
    
    
    (52
    )Earnings per share (EPS)  basic ($)
    
    
    0.11
    
    
    
    0.24
    
    
    
    (54
    )EPS  diluted ($)
    
    
    0.11
    
    
    
    0.23
    
    
    
    (52
    )EPS  adjusted and diluted ($)
    
    
    0.11
    
    
    
    0.21
    
    
    
    (48
    )Adjusted net earnings 3
    
    
    40
    
    
    
    76
    
    
    
    (47
    )
 
 1
    
    In 2006, revenue from Bruce Power Limited Partnership (BPLP) was proportionately
consolidated. In 2005, consolidated revenue included Camecos proportionate share of BPLP revenue
following the restructuring of the partnership as of October 31, 2005. Prior to that date, we
accounted for BPLP using the equity accounting method.2
    
    After working capital changes.3
    
    Net earnings for 2006 have been adjusted to exclude a $73 million ($0.19 per share
diluted) recovery of future income taxes related to reductions in federal and provincial income tax
rates and adjusted to exclude a $29 million gain ($0.08 per share diluted) on sale of our interest
in the Fort à la Corne joint venture. Net earnings for the quarter and year ended December 31, 2005
have been adjusted to exclude $69 million ($0.19 per share diluted) in net earnings related to the
gain on sale of Energy Resources of Australia Ltd shares as well as $62 million ($0.17 per share
diluted) in net loss related to the restructuring of the Bruce Power Limited Partnership. Adjusted
net earnings is a non-GAAP measure used to provide a representative comparison of the financial
results.     48




---



##### 



2005-2006 QUARTERLY CONSOLIDATED FINANCIAL HIGHLIGHTS
 Highlights($ millions except per share amounts)
    
    2006
    
    2005Q4
    
    Q3
    
    Q2
    
    Q1
    
    Q4
    
    Q3
    
    Q2
    
    Q1Revenue
    
    
    512
    
    
    
    360
    
    
    
    417
    
    
    
    542
    
    
    
    522
    
    
    
    287
    
    
    
    287
    
    
    
    216Net earnings
    
    
    40
    
    
    
    73
    
    
    
    150
    
    
    
    112
    
    
    
    83
    
    
    
    79
    
    
    
    34
    
    
    
    20EPS  basic ($)
    
    
    0.11
    
    
    
    0.21
    
    
    
    0.43
    
    
    
    0.32
    
    
    
    0.24
    
    
    
    0.23
    
    
    
    0.10
    
    
    
    0.06EPS  diluted ($)
    
    
    0.11
    
    
    
    0.20
    
    
    
    0.40
    
    
    
    0.30
    
    
    
    0.23
    
    
    
    0.22
    
    
    
    0.10
    
    
    
    0.06EPS  adjusted & diluted ($)
    
    
    0.11
    
    
    
    0.12
    
    
    
    0.21
    
    
    
    0.30
    
    
    
    0.21
    
    
    
    0.22
    
    
    
    0.10
    
    
    
    0.06Cash from operations
    
    
    13
    
    
    
    79
    
    
    
    40
    
    
    
    286
    
    
    
    91
    
    
    
    148
    
    
    
    (45
    )
    
    
    84
  
    
    Revenue of $512 million in the fourth quarter of 2006 was 42%
higher than in the third quarter due to higher sales volumes and
improved prices in the uranium and fuel services businesses.
Revenue is driven by timing of deliveries in our uranium and fuel
services businesses, and has tended to be higher in the fourth
quarter. However in 2006, the deliveries were more heavily
weighted in the first quarter of the year.
 
    
    Net earnings do not trend directly with revenue because past
results are significantly influenced by results from BPLP. Prior
to November 1, 2005, the equity method of accounting was applied
to the investment in BPLP and thus no BPLP revenue or costs were
recorded. On November 1, 2005, Cameco moved to proportionate
consolidation of BPLPs financial results. For 2006, we have
included our share of revenue, expenses and cash flow from the
Bruce B reactors. The adjustment in our accounting method for BPLP
does not change the reporting of our net earnings.
 
    
    Cash from operations tends to fluctuate largely due to the timing
of deliveries and product purchases in the uranium production and
fuel services businesses.
 49




---



##### 



2006 CONSOLIDATED RESULTS
 Consolidated Earnings
 Earnings
    Corporate Expenses  Administration
 Interest and Other
 Income Taxes
  50




---



##### 



Cash Resources
 Operating Activities
 Investing Activities
  Financing Activities
 51




---



##### 



Balance Sheet
 Cash
 Inventories
 Debt
 Investments
 Book Value
    
    
    Market Value1Investment ($ millions)
    
    Dec 31/06
    
    
    Dec 31/06
    
    
    Dec. 31/05Centerra Gold Inc.
    
    $
    443
    
    
    $
    1,504
    
    
    $
    1,069UEX Corporation
    
    
    19
    
    
    
    220
    
    
    
    167UNOR Inc.
    
    
    9
    
    
    
    14
    
    
    
    Total
    
    $
    471
    
    
    $
    1,738
    
    
    $
    1,236
 1
    
    Market value is calculated as the number of shares outstanding multiplied by the
closing share price as quoted on the TSX on December 31, 2005 and December 31, 2006.
 Off-Balance Sheet Arrangements
 
    
    Financial Assurances:
 
    
    Nuclear Electricity Business,
    
    Liquidity and Capital Resources,
    
    Risks and Risk Management and
    
    Notes 7, 8, 19 and 25 of the Consolidated Financial Statements.
 
    
    Derivative Instruments:
 
    
    Uranium Business,
 52




---



##### 




    
    Risks and Risk Management,
    
    Critical Accounting Estimates and
    
    Note 25 of the Consolidated Financial Statements.
 
    
    Long-term Product Purchase Contracts
 
    
    Uranium Business,
    
    Liquidity and Capital Resources and
    
    Note 24 of the Consolidated Financial Statements.
 CONSOLIDATED OUTLOOK FOR 2007
      
    
    no significant changes in our estimates for sales volumes, purchases and prices, as
discussed above,
    
    no disruption of supply from our facilities or third-party sources, and
    
    a US/Canadian dollar spot exchange rate of $1.16.
    53




---



##### 



Capital Expenditures(Camecos share in $ millions)
    
    2007 Plan
    
    2006 ActualGrowth CapitalMcArthur River
    
    
    
    
    
    $
    9US ISL
    
    
    2
    
    
    
    1Cigar Lake
    
    
    74
    
    
    
    120Fuel Services
    
    
    19
    
    
    
    Inkai
    
    
    62
    
    
    
    37Gold1
    
    
    99
    
    
    
    94Total Growth
    
    $
    256
    
    
    $
    261Sustaining
CapitalMcArthur River/Key Lake
    
    $
    78
    
    
    $
    29US ISL
    
    
    33
    
    
    
    23Rabbit Lake
    
    
    63
    
    
    
    24Fuel Services
    
    
    37
    
    
    
    18Bruce Power (BPLP)
    
    
    33
    
    
    
    33Gold1
    
    
    28
    
    
    
    27Other
    
    
    14
    
    
    
    14Total Sustaining
    
    $
    286
    
    
    $
    168Capitalized interest
    
    
    35
    
    
    
    31Total
    
    $
    577
    
    
    $
    460
 1
    
    Represents 100% of Centerras expenditures.
 LIQUIDITY AND CAPITAL RESOURCES
 Overview
 3 8
 54




---



##### 



Liquidity Indicators
 2006
    
    2005
    
    2004
    
    2003
    
    2002Cash provided by
operations ($ millions)
    
    
    418
    
    
    
    278
    
    
    
    228
    
    
    
    250
    
    
    
    241Cash provided by
operations/net
debt1 (%)
    
    
    113
    
    
    
    118
    
    
    
    69
    
    
    
    48
    
    
    
    66Net debt*/total
capitalization (%)
    
    
    12
    
    
    
    9
    
    
    
    13
    
    
    
    22
    
    
    
    18
 1
    
    Total debt less cash and cash equivalents based on consolidated amounts.
 Indicators Defined
   Credit Ratings
 Security
    
    DBRS
    
    S&PCommercial Paper
    
    R-1 (low)
    
    A-1 (low)1Senior Unsecured Debentures
    
    A (low)
    
    BBB+Convertible Debentures
    
    BBB (high)
    
    Not Rated
 1
    
    A-1 (low) is the Canadian National Scale Rating while the Global Scale Rating is
A-2.
 Debt
  55




---



##### 



Product Loan Facilities  3 8 6
    Debentures
 Convertible Debentures
 Debt Covenants
 56




---



##### 



Contractual Cash Obligations
 Due in
    
    Due in
    
    Due in
    
    DueAs at December 31, 2006
    
    
    
    
    
    Less Than
    
    1  3
    
    4  5
    
    After($ million)
    
    Total
    
    1 Year
    
    Years
    
    Years
    
    5 YrsLong-term debt 1
    
    
    727
    
    
    
    8
    
    
    
    19
    
    
    
    25
    
    
    
    675Interest on long-term debt
    
    
    207
    
    
    
    26
    
    
    
    51
    
    
    
    51
    
    
    
    79Other liabilities
    
    
    373
    
    
    
    11
    
    
    
    11
    
    
    
    1
    
    
    
    350Unconditional product
purchase obligations
2,3
    
    
    1,171
    
    
    
    202
    
    
    
    308
    
    
    
    281
    
    
    
    380Total contractual cash
obligations
    
    
    2,478
    
    
    
    247
    
    
    
    389
    
    
    
    358
    
    
    
    1,484
 1
    
    Includes the amortized value of the conversion option associated with the
convertible debentures. Refer to note 7 in the notes to the consolidated financial statements.2
    
    Denominated in US dollars. Converted to Canadian dollars at the December 31, 2006 rate
of $1.1653.3
    
    Virtually all of Camecos product purchase obligations are under long-term,
fixed-price arrangements.
 Commercial Commitments
 As at December 31, 2006
    
    Total amounts($ millions)
    
    committedStandby letters of credit 1
    
    
    213BPLP guarantees 2
    
    
    84Total commercial commitments
    
    
    297
 1
    
    The standby letters of credit maturing in 2007 were issued with a one-year term
and will be automatically renewed on a year-by-year basis until the underlying obligations are
resolved. These obligations are primarily the decommissioning and reclamation of Camecos mining
and conversion facilities. As such, the letters of credit are expected to remain outstanding well
into the future.2
    
    At December 31, 2006, Camecos total commitment for financial assurances given on
behalf of BPLP was estimated to be $84 million. Refer to note 19 in the notes to consolidated
financial statements.
 57




---



##### 



2004-2006 CONSOLIDATED FINANCIAL HIGHLIGHTS
 For the Years Ended December 31($ millions except per share amounts)
    
    2006
    
    2005
    
    2004Revenue
    
    
    1,832
    
    
    
    1,313
    
    
    
    1,048Earnings from operations
    
    
    335
    
    
    
    121
    
    
    
    123Net earnings
    
    
    376
    
    
    
    215
    
    
    
    277 per common share (basic)
    
    
    1.07
    
    
    
    0.62
    
    
    
    0.81 per common share (diluted)
    
    
    1.02
    
    
    
    0.60
    
    
    
    0.77Adjusted net earnings 1
    
    
    274
    
    
    
    208
    
    
    
    183Cash provided by operations
    
    
    418
    
    
    
    278
    
    
    
    228Total assets
    
    
    5,140
    
    
    
    4,773
    
    
    
    4,052Long-term financial liabilities
    
    
    1,582
    
    
    
    1,687
    
    
    
    1,306Dividends per common share
    
    $
    0.20
    
    
    $
    0.12
    
    
    $
    0.10
 1
    
    Net earnings for 2006 have been adjusted to exclude a $73 million ($0.19 per
share diluted) recovery of future income taxes related to reductions in federal and provincial
income tax rates and adjusted to exclude a $29 million gain ($0.08 per share diluted) on sale of
our interest in the Fort à la Corne joint venture. Net earnings for 2005 have been adjusted to
exclude $69 million ($0.19 per share diluted) in net earnings related to the gain on sale of Energy
Resources of Australia Ltd shares as well as $62 million ($0.17 per share diluted) in net loss
related to the restructuring of the Bruce Power Limited Partnership. Adjusted net earnings is a
non-GAAP measure used to provide a representative comparison of the financial results.
  
    
    Revenue has trended higher over the three-year period, rising by 75% over 2004 to a
record $1,832 million in 2006. Approximately half of this increase was related to the
electricity business where the restructuring undertaken late in 2005 required a change in
accounting, from equity method to proportionate consolidation. In 2006, we reported
electricity revenues of $408 million.
    
    Revenue has also been influenced by improved prices in the uranium and gold businesses.
Our realized price for uranium concentrates has increased consistently over the three-year
period, averaging $24.72 (Cdn) per pound in 2006 compared to $17.97 (Cdn) per pound for
2004, a 38% improvement. We have also seen consistent improvement in the price for gold,
where our average realized price has risen by 50% during the period due to higher spot
prices. In addition, revenues in our fuel services business have risen by 55% due to
increased volumes and realized prices as well as the acquisition of Zircatec in early 2006.
    
    Earnings from operations have also trended higher during the period but the rise has
been tempered by higher costs for product sold, higher administration charges and greater
investment in exploration. The increase in the cost of sales was attributable to higher
costs for purchased uranium and conversion services, driven by rising spot prices. Our
administration costs have risen significantly over the three-year period due to
establishing Centerra as a separate publicly traded company, higher stock compensation
expenses and higher costs for regulatory compliance.
    
    Net earnings have not trended with revenue due to two main reasons. First, our results
are significantly influenced by operating results from Bruce Power. Until November 1, 2005,
we used the equity method to account for the investment in Bruce Power and therefore no
revenue was recorded prior to that time. Second, our earnings have been influenced by
unusual, one-time items
 58




---



##### 



over the past three years. In 2004, we recorded a gain of $94 million (after tax) on the
restructuring of our gold business. In 2005, there were two unusual items: 1) the disposition
of our investment in ERA which resulted in a gain of $69 million (after tax), and 2) the
restructuring of the BPLP partnership which resulted in an after-tax loss of $62 million. In
2006, we recorded income tax recoveries of $73 million as the result of changes in tax
legislation and we recognized a gain of $29 million (after tax) on the sale of our interest
in the Fort à la Corne joint venture.
 
    
    Excluding the adjustments noted above, net earnings have increased by 50% in 2006 over
the $183 million recorded in 2004. The 14% increase to $208 million in 2005 from 2004 was
attributable to improved results in the uranium business as well as stronger performance at
BPLP. The improvement in the uranium business was due to a higher realized price, which was
related mainly to the significant increase in the spot price for uranium. Earnings from
BPLP benefited from a 23% increase in realized price due to higher spot prices in Ontario.
The improvement in net earnings from 2005 to 2006 was due largely to improved results in
our uranium and gold businesses. The higher earnings were partially offset by reduced
earnings from BPLP as well as higher charges for administration and the recognition of
remediation costs at Cigar Lake. The improvement in the uranium profits was due to the
higher average realized price, which was mainly the result of higher prices under
fixed-price contracts and a higher uranium spot price. The gold business also benefited
from higher realized prices with the spot price averaging $602 (US) per ounce in 2006, an
increase of 35% over 2005. The earnings from BPLP declined due to a $10 per MWh (17%)
decrease in the average realized price to $48.00 per MWh as a result of lower electricity
spot prices.
    
    In 2006, Cameco generated record cash from operations of $418 million compared to $278
million in 2005. This increase of $140 million was mainly attributable to higher revenues
and the proportionate consolidation of BPLP results in 2006. Cash from operations of $278
million in 2005 represented an increase of $50 million compared to the $228 million
recorded in 2004. This increase was mainly due to higher revenues in the uranium and gold
businesses compared to 2004.
    
    The major components of Camecos long-term financial liabilities are long-term debt,
future income taxes and the provision for reclamation. In 2006, Camecos total long-term
financial liabilities declined to $1,582 million from $1,687 million at the end of 2005 due
to a $154 million decrease in long-term debt, and a $133 million reduction in future income
taxes due largely to changes in Canadian tax rates. These reductions were partially offset
by an increase in other liabilities related to revenue deferrals under our product loan
arrangements and higher liabilities for reclamation at our fuel services facilities in
Ontario.
    
    At the end of 2006, Camecos total assets amounted to $5,140 million, an increase of
$367 million over the previous year. Most of the change was due to the increased investment
in property, plant and equipment related to the acquisition of Zircatec and development
expenditures for Cigar Lake, Inkai and gold.
 OUTSTANDING SHARE DATA
  59




---



##### 



RESERVES AND RESOURCES
   60




---



##### 



Uranium Reserves
  RESERVES
    
    PROVEN
    
    PROBABLE
    
    TOTAL RESERVES(100% basis)
    
    (100% basis)
    
    (100% basis)Content
    
    
    
    
    
    
    
    
    
    Content
    
    
    
    
    
    
    
    
    
    Content
    
    Camecos
    
    EstimatedGrade
    
    (lbs
    
    
    
    
    
    Grade
    
    (lbs
    
    
    
    
    
    Grade
    
    (lbs
    
    Share
    
    Metallurgical
    
    MiningTonnes
    
    %U3O8
    
    U3O8)
    
    Tonnes
    
    %U3O8
    
    U3O8)
    
    Tonnes
    
    %U3O8
    
    U3O8)
    
    (lbs U3O8)
    
    Recovery %
    
    MethodPROPERTY
    
    (tonnes in thousands; pounds in millions)Cigar Lake
    
    
    497.0
    
    
    
    20.67
    
    
    
    226.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    497.0
    
    
    
    20.67
    
    
    
    226.3
    
    
    
    113.2
    
    
    
    98.5
    %
    
    UGCrow Butte
    
    
    901.6
    
    
    
    0.33
    
    
    
    6.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    901.6
    
    
    
    0.33
    
    
    
    6.5
    
    
    
    6.5
    
    
    
    85.0
    %
    
    ISLGas Hills  Peach
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,851.0
    
    
    
    0.13
    
    
    
    19.7
    
    
    
    6,851.0
    
    
    
    0.13
    
    
    
    19.7
    
    
    
    19.7
    
    
    
    65.0
    %
    
    ISLHighland
    
    
    278.5
    
    
    
    0.13
    
    
    
    0.8
    
    
    
    935.1
    
    
    
    0.13
    
    
    
    2.7
    
    
    
    1,213.6
    
    
    
    0.13
    
    
    
    3.5
    
    
    
    3.5
    
    
    
    80.0
    %
    
    ISLInkai
    
    
    22,694.0
    
    
    
    0.07
    
    
    
    35.4
    
    
    
    63,727.0
    
    
    
    0.06
    
    
    
    79.0
    
    
    
    86,421.0
    
    
    
    0.06
    
    
    
    114.4
    
    
    
    68.6
    
    
    
    80.0
    %
    
    ISLKey Lake
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    0.7
    
    
    
    98.7
    %
    
    OPMcArthur River
    
    
    530.2
    
    
    
    17.49
    
    
    
    204.5
    
    
    
    280.0
    
    
    
    26.33
    
    
    
    162.5
    
    
    
    810.2
    
    
    
    20.55
    
    
    
    367.0
    
    
    
    256.2
    
    
    
    98.7
    %
    
    UGNorth Butte/
Brown Ranch
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,874.6
    
    
    
    0.10
    
    
    
    8.5
    
    
    
    3,874.6
    
    
    
    0.10
    
    
    
    8.5
    
    
    
    8.5
    
    
    
    80.0
    %
    
    ISLRabbit Lake
    
    
    40.0
    
    
    
    1.15
    
    
    
    1.0
    
    
    
    696.5
    
    
    
    1.18
    
    
    
    18.1
    
    
    
    736.5
    
    
    
    1.18
    
    
    
    19.1
    
    
    
    19.1
    
    
    
    96.7
    %
    
    UGRuby Ranch
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,832.2
    
    
    
    0.09
    
    
    
    5.5
    
    
    
    2,832.2
    
    
    
    0.09
    
    
    
    5.5
    
    
    
    5.5
    
    
    
    80.0
    %
    
    ISLRuth
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    853.7
    
    
    
    0.09
    
    
    
    1.7
    
    
    
    853.7
    
    
    
    0.09
    
    
    
    1.7
    
    
    
    1.7
    
    
    
    80.0
    %
    
    ISLSmith Ranch
    
    
    676.9
    
    
    
    0.10
    
    
    
    1.5
    
    
    
    3,143.1
    
    
    
    0.12
    
    
    
    8.3
    
    
    
    3,820.0
    
    
    
    0.12
    
    
    
    9.8
    
    
    
    9.8
    
    
    
    80.0
    %
    
    ISLTotal
    
    
    25,680.1
    
    
    
    
    
    
    
    476.7
    
    
    
    83,193.2
    
    
    
    
    
    
    
    306.0
    
    
    
    108,873.3
    
    
    
    
    
    
    
    782.7
    
    
    
    513.0
    
    
    
    
    
    
    
    
  1
    
    Cameco reports reserves and resources separately.2
    
    Cigar Lake reserves are current as at March 16, 2007.3
    
    Mill recovery factors must be applied in order to obtain the expected amounts of recovered pounds U3O8.4
    
    Mineral Reserves incorporate allowances for dilution and mining losses.5
    
    Mining Method: OP  Open Pit; UG  Underground; ISL  In situ leaching.6
    
    Reserves are estimated using current geological models and current and/or projected operating costs and mine plans. Camecos normal data verification procedures have been employed in connection with the reserve estimations for each property, unless otherwise set out in this MD&A.7
    
    For the purpose of estimating mineral reserves in accordance with NI 43-101, a uranium price of $38.50 (US)/lb U3O8 was used. For the purpose of estimating mineral reserves in accordance with US Securities Commission Industry Guide 7, a uranium price of $32.30 (US)/lb
U3O8 was used. Estimated mineral reserves are identical at either price.8
    
    The key economic parameters underlying the mineral reserves include an exchange rate of $0.91 US=$1.00 Cdn.9
    
    Except as otherwise set out in this MD&A, environmental, permitting, legal, title, taxation, socio-political, marketing or other issues are not expected to materially affect the above estimates of mineral reserves.10
    
    Totals may not add up due to rounding.
  61




---



##### 



Uranium Measured and Indicated Resources
 Cautionary Note to Investors concerning estimates of Measured and Indicated Resources
  MEASURED
    
    
    INDICATED
    
    
    MEASURED AND INDICATEDRESOURCES
    
    (100% basis)
    
    
    (100% basis)
    
    
    (100% basis)Content
    
    
    
    
    
    
    
    
    
    
    Content
    
    
    
    
    
    
    
    
    
    
    Content
    
    
    CamecosGrade
    
    
    (lbs
    
    
    
    
    
    
    Grade
    
    
    (lbs
    
    
    
    
    
    
    Grade
    
    
    (lbs
    
    
    Share
    
    
    MiningTonnes
    
    
    % U3O8
    
    
    U3O8)
    
    
    Tonnes
    
    
    % U3O8
    
    
    U3O8)
    
    
    Tonnes
    
    
    % U3O8
    
    
    U3O8)
    
    
    (lbs U3O8)
    
    
    MethodPROPERTY
    
    (tonnes in thousands; pounds in millions)Cigar Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61.2
    
    
    
    4.86
    
    
    
    6.6
    
    
    
    61.2
    
    
    
    4.86
    
    
    
    6.6
    
    
    
    3.3
    
    
    UGCrow Butte
    
    
    64.5
    
    
    
    0.23
    
    
    
    0.3
    
    
    
    1,475.8
    
    
    
    0.25
    
    
    
    8.1
    
    
    
    1,540.3
    
    
    
    0.25
    
    
    
    8.4
    
    
    
    8.4
    
    
    ISLDawn Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    7.4
    
    
    OP&UGGas Hills  Peach
    
    
    2,013.0
    
    
    
    0.08
    
    
    
    3.3
    
    
    
    1,153.0
    
    
    
    0.07
    
    
    
    2.3
    
    
    
    3,166.0
    
    
    
    0.08
    
    
    
    5.6
    
    
    
    5.6
    
    
    ISLHighland
    
    
    782.3
    
    
    
    0.10
    
    
    
    1.7
    
    
    
    47.0
    
    
    
    0.09
    
    
    
    0.1
    
    
    
    829.3
    
    
    
    0.10
    
    
    
    1.8
    
    
    
    1.8
    
    
    ISLInkai
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,042.0
    
    
    
    0.06
    
    
    
    14.2
    
    
    
    11,042.0
    
    
    
    0.06
    
    
    
    14.2
    
    
    
    8.5
    
    
    ISLMcArthur River
    
    
    75.0
    
    
    
    8.51
    
    
    
    14.1
    
    
    
    39.8
    
    
    
    8.37
    
    
    
    7.4
    
    
    
    114.8
    
    
    
    8.49
    
    
    
    21.5
    
    
    
    15.0
    
    
    UGMillennium
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    446.0
    
    
    
    3.81
    
    
    
    37.5
    
    
    
    446.0
    
    
    
    3.81
    
    
    
    37.5
    
    
    
    15.7
    
    
    UGNorth Butte/ Brown
Ranch
    
    
    1,008.8
    
    
    
    0.08
    
    
    
    1.9
    
    
    
    3,923.6
    
    
    
    0.07
    
    
    
    6.3
    
    
    
    4,932.4
    
    
    
    0.07
    
    
    
    8.2
    
    
    
    8.2
    
    
    ISLNorthwest Unit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,000.7
    
    
    
    0.03
    
    
    
    2.3
    
    
    
    4,000.7
    
    
    
    0.03
    
    
    
    2.3
    
    
    
    2.3
    
    
    ISLRabbit Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    180.4
    
    
    
    0.54
    
    
    
    2.2
    
    
    
    180.4
    
    
    
    0.54
    
    
    
    2.2
    
    
    
    2.2
    
    
    UGReynolds Ranch
    
    
    3,073.5
    
    
    
    0.07
    
    
    
    4.5
    
    
    
    5,245.3
    
    
    
    0.06
    
    
    
    7.0
    
    
    
    8,318.8
    
    
    
    0.06
    
    
    
    11.5
    
    
    
    11.5
    
    
    ISLRuby Ranch
    
    
    156.0
    
    
    
    0.17
    
    
    
    0.6
    
    
    
    108.0
    
    
    
    0.06
    
    
    
    0.1
    
    
    
    264.0
    
    
    
    0.12
    
    
    
    0.7
    
    
    
    0.7
    
    
    ISLRuth
    
    
    99.8
    
    
    
    0.10
    
    
    
    0.2
    
    
    
    125.2
    
    
    
    0.07
    
    
    
    0.2
    
    
    
    225.0
    
    
    
    0.07
    
    
    
    0.4
    
    
    
    0.4
    
    
    ISLShirley Basin
    
    
    89.1
    
    
    
    0.15
    
    
    
    0.3
    
    
    
    1,635.9
    
    
    
    0.11
    
    
    
    4.1
    
    
    
    1,725.0
    
    
    
    0.12
    
    
    
    4.4
    
    
    
    4.4
    
    
    ISLSmith Ranch
    
    
    30.8
    
    
    
    0.20
    
    
    
    0.1
    
    
    
    2,406.4
    
    
    
    0.09
    
    
    
    5.0
    
    
    
    2,437.2
    
    
    
    0.09
    
    
    
    5.1
    
    
    
    5.1
    
    
    ISLTotal
    
    
    7,392.8
    
    
    
    
    
    
    
    27.0
    
    
    
    32,237.3
    
    
    
    
    
    
    
    116.3
    
    
    
    39,630.1
    
    
    
    
    
    
    
    143.3
    
    
    
    100.5
    
    
    
    
   1
    
    Cameco reports reserves and resources separately. The amount of reported resources does not include those amounts identified as reserves.2
    
    Cigar Lake resources are current as at March 16, 2007.3
    
    Mining Method: OP  Open Pit; UG  Underground; ISL  In situ leaching.4
    
    Resources are estimated using current geological models. Camecos normal data verification procedures have been employed in connection with the resource estimations for each property, unless otherwise set out in this MD&A.5
    
    Totals may not add up due to rounding.6
    
    Mineral resources that are not mineral reserves do not have demonstrated economic viability. 62




---



##### 



Uranium Inferred Resources
 Cautionary Note to Investors concerning estimates of Inferred Resources
  INFERRED RESOURCES
(100% basis)
 CamecosGrade
    
    
    Content
    
    
    Share
    
    
    MiningTonnes
    
    
    % U3O8
    
    
    (lbs U3O8)
    
    
    (lbs U3O8)
    
    
    MethodPROPERTY
    
    (tonnes in thousands; pounds in millions)Cigar Lake
    
    
    317.0
    
    
    
    16.92
    
    
    
    118.2
    
    
    
    59.1
    
    
    UGCrow Butte
    
    
    2,802.1
    
    
    
    0.16
    
    
    
    10.1
    
    
    
    10.1
    
    
    ISLDawn Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Gas Hills-Peach
    
    
    656.8
    
    
    
    0.05
    
    
    
    0.8
    
    
    
    0.8
    
    
    ISLHighland
    
    
    587.6
    
    
    
    0.15
    
    
    
    2.0
    
    
    
    2.0
    
    
    ISLInkai
    
    
    253,918.0
    
    
    
    0.05
    
    
    
    268.0
    
    
    
    160.8
    
    
    ISLMcArthur River
    
    
    584.6
    
    
    
    7.35
    
    
    
    94.8
    
    
    
    66.2
    
    
    UGMillennium
    
    
    217.0
    
    
    
    2.03
    
    
    
    9.7
    
    
    
    4.1
    
    
    UGNorth Butte/Brown Ranch
    
    
    618.5
    
    
    
    0.07
    
    
    
    1.0
    
    
    
    1.0
    
    
    ISLNorthwest Unit
    
    
    627.8
    
    
    
    0.04
    
    
    
    0.5
    
    
    
    0.5
    
    
    ISLRabbit Lake
    
    
    312.2
    
    
    
    0.59
    
    
    
    4.0
    
    
    
    4.0
    
    
    UGReynolds Ranch
    
    
    5,333.3
    
    
    
    0.04
    
    
    
    4.9
    
    
    
    4.9
    
    
    ISLRuby Ranch
    
    
    60.8
    
    
    
    0.14
    
    
    
    0.2
    
    
    
    0.2
    
    
    ISLRuth
    
    
    210.5
    
    
    
    0.08
    
    
    
    0.4
    
    
    
    0.4
    
    
    ISLShirley Basin
    
    
    506.8
    
    
    
    0.10
    
    
    
    1.1
    
    
    
    1.1
    
    
    ISLSmith Ranch
    
    
    595.7
    
    
    
    0.07
    
    
    
    0.9
    
    
    
    0.9
    
    
    ISLTotal
    
    
    267,348.7
    
    
    
    
    
    
    
    516.6
    
    
    
    316.1
    
    
    
    
   1
    
    Cameco reports reserves and resources separately. The amount of reported resources does not include those amounts identified as reserves.2
    
    Cigar Lake inferred resources are current as at March 16, 2007.3
    
    Mining Method: OP  Open Pit; UG  Underground; ISL  In situ leaching.4
    
    Resources are estimated using current geological models. Camecos normal data verification procedures have been employed in connection with the resource
estimations for each property, unless otherwise set out in this MD&A.5
    
    Totals may not add up due to rounding.6
    
    Mineral resources that are not mineral reserves do not have demonstrated economic viability.7
    
    Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed
that all or any part of the inferred resources will ever be upgraded to a higher category.
 63




---



##### 



Uranium Reserves Reconciliation
   
    
    At McArthur River, 19 million pounds were upgraded from probable reserves to proven
reserves following a review of the mining plan for a portion of zone 2.
    
    At Rabbit Lake, 13.5 million pounds of reserves were added as a result of underground
drilling and increased confidence in the geological interpretation.
    
    At Cigar Lake, 2.6 million pounds of probable reserves were converted to indicated
resources following a revision of the cut-off grade.
 64




---



##### 



Reconciliation of Camecos Share of Uranium Reserves
(in thousands of pounds U 3 O 8 )
 December 31,
    
    
    2006
    
    
    20062005
    
    
    Throughput 1
    
    
    Addition (Deletion)2
    
    
    December 31, 2006Reserves  ProvenCigar Lake
    
    
    113,222
    
    
    
    0
    
    
    
    
    
    
    
    113,222Crow Butte
    
    
    6,815
    
    
    
    (897
    )
    
    
    597
    
    
    
    6,515Highland
    
    
    1,807
    
    
    
    (1,169
    )
    
    
    144
    
    
    
    782Inkai
    
    
    21,211
    
    
    
    0
    
    
    
    
    
    
    
    21,211Key Lake
    
    
    590
    
    
    
    0
    
    
    
    
    
    
    
    590McArthur River
    
    
    136,323
    
    
    
    (12,799
    )
    
    
    19,226
    
    
    
    142,750Rabbit Lake
    
    
    3,127
    
    
    
    (1,405
    )
    
    
    (711
    )
    
    
    1,011Smith Ranch
    
    
    2,845
    
    
    
    (1,390
    )
    
    
    3
    
    
    
    1,458Total Proven Reserves
    
    
    285,940
    
    
    
    (17,660
    )
    
    
    19,259
    
    
    
    287,539Reserves  ProbableCigar Lake
    
    
    2,625
    
    
    
    0
    
    
    
    (2,625
    )
    
    
    0Crow Butte
    
    
    1,013
    
    
    
    0
    
    
    
    (1,013
    )
    
    
    0Gas Hills  Peach
    
    
    19,684
    
    
    
    0
    
    
    
    
    
    
    
    19,684Highland
    
    
    2,663
    
    
    
    0
    
    
    
    
    
    
    
    2,663Inkai
    
    
    47,412
    
    
    
    0
    
    
    
    
    
    
    
    47,412McArthur River
    
    
    135,258
    
    
    
    0
    
    
    
    (21,816
    )
    
    
    113,442North Butte/Brown
Ranch
    
    
    8,524
    
    
    
    0
    
    
    
    
    
    
    
    8,524Rabbit Lake
    
    
    7,863
    
    
    
    (4,000
    )
    
    
    14,241
    
    
    
    18,104Ruby Ranch
    
    
    5,462
    
    
    
    0
    
    
    
    
    
    
    
    5,462Ruth
    
    
    1,689
    
    
    
    0
    
    
    
    
    
    
    
    1,689Smith Ranch
    
    
    8,317
    
    
    
    0
    
    
    
    
    
    
    
    8,317Total Probable
Reserves
    
    
    240,510
    
    
    
    (4,000
    )
    
    
    (11,213
    )
    
    
    225,297Total Reserves
    
    
    526,450
    
    
    
    (21,660
    )
    
    
    8,046
    
    
    
    512,836
   1
    
    Corresponds to millfeed. The discrepancy between the 2006 mill feed and Camecos share of 2006 pounds U3O8
produced is due to mill recovery, mill inventory and the processing of low-grade material.2
    
    Changes in reserves or resources, as applicable, include reassessment of geological data, results of information provided by mining
and milling, and subsequent re-classification of reserves or resources, as applicable.
 Uranium Resources Reconciliation
   
    
    At McArthur River, measured resources increased by 3.4 million pounds due to reclassification.
    
    At Rabbit Lake, 5.3 million pounds of resources were converted to reserves.
    
    At Millennium, resources decreased as a result of additional drilling.
    
    At Cigar Lake, the increase in resources is due to a change in the cut-off.
 65




---



##### 



Reconciliation of Camecos Share of Uranium Resources
(in thousands of pounds U 3 O 8 )
 Addition (Deletion)1December 31, 2005
    
    
    2006
    
    
    December 31, 2006Resources  MeasuredCrow Butte
    
    
    0
    
    
    
    322
    
    
    
    322Gas Hills  Peach
    
    
    3,346
    
    
    
    
    
    
    
    3,346Highland
    
    
    1,663
    
    
    
    
    
    
    
    1,663McArthur River
    
    
    6,427
    
    
    
    3,400
    
    
    
    9,827Millenium
    
    
    0
    
    
    
    
    
    
    
    0North Butte/Brown Ranch
    
    
    1,857
    
    
    
    
    
    
    
    1,857Reynolds Ranch
    
    
    4,493
    
    
    
    
    
    
    
    4,493Ruby Ranch
    
    
    585
    
    
    
    
    
    
    
    585Ruth
    
    
    216
    
    
    
    
    
    
    
    216Shirley Basin
    
    
    304
    
    
    
    
    
    
    
    304Smith Ranch
    
    
    138
    
    
    
    
    
    
    
    138Total Measured Resources
    
    
    19,029
    
    
    
    3,722
    
    
    
    22,751Resources-IndicatedCigar Lake
    
    
    0
    
    
    
    3,282
    
    
    
    3,282Crow Butte
    
    
    8,100
    
    
    
    
    
    
    
    8,100Dawn Lake
    
    
    7,436
    
    
    
    
    
    
    
    7,436Gas Hills  Peach
    
    
    2,310
    
    
    
    
    
    
    
    2,310Highland
    
    
    92
    
    
    
    
    
    
    
    92Inkai
    
    
    8,521
    
    
    
    (5
    )
    
    
    8,516McArthur River
    
    
    5,136
    
    
    
    
    
    
    
    5,136Millennium
    
    
    19,220
    
    
    
    (3,483
    )
    
    
    15,737North Butte/Brown Ranch
    
    
    6,303
    
    
    
    
    
    
    
    6,303Northwest Unit
    
    
    2,341
    
    
    
    
    
    
    
    2,341Rabbit Lake
    
    
    7,486
    
    
    
    (5,322
    )
    
    
    2,164Reynolds Ranch
    
    
    6,960
    
    
    
    
    
    
    
    6,960Ruby Ranch
    
    
    143
    
    
    
    
    
    
    
    143Ruth
    
    
    192
    
    
    
    
    
    
    
    192Shirley Basin
    
    
    4,085
    
    
    
    
    
    
    
    4,085Smith Ranch
    
    
    4,984
    
    
    
    
    
    
    
    4,984Total Indicated Resources
    
    
    83,309
    
    
    
    (5,528
    )
    
    
    77,781Total Measured &
Indicated Resources
    
    
    102,338
    
    
    
    (1,806
    )
    
    
    100,532
  1
    
    Changes in reserves or resources, as applicable, include reassessment of geological data, results
of information provided by mining and milling, and subsequent re-classification of reserves or
resources, as applicable.
 66




---



##### 



Reconciliation of Camecos Share of Uranium Resources
(in thousands of pounds U 3 O 8 ) (Continued)
 2006December 31, 2005
    
    
    Addition (Deletion) 1
    
    
    December 31, 2006Resources  InferredCigar Lake
    
    
    59,105
    
    
    
    
    
    
    
    59,105Crow Butte
    
    
    10,083
    
    
    
    
    
    
    
    10,083Gas Hills  Peach
    
    
    845
    
    
    
    
    
    
    
    845Highland
    
    
    1,977
    
    
    
    
    
    
    
    1,977Inkai
    
    
    160,793
    
    
    
    
    
    
    
    160,793McArthur River
    
    
    66,151
    
    
    
    
    
    
    
    66,151Millennium
    
    
    4,700
    
    
    
    (629
    )
    
    
    4,071North Butte/Brown Ranch
    
    
    966
    
    
    
    
    
    
    
    966Northwest Unit
    
    
    508
    
    
    
    
    
    
    
    508Rabbit Lake
    
    
    3,701
    
    
    
    332
    
    
    
    4,033Reynolds Ranch
    
    
    4,912
    
    
    
    
    
    
    
    4,912Ruby Ranch
    
    
    184
    
    
    
    
    
    
    
    184Ruth
    
    
    365
    
    
    
    
    
    
    
    365Shirley Basin
    
    
    1,132
    
    
    
    
    
    
    
    1,132Smith Ranch
    
    
    896
    
    
    
    
    
    
    
    896Total Inferred Resources
    
    
    316,318
    
    
    
    (297
    )
    
    
    316,021
  1
    
    Changes in reserves or resources, as applicable, include reassessment of geological data, results of
information provided by mining and milling, and subsequent re-classification of reserves or resources, as
applicable.
 67




---



##### 



QUALIFIED PERSONS
 Qualified Persons
    
    PropertiesDoug
Beattie, Chief Mine Engineer, Engineering and Projects, Cameco
Chuck Edwards, Director, Engineering and Projects, Cameco
Alain G. Mainville, Director, Mineral Resources Management, Cameco
    
    Dawn Lake
Key Lake
Millennium
Rabbit LakeCameron Chapman, Technical Superintendent, McArthur River, Cameco
Chuck Edwards, Director, Engineering and Projects, Cameco
Alain G. Mainville, Director, Mineral Resources Management, Cameco
Gary Haywood, General Manager, McArthur River, Cameco
    
    McArthur RiverDoug McIlveen, Cigar Lake Chief Geologist, Cameco
Barry Schmitke, Cigar Lake General Manager, CamecoAlain G. Mainville, Director, Mineral Resources Management, Cameco
Chuck Edwards, Director, Engineering and Projects, Cameco
    
    Cigar LakeDave Crawford, Manager, Project Development, PRI
Chuck Foldenauer, Smith-Ranch Highland Mine Manager, PRI
Steve Lundsford, Sr. Evaluation Geologist, PRI
    
    Crow Butte
Gas Hills  Peach
North Butte/Brown Ranch
Northwest Unit
Reynolds Ranch
Ruby Ranch
Ruth
Shirley Basin
Smith Ranch-HighlandDave Crawford, Manager, Project Development, PRI
Steve Magnuson, VP, Engineering & Development, PRI
Alain G. Mainville, Director, Mineral Resources Management, Cameco
    
    Inkai
  RISKS AND RISK MANAGEMENT
   68




---



##### 



Business Risks
 Regulatory Approval and Expediency
  McArthur River/Key Lake  3 8
    69




---



##### 



3 8
  Key Lake/Rabbit Lake Tailings Management Facilities
   3 8
  Zircatec  2
 2
  70




---



##### 



Blind River Refinery
  Cigar Lake
 Inkai  3 8
 Other
 71




---



##### 



Environmental Regulations
   6
   Limited Number of Customers
 72




---



##### 



Uranium and Conversion Services  3 8 6 6 2 2
   3 8
 6
 Zircatec
 Bruce Power (BPLP)
  Reserve Estimates
  73




---



##### 



3 8 3 8
 3 8
     
    
    Kumtor and Boroo
 
    
    Ian Atkinson, a certified professional geologist, and employed by Centerra as
VP, Exploration.
 
    
    McArthur River:
 
    
    Cameron Chapman, Technical Superintendent, McArthur River, Cameco,
    
    Chuck Edwards, Director, Engineering and Projects, Cameco,
    
    Alain G. Mainville, Director, Mineral Resources Management, and
    
    Cameco Gary Haywood, Mine Manager, McArthur River, Cameco.
 74




---



##### 




    
    Cigar Lake:
 
    
    Doug McIlveen, Cigar Lake Chief Geologist, Cameco,
    
    Barry Schmitke, Cigar Lake General Manager, Cameco,
    
    Alain G. Mainville, Director, Mineral Resources Management, Cameco, and
    
    Chuck Edwards, Director, Engineering and Projects, Cameco.
 Labour Relations
    Counterparty Risk
 75




---



##### 



Market Risks
 product Prices
 Uranium
 
    76




---



##### 



Conversion Services
 Bruce Power
 .
 Gold
  Foreign Exchange Risk
  77




---



##### 



Political Risks
 Political Instability Risk
   Kyrgyz Republic
  78




---



##### 



79




---



##### 



Mongolia
     80




---



##### 



81




---



##### 



Kazakhstan
  Restructuring of Ontarios Electricity Industry
    82




---



##### 



Operational Risks
 Overview
  83




---



##### 



Engineering and Technical
 Water Inflow
     .
  84




---



##### 



Jet Boring Mining Method
  Transition to New Mining Areas at McArthur River
 
   85




---



##### 



Boxhole Boring Mining Method
  Kumtor Highwall Ground Movement
    86




---



##### 



Reclamation and Decommissioning
      Safety, Health and Environment
   87




---



##### 



Electricity Business
   DISCLOSURE CONTROLS AND PROCEDURES
 CRITICAL ACCOUNTING ESTIMATES
  88




---



##### 



CAUTION REGARDING FORWARD-LOOKING INFORMATION
 89




---



##### 



ADDITIONAL INFORMATION
 90