EXHIBIT 99.7
 CAMECO CORPORATION
 RECONCILIATION TO UNITED STATES GAAP




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KPMG LLP
    
    Telephone
    
    (306) 934-6200Chartered Accountants
    
    Fax
    
    (306) 934-6233600-128 4th Avenue South
    
    Internet
    
    www.kpmg.caSaskatoon Saskatchewan S7K 1M8Canada
 AUDITORS REPORT ON RECONCILIATION TO UNITED STATES GAAP




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Reconciliation to United States GAAP
  (a)    Reconciliation of earnings under Canadian GAAP to earnings determined under US GAAP:
 (Recast [e])2009
    
    
    2008Earnings from continuing operations under Canadian GAAP
    
    
    $716,997
    
    
    
    $366,149Add (deduct) adjustments for [d]:Pre-operating costs (i)
    
    
    1,512
    
    
    
    1,512Stock-based compensation (iii)
    
    
    (3,044
    )
    
    
    (65,628
    )In-process research and development (viii)
    
    
    18,294
    
    
    
    (92,736
    )Income tax effect of adjustments
    
    
    (2,881
    )
    
    
    42,509Minority interest in loss under Canadian GAAP1
    
    
    (3,035
    )
    
    
    (245
    )Earnings from continuing operations under US GAAP
    
    
    727,843
    
    
    
    251,561Earnings from discontinued operations under Canadian GAAP
    
    
    382,425
    
    
    
    83,968Add adjustment for:Earnings from discontinued operations [e]
    
    
    93,173
    
    
    
    73,823Earnings from discontinued operations under US GAAP
    
    
    475,598
    
    
    
    157,791Net earnings under US GAAP
    
    
    $1,203,441
    
    
    
    $409,352Less net loss attributable to non-controlling interests1Continuing operations
    
    
    3,035
    
    
    
    245Discontinued operations [e]
    
    
    (61,433
    )
    
    
    (66,244
    )(58,398
    )
    
    
    (65,999
    )Net earnings attributable to common shareholders under US GAAP
    
    
    $1,145,043
    
    
    
    $343,353Other comprehensive income:Comprehensive income under Canadian GAAP
    
    
    $974,970
    
    
    
    $511,832Adjustments to net earnings attributable to common shareholders under US GAAP
    
    
    45,621
    
    
    
    (106,764
    )Add (deduct) adjustments for [d]:Unamortized actuarial gain (iv)
    
    
    (37,006
    )
    
    
    144,795Unamortized actuarial gain transferred to net earnings (iv)
    
    
    (27,712
    )
    
    
    (22,026
    )Foreign currency translation adjustments (viii)
    
    
    12,995
    
    
    
    (18,240
    )Comprehensive income under US GAAP
    
    
    $968,868
    
    
    
    $509,597Net earnings per share under US GAAPBasicContinuing operations
    
    
    $1.87
    
    
    
    $0.72Discontinued operations
    
    
    1.08
    
    
    
    0.26$2.95
    
    
    
    $0.98DilutedContinuing operations
    
    
    $1.87
    
    
    
    $0.72Discontinued operations
    
    
    1.07
    
    
    
    0.26$2.94
    
    
    
    $0.98
 1
    
    As required by Statement of Financial Accounting Standards (SFAS) No. 160,
Non-controlling Interests in Consolidated Financial Statements, the company has reclassified
its non-controlling interests on the statements of earnings and balance sheets.
 1




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(b)
    
    Comparison of balance sheet items determined in accordance with Canadian GAAP to balance
sheet items determined in accordance with US GAAP:
 (i)
    
    Balance Sheets
 (Recast [e])2009
    
    
    2008Canadian
    
    
    US
    
    
    Canadian
    
    
    USGAAP
    
    
    GAAP
    
    
    GAAP
    
    
    GAAPCurrent assets [d(v)]
    
    
    $2,527,741
    
    
    
    $2,258,854
    
    
    
    $1,177,692
    
    
    
    $954,487Current assets  discontinued operations
    
    
    
    
    
    
    
    
    
    
    1,176,056
    
    
    
    1,104,795Property, plant and equipment [d(v)]
    
    
    4,068,103
    
    
    
    3,531,905
    
    
    
    3,932,658
    
    
    
    3,379,966Intangible assets
    
    
    97,713
    
    
    
    97,713
    
    
    
    101,442
    
    
    
    101,442Long-term receivables, investments and other [d(v)(viii)]
    
    
    648,545
    
    
    
    699,337
    
    
    
    622,753
    
    
    
    701,645Total assets
    
    
    $7,342,102
    
    
    
    $6,587,809
    
    
    
    $7,010,601
    
    
    
    $6,242,335Current liabilities [d(v)]
    
    
    $763,057
    
    
    
    $657,266
    
    
    
    $822,724
    
    
    
    $721,099Current liabilities  discontinued operations
    
    
    
    
    
    
    
    
    
    
    743,323
    
    
    
    703,802Long-term debt [d(v)]
    
    
    952,853
    
    
    
    793,842
    
    
    
    1,212,982
    
    
    
    1,042,374Provision for reclamation
    
    
    296,896
    
    
    
    296,896
    
    
    
    313,203
    
    
    
    313,203Other liabilities [d(v)]
    
    
    187,072
    
    
    
    60,547
    
    
    
    179,880
    
    
    
    78,484Deferred income taxes
    
    
    134,356
    
    
    
    40,553
    
    
    
    83,848
    
    
    
    (5,163
    )2,334,234
    
    
    
    1,849,104
    
    
    
    3,355,960
    
    
    
    2,853,799Minority interest
    
    
    164,040
    
    
    
    
    
    
    
    141,018
    
    
    
    Shareholders equityShare capital [d(vi)]
    
    
    1,512,461
    
    
    
    1,499,531
    
    
    
    1,062,714
    
    
    
    1,049,784Contributed surplus
    
    
    131,577
    
    
    
    124,123
    
    
    
    131,858
    
    
    
    121,360Non-controlling interest1
    
    
    
    
    
    
    164,040
    
    
    
    
    
    
    
    141,018Retained earnings
    
    
    3,158,506
    
    
    
    3,016,846
    
    
    
    2,153,315
    
    
    
    1,966,034Accumulated other comprehensive income- net actuarial loss [d(iv)]
    
    
    
    
    
    
    (10,538
    )
    
    
    
    
    
    
    (5,903
    )- equity investment net actuarial loss [d(iv)]
    
    
    
    
    
    
    (110,785
    )
    
    
    
    
    
    
    (50,365
    )- equity investment prior service cost [d(iv)]
    
    
    
    
    
    
    (1,772
    )
    
    
    
    
    
    
    (2,109
    )- cumulative translation account [d(ii)(viii)]
    
    
    (50,398
    )
    
    
    (34,422
    )
    
    
    65,342
    
    
    
    68,323- hedges and derivative instruments
    
    
    109,308
    
    
    
    109,308
    
    
    
    101,654
    
    
    
    101,654- available-for-sale securities
    
    
    (17,626
    )
    
    
    (17,626
    )
    
    
    (1,260
    )
    
    
    (1,260
    )Total accumulated other comprehensive income
    
    
    41,284
    
    
    
    (65,835
    )
    
    
    165,736
    
    
    
    110,340Total shareholders equity
    
    
    4,843,828
    
    
    
    4,738,705
    
    
    
    3,513,623
    
    
    
    3,388,536Total liabilities and shareholders equity
    
    
    $7,342,102
    
    
    
    $6,587,809
    
    
    
    $7,010,601
    
    
    
    $6,242,335
 
 1
    
    As required by Statement of Financial Accounting Standards (SFAS) No. 160,
Non-controlling Interests in Consolidated Financial Statements, the company has reclassified
its non-controlling interests on the statements of earnings and balance sheets. 2




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(ii)
    
    Components of accounts payable and accrued liabilities are as follows:
 Accounts payable
    
    
    $438,012
    
    
    
    $339,390
    
    
    
    $402,359
    
    
    
    $304,849Taxes and royalties payable
    
    
    50,386
    
    
    
    91,143
    
    
    
    57,934
    
    
    
    89,691Accrued liabilities
    
    
    46,266
    
    
    
    46,266
    
    
    
    54,417
    
    
    
    54,417Total accounts payable and accrued liabilities
    
    
    $534,664
    
    
    
    $476,799
    
    
    
    $514,710
    
    
    
    $448,957
 (c)
    
    The effects of these adjustments would result in the consolidated statements of cash
flows reporting the following under US GAAP:
 2009
    
    
    2008Cash provided by operations
    
    
    $660,757
    
    
    
    $540,108Cash provided by (used in) investing
    
    
    255,837
    
    
    
    (1,064,681
    )Cash provided by financing
    
    
    127,795
    
    
    
    558,670
  (d)
    
    A description of certain significant differences between Canadian GAAP and US GAAP
follows:
 (i)
    
    Pre-Operating CostsUnder Canadian GAAP, pre-operating costs incurred during the commissioning phase of a
new project are deferred until commercial production levels are achieved, subject to
time limitations. Under US GAAP, such costs are expensed as incurred. McArthur River
commercial production commenced March 1, 2000 for US GAAP and November 1, 2000 for
Canadian GAAP. Differences in capitalized costs are amortized over the estimated lives
of the assets to which they relate.(ii)
    
    Cumulative Translation AccountPrior to 2007, under US GAAP, exchange gains and losses of any foreign currency debt
designated as hedges of net investments in subsidiaries were included in comprehensive
income. Cumulative amounts were included in accumulated other comprehensive income on
the balance sheet. Adjustments from prior years related to this difference amount to
$21,222,000.(iii)
    
    Stock-Based CompensationIn 2007, Cameco amended its stock option program, introducing a cash settlement feature
for the exercise of employee stock options. Under Canadian GAAP, options that include
a cash settlement feature are classified as liabilities and carried at their intrinsic
value. The intrinsic value is marked to market each period with an offsetting
adjustment to expense. Under US GAAP, the liabilities are required to be measured at
their fair value each period with an offsetting adjustment to expense. For US GAAP
purposes, the fair value of the options was determined using the Black-Scholes
option-pricing model. As a result of the difference, compensation expense for US GAAP
purposes for 2007 was reduced by $76,126,000.In November 2008, Cameco amended its stock option program, removing the cash settlement
feature for the exercise of employee stock options. Under both Canadian and US GAAP,
options that do not include a cash settlement feature are classified as equity and
measured at their grant date fair value. The Black-Scholes option-pricing model was
used to determine the fair value of the options as at the date of amendment. It was
determined that compensation expense previously recorded under Canadian GAAP was in
excess of the fair value of the outstanding options. Thus, no charges or recoveries
were recorded under Canadian GAAP as a result of this amendment. The expense recorded
under US GAAP, while the cash settlement option was in effect, was lower than the grant
date fair value of the outstanding options. The reversal of the recovery of stock
compensation costs as a result of the use of the intrinsic value model under Canadian
GAAP at a time when Camecos share price was declining results in an increase expense
for US GAAP purposes of $3,044,000 in 2009 (2008  $65,628,000). The cumulative
Canadian-US GAAP difference for stock-based compensation expense is $7,454,000, of
which
 
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$2,202,000 is a permanent difference. The remaining $5,252,000 is a temporary
difference and future expenses under US GAAP will be increased by that amount.As of December 31, 2009, Cameco had stock-based compensation costs relating to unvested
stock option awards that have not yet been recognized in the amount of $3,186,000 (2008
  $4,469,000), net of estimated forfeitures. The compensation cost will be recognized
on a straight-line basis over the remaining vesting periods of the awards.(iv)
    
    Pension and Other Post-Retirement BenefitsIn September 2006, the FASB issued Statement No. 158, Employers Accounting for Defined
Benefit Pension and Other Post-Retirement Plans (FAS 158), an amendment of FASB
Statements No. 87, 88, 106 and 132(R). FAS 158 requires an entity to recognize the
funded status of a benefit plan in the balance sheet and to recognize the existing
unrecognized net gains and losses, unrecognized prior service costs, and unrecognized
net transition assets in other comprehensive income. There is no similar requirement
under Canadian GAAP.For the Cameco benefit plan, a loss of $4,635,000 was included in other comprehensive
income (2008  a gain of $1,709,000). For the BPLP benefit plan, a loss of
$50,624,000 was included in other comprehensive income (2008  a gain of
$121,060,000).The rate used to discount pension and other post-retirement benefit plan obligations
was based on the AA high quality Canadian corporate bond yield curve at December 31,
2009, as developed by third party actuaries. The estimated future cash flows for the
pension and other post-retirement obligations were matched to the corresponding spot
rates on this yield curve to derive a representative single discount rate.In 2009, the Ontario provincial government enacted amendments that provided for a
reduction in the general corporate income tax rate for business operating in the
province of Ontario. The cumulative effect on the income tax liability related to the
2009 adjustments to other comprehensive income for pension and other post-retirement
benefits was an increase of $9,460,000.(v)
    
    Investment in Bruce Power L.P. (BPLP)Under Canadian GAAP, Cameco accounts for its interest in BPLP by the proportionate
consolidation method. Under US GAAP, Cameco is required to equity account for its
investment and record in earnings its proportionate share of their net earnings
measured in accordance with US GAAP.(vi)
    
    Convertible DebenturesUnder US GAAP, convertible debentures are to be classified entirely as debt rather than
equity. Due to the difference, accretion related to the equity component of
convertible debentures for Canadian GAAP has been reversed for US GAAP purposes. Since
all interest related to the debentures was being capitalized under both US and Canadian
GAAP, the adjustments affected only the balance sheet. The convertible debentures were
converted to common shares in October 2008. In comparison to Canadian GAAP, the
cumulative differences on the US GAAP balance sheet were to decrease share capital by
$12,930,000 and property, plant and equipment by $12,930,000.(vii)
    
    Income TaxesA reconciliation of the beginning and ending amounts of unrecognized tax benefits is as
follows:
 2009
    
    
    2008Balance, beginning of year
    
    
    $34,487
    
    
    
    $20,587Additions based on tax positions related to the current year
    
    
    3,369
    
    
    
    3,161Additions for tax positions of prior years
    
    
    10,295
    
    
    
    11,839Reductions for tax positions of prior years
    
    
    (5,064
    )
    
    
    (1,100
    )Balance, end of year
    
    
    $43,087
    
    
    
    $34,487
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YearsCanada
    
    2005 - presentUnited States
    
    2006 - presentSwitzerland
    
    2008 - presentBarbados
    
    2001 - present
 (viii)
    
    Investment in GE-Hitachi Global Laser Enrichment LLC (GLE)Effective June 19, 2008, Cameco acquired a 24% interest in GLE. In total, $94,727,000
of the purchase price has been allocated to in-process research and development
(IPR&D). Under Canadian GAAP, IPR&D is capitalized and amortized over the period until
the project commences commercial production. Under Canadian GAAP, these expenditures
are being amortized over a period of 8.5 years, with all amounts amortized by December
31, 2016. Under US GAAP, any portion of the purchase price allocated to research and
development activities for which there is no alternative future use must be expensed on
the acquisition date. Under US GAAP, the expense for 2009 has been decreased by
$18,294,000 (2008  increased by $92,736,000). As a result, the carrying value of the
investment is lower under US GAAP which causes a foreign currency translation
difference in the amount of $5,245,000 (2008  $18,240,000), which has been recorded in
the cumulative translation account.
 (e)
    
    Sale of Centerra Gold Inc. (Centerra)On December 30, 2009, Cameco completed a public offering of 88,618,472 common shares of
Centerra for net proceeds of approximately $871,000,000 and, for Canadian GAAP purposes,
recorded a net gain of $374,000,000. Concurrent with this offering, Cameco transferred an
additional 25,300,000 common shares of Centerra to Kyrgyzaltyn pursuant to the agreement that
Cameco entered into with the Government of the Kyrgyz Republic on April 24, 2009. As a
result of the closing of the public offering, and the transfer of the Centerra common shares
to Kyrgyzaltyn, Cameco has disposed of its entire interest in Centerra. For US GAAP
purposes, Cameco recorded an incremental gain on disposition of $23,570,000 which represents
the remaining book value of Centerras net assets under US GAAP.The assets and liabilities related to the discontinued operations have been reclassified as
assets or liabilities of discontinued operations on the consolidated balance sheets.
Operating results related to the discontinued operations have been included in earnings from
discontinued operations on the consolidated statements of earnings. Comparative period
balances have been restated.Financial Results of Discontinued OperationsThe results of the operations of Centerra are presented under discontinued operations on
the consolidated statements of earnings. The following table presents the components of the
US GAAP adjustments related to the discontinued operations amounts:
 2009
    
    
    2008Sale of Centerra
    
    
    $23,570
    
    
    
    Operating earnings
    
    
    69,603
    
    
    
    73,823Earnings from discontinued operations
    
    
    $93,173
    
    
    
    $73,823
  5




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2009
    
    
    2008Stripping costs
    
    
    $18,929
    
    
    
    $11,560Income tax (expense) recovery
    
    
    (3,426
    )
    
    
    2,463Reclassification of non-controlling interest
    
    
    54,100
    
    
    
    59,800Operating earnings
    
    
    $69,603
    
    
    
    $73,823
 Under Canadian GAAP, stripping costs incurred during the production phase by mining companies
to remove overburden and other mine waste materials in order to access mineral deposits, can
be either expensed or capitalized given the specifics of the situation. Under US GAAP,
stripping costs are deemed to be variable production costs that should be included in the
costs of the inventory produced during the period that the stripping costs are incurred. No
stripping costs were incurred in 2009 (2008  $13,835,000) and capitalized at Centerras
mines under Canadian GAAP. Under US GAAP, adjustments were made to expense these amounts.
Differences in capitalized costs are amortized over the estimated lives of the assets to
which they relate. In 2009, an adjustment was made to reduce the amount of depreciation
charged to earnings by $18,929,000 (2008  $25,395,000). A charge for non-controlling
interest in the amount of $7,333,000 (2008  $6,444,000) is included in the net loss
attributable to non-controlling interests.
 As required by Statement of Financial Accounting Standards (SFAS) No. 160, Non-controlling
Interests in Consolidated Financial Statements, the company has reclassified its
non-controlling interests on the statements of earnings and balance sheets. Accordingly,
minority interest of $54,100,000 (2008  $59,800,000) included in discontinued operations
under Canadian GAAP has been reclassified as net loss attributable to non-controlling
interest.
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COMMENTS BY AUDITORS FOR US READERS ON CANADA  US REPORTING DIFFERENCES
   
    
    that refers to the audit report on the Corporations internal control over financial
reporting. Our report to the shareholders dated February 23, 2010 is expressed in
accordance with Canadian reporting standards, which do not require a reference to the
auditors report on the Corporations internal control over financial reporting in the
auditors report on the consolidated financial statements.
    
    when there is a change in accounting principles that has a material effect on the
comparability of the Corporations financial statements such as the changes described
in note 3(b)(iii) to the consolidated financial statements. Our report to the
shareholders dated February 23, 2010 is expressed in accordance with Canadian reporting
standards, which do not require a reference to changes in accounting principles in the
auditors report when the change is properly accounted for and adequately disclosed in
the financial statements.