Exhibit 99.3
 CAMECO CORPORATION
2008 MANAGEMENTS DISCUSSION & ANALYSIS (MD&A)
FEBRUARY 16, 2009




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EXECUTIVE SUMMARY
    
    
    31.0
    
    OUR BUSINESSES, OBJECTIVES & STRATEGIES
    
    
    5Our Businesses
    
    
    5Our Objectives and Strategies
    
    
    72.0
    
    THE NUCLEAR ENERGY, URANIUM AND FUEL SERVICES INDUSTRIES
    
    
    7Nuclear Energy Trends
    
    
    7The Uranium Industry
    
    
    12The Fuel Services Industry
    
    
    163.0
    
    OUR KEY PERFORMANCE DRIVERS, BUSINESS STRATEGIES AND CAPABILITIES TO DELIVER RESULTS
    
    
    18Our Uranium Business
    
    
    18Our Fuel Services Business
    
    
    38Foreign Exchange
    
    
    434.0
    
    OUR PERFORMANCE AND OUTLOOK
    
    
    452008 Consolidated Financial Results
    
    
    452008 Uranium Business Financial Results
    
    
    492008 Fuel Services Business Financial Results
    
    
    512008 Nuclear Electricity Generation Business Results
    
    
    522008 Gold Business Results
    
    
    54Outlook for 2009
    
    
    562008 Fourth Quarter Consolidated Results
    
    
    632008
Fourth Quarter Business Segment Financial Results
    
    
    65Liquidity and Capital Resources
    
    
    69Outstanding Share Data
    
    
    735.0
    
    OUR MINERAL RESERVES AND RESOURCES
    
    
    74Mineral Reserves and Resources
    
    
    746.0
    
    OUR RISKS AND RISK MANAGEMENT, PLUS CONTROLS AND PROCEDURES AND CRITICAL ACCOUNTING ESTIMATES
    
    
    80Risks and Risk Management
    
    
    80Controls and Procedures
    
    
    97Critical Accounting Estimates
    
    
    97New Accounting Pronouncements
    
    
    98Use of Non-GAAP Financial Measures
    
    
    100QUALIFIED PERSONS
    
    
    101CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
    
    
    101ADDITIONAL INFORMATION
    
    
    103
 2




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EXECUTIVE SUMMARY
 ($Cdn millions)
    
    2008
    
    2007
    
    % ChangeRevenue
    
    
    2,859
    
    
    
    2,310
    
    
    
    24Net earnings
    
    
    450
    
    
    
    416
    
    
    
    8Earnings per share (EPS)  basic ($)
    
    
    1.29
    
    
    
    1.18
    
    
    
    9Adjusted net earnings1
    
    
    589
    
    
    
    572
    
    
    
    3EPS  adjusted and diluted ($)1
    
    
    1.67
    
    
    
    1.54
    
    
    
    8Cash provided by operations2
    
    
    708
    
    
    
    801
    
    
    
    (12)Uranium production (millions of pounds U3O8)
    
    
    17.0
    
    
    
    19.8
    
    
    
    (14)Uranium sales (millions of pounds U3O8)
    
    
    34.1
    
    
    
    30.2
    
    
    
    13Average realized price ($US/lb)
    
    
    39.52
    
    
    
    37.47
    
    
    
    5Average realized price ($Cdn/lb)
    
    
    43.91
    
    
    
    41.68
    
    
    
    5
 Vision and Strategy
  Consolidated Financial Performance in 2008
 1
 Key Achievements, Developments and Challenges in 2008
 Achievements
 
    
    Cameco acquired a 70% interest in Kintyre, an advanced exploration project in Australia, to
further our strategy to expand our portfolio of uranium assets. If successfully developed,
Kintyre will add potential for open pit production and offers geographic diversification.
    
    Cameco also acquired a 24% interest in Global Laser Enrichment (GLE) based in North
Carolina. GLE is developing a third-generation uranium enrichment process using laser
technology. This investment extends our involvement in the nuclear fuel cycle.
 
 1
    
    Net earnings for the years ended December 31, 2007 and 2008 have
been adjusted to exclude a number of items. Adjusted net earnings and adjusted
EPS are non-GAAP measure. See Use of Non-GAAP Financial Measures in this MD&A
for a description and reconciliation to GAAP.2
    
    Including changes in working capital. 3




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Developments
 
    
    Despite supply shortages, construction and development of the Inkai project in Kazakhstan
advanced and we expect to declare commercial production in 2009.
    
    At the McArthur River mine, the transition to new mining areas continued with production
expected to begin in 2009 and 2010.
 Challenges
 
    
    During the year, our operating mines and mills experienced several production challenges.
The challenges were largely related to reagent supply and aging infrastructure. We have
addressed the issues affecting 2008 production and, over the next several years, plan to
continue refurbishing our asset base to ensure their long-term, efficient operation.
    
    In September, the Port Hope UF6 plant was restarted upon completion of a
year-long rehabilitation program. However, operations were suspended at the end of November
because we were unable to resolve a contract dispute with our sole supplier of hydrofluoric
acid. Because of contract negotiations and logistical issues, supply arrangements are not
expected to be established before mid-2009, with production resuming thereafter.
    
    Cigar Lake rehabilitation continued. The original water inflow area was successfully sealed
and dewatering of the mine began in the summer of 2008. However, in August a new inflow
occurred, causing dewatering to be suspended. The location of this inflow has been identified
on the 420 metre level, and preparation for sealing of the inflow area is underway. It is
expected to take most of 2009.
 Uranium Industry Fundamentals
  
    
    In the global fleet of existing reactors, modest capacity growth continues with
ongoing improvements in capacity factors, plant power uprates, and plant life
extensions.
    
    New-build projects continue to be announced in current nuclear power jurisdictions
and also in the developing world, with some countries such as China, Russia and
India pursuing aggressive construction programs. However, the current financial
crisis may slow or delay the new build program.
    
    The NEI reported that in 2007, US nuclear power plants continued to enjoy the lowest
average direct costs of 1.76 cents (US) per kilowatt hour, for baseload, non-hydro,
electricity production.
    
    Despite the significant decrease in the uranium price since the beginning of 2008,
the long-term uranium market fundamentals remain positive as:
 
    
    Worldwide production continues to be outstripped by demand.
    
    Demand that could not be satisfied through mine production was met by the consumption
of various secondary supplies, including those of the Russian and US governments. The large
majority of these secondary supplies are finite and additional primary production is
required to meet future reactor requirements.
 4




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1.0
    
    OUR BUSINESSES, OBJECTIVES & STRATEGIES
 Our Businesses
  
    
    uranium,
    
    fuel services,
    
    nuclear electricity generation, and
    
    gold.
   3 8
 Uranium
  Fuel Services
  3 3 6 2 6 6
 5




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6 3 6 6 2
  Enrichment
   Nuclear Electricity Generation
  6




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Gold
  Our Objectives and Strategies
    
    
    continuously improving our ability to produce uranium fuel for nuclear reactors in a way
that is safe, clean, cost-effective and reliable (operational excellence),
    
    maintaining the respect and support of communities, indigenous people, governments and
regulators impacted by current and future operations, and
    
    building an engaged, qualified and diverse workforce capable of leading and implementing
the required growth strategies.
  2.0
    
    THE NUCLEAR ENERGY, URANIUM AND FUEL SERVICES INDUSTRIES
 Nuclear Energy Trends
  7




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Positive Factors
 North America
     Europe
   India
  8




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Negative Factors
     Nuclear Power Share
  Nuclear Plant Performance
 Operating Costs
  Reactors  Operating, Planned and Under Construction
  9




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
    
    68 reactors are scheduled to be built in Asia, as energy demand is driven by economic
expansion. About three-quarters of this growth is expected to occur in China and India, which
have announced plans to build 31 and 18 reactors, respectively,



    
    India is implementing plans with four separate nuclear plant vendors to build light water reactors,
    
    China is debating increasing its nuclear construction program from 40 GWe to 60 or 70 GWe by 2020. 
    
    in Russia, Ukraine and Armenia, it is anticipated that 23 reactors will be built, offset by
one closure in Armenia and six in Russia,
    
    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. An application for a sixth unit has been filed,
    
    in France, the construction of a second EPR is expected to begin in 2012 and a third EPR is
being considered,
    
    in Canada, BALP is refurbishing two A units that had previously been shutdown, and both
Bruce Power and Ontario Power Generation Inc. (OPG) have initiated the regulatory process for
new generating units,
    
    in the US, South Carolina and Georgia are likely to follow Florida in providing an encouraging nuclear plant investment climate, and
    
    South Korea's generation blueprint anticipates that by 2020 roughly half the country's electricity will be nuclear generated.
 Reactors  Potential
  10




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World Nuclear Reactors (Cameco estimate, January 2009) 1
 Outlook to 2018NuclearElectricity
    
    Operating
    
    
    
    
    
    
    
    
    
    Operating20072 (%)
    
    2009
    
    New
    
    Shutdown
    
    2018
    
    GWe ChangeArgentina
    
    
    6
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    1.5Brazil
    
    
    3
    
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    0.0Canada
    
    
    15
    
    
    
    18
    
    
    
    3
    
    
    
    1
    
    
    
    20
    
    
    
    2.3Mexico
    
    
    5
    
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    0.0USA
    
    
    19
    
    
    
    104
    
    
    
    4
    
    
    
    0
    
    
    
    108
    
    
    
    5.0Americas Total
    
    
    
    
    
    
    128
    
    
    
    9
    
    
    
    1
    
    
    
    136
    
    
    
    8.8China
    
    
    2
    
    
    
    11
    
    
    
    31
    
    
    
    0
    
    
    
    42
    
    
    
    33.9India
    
    
    3
    
    
    
    17
    
    
    
    18
    
    
    
    0
    
    
    
    35
    
    
    
    13.4Indonesia
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    1.0Iran
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    0
    
    
    
    2
    
    
    
    2.0Japan
    
    
    28
    
    
    
    53
    
    
    
    4
    
    
    
    1
    
    
    
    56
    
    
    
    4.7Korea (South)
    
    
    35
    
    
    
    20
    
    
    
    8
    
    
    
    0
    
    
    
    28
    
    
    
    10.1Pakistan
    
    
    2
    
    
    
    2
    
    
    
    1
    
    
    
    1
    
    
    
    2
    
    
    
    0.2Taiwan
    
    
    19
    
    
    
    6
    
    
    
    2
    
    
    
    0
    
    
    
    8
    
    
    
    2.7Turkey
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    1.0Asia Total
    
    
    
    
    
    
    109
    
    
    
    68
    
    
    
    2
    
    
    
    175
    
    
    
    69.0Belgium
    
    
    54
    
    
    
    7
    
    
    
    0
    
    
    
    0
    
    
    
    7
    
    
    
    0.0Bulgaria
    
    
    32
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    2.0Czech Republic
    
    
    30
    
    
    
    6
    
    
    
    0
    
    
    
    0
    
    
    
    6
    
    
    
    0.0Finland
    
    
    29
    
    
    
    4
    
    
    
    1
    
    
    
    0
    
    
    
    5
    
    
    
    1.7France
    
    
    77
    
    
    
    59
    
    
    
    2
    
    
    
    1
    
    
    
    60
    
    
    
    3.1Germany
    
    
    26
    
    
    
    17
    
    
    
    0
    
    
    
    0
    
    
    
    17
    
    
    
    0.0Hungary
    
    
    37
    
    
    
    4
    
    
    
    0
    
    
    
    0
    
    
    
    4
    
    
    
    0.0Lithuania
    
    
    64
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    0.4Netherlands
    
    
    4
    
    
    
    1
    
    
    
    1
    
    
    
    0
    
    
    
    2
    
    
    
    1.1Romania
    
    
    13
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    1.4Slovakia
    
    
    54
    
    
    
    4
    
    
    
    2
    
    
    
    0
    
    
    
    6
    
    
    
    0.9Spain
    
    
    17
    
    
    
    8
    
    
    
    0
    
    
    
    0
    
    
    
    8
    
    
    
    0.0Slovenia
    
    
    42
    
    
    
    1
    
    
    
    1
    
    
    
    0
    
    
    
    2
    
    
    
    1.1Sweden
    
    
    46
    
    
    
    10
    
    
    
    0
    
    
    
    0
    
    
    
    10
    
    
    
    0.0Switzerland
    
    
    43
    
    
    
    5
    
    
    
    0
    
    
    
    0
    
    
    
    5
    
    
    
    0.0UK
    
    
    15
    
    
    
    19
    
    
    
    1
    
    
    
    6
    
    
    
    14
    
    
    
    -1.6Europe Total
    
    
    
    
    
    
    150
    
    
    
    13
    
    
    
    8
    
    
    
    155
    
    
    
    10.0Russia
    
    
    16
    
    
    
    31
    
    
    
    21
    
    
    
    6
    
    
    
    46
    
    
    
    19.0Armenia
    
    
    44
    
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    -0.4Ukraine
    
    
    48
    
    
    
    15
    
    
    
    2
    
    
    
    0
    
    
    
    17
    
    
    
    2.0Russia
and Eastern Europe Total
    
    
    
    
    
    
    47
    
    
    
    23
    
    
    
    7
    
    
    
    63
    
    
    
    20.6South Africa
    
    
    6
    
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    0.3World Total
    
    
    15
    
    
    
    436
    
    
    
    115
    
    
    
    18
    
    
    
    533
    
    
    
    108.6
 
 1
    
    Estimated by Cameco, January 2009. Based on public announcements made prior to January
2009.2
    
    World Nuclear Association (WNA). 11




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The
Uranium Industry
 Worldwide Uranium Supply and Demand
  World Uranium Production and Consumption
 
 Uranium Demand
    12




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Uranium Supply
  Mine Production
 3 8
  
    
    the strength of uranium prices,
    
    the efficiency of regulatory regimes in various regions,
    
    the quality and size of the mineral reserves,
    
    the availability and sufficiency of required infrastructure and skilled workforce,
    
    currency exchange rates in producer countries compared to the US dollar,
    
    prices for other mineral commodities produced in association with uranium (i.e. byproducts
or co-products), and
    
    the availability of financing for exploration and mine development.
 13




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2008 World Uranium Production by Country
 
 Secondary Sources
   14




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Uranium Markets
    Uranium Spot Market
 3 8 3 8 3 8
  15




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Spot and Long-term Uranium Contract Volumes
 
 Long-Term Uranium Market
 3 8
 3 8
  The Fuel Services Industry
  3 8 3 8
 16




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Conversion Services Demand
 6 2
  Conversion Services Supply
 6 6 6 6 6
 6
 Conversion Services Markets
 6 2 2 3 8 6 2
 Spot/Long-Term UF6 Conversion Market
 6 6 6
 Average spot market price ($US/kgU)
    
    Dec 31/08
    
    Dec 31/07
    
    % ChangeNorth America
    
    
    8.50
    
    
    
    8.75
    
    
    
    (3
    )Europe
    
    
    9.75
    
    
    
    10.25
    
    
    
    (5
    )
 17




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2
 Average long-term price ($US/kgU)
    
    Dec 31/08
    
    Dec 31/07
    
    % ChangeNorth America
    
    
    12.25
    
    
    
    12.25
    
    
    
    Europe
    
    
    13.38
    
    
    
    13.00
    
    
    
    3
 3.0
    
    OUR KEY PERFORMANCE DRIVERS, BUSINESS STRATEGIES AND CAPABILITIES TO DELIVER RESULTS
 Our Uranium Business
 Key Performance Drivers
  
    
    prices  spot and long-term,
 
    
    volume  sales, production and purchases,
 
    
    costs  production and purchases, and
 
    
    the exchange rate between the US and Canadian dollars.
 Prices  Spot/Long-Term
 Background
  3 8
   18




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Volume  Sales, Production and Purchases
 Sales Volume
    Production Volumes
 Uranium Operations
 Camecos share of production(million lbs U3O8)
    
    2009 Planned1
    
    2008 ActualMcArthur River/Key Lake
    
    
    13.1
    
    
    
    11.6Rabbit Lake
    
    
    3.6
    
    
    
    3.6Smith Ranch/Highland
    
    
    1.8
    
    
    
    1.2Crow Butte
    
    
    0.7
    
    
    
    0.6Inkai2
    
    
    0.9
    
    
    
    0.3Total
    
    
    20.1
    
    
    
    17.3
 
 1
    
    See the section titled Camecos Uranium Supply Outlook in this MD&A for more
information about assumptions and risk factors associated with this production forecast.2
    
    Inkais 2008 production is not considered commercial. Inkai is expected to
reach commercial production in 2009. McArthur River/Key Lake
 3 8
  19




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3 8
   20




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3 8








Rabbit Lake (


3 8




21




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Smith Ranch-Highland and Crow Butte (
 3 8
   22




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Uranium Projects
 Cigar Lake (
          23




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Inkai (
  3 8.
     24




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25




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Purchase Volumes
 6
  Camecos Uranium Supply Outlook
  Camecos Share of Production (million pounds U 3 O 8 ) Excluding Cigar Lake 1
 Current Forecast
    
    2009
    
    2010
    
    2011
    
    2012
    
    2013McArthur River/Key Lake2
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1Rabbit Lake
    
    
    3.6
    
    
    
    3.6
    
    
    
    3.6
    
    
    
    2.8
    
    
    
    1.7US ISR3
    
    
    2.5
    
    
    
    2.4
    
    
    
    2.6
    
    
    
    3.1
    
    
    
    3.7Inkai4
    
    
    0.9
    
    
    
    2.3
    
    
    
    3.1
    
    
    
    3.1
    
    
    
    3.1Total*
    
    
    20.1
    
    
    
    21.4
    
    
    
    22.4
    
    
    
    22.1
    
    
    
    21.6
 
 *
    
    While a single estimate has been included for each year of the production outlook, actual
production may differ significantly from these estimates as forecasting production is
inherently uncertain.1
    
    A revised production forecast for Cigar Lake will be provided after the mine has been
dewatered, the condition of the underground development has been assessed, and the findings
incorporated in the new mine development and production plans.2
    
    Cameco has applied to increase its licensed capacity from 18.7 million pounds to 22
million pounds (Camecos share 70%), but is awaiting regulatory approval. Until approval has
been received, the production forecast has assumed the current licensed capacity. (See
discussion in Uranium Operations in this MD&A).3
    
    Refers to Camecos Smith Ranch-Highland and Crow Butte ISR operations in the US and
other ISR development projects in the US.4
    
    Inkai mineral reserves assume production at an annual rate of 5.2 million pounds of
U3O8. Inkai currently has regulatory approval to produce at an annual
rate of 2.6 million pounds and an application for regulatory approval to increase annual
production to 5.2 million pounds was made in 2005. Cameco is familiar with the statutory,
regulatory and procedural framework governing new mining projects in Kazakhstan and, based upon its experience to date,
Cameco believes that it is reasonably likely that all permits and approvals required for the
construction and operation of its new ISR mine at Inkai  including approvals for increased
annual production to 5.2 million pounds  will be obtained. However, there can be no certainty
that permits or approvals will be forthcoming. 26




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The current uranium production and HEU purchase forecast noted above for the company are
forward-looking information. This forward-looking information is based upon the key assumptions and
subject to the material risks that could cause results to differ materially, and which are
discussed under the heading Caution Regarding Forward-Looking Information and Statements. In
particular, we have assumed that:
 
    
    the companys forecast production for each operation is achieved;
    
    the companys schedule for the development and rampup of production from Inkai is achieved,
which requires, among other things, resolution of the issues surrounding acid availability
required for mining;
    
    the successful transition to new mining areas at McArthur River beginning in 2009;
    
    the company is able to obtain or maintain the necessary permits and approvals from
government authorities (other than the approval necessary to increase capacity at McArthur
River/Key Lake referred to in note 2 above) to achieve the forecast production;
    
    there is no disruption in production due to natural phenomena, labour disputes, political
risks or other development and operation risks; and
    
    the HEU supplier complies with its delivery commitments.
 Material risks that could cause actual results to differ materially include our inability to
achieve forecast production levels for each operation; our development and rampup of production
from Inkai does not proceed as anticipated; the transition to new mining areas at McArthur River is
not successful; the inability to obtain or maintain necessary permits or government approvals; and
a disruption or reduction in production or the failure of the HEU supplier to comply with its
delivery commitments. No assurance can be given that the indicated quantities will be produced or
purchased. Expected future production estimates are inherently uncertain, particularly in the later
years of the forecast, and could materially change over time.
 Costs
   3 8 3 8
 3 8
 27




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Uranium Strategies
  
    
    remain one of the low-cost producers,
    
    expand our market position,
    
    increase supply flexibility, and
    
    maximize realized prices over time.
      28




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
    
    additional production from the successful expansion of existing mines, startup of mines
currently under construction and development of known deposits,
    
    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 DOE,
    
    the extent enrichment services are substituted for natural uranium feed,
    
    the growth rate of nuclear power, and
    
    inventory policies of market participants.
  29




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##### 



30




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##### 



Uranium  Capability to Deliver Results
  
    
    transitioning successfully from current mining areas to new ones,
    
    advancing other mining methods and technologies,
    
    ensuring availability of critical production supplies,
    
    proceeding with revitalization plans for our milling operations,
    
    obtaining timely regulatory approvals,
    
    securing sufficient human resources to replace an aging workforce, including ensuring the
availability of skilled tradespeople,
    
    ensuring capital is readily available over the longer term to support 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
  
 31




---



##### 



Mining Methods
    32




---



##### 



Availability of Supplies
  Revitalization of Mills
    Regulatory Approval
  Human Resources
  Ready Access to Capital
  Uranium Exploration
  33




---



##### 



Exploration Acquisition/Merger Approach
  
  34




---



##### 



Junior Exploration Companies
  InterestDec. 31, 2008Investment
    
    Location of Assets
    
    %UEX Corporation
    
    Athabasca Basin, SK
    
    
    21.3UNOR Inc.
    
    Nunavut, Canada
    
    
    18.7MINERGIA SAC
    
    Peru
    
    
    25.0Western Uranium Corporation
    
    Nevada, US and Nunavut
    
    
    9.4Cue Resources Ltd.
    
    Paraguay
    
    
    10.9GoviEx Uranium Inc.
    
    Niger
    
    
    10.9
 2008 Exploration Program
 Brownfield Exploration
       35




---



##### 



Regional Exploration
    New Investments and Acquisitions in 2008
 Kintyre (Western Australia)
  
  36




---



##### 



Angela Property (Northern Territory, Australia)
   GoviEx (Niger)
       2009 Exploration Program
  Brownfield Exploration
   37




---



##### 



Regional Exploration
   Our Fuel Services Business
 Key Performance Drivers
  
    
    conversion prices  spot and long-term,
    
    volume  sales, production and purchases,
    
    costs  production and purchases, and
    
    the exchange rate between the US and Canadian dollars.
 Prices  Spot/Long-Term (Conversion Services)
    Volumes  Sales, Production, Purchases
 Sales Volume
 6 6 Production Volume
 38




---



##### 



6 6
 
 39




---



##### 



Production Volume
 Fuel Services
 6 2
 Conversion Services
 6 6 6
 6
 2 6
 The statements above regarding the resumption of Port Hope UF 6 production and certain
other statements regarding future events, including meeting UF 6 utility delivery
commitments, are forward-looking information and are based upon the following key assumptions and
subject to the following material risks that could cause results to differ materially: we have
assumed that the UF 6 plant can be brought back into production without unforeseen
difficulty or delay and that we will be able to obtain adequate
supplies of hydrofluoric acid and at a reasonable cost, but
that is subject to a number of risks including the risk of unusual difficulties arising from the
extended length of time that the UF 6 plant will be shut down, the risk that there will
be a delay in or failure to procure the required contractors, equipment and suppliers (including of
hydrofluoric acid), the risk of equipment failure, the risk of natural phenomena including
inclement weather conditions and fire, and the risk of delay or ultimate lack of success; and we
have assumed our efforts to meet scheduled UF 6 delivery commitments will succeed, but
that is subject to a number of risks including customers accelerating UF 6 deliveries or
UF 6 production, purchases and deferrals not proceeding as planned.
 Port Hope Conversion Facility Project
  40




---



##### 



Ulba Conversion
 .
 6
  Refining
 3 3 6
  Fuel Manufacturing
  2
  41




---



##### 



Purchase Volume
 6
 Costs
  6
 Fuel Services Strategies
  
    
    remain a sustainable competitive producer,
    
    increase supply flexibility, and
    
    maximize realized prices.
  
    
    upgrade its plant and improve operating practices,
    
    secure a long term supply of HF,
    
    restart the UF6 plant and gradually increase production,
    
    continue to focus on lowering operating costs, and
    
    complete construction of the new SEU manufacturing line.
 6
 42




---



##### 



Fuel Services  Capability to Deliver Results
  
    
    community relations at Port Hope continue to strengthen,
    
    sufficient human resources are available to replace an aging workforce,
    
    capital is readily available over the longer term to support our operations, and
    
    critical production supplies are available.
 Community Relations
  Human Resources
  Ready Access to Capital
  Availability of Supplies
  Foreign Exchange
   43




---



##### 



Deferred Gains (Charges)
    
    2009
    
    2010
    
    2011$millions(Cdn)
    
    
    38
    
    
    
    33
    
    
    
    5
   Accounting Policy Change
  44




---



##### 



4.0
    
    OUR PERFORMANCE AND OUTLOOK
 2008 Consolidated Financial Results
 Consolidated Earnings
 Earnings
   Corporate Expenses
 Administration
   $ millions
    
    2008
    
    2007Direct administration
    
    
    177
    
    
    
    129Stock-based compensation1
    
    
    (61)
    
    
    
    (2)Total administration
    
    
    116
    
    
    
    127
 
 1
    
    Stock-based compensation includes amounts charged to administration under the stock
option, deferred share unit, performance share unit and phantom stock option plans. It does
not include the $94 million charge related to the amendment of the stock option plan in 2007.
See note 20 to the financial statements. Interest and Other
  45




---



##### 



Income Taxes
   Adjusted Earnings
   46




---



##### 



Cash Resources
 Operating Activities
  Investing Activities
   Financing Activities
  Balance Sheet
 Cash
  Inventories
  Debt
  47




---



##### 



Off-Balance Sheet Arrangements
  
    
    Financial Assurances:
 
    
    2008 Nuclear Electricity Generation Business,
    
    Liquidity and Capital Resources,
    
    Risks and Risk Management, and
    
    Notes 8, 9, 23 and 25 of the financial statements.
 
    
    Long-Term Product Purchase Contracts
 
    
    Uranium Business,
    
    Liquidity and Capital Resources, and
    
    Note 24 of the financial statements.
 2006-2008 Consolidated Financial Highlights
 For the Years Ended December 31($ millions except per share amounts)
    
    2008
    
    2007
    
    2006Revenue
    
    
    2,859
    
    
    
    2,310
    
    
    
    1,832Earnings from operations
    
    
    524
    
    
    
    475
    
    
    
    335Net earnings
    
    
    450
    
    
    
    416
    
    
    
    376 per common share (basic)
    
    
    1.29
    
    
    
    1.18
    
    
    
    1.07 per common share (diluted)
    
    
    1.28
    
    
    
    1.13
    
    
    
    1.02Adjusted net earnings1
    
    
    589
    
    
    
    572
    
    
    
    274Cash provided by operations
    
    
    708
    
    
    
    801
    
    
    
    418Total assets
    
    
    7,011
    
    
    
    5,371
    
    
    
    5,140Long-term financial liabilities
    
    
    2,024
    
    
    
    1,633
    
    
    
    1,592Dividends per common share
    
    
    0.24
    
    
    
    0.20
    
    
    
    0.16
 
 1
    
    Net earnings for the years ended December 31, 2006, 2007 and 2008 have been adjusted
to exclude a number of items. Adjusted net earnings is a non-GAAP measure. For a description,
see Use of Non-GAAP Financial Measures in this MD&A.  
    
    Revenue has trended higher over the three-year period, rising by 56% over 2006 to a record
$2,859 million in 2008. This increase was primarily the result of an increase in the realized
selling price for uranium, which averaged $43.91 per pound (Cdn) in 2008 compared to $24.72
per pound (Cdn) in 2006. Revenue from the gold business has also risen significantly over the
three-year period due to improved prices.
    
    Earnings from operations have also trended higher during the period, but the rise has been
tempered somewhat by higher costs for product sold, higher direct administration charges and greater investment in exploration. The increase in the cost of sales was attributable
 48




---



##### 



to higher costs for purchased and produced uranium and conversion services, driven by rising spot
prices, lower production and higher royalty charges for uranium. Our administration costs have
risen over the three-year period due to growth in the workforce, higher costs for regulatory
compliance and business development activities.
 
    
    Net earnings have trended with revenue but our results have been significantly influenced
by unusual items over the past three years. 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. In 2007, we
recorded charges of $153 million after tax related to the restructuring of Centerra and $65
million after tax related to the amendment to the stock option plan to provide for a cash
settlement feature, as well as a $25 million recovery of future income taxes due to tax
legislation changes. In 2008, we ceased to apply hedge accounting to our portfolio of foreign
exchange contracts and as a result, we recorded $166 million in unrealized mark-to-market
losses due to the decline in the Canadian dollar relative to the US dollar. We also recorded
$30 million in charges to reduce the carrying value of certain investments.
    
    Adjusted net earnings for 2008 have more than doubled to $589 million compared to the $274
million recorded in 2006. The 109% increase to $572 million in 2007 from 2006 was attributable
to improved results in the uranium business related to an improved realized price, driven by a
significant increase in the spot price for uranium. Adjusted net earnings rose to $589 million
in 2008 compared to $572 million in 2007 due to improvement in the realized prices for gold
and electricity.
    
    In 2008, Cameco generated cash from operations of $708 million compared to $801 million in
2007. This decrease of $93 million was mainly attributable to the higher working capital
requirements in 2008, which were related to normal variations in our accounts receivable
balance. Cash from operations of $801 million in 2007 represented an increase of $383 million
compared to the $418 million recorded in 2006. This increase was mainly due to higher revenues
in the uranium business.
    
    The major components of Camecos long-term financial liabilities are long-term debt, future
income taxes and the provision for reclamation. In 2008, Camecos total long-term financial
liabilities increased to $2,024 million from $1,633 million at the end of 2007 due to a $69
million increase in our provision for reclamation and a $587 million increase in debt,
partially offset by a $181 million reduction in future income taxes.
    
    At the end of 2008, Camecos total assets amounted to $7,011 million, an increase of $1,640
million over the previous year. Most of the change was due to investments in long-term assets
including the acquisitions of interests in Kintyre, GLE and GoviEx. A $221 million increase in
accounts receivable also contributed to the change.
 2008 Uranium Business Financial Results
  49




---



##### 



Uranium Business Highlights
 2008
    
    2007
    
    % ChangeRevenue ($ millions)1
    
    
    1,512
    
    
    
    1,269
    
    
    
    19Gross profit ($ millions)
    
    
    665
    
    
    
    648
    
    
    
    3Gross profit %
    
    
    44
    
    
    
    51
    
    
    
    (14)Earnings before taxes ($ millions)
    
    
    567
    
    
    
    572
    
    
    
    (1)Average realized price($US/lb)
    
    
    39.52
    
    
    
    37.47
    
    
    
    5($Cdn/lb)
    
    
    43.91
    
    
    
    41.68
    
    
    
    5Sales volume (million lbs)1
    
    
    34.1
    
    
    
    30.2
    
    
    
    13Production volume (million lbs)2
    
    
    17.0
    
    
    
    19.8
    
    
    
    (14)
 
 1
    
    Revenue in the amount of $85 million on 2.6 million pounds previously deferred due to
a standby product loan was recognized in 2008 as a result of the cancellation of the product
loan agreement. In 2007, previously deferred revenue in the amount of $44 million was
recognized on 2.9 million pounds.2
    
    Excludes Inkai production, which is not considered commercial. Revenue and Realized Price
   Cost of Products and Services Sold
 3 8 3 8
 Depreciation, Depletion and Reclamation
  Gross Profit
  50




---



##### 



2008 Fuel Services Business Financial Results
 Fuel Services Highlights
 2008
    
    2007
    
    % ChangeRevenue ($ millions)
    
    
    252
    
    
    
    239
    
    
    
    5Gross profit ($ millions)
    
    
    8
    
    
    
    (23)
    
    
    
    135Gross profit %
    
    
    3
    
    
    
    (10)
    
    
    
    130Earnings before taxes ($ millions)
    
    
    6
    
    
    
    (23)
    
    
    
    126Sales volume (million kgU)1
    
    
    14.8
    
    
    
    17.0
    
    
    
    (13)Production volume (million kgU)1, 2
    
    
    8.3
    
    
    
    12.9
    
    
    
    (35)
 
 1
    
    Kilograms of uranium (kgU).2
    
    Production volume includes UF6, UO2, fuel fabrication and
UF6 supply from SFL. Revenue and Realized Price
 6 6
 Cost of Products and Services Sold
 6
 Depreciation, Depletion and Reclamation
  Gross Profit
  51




---



##### 



2008 Nuclear Electricity Generation Business Results
 Bruce Power Limited Partnership (100% basis)
 2008
    
    2007
    
    % ChangeOutput  terawatt hours (TWh)
    
    
    24.7
    
    
    
    25.3
    
    
    
    (2)Capacity factor (%)1
    
    
    87
    
    
    
    89
    
    
    
    (2)Realized price ($/MWh)
    
    
    57
    
    
    
    52
    
    
    
    10Average Ontario electricity
spot price ($/MWh)
    
    
    49
    
    
    
    48
    
    
    
    2($ millions)Revenue
    
    
    1,409
    
    
    
    1,319
    
    
    
    7Operating costs2
    
    
    900
    
    
    
    881
    
    
    
    2Cash costs operating & maintenance
    
    
    585
    
    
    
    578
    
    
    
    1 fuel
    
    
    78
    
    
    
    68
    
    
    
    15 supplemental rent3
    
    
    116
    
    
    
    113
    
    
    
    3Non-cash costs (amortization)
    
    
    121
    
    
    
    122
    
    
    
    (1)Income before interest
and finance charges
    
    
    509
    
    
    
    438
    
    
    
    16Interest and finance charges
    
    
    41
    
    
    
    
    
    
    
    N/AEarnings before taxes
    
    
    468
    
    
    
    438
    
    
    
    7Cash from operations
    
    
    547
    
    
    
    503
    
    
    
    9Capital expenditures
    
    
    85
    
    
    
    98
    
    
    
    (13)Distributions4
    
    
    329
    
    
    
    455
    
    
    
    (28)Operating costs ($/MWh)
    
    
    36
    
    
    
    35
    
    
    
    3
 
 1
    
    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.2
    
    Net of cost recoveries.3
    
    Supplemental rent is about $29 million per operating reactor for 2008.4
    
    Distributions for 2008 exclude the full repayment of the partner loans of $225
million. Camecos share of the debt repayment was $75 million.  Camecos Earnings from BPLP
 $ millions
    
    2008
    
    2007
    
    % ChangeBPLPs earnings before taxes (100%)
    
    
    468
    
    
    
    438
    
    
    
    7Camecos share of pre-tax earnings
before adjustments
    
    
    148
    
    
    
    138
    
    
    
    7Proprietary adjustments
    
    
    (7)
    
    
    
    (1)
    
    
    
    (600)Pre-tax earnings from BPLP
    
    
    141
    
    
    
    137
    
    
    
    3
 52




---



##### 



Earnings Before Taxes
  Output
  Revenue and Realized Price
    Costs
  Cash from Operations
  Capital Expenditures
  Cash Distributions
  53




---



##### 



2008 Gold Business Results
   
    
    developing new mineral 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 worldwide.
   Gold Operating Results
  Gold Highlights (100%)
    
    2008
    
    2007
    
    % ChangeRevenue ($ millions)
    
    
    677
    
    
    
    405
    
    
    
    67Gross profit ($ millions)
    
    
    219
    
    
    
    108
    
    
    
    103Gross profit %
    
    
    32
    
    
    
    27
    
    
    
    19Realized price ($US/ounce)
    
    
    853
    
    
    
    691
    
    
    
    23Sales volume (ounces)
    
    
    746,000
    
    
    
    541,000
    
    
    
    38Production (ounces)
    
    
    749,000
    
    
    
    555,000
    
    
    
    35
 2008 Gold Financial Results
  54




---



##### 



Kyrgyz Republic
 Kumtor Operations Update
      Political Update
  55




---



##### 



Mongolia
  Outlook for 2009
  2009 Financial Outlook 1
 Nuclear2009 Outlook
    
    Consolidated
    
    Uranium
    
    Fuel Services
    
    Electricity
    
    GoldRevenue
    
    Decline
slightly2
    
    Decrease 5% to
10%3
    
    Increase 5% to 10%
    
    Increase 2% to 5%
    
    Administration costs
    
    Decrease 5% to 10%
    
    
    
    
    
    
    
    Tax rate
    
    5% to 10%
    
    
    
    
    
    
    
    Sales volume
    
    
    
    31 to 33 million lbs
    
    Decline slightly
    
    
    
    Unit cost of
product sold
    
    
    
    Increase 5% to 10%
    
    
    
    Increase slightly
    
    Capacity factor
    
    
    
    
    
    
    
    About 90%
    
    Production
    
    
    
    20.1 million lbs
    
    8 to 12 million kgU
    
    
    
    720,000 to 770,000
oz.Capital expenditures
    
    $367 million4
    
    
    
    
    
    $38 million
    
    $96 million (US)
 
 1
    
    Cameco only provides outlook for the select items shown in the table. For all other
items listed in the table, no outlook is provided.2
    
    This is the revenue outlook for the uranium, fuel services and nuclear electricity
businesses and does not include gold.3
    
    Based on a uranium spot price of $47.00 (US) per pound, reflecting the UxC spot price
as of February 9, 2009.4
    
    Camecos consolidated outlook for capital expenditures does not include Bruce Power
or Centerra capital expenditures. 56




---



##### 



2009 Consolidated Outlook
     Uranium Price Sensitivity (2009)
  Capital Expenditures
 (Camecos share in $ millions)
    
    2009 Plan
    
    2008 ActualGrowth CapitalCigar Lake
    
    
    48
    
    
    
    57Inkai
    
    
    9
    
    
    
    47Total Growth
    
    
    57
    
    
    
    104Sustaining CapitalMcArthur River/Key Lake
    
    
    106
    
    
    
    112US ISR
    
    
    54
    
    
    
    42Rabbit Lake
    
    
    38
    
    
    
    86Inkai
    
    
    18
    
    
    
    Fuel Services
    
    
    23
    
    
    
    77Other
    
    
    21
    
    
    
    38Total Sustaining
    
    
    260
    
    
    
    355Capitalized Interest
    
    
    50
    
    
    
    39Total Uranium & Fuel Services
    
    
    367
    
    
    
    498Bruce Power (BPLP)1
    
    
    38
    
    
    
    33Gold ($US)2
    
    
    96
    
    
    
    95
 
 1
    
    Reflects Camecos 31.6% share of expenditures as well as investments made by the three major partners in 2008.2
    
    Represents 100% of Centerras expenditures and expected to be funded by Centerra. 57




---



##### 




    
    McArthur River/Key Lake. For McArthur River, the largest component is mine development work
at about $40 million. Other projects include installation of freezing and distribution
systems, and work on dewatering equipment and mine ventilation. The program continues to test
the boxhole boring method and we expect to take delivery of two new raisebore drills early in
the year. At Key Lake, mill revitalization is the largest project at approximately $25
million. The purpose of this multi-year project is to enhance the mills capability to produce
over the long term. For more information refer to Uranium Operations  McArthur River/Key
Lake in this MD&A.
 
    
    US in situ recovery (ISR). Wellfield construction and well installation is the largest
project at approximately $25 million. Work on Reynolds Ranch satellite operation and
infrastructure is also planned.
 
    
    Rabbit Lake. Mine development activity at Eagle Point is the largest project at about $15
million. Other projects include mine ventilation system, completion of the low pH clarifier,
and work to complete the expansion of the pit crest and to study options for long-term
tailings placement.
  This consolidated outlook for 2009 is forward-looking information and is based upon the key
assumptions and subject to the material risks that could cause results to differ materially which
are discussed under the heading Caution Regarding Forward-Looking Information and Statements, and
the particular assumptions and material risk factors relating to each of our business segments that
are discussed following the outlook for that segment presented below.
 2009 Outlook for Uranium
 3 8
 58




---



##### 



3 8
   Calculation of Tiered Royalties
  
    
    based on 100,000 pounds U3O8 sold, and
 
    
    no capital allowance is available.
 Sales Price
    
    
    
    
    
    
    
    Total TieredRealized ($Cdn)
    
    Tier 1 Royalty1
    
    Tier 2 Royalty2
    
    Tier 3 Royalty3
    
    Royalty$25
    
    
    
    $47,040
    
    
    
    
    
    
    
    
    
    
    
    $47,04035
    
    
    
    107,040
    
    
    
    $37,040
    
    
    
    $3,350
    
    
    
    147,43045
    
    
    
    167,040
    
    
    
    77,040
    
    
    
    53,350
    
    
    
    297,43055
    
    
    
    227,040
    
    
    
    117,040
    
    
    
    103,350
    
    
    
    447,43065
    
    
    
    287,040
    
    
    
    157,040
    
    
    
    153,350
    
    
    
    597,43075
    
    
    
    347,040
    
    
    
    197,040
    
    
    
    203,350
    
    
    
    747,43085
    
    
    
    407,040
    
    
    
    237,040
    
    
    
    253,350
    
    
    
    897,430
 
 1
    
    6% x (Sales Price  $17.16) x 100,000 pounds
U3O8.2
    
    4% x (Sales Price  $25.74) x 100,000 pounds
U3O8.3
    
    5% x (Sales Price  $34.33) x 100,000 pounds
U3O8. This uranium business outlook for 2009 is forward-looking information and is based upon the key
assumptions and subject to the material risks that could cause results to differ materially and
which are discussed under the heading Caution Regarding Forward-Looking Information and
Statements. In particular, we have assumed that there will be no significant changes in sales
volumes, purchases and prices, and that there will be no disruption or reduction of supply from our
facilities or third-party sources other than as disclosed. We have also assumed a uranium spot
price of $47.00 (US) per pound reflecting the UxC spot price as of February 9, 2009. Material risks
that could cause actual results to differ materially include significant adverse changes in sales
volumes, purchases and prices, and the actual occurrence of additional supply disruptions or
reductions.
 59




---



##### 



Uranium Price Sensitivity (2009 to 2013)
   
    
    new contracts entered into during the quarter,
 
    
    variations in the actual spot price or long-term price during the most recent quarter from
the price assumptions in the table published in the previous quarter,
 
    
    changes in inflation assumptions,
 
    
    changes in delivery plans from those assumed in the table published in the previous quarter
as a result of requirements contracts or volume flexibility terms contained in some contracts,
and
 
    
    changes in the volume of uncommitted material.
    Industry Average Uranium Market Prices ($US/lb U 3 O 8 )
 2003
    
    2004
    
    2005
    
    2006
    
    2007
    
    2008Spot price indicator
    
    
    11.55
    
    
    
    18.60
    
    
    
    28.67
    
    
    
    49.60
    
    
    
    99.29
    
    
    
    61.58Long-term price
indicator
    
    
    12.10
    
    
    
    21.00
    
    
    
    30.66
    
    
    
    49.90
    
    
    
    90.83
    
    
    
    82.50
  60




---



##### 



Cameco Expected Average Realized Uranium Price (Rounded to the nearest $1)
Current $US/lb U 3 O 8
 Spot Price
    
    $20
    
    $40
    
    $60
    
    $80
    
    $100
    
    $120
    
    $1402009
    
    
    29
    
    
    
    34
    
    
    
    38
    
    
    
    43
    
    
    
    47
    
    
    
    52
    
    
    
    542010
    
    
    32
    
    
    
    39
    
    
    
    48
    
    
    
    54
    
    
    
    61
    
    
    
    69
    
    
    
    762011
    
    
    36
    
    
    
    41
    
    
    
    50
    
    
    
    57
    
    
    
    66
    
    
    
    74
    
    
    
    822012
    
    
    37
    
    
    
    40
    
    
    
    48
    
    
    
    57
    
    
    
    66
    
    
    
    75
    
    
    
    842013
    
    
    44
    
    
    
    47
    
    
    
    57
    
    
    
    67
    
    
    
    78
    
    
    
    88
    
    
    
    97
 This price table is forward-looking information and is based upon the material assumptions, and
subject to the material risks, discussed under the heading Caution Regarding Forward-Looking
Information and Statements, as well as the following key assumptions, and material risks which
could cause actual prices to vary:
 
    
    sales volume of 32 million pounds for 2009 (which has been adjusted for the accounting
requirements of the product loan agreement) and a sales volume of about 30 million pounds for
each year thereafter. Variations in our actual sales volume could lead to materially different
results,
 
    
    utilities take the maximum quantities allowed under their contracts, unless a delivery
notice has been provided, which is subject to the risk that they take lower quantities
resulting in materially different realized prices,
 
    
    Cameco defers a portion of deliveries under contract for 2009 through 2011 as a result of
exercising its rights under supply interruption provisions,
 
    
    all volumes for which there are no existing sales commitments are assumed to be delivered
at the spot price assumed for each scenario, which is subject to the risk that sales are at
prices other than spot prices which could result in materially different realized prices,
 
    
    the average long-term price indicator in a given year is assumed to be equal to the average
spot price for that entire year. Fluctuations in the spot price or the long-term price, during
the course of a year could lead to materially different results, and
 
    
    an inflation rate of 2.5%, but variations in the inflation rate could have a material
impact on actual results.
 The assumptions stated above, including our annual sales volumes and the price realized from them,
are made solely for the purpose of the foregoing price table and do not necessarily reflect our
views of anticipated results.
 Fuel Services Outlook for 2009
  6
 Fuel Services Price Sensitivity Analysis
  61




---



##### 



This fuel services business outlook for 2009 is forward-looking information and is based upon the
key assumptions and subject to the material risks that could cause results to differ materially and
which are discussed under the heading Caution Regarding Forward-Looking Information and
Statements. In particular, we have assumed that there will be no significant changes in sales
volumes, purchases and prices, and that there will be no disruption or reduction of supply from our
facilities or third-party sources other than as disclosed. We have also assumed the successful
restart and rampup of the Port Hope UF 6 plant in mid-2009. Material risks that could
cause actual results to differ materially include significant adverse changes in sales volumes,
purchases and prices, the actual occurrence of additional supply disruptions and the unsuccessful
restart and/or rampup of the Port Hope UF 6 plant.
 BPLPs Outlook for 2009
   2009 BPLP Capital Expenditures (100% Basis)
  Electricity Price Sensitivity Analysis
  This 2009 outlook for BPLP is forward-looking information and is based upon the key assumptions and
subject to the material risks that could cause results to differ materially and which are discussed
under the heading Caution Regarding Forward-Looking Information and Statements. In particular, we
have assumed that the B units will achieve their targeted capacity factor and that there will be no
significant changes in costs, contract levels and prices. Material risks that could cause actual
results to differ materially include the failure of the B units to achieve their targeted capacity
factor, and the occurrence of significant adverse changes in costs and prices.
 Gold Outlook for 2009
   62




---



##### 



Gold Price Sensitivity Analysis
  This outlook for the gold segment of our business is forward-looking information and is based upon
the key assumptions, and subject to the material risks that could cause results to differ
materially and which are discussed under the heading Caution Regarding Forward-Looking Information
and Statements. In particular, we have assumed Centerras planned 2-week shutdown of the Kumtor
mill in the third quarter of 2009 to change the ball mill ring gear and to replace the SAG mill
liner is successfully completed on time, but that is subject to a number of risks including the
risk of delay, or unforeseen difficulty which could result in disruption or reduction in planned
gold production; we have assumed the dewatering and depressurization programs at Kumtor continue to
function properly and the management system works as planned, but that is subject to a number of
risks including lack of success of these programs and systems or equipment failure; we have assumed
that the grade and recoveries at Kumtor will increase in the fourth quarter of 2009 in accordance
with mine plan and block model, but that is subject to the risk that grade and recoveries are not
as anticipated; and we have assumed there is no disruption or reduction in planned gold production
due to natural phenomena, labour disputes, political risks or other development and operation
risks, but that is subject to risk that there is a disruption or reduction due to the occurrence of
one or more these risks which could cause results to vary materially.
 2008
Fourth Quarter Consolidated Results
 2008 Fourth Quarter Consolidated Results
 Three months endedFinancial Highlights
    
    December 31($ millions except per share amounts)
    
    2008
    
    2007
    
    % ChangeRevenue
    
    
    918
    
    
    
    494
    
    
    
    86Earnings from operations
    
    
    65
    
    
    
    68
    
    
    
    (4)Cash provided by operations1
    
    
    340
    
    
    
    57
    
    
    
    496Net earnings
    
    
    31
    
    
    
    61
    
    
    
    (49)Earnings per share (EPS)  basic ($)
    
    
    0.08
    
    
    
    0.18
    
    
    
    (56)EPS  diluted ($)
    
    
    0.08
    
    
    
    0.17
    
    
    
    (53)EPS  adjusted and diluted ($)2
    
    
    0.49
    
    
    
    0.15
    
    
    
    227Adjusted net earnings2
    
    
    179
    
    
    
    53
    
    
    
    238
 
 1
    
    After working capital changes.2
    
    Net earnings for the quarters ended December 31, 2007 and 2008 have been adjusted to
exclude a number of items. Adjusted net earnings is a non-GAAP measure. For a description, see
Use of Non-GAAP Financial Measures in this MD&A.   63




---



##### 



Three months endedDecember 31$ millions
    
    2008
    
    2007Direct administration
    
    
    62
    
    
    
    39Stock-based compensation1
    
    
    (7
    )
    
    
    (24
    )Total administration
    
    
    55
    
    
    
    15
 
 1
    
    Stock-based compensation includes amounts charged to administration under the stock
option deferred share unit, performance share unit and phantom stock option plans. It does not
include the $94 million charge related to the amendment of the stock option plan in 2007. See
note 20 to the financial statements. 2007-2008 Quarterly Consolidated Financial Highlights
 Highlights($ millions except
    
    2008
    
    2007per share amounts)
    
    Q4
    
    Q3
    
    Q2
    
    Q1
    
    Q4
    
    Q3
    
    Q2
    
    Q1Revenue
    
    
    918
    
    
    
    729
    
    
    
    620
    
    
    
    592
    
    
    
    494
    
    
    
    681
    
    
    
    725
    
    
    
    410Net earnings
    
    
    31
    
    
    
    136
    
    
    
    150
    
    
    
    133
    
    
    
    61
    
    
    
    91
    
    
    
    205
    
    
    
    59EPS  basic ($)
    
    
    0.08
    
    
    
    0.39
    
    
    
    0.44
    
    
    
    0.38
    
    
    
    0.18
    
    
    
    0.26
    
    
    
    0.58
    
    
    
    0.16EPS  diluted ($)
    
    
    0.08
    
    
    
    0.39
    
    
    
    0.43
    
    
    
    0.38
    
    
    
    0.17
    
    
    
    0.25
    
    
    
    0.55
    
    
    
    0.16Cash from operations
    
    
    340
    
    
    
    109
    
    
    
    113
    
    
    
    146
    
    
    
    57
    
    
    
    450
    
    
    
    155
    
    
    
    139
  
    
    Camecos financial results are strongly influenced by the performance of our uranium
business, which in 2008 accounted for 53% of annual consolidated revenues.
    
    Revenue of $918 million in the fourth quarter of 2008 represented an all-time record and
was 26% higher than in the third quarter due to increased sales volumes in the uranium and
gold businesses. Timing of customer requirements, which tend to vary from year to year, drives
revenue in the uranium and fuel services businesses. In 2007, sales volumes for uranium were
most heavily weighted to the second quarter of the year and the highest realized price was
recorded in the third quarter.
 64




---



##### 




    
    Net earnings do not trend directly with revenue because of unusual items and transactions
that occur from time to time. The company uses a non-GAAP measure, adjusted net earnings, to
provide a more meaningful basis for period-to-period comparison of financial results.
    
    Cash from operations tends to fluctuate largely due to the timing of deliveries and product
purchases in the uranium production and fuel services businesses.
 2008 Fourth Quarter Business Segment Financial Results
 2008 Fourth Quarter Uranium Business Financial Results
 Three months endedDecember 31Highlights
    
    2008
    
    2007
    
    % ChangeRevenue ($ millions)
    
    
    450
    
    
    
    219
    
    
    
    105Gross profit ($ millions)
    
    
    193
    
    
    
    81
    
    
    
    138Gross profit %
    
    
    43
    
    
    
    37
    
    
    
    16Earnings before taxes ($
millions)
    
    
    168
    
    
    
    63
    
    
    
    167Average realized price($US/lb)
    
    
    35.31
    
    
    
    38.92
    
    
    
    (9)($Cdn/lb)
    
    
    42.77
    
    
    
    39.64
    
    
    
    8Sales volume (million lbs)
    
    
    10.5
    
    
    
    5.5
    
    
    
    91Production volume (million lbs)
    
    
    5.4
    
    
    
    5.6
    
    
    
    (4)
 Uranium Financial Results
 Fourth Quarter
    65




---



##### 



2008 Fourth Quarter Fuel Services Business Financial Results
 Three months endedDecember 31Highlights
    
    2008
    
    2007
    
    % ChangeRevenue ($ millions)
    
    
    70
    
    
    
    77
    
    
    
    (9
    )Gross profit ($ millions)
    
    
    14
    
    
    
    (36
    )
    
    
    139Gross profit %
    
    
    19
    
    
    
    (47
    )
    
    
    140Earnings before taxes ($ millions)
    
    
    12
    
    
    
    (36
    )
    
    
    133Sales volume (million kgU)1
    
    
    4.6
    
    
    
    6.4
    
    
    
    (28
    )Production
volume (million
kgU)1, 2
    
    
    2.6
    
    
    
    1.7
    
    
    
    53
 
 1
    
    Kilograms of uranium (kgU).2
    
    Production volume includes UF6, UO2, fuel fabrication, and
UF6supply from SFL. Fuel Services Financial Results
 Fourth Quarter
  6 6 6
  66




---



##### 



2008 Fourth Quarter Nuclear Electricity Generation Business Financial Results
 Bruce Power Limited Partnership (100% basis)
 Three months endedDecember 312008
    
    2007
    
    % ChangeOutput  terawatt hours (TWh)
    
    
    7.0
    
    
    
    6.7
    
    
    
    4Capacity factor (%)1
    
    
    97
    
    
    
    93
    
    
    
    4Realized price ($/MWh)
    
    
    57
    
    
    
    54
    
    
    
    6Average Ontario electricity
spot price ($/MWh)
    
    
    49
    
    
    
    48
    
    
    
    2($ millions)Revenue
    
    
    399
    
    
    
    359
    
    
    
    11Operating costs2
    
    
    207
    
    
    
    207
    
    
    
    0Cash costs operating & maintenance
    
    
    124
    
    
    
    130
    
    
    
    (5) fuel
    
    
    23
    
    
    
    19
    
    
    
    21 supplemental rent3
    
    
    29
    
    
    
    28
    
    
    
    3Non-cash costs (amortization)
    
    
    31
    
    
    
    30
    
    
    
    3Income before interest
and finance charges
    
    
    192
    
    
    
    152
    
    
    
    26Interest and finance charges
    
    
    11
    
    
    
    
    
    
    
    N/AEarnings before taxes
    
    
    181
    
    
    
    152
    
    
    
    19Cash from operations
    
    
    176
    
    
    
    165
    
    
    
    7Capital expenditures
    
    
    19
    
    
    
    41
    
    
    
    (54)Distributions
    
    
    205
    
    
    
    185
    
    
    
    11Operating costs ($/MWh)
    
    
    30
    
    
    
    31
    
    
    
    (3)
 
 1
    
    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.2
    
    Net of cost recoveries.3
    
    Supplemental rent is about $29 million per operating reactor for 2008.   67




---



##### 



Camecos
Earnings from BPLP
 Three months endedDecember 31($ millions)
    
    2008
    
    2007
    
    % ChangeBPLPs earnings before taxes (100%)
    
    
    181
    
    
    
    152
    
    
    
    19Camecos share of pre-tax earnings
before adjustments
    
    
    57
    
    
    
    48
    
    
    
    19Proprietary adjustments
    
    
    (2)
    
    
    
    (2)
    
    
    
    0Pre-tax earnings from BPLP
    
    
    55
    
    
    
    46
    
    
    
    20
 Fourth Quarter
 Earnings Before Taxes
  Output
  Revenue and Realized Price
    Costs
  68




---



##### 



2008 Fourth Quarter Gold Results
 Three months endedDecember 31Highlights
    
    2008
    
    2007
    
    % ChangeRevenue ($ millions)
    
    
    277
    
    
    
    88
    
    
    
    215Gross profit ($ millions)
    
    
    102
    
    
    
    21
    
    
    
    386Gross profit %
    
    
    37
    
    
    
    24
    
    
    
    54Realized price ($US/ounce)
    
    
    806
    
    
    
    789
    
    
    
    2Sales volume (ounces)
    
    
    299,000
    
    
    
    113,000
    
    
    
    165Gold production (ounces)1
    
    
    284,000
    
    
    
    133,000
    
    
    
    114
 
 1
    
    Represents 100% of production from the Kumtor and Boroo mines. Gold Financial Results
 Fourth Quarter
  Liquidity and Capital Resources
 Overview
  Discussion of Impact of Current Economic Conditions
    69




---



##### 



Liquidity Indicators
 2008
    
    2007Cash provided by operations ($ millions)
    
    
    708
    
    
    
    801Cash provided by operations/net debt1 (%)
    
    
    68
    
    
    
    135Net debt1/total capitalization (%)
    
    
    23
    
    
    
    18
 
 1
    
    Total debt less cash and cash equivalents based on consolidated amounts. Indicators Defined
    70




---



##### 



Credit Ratings
  Security
    
    DBRS
    
    S&PCommercial Paper
    
    R-1 (low)
    
    A-1 (low)1Senior Unsecured Debentures
    
    A (low)
    
    BBB+
 
 1
    
    A-1 (low) is the Canadian National Scale Rating while the Global Scale Rating is A-2. Debt
        71




---



##### 



Product Loan Facilities
 3 8
 Debentures
  Convertible Debentures
  Debt Covenants
 1
 
 1
    
    Funded debt is comprised substantially of total debt
exclusive of non-recourse debt, guarantees, mark-to-market exposure on hedge
agreements, letters of credit in excess of $100 million less cash on hand. 72




---



##### 



Contractual Cash Obligations
 Due inLessAs at December 31, 2008
    
    
    
    
    
    Than 1
    
    Due in
    
    Due in
    
    Due After($ millions)
    
    Total
    
    Year
    
    1 - 3 Years
    
    4 - 5 Years
    
    5 YrsLong-term debt
    
    
    1,223
    
    
    
    10
    
    
    
    467
    
    
    
    333
    
    
    
    413Interest on long-term debt
    
    
    223
    
    
    
    46
    
    
    
    70
    
    
    
    55
    
    
    
    52Provision for reclamation
    
    
    556
    
    
    
    13
    
    
    
    35
    
    
    
    23
    
    
    
    485Other liabilities
    
    
    216
    
    
    
    15
    
    
    
    1
    
    
    
    1
    
    
    
    199Unconditional product
purchase
obligations1, 2
    
    
    1,158
    
    
    
    176
    
    
    
    354
    
    
    
    536
    
    
    
    92Total contractual cash
obligations
    
    
    3,376
    
    
    
    260
    
    
    
    927
    
    
    
    948
    
    
    
    1,241
 
 1
    
    Denominated in US dollars, converted to Canadian dollars at the December 31, 2008
rate of $1.2246.2
    
    Virtually all of Camecos product purchase obligations are under long-term,
fixed-price arrangements. Commercial Commitments
  As at December 31, 2008($ millions)
    
    Total amounts committedStandby letters of credit1
    
    
    429BPLP guarantees2
    
    
    82Total commercial commitments
    
    
    511
 
 1
    
    The standby letters of credit maturing in 2009 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, 2008, Camecos total commitment for financial assurances given on
behalf of BPLP was estimated to be $82 million. Refer to note 24 in the financial statements. Outstanding Share Data
  73




---



##### 



5.0
    
    OUR MINERAL RESERVES AND RESOURCES
 Mineral
Reserves and Resources
    74




---



##### 



Uranium Mineral Reserves
  RESERVES
    
    PROVEN
    
    PROBABLE
    
    TOTAL RESERVES(100% basis)
    
    (100% basis)
    
    (100% basis)
    
    Camecos
    
    EstimatedGrade
    
    Content
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    Grade
    
    Content
    
    Share
    
    Metallurgical
    
    MiningTonnes
    
    % U3O8
    
    (lbs U3O8)
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    (lbs U3O8)
    
    Recovery %
    
    Method(tonnes in thousands; pounds in millions)PROPERTYCigar Lake
    
    
    497.0
    
    
    
    20.67
    
    
    
    226.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    497.0
    
    
    
    20.67
    
    
    
    226.3
    
    
    
    113.2
    
    
    
    98.5
    
    
    UGCrow Butte
    
    
    780.2
    
    
    
    0.13
    
    
    
    2.2
    
    
    
    703.2
    
    
    
    0.18
    
    
    
    2.8
    
    
    
    1,483.4
    
    
    
    0.15
    
    
    
    5.0
    
    
    
    5.0
    
    
    
    85.0
    
    
    ISRGas Hills  Peach
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,859.0
    
    
    
    0.13
    
    
    
    19.7
    
    
    
    6,859.0
    
    
    
    0.13
    
    
    
    19.7
    
    
    
    19.7
    
    
    
    65.0
    
    
    ISRHighland
    
    
    246.6
    
    
    
    0.14
    
    
    
    0.7
    
    
    
    410.1
    
    
    
    0.11
    
    
    
    1.0
    
    
    
    656.7
    
    
    
    0.12
    
    
    
    1.7
    
    
    
    1.7
    
    
    
    80.0
    
    
    ISRInkai
    
    
    7,415.0
    
    
    
    0.08
    
    
    
    13.7
    
    
    
    86,080.0
    
    
    
    0.07
    
    
    
    128.1
    
    
    
    93,495.0
    
    
    
    0.07
    
    
    
    141.8
    
    
    
    85.1
    
    
    
    80.0
    
    
    ISRKey Lake
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    0.6
    
    
    
    98.7
    
    
    OPMcArthur River
    
    
    449.2
    
    
    
    17.18
    
    
    
    170.1
    
    
    
    280.0
    
    
    
    26.33
    
    
    
    162.5
    
    
    
    729.2
    
    
    
    20.69
    
    
    
    332.6
    
    
    
    232.2
    
    
    
    98.7
    
    
    UGNorth Butte/ Brown
Ranch
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,879.1
    
    
    
    0.10
    
    
    
    8.5
    
    
    
    3,879.1
    
    
    
    0.10
    
    
    
    8.5
    
    
    
    8.5
    
    
    
    80.0
    
    
    ISRRabbit Lake
    
    
    35.8
    
    
    
    0.99
    
    
    
    0.8
    
    
    
    776.8
    
    
    
    0.98
    
    
    
    16.7
    
    
    
    812.6
    
    
    
    0.98
    
    
    
    17.5
    
    
    
    17.5
    
    
    
    96.7
    
    
    UGReynolds Ranch
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    757.9
    
    
    
    0.08
    
    
    
    1.3
    
    
    
    757.9
    
    
    
    0.08
    
    
    
    1.3
    
    
    
    1.3
    
    
    
    80.0
    
    
    ISRRuby Ranch
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,066.5
    
    
    
    0.08
    
    
    
    3.8
    
    
    
    2,066.5
    
    
    
    0.08
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    80.0
    
    
    ISRRuth
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    855.1
    
    
    
    0.09
    
    
    
    1.7
    
    
    
    855.1
    
    
    
    0.09
    
    
    
    1.7
    
    
    
    1.7
    
    
    
    80.0
    
    
    ISRSmith Ranch
    
    
    908.5
    
    
    
    0.11
    
    
    
    2.3
    
    
    
    1,006.6
    
    
    
    0.11
    
    
    
    2.4
    
    
    
    1,915.1
    
    
    
    0.11
    
    
    
    4.7
    
    
    
    4.7
    
    
    
    80.0
    
    
    ISRTotal
    
    
    10,394.2
    
    
    
    
    
    
    
    416.8
    
    
    
    103,674.3
    
    
    
    
    
    
    
    348.5
    
    
    
    114,068.5
    
    
    
    
    
    
    
    765.3
    
    
    
    495.0
    
    
    
    
    
    
    
    
 
  1.
    
    Cameco reports mineral reserves and mineral resources separately.2.
    
    Estimated metallurgical recovery factors must be applied in order to obtain the
expected amounts of recovered pounds U3O8. Camecos share of
U3O8
content is not adjusted for the estimated metallurgical recovery
factor.3.
    
    Mineral reserves incorporate allowances for dilution and mining losses.4.
    
    Mining method: OP  Open Pit; UG  Underground; ISR  In situ recovery.5.
    
    Mineral reserves are estimated using current geological models and current and/or
projected operating costs and mine plans. Camecos data verification procedures have been
employed in connection with the mineral reserve estimations for each property.6.
    
    For the purpose of estimating mineral reserves in accordance with NI 43-101, an average
uranium price of $47 (US)/lb U3O8 was used. For the purpose of
estimating mineral reserves in accordance with US Securities Commission Industry Guide 7,
an average uranium price of $70 (US)/lb U3O8was used. Estimated
mineral reserves are identical at either price.7.
    
    The key economic parameters underlying the mineral reserves include an exchange rate of
$1.00 US=$1.22 Cdn (reflecting the exchange rate at December 31, 2008).8.
    
    Environmental, permitting, legal, title, taxation, socio-economic, political, marketing
or other issues are not expected to materially affect the above estimates of mineral
reserves.9.
    
    Totals may not add up due to rounding.10.
    
    Inkai mineral reserves assume production at an annual rate of 5.2 million pounds of
U3O8. Inkai currently has regulatory approval to produce at an annual
rate of 2.6 million pounds and an application for regulatory approval to increase annual
production to 5.2 million pounds was made in 2005. Cameco is familiar with the statutory,
regulatory and procedural framework governing new mining projects in Kazakhstan and, based
upon its experience to date, Cameco believes that it is reasonably likely that all permits
and approvals required for the construction and operation of its new ISR mine at Inkai 
including approvals for increased annual production to 5.2 million pounds  will be
obtained. However, there can be no certainty that permits or approvals will be forthcoming.
Failure to obtain approval
for increased annual production at Inkai will require Cameco to recategorize half of the
mineral reserves at Inkai as mineral resources. 75




---



##### 



Uranium Measured and Indicated Resources
 Cautionary
Note to US Investors Concerning Estimates of Measured and Indicated Resources
   RESOURCES
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    MEASURED ANDMEASURED
    
    INDICATED
    
    INDICATED(100% basis)
    
    (100% basis)
    
    (100% basis)
    
    CamecosGrade
    
    Content
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    Grade
    
    Content
    
    Share
    
    MiningTonnes
    
    % U3O8
    
    (lbs U3O8)
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    (lbs U3O8)
    
    Method(tonnes in thousands; pounds in millions)PROPERTYCigar Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61.2
    
    
    
    4.86
    
    
    
    6.6
    
    
    
    61.2
    
    
    
    4.86
    
    
    
    6.6
    
    
    
    3.3
    
    
    UGCrow Butte
    
    
    64.4
    
    
    
    0.23
    
    
    
    0.3
    
    
    
    1,316.6
    
    
    
    0.23
    
    
    
    6.6
    
    
    
    1,381.0
    
    
    
    0.23
    
    
    
    6.9
    
    
    
    6.9
    
    
    ISRDawn Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    7.4
    
    
    OP&UGGas Hills 
Peach
    
    
    2,015.3
    
    
    
    0.08
    
    
    
    3.3
    
    
    
    1,550.5
    
    
    
    0.07
    
    
    
    2.3
    
    
    
    3,565.8
    
    
    
    0.07
    
    
    
    5.6
    
    
    
    5.6
    
    
    ISRHighland
    
    
    866.3
    
    
    
    0.10
    
    
    
    1.8
    
    
    
    47.1
    
    
    
    0.09
    
    
    
    0.1
    
    
    
    913.4
    
    
    
    0.09
    
    
    
    1.9
    
    
    
    1.9
    
    
    ISRInkai
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10,904.0
    
    
    
    0.07
    
    
    
    17.8
    
    
    
    10,904.0
    
    
    
    0.07
    
    
    
    17.8
    
    
    
    10.7
    
    
    ISRMcArthur River
    
    
    209.0
    
    
    
    9.20
    
    
    
    42.4
    
    
    
    39.8
    
    
    
    8.37
    
    
    
    7.4
    
    
    
    248.8
    
    
    
    9.08
    
    
    
    49.8
    
    
    
    34.7
    
    
    UGMillennium
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    468.9
    
    
    
    4.53
    
    
    
    46.8
    
    
    
    468.9
    
    
    
    4.53
    
    
    
    46.8
    
    
    
    19.6
    
    
    UGNorth Butte/ Brown
Ranch
    
    
    995.2
    
    
    
    0.09
    
    
    
    1.9
    
    
    
    4,138.2
    
    
    
    0.07
    
    
    
    6.3
    
    
    
    5,133.4
    
    
    
    0.07
    
    
    
    8.2
    
    
    
    8.2
    
    
    ISRNorthwest Unit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,952.7
    
    
    
    0.03
    
    
    
    2.3
    
    
    
    3,952.7
    
    
    
    0.03
    
    
    
    2.3
    
    
    
    2.3
    
    
    ISRRabbit Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    276.2
    
    
    
    0.68
    
    
    
    4.1
    
    
    
    276.2
    
    
    
    0.68
    
    
    
    4.1
    
    
    
    4.1
    
    
    UGReynolds Ranch
    
    
    45.7
    
    
    
    0.13
    
    
    
    0.1
    
    
    
    6,395.0
    
    
    
    0.06
    
    
    
    8.3
    
    
    
    6,440.7
    
    
    
    0.06
    
    
    
    8.4
    
    
    
    8.4
    
    
    ISRRuby Ranch
    
    
    40.0
    
    
    
    0.15
    
    
    
    0.1
    
    
    
    108.8
    
    
    
    0.06
    
    
    
    0.1
    
    
    
    148.8
    
    
    
    0.06
    
    
    
    0.2
    
    
    
    0.2
    
    
    ISRRuth
    
    
    100.0
    
    
    
    0.10
    
    
    
    0.2
    
    
    
    125.5
    
    
    
    0.07
    
    
    
    0.2
    
    
    
    225.5
    
    
    
    0.08
    
    
    
    0.4
    
    
    
    0.4
    
    
    ISRShirley Basin
    
    
    89.2
    
    
    
    0.16
    
    
    
    0.3
    
    
    
    1,638.2
    
    
    
    0.11
    
    
    
    4.1
    
    
    
    1,727.4
    
    
    
    0.12
    
    
    
    4.4
    
    
    
    4.4
    
    
    ISRSmith Ranch
    
    
    1,615.6
    
    
    
    0.09
    
    
    
    3.3
    
    
    
    2,776.2
    
    
    
    0.10
    
    
    
    6.2
    
    
    
    4,391.8
    
    
    
    0.10
    
    
    
    9.5
    
    
    
    9.5
    
    
    ISRTotal
    
    
    6,040.7
    
    
    
    
    
    
    
    53.7
    
    
    
    34,145.9
    
    
    
    
    
    
    
    132.1
    
    
    
    40,186.6
    
    
    
    
    
    
    
    185.8
    
    
    
    127.6
    
    
    
    
 
  1.
    
    Cameco reports mineral reserves and mineral resources separately. The amount of
reported mineral resources does not include those amounts identified as mineral reserves.2.
    
    Mining method: OP  Open Pit; UG  Underground; ISR  In situ recovery.3.
    
    Mineral resources are estimated using current geological models. Camecos normal data
verification procedures have been employed in connection with the mineral resource
estimations for each property.4.
    
    Totals may not add up due to rounding.5.
    
    Mineral resources that are not mineral reserves do not have demonstrated economic
viability. 76




---



##### 



Uranium Inferred Resources
 Cautionary Note to US Investors Concerning Estimates of Inferred Resources
   INFERRED RESOURCES(100% basis)Grade
    
    Content
    
    Camecos Share
    
    MiningTonnes
    
    % U3O8
    
    (lbs U3O8)
    
    (lbs U3O8)
    
    Method(tonnes in thousands; pounds in millions)PROPERTYCigar Lake
    
    
    317.0
    
    
    
    16.92
    
    
    
    118.2
    
    
    
    59.1
    
    
    UGCrow Butte
    
    
    2,539.3
    
    
    
    0.11
    
    
    
    6.3
    
    
    
    6.3
    
    
    ISRDawn Lake
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Gas Hills-Peach
    
    
    812.9
    
    
    
    0.06
    
    
    
    1.1
    
    
    
    1.1
    
    
    ISRHighland
    
    
    108.4
    
    
    
    0.20
    
    
    
    0.5
    
    
    
    0.5
    
    
    ISRInkai
    
    
    254,696.0
    
    
    
    0.05
    
    
    
    255.1
    
    
    
    153.0
    
    
    ISRMcArthur River
    
    
    642.6
    
    
    
    9.81
    
    
    
    139.0
    
    
    
    97.0
    
    
    UGMillennium
    
    
    214.3
    
    
    
    2.06
    
    
    
    9.7
    
    
    
    4.1
    
    
    UGNorth Butte/ Brown
Ranch
    
    
    665.1
    
    
    
    0.07
    
    
    
    1.0
    
    
    
    1.0
    
    
    ISRNorthwest Unit
    
    
    627.0
    
    
    
    0.04
    
    
    
    0.5
    
    
    
    0.5
    
    
    ISRRabbit Lake
    
    
    289.4
    
    
    
    0.90
    
    
    
    5.7
    
    
    
    5.7
    
    
    UGReynolds Ranch
    
    
    5,036.3
    
    
    
    0.04
    
    
    
    4.7
    
    
    
    4.7
    
    
    ISRRuby Ranch
    
    
    55.9
    
    
    
    0.14
    
    
    
    0.2
    
    
    
    0.2
    
    
    ISRRuth
    
    
    210.9
    
    
    
    0.08
    
    
    
    0.4
    
    
    
    0.4
    
    
    ISRShirley Basin
    
    
    508.0
    
    
    
    0.10
    
    
    
    1.1
    
    
    
    1.1
    
    
    ISRSmith Ranch
    
    
    598.4
    
    
    
    0.07
    
    
    
    0.9
    
    
    
    0.9
    
    
    ISRTotal
    
    
    267,321.5
    
    
    
    
    
    
    
    544.4
    
    
    
    335.6
    
    
    
    
 
  1.
    
    Cameco reports mineral reserves and mineral resources separately. The amount of
reported mineral resources does not include those amounts identified as mineral reserves.2.
    
    Mining method: OP  Open Pit; UG  Underground; ISR  In situ recovery.3.
    
    Mineral resources are estimated using current geological models. Camecos normal data
verification procedures have been employed in connection with the mineral resource
estimations for each property.4.
    
    Totals may not add up due to rounding.5.
    
    Mineral resources that are not mineral reserves do not have demonstrated economic
viability6.
    
    Inferred resources have a great amount of uncertainty as to their existence and their
economic and legal feasibility. It cannot be assumed that all or any part of an inferred
resource will ever be upgraded to a higher category. 77




---



##### 



Uranium Mineral Reserves Reconciliation
  Uranium Mineral Resources Reconciliation
  
    
    At McArthur River, 19.8 million pounds of U3O8 were added to the
measured resources due to re-interpretation of zone 4 south. Inferred resources increased
by 30.9 million pounds due to the remodelling of zones A and B.
    
    At Rabbit Lake, following underground development, 4.1 million pounds of measured and
indicated resources were converted to mineral reserves.
    
    At Smith Ranch and Highland, measured and indicated resources
increased by 4.6 million
pounds due to re-evaluation of mine unit 10 and reclassification from mineral reserves to
resources where production patterns are not yet designed.
 78




---



##### 



Gold Reserves and Resources
  Reserves (1) (11)(12)
 Proven (100% Basis)
    
    Probable (100% Basis)
    
    Total Proven and Probable ReservesContained
    
    
    
    
    
    
    
    
    
    Contained
    
    
    
    
    
    
    
    
    
    Contained
    
    Cameco Equity
    
    MiningProperty
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    (oz)(3)
    
    Method(4)Kumtor(6)(13)
    
    
    3,412
    
    
    
    1.4
    
    
    
    150
    
    
    
    32,008
    
    
    
    3.8
    
    
    
    3,875
    
    
    
    35,420
    
    
    
    3.5
    
    
    
    4,025
    
    
    
    2,120
    
    
    OPBoroo(8)
    
    
    9,015
    
    
    
    0.8
    
    
    
    232
    
    
    
    9,440
    
    
    
    1.8
    
    
    
    546
    
    
    
    18,455
    
    
    
    1.3
    
    
    
    778
    
    
    
    410
    
    
    OPGatsuurt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,101
    
    
    
    3.4
    
    
    
    1,005
    
    
    
    9,101
    
    
    
    3.4
    
    
    
    1,005
    
    
    
    529
    
    
    OPTotal(12)
    
    
    12,427
    
    
    
    
    
    
    
    382
    
    
    
    50,549
    
    
    
    
    
    
    
    5,426
    
    
    
    62,976
    
    
    
    
    
    
    
    5,808
    
    
    
    3,059
 Measured and Indicated Resources (2) (11)(12)
 Measured (100% Basis)
    
    Indicated (100% Basis)
    
    Total Measured and Indicated ResourcesContained
    
    
    
    
    
    
    
    
    
    Contained
    
    
    
    
    
    
    
    
    
    Contained
    
    Cameco Equity
    
    MiningProperty
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    Tonnes
    
    Grade (g/t)
    
    Gold (oz)
    
    (oz)(3)
    
    Method(4)Kumtor(5)(6)(13)
    
    
    18,966
    
    
    
    2.8
    
    
    
    1,689
    
    
    
    14,989
    
    
    
    2.4
    
    
    
    1,176
    
    
    
    33,955
    
    
    
    2.6
    
    
    
    2,865
    
    
    
    1,509
    
    
    OPBoroo(5)(8)
    
    
    452
    
    
    
    2.2
    
    
    
    32
    
    
    
    4,464
    
    
    
    1.5
    
    
    
    210
    
    
    
    4,916
    
    
    
    1.5
    
    
    
    242
    
    
    
    127
    
    
    OPGatsuurt(9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,238
    
    
    
    3.0
    
    
    
    607
    
    
    
    6,238
    
    
    
    3.0
    
    
    
    607
    
    
    
    320
    
    
    OPREN(10)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,991
    
    
    
    12.7
    
    
    
    1,220
    
    
    
    2,991
    
    
    
    12.7
    
    
    
    1,220
    
    
    
    408
    
    
    UGTotal
    
    
    19,418
    
    
    
    
    
    
    
    1,721
    
    
    
    28,682
    
    
    
    
    
    
    
    3,213
    
    
    
    48,100
    
    
    
    
    
    
    
    4,934
    
    
    
    2,364
 Inferred Resources (2) (11)(12)
 Inferred (100% Basis)Grade
    
    Contained
    
    Cameco
    
    MiningProperty
    
    Tonnes
    
    (g/t)
    
    Gold (oz)
    
    Equity (oz)(3)
    
    Method(4)Kumtor(5)(6)(7)(13)
    
    
    5,360
    
    
    
    13.8
    
    
    
    2,384
    
    
    
    1,255
    
    
    OPBoroo(5)(8)
    
    
    7,323
    
    
    
    1.0
    
    
    
    233
    
    
    
    123
    
    
    OPGatsuurt(9)
    
    
    2,437
    
    
    
    3.3
    
    
    
    256
    
    
    
    135
    
    
    OPREN(10)
    
    
    835
    
    
    
    16.1
    
    
    
    432
    
    
    
    144
    
    
    UGTotal
    
    
    15,955
    
    
    
    
    
    
    
    3,305
    
    
    
    1,657
 
 1
    
    For the purpose of estimating mineral reserves in accordance with National Instrument
43-101 of the Canadian securities regulatory authorities and in accordance with US Securities
and Exchange Commission Industry Guide 7, reserves have been estimated with cut-off grades
based on a gold price of $675 (US) per ounce.2
    
    Mineral resources are in addition to mineral reserves. Mineral resources that are not
mineral reserves do not have demonstrated economic viability when estimated using mineral
reserve assumptions.3
    
    Camecos equity interest amounts to 52.7% of Centerras equity interest of gold
reserves and resources for the properties. Centerras equity interests for the properties
are: Kumtor 100%, Gatsuurt 100%, Boroo 100% and REN 63%. Camecos equity is based on gold
content and does not include the estimated metallurgical recovery factor.4
    
    OP means open pit and UG means underground.5
    
    Open pit mineral resources occur outside the current pits, which have been designed
using a gold price of $675 (US) per ounce.6
    
    The open pit mineral reserves and resources at Kumtor are estimated based on a cut-off
grade of 1.0 gram of gold per tonne and include the Central Pit and the Southwest and Sarytor
deposits.7
    
    Underground mineral resources occur below the Central Pit shell and are estimated
based on a cut-off grade of 7.0 grams of gold per tonne.8
    
    The mineral reserves and resources at Boroo are estimated at
a cut-off grade of 0.5 grams of gold per
tonne.9
    
    The mineral reserves and resources at Gatsuurt are estimated using either a 1.2 or 1.8
grams of gold per tonne cut-off grade depending on the process method.10
    
    The mineral resources at REN are estimated based on a cut-off grade of 8.0 grams of gold per tonne.11
    
    A conversion factor of 31.10348 grams of gold per ounce is used in the mineral reserve and resource estimates.12
    
    Numbers may not add up due to rounding.13
    
    Kumtor mineral reserves and resources include Sarytor reserves of 2.8 million tonnes
grading 3.4 g/t for 311,000 contained ounces, Sarytor and Southwest indicated resources of 8.5
million tonnes grading 2.2 g/t for 598,000 contained ounces and Sarytor inferred resources of
0.52 million tonnes grading 1.7 g/t for 29,000 contained ounces. The mining licenses for these
deposits were invalidated by the Bishkek Inter District Court on June 17, 2008. That order is
under appeal by Centerra. The Company believes that current negotiations with the Kyrgyz Republic
are reasonably likely to lead to the resolution of outstanding issues, and to the reinstatement of
the Sarytor and Southwest licences. Therefore the Sarytor and Southwest reserves and resources are
included in this statement. See 2008 Gold Business Results  Political Update in this MD&A. 79




---



##### 



6.0
    
    OUR RISKS AND RISK MANAGEMENT, PLUS CONTROLS AND PROCEDURES AND CRITICAL ACCOUNTING ESTIMATES
 Risks and Risk Management
   The following discusses our approach to managing our most significant risks that may affect our
future performance. It contains statements and information which are neither about the present nor
historical facts, and are therefore forward-looking. This forward-looking information is based upon
a number of assumptions which may prove to be incorrect, and there are material risks that could
cause actual results to differ materially. See Caution Regarding Forward-Looking Information and
Statements. Also, see the discussion of the companys risks contained in Camecos annual
information form that are likely to influence investors decisions to purchase or sell our
securities. The annual information form is filed on SEDAR at sedar.com and available on the
companys website at cameco.com.
 Business Risks
 Regulatory Approval and Expediency
   McArthur River/Key Lake/Rabbit Lake
  80




---



##### 



Key Lake/Rabbit Lake Tailings Management Facilities
    3 8
   81




---



##### 



Kumtor Tailings Management and Facility
    Blind River Refinery
 6 6
 Cigar Lake
   Inkai
 3 8
 82




---



##### 



Environmental Regulations
     83




---



##### 



Limited Number of Customers
  Uranium and Fuel Services
 3 8 6 6 2 2
 84




---



##### 



3 8
 6
 Bruce Power
   Mineral Reserve Estimates
    85




---



##### 



3 8
    Labour Relations
    86




---



##### 



Counterparty Risk
  Customers
  Suppliers
 6
 6
   87




---



##### 



Hedging Counterparties
    Aboriginal Title and Consultation Issues
    Market Risks
 Product Prices
  88




---



##### 



Uranium
 3 8
 Uranium Spot Price 1988-2008  (Industry Average Price  Ux & TradeTech)
 
   89




---



##### 



Fuel Services
  Bruce Power
  .
 Gold
   Foreign Exchange Risk
  Political Risks
 Overview
  Kyrgyz Republic
  90




---



##### 



Mongolia
   Kazakhstan
   91




---



##### 



Restructuring of Ontarios Electricity Industry
   Operational Risks
 Overview
   92




---



##### 



Engineering and Technical
 Water Inflow
     3
 3 3 3 3 3
 3 3
 93




---



##### 




    
    upgrade the Read Creek culvert to allow fish passage during high flow conditions;
    
    apply to SMOE for removal of the 360 m3/hr flow restriction; and,
    
    submit an application to CNSC and SMOE for formal approval of the McArthur Contingency
Water Management Plan that would allow Cameco to operate the contingency water treatment
plant and discharge at rates up to 1,500 m3/hr during mine inflow conditions.
 3 3 3 3 3
 Jet Boring Mining Method at Cigar Lake
   Transition to New Mining Areas at McArthur River
  94




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Boxhole Boring Mining Method at McArthur River
    Kumtor Highwall Ground Movement
   Reclamation and Decommissioning
  95




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Safety, Health, Environment and Quality
   6
  96




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Electricity Business
    Controls and Procedures
  Critical Accounting Estimates
   97




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New Accounting Pronouncements
 Goodwill and Intangible Assets
  98




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International Financial Reporting Standards (IFRS)
       99




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Noncontrolling Interests in Consolidated Financial Statements
  Consolidated Financial Statements
  Business Combinations
  Use of Non-GAAP Financial Measures
  100




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Adjusted Net Earnings
 Three months ended
    
    Year endedDecember 31
    
    December 31($ millions)
    
    2008
    
    2007
    
    2008
    
    2007Net earnings (per GAAP)
    
    
    $31
    
    
    
    $61
    
    
    
    $450
    
    
    
    $416Adjustments (after tax)Restructuring of the gold business
    
    
    10
    
    
    
    28
    
    
    
    (20)
    
    
    
    153Stock option expense (recovery)
    
    
    2
    
    
    
    (12)
    
    
    
    (31)
    
    
    
    65Unrealized losses (gains) on
financial instruments
    
    
    130
    
    
    
    1
    
    
    
    166
    
    
    
    (37)Writedown of investments
    
    
    6
    
    
    
    
    
    
    
    26
    
    
    
    Change in income tax rates
    
    
    
    
    
    
    (25)
    
    
    
    
    
    
    
    (25)Adjusted net earnings
    
    
    $179
    
    
    
    $53
    
    
    
    $589
    
    
    
    $572
 QUALIFIED PERSONS
  
    
    McArthur River/Key Lake:
 
    
    Alain G. Mainville*, director, mineral resources management, Cameco.
    
    David Bronkhorst, general manager, McArthur River, Cameco.
    
    Chuck Edwards, director, metallurgy, AMEC.
    
    Greg Murdock, technical superintendent, McArthur River, Cameco.
    
    Les Yesnik, general manager, Key Lake, Cameco.
 
    
    Cigar Lake:
 
    
    Alain G. Mainville*, director, mineral resources management, Cameco.
    
    Scott Bishop, chief mine engineer, Cigar Lake, Cameco.
    
    Chuck Edwards, director, metallurgy, AMEC.
    
    Doug McIlveen, chief geologist, Cigar Lake project, Cameco.
    
    Grant J.H. Goddard, general manager, Cigar Lake, Cameco.
 
    
    Kumtor:
 
    
    Ian Atkinson, vice-president, Exploration, Centerra.
 
 *
    
    As director, mineral resources management at Cameco, Mr. Mainville oversees and coordinates
the work performed by Cameco qualified persons on the estimation of mineral reserves and
resources and reports to management and Camecos reserve oversight committee of the board on
matters relating thereto. CAUTION REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
 Statements contained in this MD&A which are not current statements or historical facts are
forward-looking information (as defined under Canadian securities laws) and forward-looking
statements (as defined in the U.S. Securities Exchange Act of 1934, as amended) which may
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be material and that involve risks,
uncertainties and other factors that could cause actual results to differ materially from those
expressed or implied by them. Sentences and phrases containing words such as believe, estimate,
anticipate, plan, predict, goals, targets, projects, may, hope, can, will,
shall, should, expect, intend, is designed to, continues, with the intent,
potential, strategy and the negative of these words, or variations of them, or comparable
terminology that does not relate strictly to current or historical facts, are all indicative of
forward-looking information and statements. Examples of forward-looking information and statements
include, but are not limited to: our expectations regarding future worldwide uranium supply and
demand; our expectations regarding long-term uranium contracting levels in 2009; the volume of
uranium production in 2009 at our various operations; our ability to achieve full sustainable
annual production at our McArthur River and Key Lake operations and the timeframe for doing so; the
expected date for completion of sealing the 2008 water inflow at Cigar Lake; our estimates
regarding future annual production levels at Inkai; our uranium production outlook for 2009 through
2013; our 2009 outlook for uranium, including the calculation of tiered royalties, uranium price
sensitivity for 2009 and the price sensitivity table for 2009 through 2013 and related discussion;
the target date for resuming UF 6 production at Port Hope; the 2009 fuel services
outlook; the BPLP outlook for 2009; the gold outlook for 2009; and our consolidated outlook for
2009.
 There are material risks that could cause actual results to differ materially from the
forward-looking information and statements contained in this MD&A. Factors that could cause such
differences include, without limitation: the impact of the sales volume of fuel fabrication
services, uranium, conversion services, electricity generated and gold; volatility and sensitivity
to market prices for uranium, conversion services, electricity in Ontario and gold; competition;
the financial results and operations of BPLP and Centerra Gold Inc.; the impact of change in
foreign currency exchange rates (such as Canadian/US rates), interest
rates and costs of reagent supplies critical to production; imprecision in
production, decommissioning, reclamation, reserve and tax estimates; litigation or arbitration
proceedings (including as the result of disputes with government (including tax authorities),
suppliers, customers or joint venture partners) and the adverse outcome of such proceedings;
inability to enforce legal rights; defects in title; environmental, safety and regulatory risks
including increased regulatory burdens and long-term waste disposal (such as the risk of uranium
and production-associated chemicals affecting the soil at the Port Hope UF 6 conversion
plant and other operating sites); unexpected or challenging geological or hydrological or mining
conditions (including at the McArthur River, Cigar Lake, Rabbit Lake and Kumtor deposits); adverse
mining conditions; political risks, including nationalization risks, arising from operating in
certain developing countries (including the Kyrgyz Republic, Kazakhstan and Mongolia); terrorism;
sabotage; a possible deterioration in political support for nuclear energy; changes in government
regulations and policies, including tax and trade laws and policies (including new legislation in
Kazakhstan allowing the government to renegotiate previously signed agreement and a new tax code);
demand for nuclear power; replacement of production (including through placing Inkai and Cigar Lake
into production and transitioning to new mining areas at McArthur River); the risk of uranium and
conversion service providers failure to fulfill delivery commitments or to require material
amendments to agreements relating thereto (including the Russian HEU Agreement); failure to obtain
or maintain necessary permits and approvals from government authorities; legislative and regulatory
initiatives regarding deregulation, regulation or restructuring of the electric utility industry in
Ontario; Ontario electricity rate regulations; natural phenomena including inclement weather
conditions, fire, flood, underground floods, earthquakes, pitwall failure (including further
highwall ground movement at the Kumtor mine) and cave-ins; ability to maintain and further improve
positive labour relations; strikes or lockouts; operating performance, disruption in the operation
of, and life of the companys and customers facilities; availability of reagents, equipment,
operating parts and supplies critical to production (including the availability of acid at the
companys operations in Kazakhstan and hydrofluoric acid at the companys Port Hope operation);
decrease in electrical production due to planned outages extending beyond their scheduled periods
or unplanned outages; success and timely completion of planned development and remediation projects
(including the remediation of and return to pre-flood construction and development at Cigar
Lake);the risk of a significant decline in general economic conditions; failure of our radiation
protection plans and other development and operating risks. There may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended. These factors are not
intended to represent a complete list of the material risk factors that could affect Cameco.
Additional risk factors are noted elsewhere in this MD&A and in Camecos current annual information
form.
 Forward-looking information and statements are based on a number of assumptions which may prove to
be incorrect, including, but not limited to, assumptions about: the absence of material adverse
changes in the ability of Camecos business units to supply product and services, other than as
disclosed; there being no disruption of supply from third party sources; there being no significant changes in
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current estimates for sales volume,
purchases and prices for uranium, conversion services, electricity in Ontario, and gold; the
expected spot prices and realized prices for uranium (including an assumed uranium spot price of
$47.00 (US) per pound, which was the UxC spot price as of February 9, 2009, for the purposes of
certain uranium price sensitivity information); the assumptions discussed under the heading
Uranium Price Sensitivity (2009 to 2013); the average gold spot price; Camecos effective tax
rate; there being no significant adverse change in foreign currency
exchange rates, interest
rates and the cost of supplies critical to production; there being no significant changes in production, decommissioning, reclamation and reserve
estimates; the HEU suppliers compliance with its delivery commitments; there being no significant
changes in Camecos ability to comply with current environmental, safety and other regulatory
requirements, and the absence of any material increase in regulatory compliance requirements;
Camecos ability to obtain regulatory approvals in a timely manner; the success and timely
completion of our Cigar Lake dewatering and remediation efforts without further disruptions; the
status of geological, hydrological and other conditions at Camecos and Centerras mines, including
the accuracy of our expectations regarding the condition of existing underground workings; the
absence of any material adverse effects arising as a result of political instability,
nationalization, terrorism, sabotage, natural disasters, adverse changes in government legislation,
regulations or policies, litigation or arbitration proceedings or tax reassessments; continuing
positive labour relations, and that no significant strikes or lockouts will occur; and the success
and timely completion of planned development and remediation projects and the replacement of
production; and that general economic conditions do not deteriorate beyond currently anticipated
levels. Forward-looking information and statements are also based upon the assumption that none of
the identified material risks that could cause actual results to differ materially from the
forward-looking information and statements will occur.
 The forward-looking information and statements included in this MD&A represent Camecos views as of
the date of this MD&A and should not be relied upon as representing Camecos views as of any
subsequent date. While Cameco anticipates that subsequent events and developments may cause its
views to change, Cameco specifically disclaims any intention or obligation to update
forward-looking information and statements, whether as a result of new information, future events
or otherwise, except to the extent required by applicable securities laws. Forward-looking
information and statements contained in this MD&A about prospective results of operations,
financial position or cash flows that are based upon assumptions about future economic conditions
and courses of action is presented for the purpose of assisting Camecos shareholders in
understanding managements current views regarding those future outcomes, and may not be
appropriate for other purposes.
 There can be no assurance that forward-looking information and statements will prove to be
accurate, as actual results and future events could vary, or differ materially, from those
anticipated in them. Accordingly, readers of this MD&A should not place undue reliance on
forward-looking information and statements. Forward-looking information and statements for time
periods subsequent to 2009 involve greater risks and require longer-term assumptions and estimates
than those for 2009, and are consequently subject to greater uncertainty. Therefore, the reader is
especially cautioned not to place undue reliance on such long-term forward-looking information and
statements.
 ADDITIONAL INFORMATION
  103