EXHIBIT 99.3
 
 2009 Managements discussion and analysis
  2009 Highlights
    
    
    4About Cameco
    
    
    6About the nuclear energy industry
    
    
    9Our strategy
    
    
    14Financial results
    
    
    26Our operations and development projects
    
    
    53Reserves and resources
    
    
    81Additional information
    
    
    86
 we, us, our Cameco




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Managements discussion and analysis
   Important information for US investors
 About forward-looking information
 forward-looking information forward-looking statements forward-looking information.
  
    
    It typically includes words and phrases about the future, such as: anticipate, expect,
plan, intend, predict, goal, target, project, potential, strategyand outlook(see examples on
page 3).
    
    It represents our current views, and can change significantly.
    
    It is based on a number of material assumptions,including those weve listed below, which
may prove to be incorrect.
    
    Actual results and events may be significantly different from what we currently expect,
because of the risks associated with our business. We list a number of these material risks
below. We recommend you also review our annual information form, which includes a discussion
of other material risks that could cause actual results to differ significantly from our
current expectations.
  Cameco Corporation  Managements discussion and analysis 
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Examples of forward-looking information in this MD&A
 
    
    our expectations about future worldwide uranium supply and demand
    
    production at our uranium operations from 2010 to 2014 and our target for doubling annual
production by 2018
    
    our ability to maintain expected annual production at McArthur River and Key Lake within
the time frames we have set, to complete remediation and begin production at Cigar Lake within
the time frames we have set and at the estimated cost, and to achieve our annual production
targets at Inkai
    
    our expectations that our existing cash balances and operating cash flows will be
sufficient to meet our anticipated requirements over the next several years without the need
for any significant additional financing
    
    future production at our fuel services operations
    
    the likely terms and volumes to be covered by long-term delivery contracts that we enter
into in 2010 and future years
    
    future royalty and tax payments and rates
    
    our long-term uranium price sensitivity analysis
    
    our 2010 objectives
    
    the outlook for each of our operating segments for 2010, and our consolidated outlook for
the year
 Material risks
 
    
    actual sales volumes or market prices for any of our products or services are lower
than we expect for any reason, including changes in market prices or loss of market share to a
competitor
    
    we are adversely affected by changes in foreign currency exchange rates, interest rates or
tax rates
    
    production costs are higher than planned, or necessary supplies are not available, or not
available on commercially reasonable terms
    
    our estimates of production, decommissioning or reclamation expenses, or our tax expense
estimates, prove to be inaccurate
    
    we are unable to enforce our legal rights, or are subject to litigation or arbitration that
has an adverse outcome
    
    there are defects in title to our properties
    
    our reserve and resource estimates are inaccurate, or we face unexpected or challenging
geological, hydrological or mining conditions
    
    we are affected by environmental, safety and regulatory risks, including increased
regulatory burdens
    
    we cannot obtain or maintain necessary permits or approvals from government authorities
    
    we are affected by political risks in a developing country where we operate (like
Kazakhstan)
    
    we are affected by terrorism, sabotage, accident or a deterioration in political support
for, or demand for, nuclear energy
    
    there are changes to government regulations or policies, including tax and trade laws and
policies
    
    our uranium and conversion suppliers fail to fulfil delivery commitments
    
    we are affected by natural phenomena, including inclement weather, fire, flood, underground
floods, earthquakes, pitwall failure and cave-ins
    
    our operations are disrupted due to problems with our own or our customers facilities, the
unavailability of reagents, equipment, operating parts and supplies critical to production,
labour relations issues, strikes or lockouts and other developments and operating risks
 Material assumptions
 
    
    sales and purchase volumes and prices for uranium, fuel services and electricity
    
    expected production costs
    
    expected spot prices and realized prices for uranium, and other factors discussed on page
41, Long-term price sensitivity analysis: uranium
    
    tax rates, foreign currency exchange rates and interest rates
    
    decommissioning and reclamation expenses
    
    reserve and resource estimates
    
    the geological, hydrological and other conditions at our mines, including the accuracy of
our expectations about the condition of underground workings at Cigar Lake
    
    our ability to continue to supply our products and services in the expected quantities and
at the expected times
    
    our ability to comply with current and future environmental, safety and other regulatory
requirements, and to obtain and maintain required regulatory approvals
    
    our operations are not significantly disrupted as a result of political instability,
nationalization, terrorism, sabotage, natural disasters, governmental or political actions,
litigation or arbitration proceedings, labour relations issues, or other development or operating
risks
 Cameco Corporation  Managements discussion and analysis 
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2009 Highlights
    
    
    uranium double our annual production to 40 million pounds by 2018 from existing assets
    
    fuel services invest in our fuel services business to support our overall growth in the
nuclear business
    
    electricity maintain steady cash flow while gaining exposure to new opportunities
  Strong financial performance
   HighlightsDecember 31($ millions except where indicated)
    
    2009
    
    2008
    
    changeRevenue
    
    
    
    
    
    
    
    2,315
    
    2,183
    
    6%Gross profit
    
    
    
    
    
    
    
    750
    
    829
    
    (10)%Net earnings
    
    
    
    
    
    
    
    1,099
    
    450
    
    144%- $  per common share (diluted)
    
    
    
    2.82
    
    1.28
    
    120%Adjusted net earnings (non-GAAP, see page 29)
    
    
    
    582
    
    589
    
    (1)%- $  per common share (adjusted and diluted)
    
    
    
    1.49
    
    1.67
    
    (11)%Cash provided by continuing operations
    
    
    
    690
    
    530
    
    30%Average realized prices
    
    Uranium
    
    $US/lb
    
    
    
    38.25
    
    39.52
    
    (3)%$Cdn/lb
    
    
    
    45.12
    
    43.91
    
    3%Fuel services
    
    $Cdn/kgU
    
    
    
    17.84
    
    15.85
    
    13%Electricity
    
    $Cdn/MWh
    
    
    
    64
    
    57
    
    12%
 Shares and stock options outstanding
  
    
    392,853,733 common shares and one Class B share outstanding
    
    7,939,833 stock options outstanding, with exercise prices ranging from $5.75 to $55.00
 Dividend policy
  Cameco Corporation  Managements discussion and analysis 
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Excellent progress at our operations
  
    
    Successfully moved to a new mining zone at McArthur River/Key Lake, through the
water-saturated Athabasca sandstone  a mining first, and largely as a result of our
innovative freezewall design. We also reduced the amount of molybdenum and selenium released
to the environment.
    
    Extended Rabbit Lakes expected production life by two years to 2015.
    
    Commissioned Inkais main processing plant, and started commissioning the first satellite
plant.
    
    Completed dewatering the underground development at Cigar Lake in February 2010, and based on
current information, expect initial production in mid-2013.
 6
   Highlights
    
    2009
    
    2008
    
    changeUranium
    
    Production volume (million lbs)
    
    20.8
    
    17.3
    
    20%Revenue ($ millions)
    
    1,551
    
    1,512
    
    3%Fuel services
    
    Production volume (million kgU)
    
    12.3
    
    8.3
    
    48%Revenue ($ millions)
    
    276
    
    252
    
    10%Electricity
    
    Output (100%) (TWh)
    
    24.6
    
    24.7
    
    Revenue (100%)
    
    1,640
    
    1,409
    
    16%Our share of earnings before taxes
    
    224
    
    141
    
    59%
 Key market facts
  
    
    The world is increasingly recognizing the benefits of nuclear energy as it searches for
alternatives to carbon-based electricity generation and security of supply.
    
    There are 436 commercial nuclear power reactors operating in 30 countries, providing about
15% of the worlds electricity.
    
    There are 53 reactors currently under construction and, by 2019, 91 new reactors (net) are
forecast to come on line.
    
    Most of this new build is being driven by rapidly developing countries like China and
India, which have severe energy deficits and want clean sources of electricity to improve
their environment and sustain economic growth.
    
    Over the next decade, demand for uranium to fuel existing and new reactors is expected to
grow by an average of 3% per year.
    
    To meet global demand over the next 10 years, we expect that about 67% of uranium supply
will come from mines that are currently in operation, 21% from finite sources of secondary
supply (mainly government inventories and limited recycling), and 12% will have to come from
new sources of primary production.
    
    Cameco  with uranium assets on three continents, including high-grade reserves and
low-cost mining operations in Canada, and investments that cover the nuclear fuel cycle  is
ideally positioned to benefit from the worlds growing need for clean, reliable energy.
 Cameco Corporation  Managements discussion and analysis 
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About Cameco
  2009
Revenue by segment 
($ millions)
 2009
Gross profit by segment 
($ millions)
 
 
 Uranium
  Product
 
    
    uranium concentrates (U3O8)
 Reserves and resources
  
    
    approximately 480 million pounds proven and probable
  
    
    approximately 140 million pounds measured and indicated and 355 million pounds inferred
  
    
    focused on four continents
 Operating properties
 
    
    McArthur River and Key Lake, Saskatchewan
    
    Rabbit Lake, Saskatchewan
    
    Smith Ranch-Highland, Wyoming
    
    Crow Butte, Nebraska
    
    Inkai, Kazakhstan
 Development project
 
    
    Cigar Lake, Saskatchewan
 Projects under evaluation
 
    
    Inkai blocks 1 and 2 production increase, Kazakhstan
    
    Inkai block 3, Kazakhstan
    
    McArthur River expansion, Saskatchewan
    
    Kintyre, Australia
    
    Millennium, Saskatchewan
 Cameco Corporation  Managements discussion and analysis 
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Fuel services
  Products
 
    
    uranium trioxide (UO3)
    
    uranium hexafluoride (UF6) (control 35% of western world capacity)
    
    uranium dioxide (UO2) (the worlds only commercial producer of natural
UO2)
    
    fuel bundles, reactor components and monitoring equipment used by Candu reactors
 Operations
 
    
    Blind River refinery, Ontario (refines U3O8 to
UO3)
    
    Port Hope conversion facility, Ontario (converts UO3 to UF6
or UO2)
    
    Cameco Fuel Manufacturing Inc., Ontario (manufactures fuel bundles and reactor
components)
    
    10-year toll conversion agreement with Springfields Fuels Ltd. (SFL), Lancashire,
United Kingdom (UK) (to convert UO3 to UF6 expires in 2016)
  Electricity
  Capacity
 
    
    3,260 megawatts (MW) (100% basis) (about 15% of Ontarios electricity)
     Cameco Corporation  Managements discussion and analysis 
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Global presence
 
 Cameco Corporation  Managements discussion and analysis 
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About the nuclear energy industry
  World net electricity consumption1980-2030
 
 Nuclear power is a clean source of electricity, and generation capacity is growing
  2
   
    
    China is currently operating 11 reactors, building 20 and planning more. We expect it to
have a net increase of 42 reactors by 2019.
    
    India is currently operating 18 reactors and has several under construction. We expect it
to have a net increase of 13 reactors by 2019.
  Cameco Corporation  Managements discussion and analysis 
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2
  New build outlook 2010-2019
 
 Demand for uranium is growing
  World U 3 O 8 supply and
demand
2010-2019
 
 primary production
sources
 Cameco Corporation  Managements discussion and analysis 
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secondary supply sources
 new sources of primary production
 6
  Despite this growth, challenges remain
   The long-term outlook is positive
  
    
    we expect demand to continue to exceed worldwide production
    
    secondary supplies are finite
    
    primary production needs to increase to meet future reactor requirements
  Cameco Corporation  Managements discussion and analysis 
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The industry in 2009
 World consumption and production
   6 2
 World uranium production and consumption
 
 Industry prices
 3 8
 
 1
    
    Average of prices reported by TradeTech and Ux Consulting (Ux) 2009
    
    2008
    
    changeUranium($US/lb U3O8)1Average spot market price
    
    46.06
    
    61.58
    
    (25)%Average long-term price
    
    65.50
    
    82.50
    
    (21)%Fuel services
($US/kgU UF6)1Average spot market price North America
    
    7.16
    
    9.03
    
    (21)% Europe
    
    8.82
    
    10.28
    
    (14)%Average long-term price North America
    
    11.91
    
    12.25
    
    (3)% Europe
    
    13.20
    
    13.22
    
    Note: the
industry does not publish UO2 prices.Electricity($/MWh)Average Ontario electricity spot price
    
    30
    
    49
    
    (39)%
 Cameco Corporation  Managements discussion and analysis 
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Contract volumes
   Spot and long-term uranium contract volumes
 
 Cameco Corporation  Managements discussion and analysis 
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Our strategy
   
    
    a large portfolio of low-cost mining operations and geographically diverse uranium assets
    
    controlling interests in the worlds largest high-grade uranium reserves
    
    multiple sources of conversion and the ability to increase production
    
    excellent growth potential from existing assets, combined with a global exploration program
    
    a strong customer base and a worldwide marketing presence
    
    an extensive portfolio of long-term sales contracts
    
    innovative technology and experience operating in technically challenging environments
    
    an enterprise-wide risk management system tied directly to our strategy and objectives
    
    conservative financial management and the financial strength to support our growth
    
    
    uranium double our annual production to 40 million pounds by 2018 from existing assets
    
    fuel services invest in our fuel services business to support our overall growth in the
nuclear business
    
    electricity maintain steady cash flow while gaining exposure to new opportunities
  Cameco Corporation  Managements discussion and analysis 
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Uranium: doubling production by 2018
  
    
    operating properties
    
    development projects
    
    projects under evaluation
  Operating properties
    Development projects
  Projects under evaluation
  
    
    The McArthur River expansion is an extension of our existing mining area, which is part of
the most prolific high-grade uranium system in the world.
    
    Under the terms of a memorandum of understanding with our Inkai partner, National Atomic
Company Kazatomprom Joint Stock Company (Kazatomprom), we are in discussions to increase our
share of annual production from blocks 1 and 2 to 5.7 million pounds.
    
    Inkai block 3, in Kazakhstan, has the potential to become a significant source of
production.
    
    Our acquisition in 2008 of a 70% interest in Kintyre, in Australia, adds potential for
low-cost production and diversifies our production by geography and deposit type.
    
    Millennium is a uranium deposit in northern Saskatchewan that we expect will take advantage
of the mill at Key Lake.
  Growth beyond 2018
  Exploration
  Cameco Corporation  Managements discussion and analysis 
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Acquisition
   Assumptions
  Material risks that could prevent us from reaching our target
 
    
    we may not be able to locate additional reserves and identify appropriate methods of
mining to maintain production levels at McArthur River
    
    we may not be able to increase production to the expected level at Inkai if we cant add
reserves at block 3, the feasibility study isnt favourable or we cant secure regulatory
approval
    
    if our partner or the Kazakh government does not support an increase in production to the
expected level at Inkai, remediation and development at Cigar Lake is not completed on
schedule, or we dont reach full production levels as quickly as we expect
    
    development of Kintyre is delayed due to political, regulatory or aboriginal issues
    
    we cannot obtain a favourable feasibility study for the Kintyre or Millennium project, or
we cannot reach agreement with our project partners to move ahead with production
    
    the Key Lake mill does not have enough capacity to handle anticipated production increases, and
we arent able to expand its capacity or to identify alternative milling arrangements
    
    the projects under consideration do not proceed or, if they do, are not completed on
schedule or dont reach full production levels as quickly as we expect
    
    uranium prices and development and operating costs make it uneconomical to develop projects
under consideration
    
    disruption in production or development due to natural phenomena, labour disputes,
political risks or other development and operation risks
 Cameco Corporation  Managements discussion and analysis 
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Fuel services: capturing synergies
 6
   Electricity: capturing added value
  Cameco Corporation  Managements discussion and analysis 
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Building on our strengths
 World-class assets
  Strong customer relationships
  Uranium price leverage
  Financial strength
  Disciplined portfolio management
  Focused risk management
  Innovation
  Reputation
  Cameco Corporation  Managements discussion and analysis 
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Managing our growth
   
    
    outstanding financial performance
    
    a safe, healthy and rewarding workplace
    
    a clean environment
    
    supportive communities
  Outstanding financial performance
  Managing contracts
     uranium
  Cameco Corporation  Managements discussion and analysis 
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prorata
  fuel services
 Managing our supply
  
    
    from our own production
    
    by purchasing uranium under long-term purchase agreements  mostly under the Russian HEU
commercial agreement
    
    from our existing inventory  we target inventories of about six months of forward sales of
uranium concentrates and UF6
  Managing our costs
     A safe, healthy and rewarding workplace
   Cameco Corporation  Managements discussion and analysis 
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Financial Posts 10 Best Companies to
Work For Canadas Top 100 Employers
 A clean environment
    Supportive communities
   
    
    50% of the employees at our mines were local residents
    
    71% of services to our northern minesites  approximately $220 million  went to northern
businesses
    
    we engaged in project discussions with communities near Cigar Lake, Millennium and Key
Lake, visited 11 communities throughout the north, and met with communities where were
exploring to give them information and garner grassroots support early in the process
    
    we donated over $1 million to northern and aboriginal initiatives for youth, education,
culture and recreation
   Cameco Corporation  Managements discussion and analysis 
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Measuring our results
  2009 objectives
    
    Results
    
    2010 objectivesThis is forward-looking information.
See page 2 for more information.Outstanding financial performanceProduce 20.1 million pounds
of
U3O8
and 8 to 12 million kgU
from fuel services.



Achieve combined
unit-operating costs within
budget.
    
    Exceeded     Our share of
U3O8
production was 20.8
million pounds, or 103% of
plan.     We produced
12.3 million kgU at fuel
services.
Exceeded     Unit costs
were 10% below budget.
    
    Production     Produce 21.5 million pounds of
U3O8 and between 14
million and 16 million kgU from fuel
services.Financial measuresCorporate performance     Achieve budgeted net earnings and
cash flow from operations (before working
capital changes).Costs     Strive for unit costs below
budget.
 Cameco Corporation  Managements discussion and analysis 
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2009 objectives
    
    Results
    
    2010 objectivesPursue future
additional tailings
capacity at Rabbit
Lake and Key Lake
by submitting to
regulators a
project
description,
completing
prefeasibility
study work,
conducting
environmental
baseline studies
and community
consultations, and
initiating the
environmental
assessment process.

Advance Cigar Lake
mine remediation,
including sealing
of the August 2008
water inflow area.Advance development
of Kintyre by
initiating
environmental
baseline work and
conducting
confirmatory
drilling.
Achieve an average
mineral reserve and
resource
replacement rate
through brownfield
or greenfield
exploration
programs, joint
ventures and
acquisitions that
is, over the last
three years, at
least equal to
total annual
U3O8
production from
all facilities.
Identify, develop
and evaluate
opportunities for
economic growth in
uranium supply
within the three-
to eight-year time
frame.
    
    Partially achieved
Key Lake:     Completed all planned
activities except the project
description for the environmental
assessment, which was filed later than
planned.
Rabbit Lake     Completed some early work,
including the initial draft
prefeasibility study and preliminary
community consultations, but decided to
refocus resources on Key Lake.
Achieved     Dewatering resumed in the
fourth quarter and is complete.Achieved     Drilling began in late
September.     Work on the environmental
study began in October.
Exceeded
Our additions to reserves and resources
exceeded production by an average of 15
million pounds per year in each of the
last three years (2007 to 2009).
Achieved     We identified and evaluated
several opportunities.     We acquired 10.6% of UFP
Investments, LLC, which is developing
uranium-from-phosphate technology.
    
    GrowthCigar Lake     Access and secure
underground workings and continue
with remediation work on schedule.
Reinitiate Shaft 2 development     Update the technical
report.Inkai     Advance Inkai block 3
delineation and begin a
feasibility study.     Initiate a feasibility
study to increase production at
Inkai blocks 1 and 2, and secure
necessary regulatory approvals.Kintyre     Advance project evaluation
to allow a production decision as
soon as possible.Exploration and innovation     Replace mineral
reserves and resources at the rate
of annual
U3O8
production based on a three-year
rolling average.     Continue to
advance expansion of McArthur
River and the Millennium project
to provide future sources of
production.     Support
production growth and improved
operating efficiencies through
targeted research, development and
technological innovation.Management     Continue integrating
portfolio management into our
management, planning and budgeting
processes.     Deliver planned capital
projects within 10% of budget.
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2009 objectives
    
    Results
    
    2010 objectivesSafe, healthy and rewarding workplaceStrive for no
lost-time injuries at
all Cameco-operated
sites and at a
minimum, maintain a
long-term downward
trend in the combined
(employee and
contractor) injury
frequency and
severity, and
radiation doses.
    
    Exceeded     Overall,
strong safety
performance
demonstrated in 2009.     Lost-time
incident frequency
for employees and
contractors was 0.4
per 200,000 hours
worked compared to a
target of 0.8  the
best performance in
Camecos history.
Medical aid frequency
and severity were
also better than
target.
    
         Strive for no
lost-time injuries at
all Cameco-operated
sites and, at a
minimum, maintain a
long-term downward
trend in combined
employee and
contractor injury
frequency and
severity, and
radiation doses.     Develop a
formal implementation
plan for the risk
standard and begin
implementation.Implement Camecos
systematic approach
to training by the
end of 2009.
    
    Achieved     All
operations met or
exceeded their 2009
implementation
milestones.Clean environmentStrive to achieve
zero reportable
environmental
incidents in all
jurisdictions where
we operate. Reduce
the frequency of
environmental
incidents and incur
no significant
incidents at all
Cameco-operated
sites.
    
    Partially achieved
     There
were 27 environmental
incidents, which is a
small improvement
over 2008 (29
incidents), but is
above our long-term
average of 22. There
were no significant
environmental
incidents.
    
         Strive for
zero reportable
environmental
incidents, reduce the
frequency of
incidents and have no
significant incidents
at Cameco-operated
sites.     Improve
year-over-year
performance in
corporate
environmental
leadership
indicators.With the goal of
reducing energy
consumption at all
Cameco business
locations, develop
and begin to
implement energy
management action
plans at all Canadian
mining and milling
operations, and
complete energy
assessments at all
remaining North
American operations.
    
    Achieved     We
completed energy
assessments and developed
energy management plans
for all but one of our
operations.     We
completed a study on
renewable energy
opportunities at McArthur
River/Key Lake, led by
the Pembina Institute.
     We
implemented almost
all of the energy
reduction actions at
our operations in
northern
Saskatchewan.
 Cameco Corporation  Managements discussion and analysis 
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2009 objectives
    
    Results
    
    2010 objectivesSupportive communitiesBuild awareness and support for
Cameco in the communities
impacted by our company through
community investment, business
development and public
relations, and improve levels of
support in these jurisdictions.
    
    Achieved     We
received positive
feedback from our
annual polls in Port
Hope and
Saskatchewan.
     We
were named one of
Canadas Top 100
employers, and one
of the top 10
companies to work
for in Canada.
    
         Build
awareness and
support for Cameco
through community
investment,
business
development
programs and public
relations.     Advance our
projects by
securing support
from indigenous
communities
affected by our
operations.Finalize and begin implementation
of an enhanced northern
Saskatchewan strategy focused on
workforce development, business
development, community
relations, and government and
regulatory affairs.
    
    Achieved     We
completed the
Northern
Saskatchewan
Strategy Reviewin
June and, by the
end of the year,
had made
significant headway
in all four
categories.     We
visited
every impact
community in the
north, invested
over $1 million in
community programs,
developed our
relationships with
local suppliers and
met our target for
local employees.
 Cameco Corporation  Managements discussion and analysis 
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Financial results
  2009 consolidated financial results
    
    
    27Outlook for 2010
    
    
    33Liquidity and capital resources
    
    
    342009 financial results by segment
    
    
    40Uranium
    
    
    40Fuel services
    
    
    43Electricity
    
    
    44Fourth quarter results
    
    
    46Fourth quarter consolidated results
    
    
    46Quarterly trends
    
    
    48Fourth quarter results by segment
    
    
    49
 Cameco Corporation  Managements discussion and analysis 
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##### 



2009 consolidated financial results
    HighlightsDecember 31
    
    
    
    
    
    
    
    change from($ millions except per share amounts)
    
    2009
    
    2008
    
    2007
    
    2008 to 2009Revenue
    
    2,315
    
    2,183
    
    1,905
    
    6%Gross profit
    
    750
    
    829
    
    765
    
    (10)%Net earnings
    
    1,099
    
    450
    
    416
    
    144% $  per common share (basic)
    
    2.83
    
    1.29
    
    1.18
    
    119% $  per common share (diluted)
    
    2.82
    
    1.28
    
    1.13
    
    120%Adjusted net earnings (non-GAAP, see page 29)
    
    582
    
    589
    
    572
    
    (1)% $  per common share (adjusted and diluted)
    
    1.49
    
    1.67
    
    1.54
    
    (11)%Cash provided by operations
(from continuing operations)
    
    690
    
    530
    
    756
    
    30%
 Revenue 6% higher
 ($ millions)Revenue - 2008
    
    2,183Changes:Uranium business  higher realized prices
    
    39Fuel services business  higher realized prices
    
    25Electricity business  higher realized prices
    
    73Other
    
    (5)Revenue - 2009
    
    2,315
 2009 financial results by segment
 Three-year trend
  Cameco Corporation  Managements discussion and analysis 
 page 27




---



##### 



Average realized prices
 change from2009
    
    2008
    
    2007
    
    2008 to 2009Uranium
    
    $US/lb
    
    38.25
    
    39.52
    
    37.47
    
    (3)%$Cdn/lb
    
    45.12
    
    43.91
    
    41.68
    
    3%Fuel services
    
    $Cdn/kgU
    
    17.84
    
    15.85
    
    14.04
    
    13%Electricity
    
    $Cdn/MWh
    
    64
    
    57
    
    52
    
    12%
 Outlook for 2010
  
    
    We expect lower trading volumes in uranium, so uranium sales volumes are likely to decline
by 5% to 10%.
    
    We expect realized prices for electricity to be lower, so revenue from our electricity
business is likely to decline.
  Gross profit down 10%
  ($ millions)Gross profit  2008
    
    $829Changes:Uranium business  higher costs for purchased uranium; higher royalties
    
    (177)Fuel services business  higher realized prices; higher production
    
    42Electricity business  higher realized prices
    
    65Other
    
    (9)Gross profit  2009
    
    $750
 2009 financial results by segment
 Three-year trend
  Net earnings up 144%
  
    
    selling our interest in Centerra and recording an after tax gain of $374 million
    
    recording an after-tax profit of $179 million relating to mark-to-market gains on financial
instruments, compared to a loss of $148 million in 2008
 Cameco Corporation  Managements discussion and analysis 
 page 28




---



##### 



Three-year trend
    Adjusted net earnings down 1%
 ($ millions)Adjusted net earnings  2008
    
    $589Changes:Uranium business  higher costs for purchased uranium; higher royalties
    
    (177)Fuel services business  higher realized prices; higher production
    
    42Electricity business  higher realized prices
    
    65Gold business  lower output and higher costs
    
    (12)Realized gains on financial instruments
    
    63Income tax expense
    
    32All other
    
    (20)Adjusted net earnings - 2009
    
    $582
 Three-year trend
    
    
    lower profits in our uranium business, which were impacted by higher unit costs
    
    lower profits in gold resulting from lower sales volumes
    
    higher profits from our electricity business, relating to a higher realized selling price,
which partially offset our uranium and gold results
 A note about non-GAAP measures
   Cameco Corporation  Managements discussion and analysis 
 page 29




---



##### 



($ millions)
    
    2009
    
    2008Net earnings(GAAP measure)
    
    $1,099
    
    $450Adjustments(after tax)Restructuring the gold business
    
    46
    
    (20)Gain on sale of Centerra
    
    (374)
    
    Unrealized losses (gains) on financial instruments
    
    (189)
    
    166Stock option expense (recovery)
    
    
    
    (33)Investment writedowns
    
    
    
    26Adjusted net earnings1 (non-GAAP measure)
    
    $582
    
    $589
 
 1
    
    Adjusted net earnings includes our share of Centerras operating earnings for the periods presented. Discontinued operations
  
    
    We sold 88,618,472 common shares of Centerra through a
public offering, at a price of $10.25 per share, for
net proceeds of approximately $871 million.
    
    We transferred another 25,300,000 common shares of
Centerra to Kyrgyzaltyn JSC (Kyrgyzaltyn), under our
April 24, 2009 agreement with them and the Government
of the Kyrgyz Republic.
  ($ millions)
    
    2009
    
    2008
    
    changeResults from operations
    
    54
    
    64
    
    (10)Agreement with Kyrgyzaltyn
    
    (46)
    
    20
    
    (66)Gain on disposal of interest
    
    374
    
    
    
    374Earnings from discontinued operations
    
    382
    
    84
    
    298
 Corporate expenses
 Administration
 ($ millions)
    
    2009
    
    2008
    
    changeDirect administration
    
    122
    
    147
    
    (17)%Stock-based compensation
    
    14
    
    (61)
    
    123%Total administration
    
    136
    
    86
    
    58%
   Cameco Corporation  Managements discussion and analysis 
 page 30




---



##### 



Outlook for 2010
  Exploration
  Outlook for 2010
 Our operations  Uranium
exploration
 Interest and other charges
  Gains and losses on derivatives
  Income taxes
   
    
    A higher proportion of taxable income was earned in jurisdictions with favourable tax rates.
    
    Certain future tax liabilities recognized in prior years were reduced.
    
    The statutory income tax rate in Canada was reduced, allowing us to reduce our provision for
future income taxes.
   Cameco Corporation  Managements discussion and analysis 
 page 31




---



##### 



Outlook for 2010
  Foreign exchange
     
    
    The value of the US dollar relative to the Canadian dollar was $1.00 (US) for $1.05 (Cdn),
down from $1.00 (US) for $1.22 (Cdn) at December 31, 2008. The exchange rate averaged $1.00
(US) for $1.14 (Cdn) over the year.
    
    Our effective exchange rate for the year, after allowing for hedging, was about $1.18,
compared to $1.11 in 2008.
    
    We had foreign currency contracts of $1.5 billion (US) and EUR 34 million at December 31,
2009. The US currency contracts had an average exchange rate of $1.00 (US) for $1.09 (Cdn).
    
    The mark-to-market gain on all foreign exchange contracts was $67 million compared to a
$105 million loss at December 31, 2008.
  $ millions (Cdn)
    
    2010
    
    2011Deferred gains (charges)
    
    34
    
    5
  Sensitivity analysis
  Cameco Corporation  Managements discussion and analysis 
 page 32




---



##### 



Outlook for 2010
    2009 financial results by segment
 Consolidated
    
    Uranium
    
    Fuel services
    
    ElectricityProduction
    
    
    
    21.5 million lbs
    
    14 to 16 million kgU
    
    Sales volume
    
    
    
    31 to 33 million lbs
    
    Increase 15% to 20%
    
    Capacity factor
    
    
    
    
    
    
    
    About 90%Revenue compared to 2009
    
    Decrease 5% to 10%
    
    Decrease 5% to 10%1
    
    Increase 5% to 10%
    
    Decrease 5% to 10%Unit cost of product sold (including DDR)
    
    
    
    Decrease 5% to 10%2
    
    
    
    Increase  10% to 15%Direct administration costs compared to 20093
    
    Increase 25% to 30%
    
    
    
    
    
    Exploration costs compared to 2009
    
    
    
    Increase 80% to 90%
    
    
    
    Tax rate
    
    Less than 5%
    
    
    
    
    
    Capital expenditures
    
    $552 million4
    
    
    
    
    
    $41 million
 
 1
    
    Based on a uranium spot price of $41.75 (US) per pound (the Ux spot price as of
February 22, 2010) and an exchange rate of $1.00 (US) for $1.05 (Cdn).2
    
    Assumes the unit cost of sale for produced material will decline by 2% to 5% and the
unit cost of sale for purchased material will decline by 15% to 20%.3
    
    Direct administration costs do not include stock-based compensation expenses.4
    
    Does not include our share of capital expenditures at BPLP. Cameco Corporation  Managements discussion and analysis 
 page 33




---



##### 



Liquidity and capital resources
     Financial condition
 2009
    
    2008Cash position($ millions)
(cash, cash equivalents, short-term investments)
    
    $1,304
    
    $64Cash provided by operations($ millions)
(net cash flow generated by our operating activities
after changes in working capital)
    
    $690
    
    $530Cash provided by operations/net debt
(net debt is total consolidated debt, less cash and cash
equivalents)
    
    n/a
    
    42%Net debt/total capitalization
(total capitalization is total long-term debt and equity)
    
    n/a
    
    26%
 Credit ratings
  Security
    
    DBRS
    
    S&PCommercial paper
    
    R-1 (low)
    
    A-1 (low)1Senior unsecured debentures
    
    A (low)
    
    BBB+
 
 1
    
    Canadian National Scale Rating. The Global Scale Rating is A-2. Cameco Corporation  Managements discussion and analysis 
 page 34




---



##### 



Liquidity
 ($ millions)
    
    2009
    
    2008Cash and cash equivalents at beginning of year
    
    64
    
    28Cash from operations
    
    690
    
    530Investment activitiesAdditions to property, plant and equipment
    
    (393)
    
    (531)Dispositions
    
    871
    
    Acquisitions
    
    
    
    (503)Other investing activities
    
    (36)
    
    (13)Financing activitiesChange in debt
    
    (231)
    
    629Issue of shares
    
    442
    
    1Dividends
    
    (93)
    
    (81)Exchange rate changes on foreign currency cash balances
    
    (10)
    
    4Cash and short-term investments at end of year
    
    1,304
    
    64
 Cash from operations
  Investing activities
  Acquisitions and divestitures
  Cameco Corporation  Managements discussion and analysis 
 page 35




---



##### 



Capital spending
  (Camecos share in $ millions)
    
    2010 plan
    
    2009 actual
    
    2009 planGrowth capitalCigar Lake
    
    
    111
    
    
    
    42
    
    
    
    48Inkai
    
    
    4
    
    
    
    10
    
    
    
    9Total growth capital
    
    
    115
    
    
    
    52
    
    
    
    57Sustaining capitalMcArthur River/Key Lake
    
    
    220
    
    
    
    115
    
    
    
    106US ISR
    
    
    53
    
    
    
    32
    
    
    
    54Rabbit Lake
    
    
    56
    
    
    
    43
    
    
    
    38Inkai
    
    
    18
    
    
    
    17
    
    
    
    18Fuel services
    
    
    29
    
    
    
    18
    
    
    
    23Other
    
    
    9
    
    
    
    20
    
    
    
    21Total sustaining capital
    
    
    385
    
    
    
    245
    
    
    
    260Capitalized interest
    
    
    52
    
    
    
    37
    
    
    
    50Total uranium & fuel services
    
    
    552
    
    
    
    334
    
    
    
    367Electricity(our 31.6% share of BPLP)
    
    
    41
    
    
    
    39
    
    
    
    38
  Outlook for investing activities
  
    
    growth capital at Cigar Lake
    
    sustaining capital at Key Lake and McArthur River
  
    
    McArthur River/Key Lake At McArthur River, the largest component is mine development at
about $47 million. Other projects include installing freezing and distribution systems, and
work on dewatering equipment and mine ventilation. At Key Lake, construction of a new acid
plant is the largest project at approximately $87 million.
    
    US in situ recovery (ISR) Wellfield construction and well installation is the largest
project at approximately $28 million. We also plan to work on the Reynolds Ranch satellite
operation and infrastructure.
    
    Rabbit Lake Mine development at Eagle Point is the largest project at about $17 million.
Other projects include dewatering systems, continued work on mine ventilation expansion and
replacement of components of the acid plant.
  Cameco Corporation  Managements discussion and analysis 
 page 36




---



##### 



Financing activities
   
    
    In the first quarter, we issued approximately 26.7 million common shares, netting $440
million, and put in place or renewed $600 million in revolving lines of credit.
    
    In the third quarter, we issued 10-year debentures bearing interest at a rate of 5.67%,
netting $495 million. At the same time, we cancelled a $500 million revolving credit facility
that was to mature in June 2010.
    
    In the fourth quarter, we renewed a $100 million revolving credit facility until February
2011, and sold our interest in Centerra, netting $871 million.
  Long-term contractual obligations
 December 31, 2009
    
    
    
    
    
    2011
    
    2013
    
    2015 and($ millions)
    
    2010
    
    and 2012
    
    and 2014
    
    beyond
    
    TotalLong-term debt
    
    
    12
    
    
    
    28
    
    
    
    34
    
    
    
    890
    
    
    
    964Interest on long-term debt
    
    
    54
    
    
    
    107
    
    
    
    102
    
    
    
    162
    
    
    
    425Reclamation costs
    
    
    14
    
    
    
    16
    
    
    
    16
    
    
    
    449
    
    
    
    495Other liabilities
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    248
    
    
    
    249Total
    
    
    80
    
    
    
    152
    
    
    
    152
    
    
    
    1,749
    
    
    
    2,133
  
    
    A $500 million, unsecured revolving credit facility that matures November 30, 2012. On
mutual agreement between the lenders and Cameco, the facility can be extended for an
additional year on the 2010 and 2011 anniversary dates. In addition to borrowing directly from
this facility, we can use up to $100 million of it to issue letters of credit, and we keep up
to $400 million available to provide liquidity for our commercial paper program, as necessary.
The facility ranks equally with all of our other senior debt. At December 31, 2009, there was
nothing outstanding under this credit facility, and nothing outstanding under our commercial
paper program.
    
    A $100 million, unsecured revolving credit facility that matures on February 4, 2011. This
facility can be extended for one additional 364-day term on mutual agreement with the lender.
At December 31, 2009, there was nothing outstanding under this credit facility.
    
    Approximately $600 million in short-term borrowing and letters of credit provided by
various financial institutions. We use these facilities mainly to provide financial assurance
for future decommissioning and reclamation of our operating sites, and as overdraft
protection. At December 31, 2009, we had approximately $592 million outstanding in letters of
credit.
  
    
    $300 million bearing interest at 4.7% per year, maturing on September 16, 2015
    
    $500 million bearing interest at 5.67% per year, maturing on September 2, 2019
  Cameco Corporation  Managements discussion and analysis 
 page 37




---



##### 



Product loan facilities
 3 8 3 8
 Debt covenants
  
    
    our funded debt to tangible net worth ratio must be 1:1 or less
    
    our tangible net worth must be more than $1.25 billion
    
    other customary covenants and events of default
   Off-balance sheet arrangements
  
    
    purchase commitments
    
    financial assurances
 Purchase commitments
 December 31, 2009
    
    
    
    2011
    
    2013
    
    2015 and($ millions)
    
    2010
    
    and 2012
    
    and 2014
    
    beyond
    
    TotalPurchase commitments1
    
    140
    
    334
    
    370
    
    35
    
    879
 
 1
    
    Denominated in US dollars, converted to Canadian dollars as of December 31, 2009 at the rate of $1.0466.   
    
    About 31 million pounds U3O8 equivalent from 2010 to 2013. Of these,
an average of 7 million pounds a year until 2013 are from our agreement with Techsnabexport
Joint Stock Company (Tenex) to buy uranium from dismantled Russian weapons (the Russian HEU
commercial agreement).
    
    Almost 43 million kgU as UF6 in conversion services from 2010 to 2016 under our
agreements with Springfields Fuels Ltd. (SFL) and Tenex.
  Cameco Corporation  Managements discussion and analysis 
 page 38




---



##### 



Financial assurances
 December 31 
($ millions)
    
    2009
    
    2008
    
    changeStandby letters of credit
    
    $592
    
    $429
    
    38%BPLP guarantees
    
    87
    
    82
    
    6%Total
    

$679
    
    $511
    
    33%
   Balance sheet
 December 31
    
    
    
    
    
    
    
    change from($ millions except per share amounts)
    
    2009
    
    2008
    
    2007
    
    2008 to 2009Inventory
    
    453
    
    398
    
    393
    
    14%Total assets
    
    7,342
    
    7,011
    
    4,582
    
    5%Long-term financial liabilities
    
    1,583
    
    1,800
    
    1,512
    
    (12)%Dividends per common share
    
    $0.24
    
    $0.24
    
    $0.20
    
    0%
    Cameco Corporation  Managements discussion and analysis 
 page 39




---



##### 



2009 financial results by segment
 Uranium
 Highlights
    
    2009
    
    2008
    
    changeProduction volume (million lbs)
    
    20.8
    
    17.3
    
    20%Sales volume (million lbs)
    
    33.9
    
    34.1
    
    (1)%Average spot price ($US/lb)
    
    46.06
    
    61.58
    
    (25)%Average realized price($US/lb)
    
    38.25
    
    39.52
    
    (3)%($Cdn/lb)
    
    45.12
    
    43.91
    
    3%Cost of sales ($Cdn/lb U3O8) (including DDR)
    
    30.59
    
    24.27
    
    26%Revenue ($ millions)
    
    1,551
    
    1,512
    
    3%Gross profit ($ millions)
    
    488
    
    665
    
    (27)%Gross profit (%)
    
    31
    
    44
    
    (30)%
   3 8
 
    
    Our unit cost for purchased uranium was significantly higher due to higher purchases at
near-market prices to take advantage of profitable trading opportunities.
    
    We recorded royalty expenses of $117 million (compared to $82 million in 2008) due to
higher realized prices and royalty adjustments.
   Unit cost of sale
    
    Quantity sold($Cdn/lb U3O8)
    
    (million lbs)2009
    
    2008
    
    change
    
    2009
    
    2008
    
    changeProduced
    
    
    23.86
    
    
    
    19.42
    
    
    
    4.44
    
    
    
    20.9
    
    
    
    23.2
    
    
    
    (2.3
    )Purchased
    
    
    30.22
    
    
    
    24.57
    
    
    
    5.65
    
    
    
    13.0
    
    
    
    10.9
    
    
    
    2.1Total
    
    
    26.33
    
    
    
    20.67
    
    
    
    5.66
    
    
    
    33.9
    
    
    
    34.1
    
    
    
    (0.2
    )
 Cameco Corporation  Managements discussion and analysis 
 page 40




---



##### 



Outlook for 2010
 3 8
 3 8
  Sensitivity analysis
  Long-term price sensitivity analysis: uranium
 not
  Expected realized uranium price sensitivity under various spot price assumptions
 $US/lb
U3O8
 Spot prices
    
    $20
    
    $40
    
    $60
    
    $80
    
    $100
    
    $120
    
    $1402010
    
    33
    
    39
    
    47
    
    53
    
    60
    
    67
    
    742011
    
    33
    
    38
    
    47
    
    54
    
    63
    
    71
    
    792012
    
    36
    
    39
    
    49
    
    58
    
    68
    
    77
    
    862013
    
    43
    
    45
    
    55
    
    65
    
    75
    
    85
    
    942014
    
    42
    
    46
    
    56
    
    66
    
    76
    
    87
    
    96
   Cameco Corporation  Managements discussion and analysis 
 page 41




---



##### 



Sales
 
    
    sales volume of 32 million pounds in 2010 (the midpoint of our outlook for the year)
    
    sales volume of 30 million pounds for 2011 and every year following
 Deliveries
 
    
    customers take the maximum quantity allowed under each contract (unless they have
already provided a delivery notice indicating they will take less)
    
    we defer a portion of deliveries under existing contracts for 2010, 2011 and 2012
 Prices
 
    
    the average long-term price indicator is the same as the average spot price for
the entire year (a simplified approach for this purpose only)
    
    we deliver all volumes that we dont have contracts for at the spot price for each
scenario
 Inflation
 
    
    is 2.0% per year
 Tiered royalties
  3 8
 Tier 1 royalty
    
    Tier 2 royalty
    
    Tier 3 royaltyRealized price
    
    6% x
    
    4% x
    
    5% x($Cdn)
    
    (sales price - $17.82)
    
    (sales price - $26.74)
    
    (sales price - $35.65)
    
    Total royalties25
    
    43,080
    
    
    
    
    
    43,08035
    
    103,080
    
    33,040
    
    
    
    136,12045
    
    163,080
    
    73,040
    
    46,750
    
    282,87055
    
    223,080
    
    113,040
    
    96,750
    
    432,87065
    
    283,080
    
    153,040
    
    146,750
    
    582,87075
    
    343,080
    
    193,040
    
    196,750
    
    732,87085
    
    403,080
    
    233,040
    
    246,750
    
    882,870
 Cameco Corporation  Managements discussion and analysis 
 page 42




---



##### 



Fuel services  6 2
 Highlights
    
    2009
    
    2008
    
    changeProduction volume (million kgU)
    
    12.3
    
    8.3
    
    48%Sales volume (million kgU)
    
    14.9
    
    14.8
    
    1%Realized price ($Cdn/kgU)
    
    17.84
    
    15.85
    
    13%Cost of sales ($Cdn/kgU) (including DDR)
    
    14.47
    
    15.46
    
    (6)%Revenue ($ millions)
    
    276
    
    252
    
    10%Gross profit ($ millions)
    
    50
    
    8
    
    525%Gross profit (%)
    
    18
    
    3
    
    500%
 6 6
 6
   Outlook for 2010
 6
  Cameco Corporation  Managements discussion and analysis 
 page 43




---



##### 



Electricity
 BPLP  (100%  not prorated to reflect our 31.6% interest)
 Highlights ($ millions except where indicated)
    
    2009
    
    2008
    
    changeOutput  terawatt hours (TWh)
    
    24.6
    
    24.7
    
    Capacity factor
(the amount of electricity the plants actually produced for sale as a
percentage of the amount they were capable of producing)
    
    87%
    
    87%
    
    Realized price ($/MWh)
    
    641
    
    57
    
    12%Average Ontario electricity
spot price ($/MWh)
    
    30
    
    49
    
    (39)%Revenue
    
    1,640
    
    1,409
    
    16%Operating costs (net of cost recoveries)
    
    905
    
    900
    
    1%Cash costs
    
    770
    
    779
    
    (1)%Non-cash costs
    
    135
    
    121
    
    12%Income before interest
and finance charges
    
    735
    
    509
    
    44%Interest and finance charges
    
    4
    
    41
    
    (90)%Cash from operations
    
    754
    
    547
    
    38%Capital expenditures
    
    123
    
    85
    
    45%Distributions2
    
    610
    
    329
    
    85%Operating costs ($/MWh)
    
    351
    
    36
    
    (3)%
 
 1
    
    Based on actual generation of 24.6 TWh plus deemed generation of 1.2 TWh.2
    
    Does not include the full repayment of the partner loans of $225 million in 2008 (our
share was $75 million). Our earnings from BPLP
 ($ millions)
    
    2009
    
    2008
    
    changeBPLPs earnings before taxes (100%)
    
    731
    
    468
    
    56%Camecos share of pretax earnings
before adjustments (31.6%)
    
    231
    
    148
    
    56%Proprietary adjustments
    
    (7)
    
    (7)
    
    Earnings before taxes from BPLP
    
    224
    
    141
    
    59%
   Cameco Corporation  Managements discussion and analysis 
 page 44




---



##### 



Outlook for 2010
   Sensitivity analysis
  Cameco Corporation  Managements discussion and analysis 
 page 45




---



##### 



Fourth quarter results
 Fourth quarter consolidated results
 Three months endedHighlights
    
    December 31($ millions except per share amounts)
    
    2009
    
    2008
    
    changeRevenue
    
    659
    
    640
    
    3%Net earnings
    
    598
    
    31
    
    1,829% $  per common share (basic)
    
    1.52
    
    0.08
    
    1,800% $  per common share (diluted)
    
    1.52
    
    0.08
    
    1,800%Adjusted net earnings (non-GAAP, see page 29)
    
    248
    
    179
    
    39% $  per common share (adjusted and diluted)
    
    0.63
    
    0.49
    
    29%Cash provided by operations
(after working capital changes)
    
    188
    
    224
    
    (16)%
    Three months endedDecember 31($ millions)
    
    2009
    
    2008Net earnings(GAAP measure)
    
    598
    
    31Adjustments(after tax)Restructuring the gold business
    
    28
    
    10Gain on sale of Centerra
    
    (374)
    
    Unrealized losses (gains) on financial instruments
    
    (4)
    
    130Stock option expense (recovery)
    
    
    
    2Investment write downs
    
    
    
    6Adjusted net earnings1 (non-GAAP measure)
    
    248
    
    179
 
 1
    
    Adjusted net earnings includes our share of Centerras operating earnings for the
periods presented. Cameco Corporation  Managements discussion and analysis 
 page 46




---



##### 



.
 Three months endedDecember 31($ millions)
    
    2009
    
    2008Direct administration
    
    
    39
    
    
    
    57Stock-based compensation
    
    
    3
    
    
    
    (10
    )Total administration
    
    
    42
    
    
    
    47
 Cameco Corporation  Managements discussion and analysis 
 page 47




---



##### 



Quarterly trends
 Highlights
    
    2009
    
    2008($ millions except per share amounts)
    
    Q4
    
    Q3
    
    Q2
    
    Q1
    
    Q4
    
    Q3
    
    Q2
    
    Q1Revenue
    
    659
    
    518
    
    645
    
    493
    
    640
    
    329
    
    620
    
    594Net earnings
    
    598
    
    172
    
    247
    
    82
    
    31
    
    136
    
    150
    
    133 $  per common share (basic)
    
    1.52
    
    0.44
    
    0.64
    
    0.23
    
    0.08
    
    0.39
    
    0.44
    
    0.38 $  per common share (diluted)
    
    1.52
    
    0.44
    
    0.64
    
    0.22
    
    0.08
    
    0.39
    
    0.43
    
    0.38Adjusted net earnings (non-GAAP, see page 46)
    
    248
    
    104
    
    140
    
    90
    
    179
    
    128
    
    139
    
    143 $  per share diluted
    
    0.63
    
    0.26
    
    0.36
    
    0.24
    
    0.49
    
    0.37
    
    0.39
    
    0.42Earnings from continuing operations
    
    174
    
    195
    
    269
    
    79
    
    5
    
    124
    
    108
    
    129 $  per common share (basic)
    
    0.44
    
    0.49
    
    0.68
    
    0.23
    
    0.01
    
    0.37
    
    0.31
    
    0.36 $  per common share (diluted)
    
    0.44
    
    0.49
    
    0.68
    
    0.23
    
    0.01
    
    0.37
    
    0.30
    
    0.36Cash provided by operations
    
    188
    
    175
    
    161
    
    166
    
    224
    
    87
    
    100
    
    119
  
    
    Our financial results are strongly influenced by the performance of our uranium segment,
which accounted for 66% of annual consolidated revenues in 2009.
    
    The timing of customer requirements, which tend to vary from quarter to quarter, drives
revenue in the uranium and fuel services segments. In 2009, uranium sales volumes were most
heavily weighted to the second and fourth quarters  similar to 2008.
    
    Net earnings do not trend directly with revenue due to unusual items and transactions that
occur from time to time. We use adjusted net earnings, a non-GAAP measure, as a more
meaningful way to compare our results from period to period (see page 46 for more
information).
    
    Cash from operations tends to fluctuate as a result of the timing of deliveries and product
purchases in our uranium and fuel services segments (see page 28 for more information).
    
    Quarterly results are not necessarily a good indication of annual results due to the
variability in customer requirements noted above.
 Cameco Corporation  Managements discussion and analysis 
 page 48




---



##### 



Fourth quarter results by segment
 Uranium
 Three months endedDecember 31Highlights
    
    2009
    
    2008
    
    changeProduction volume (million lbs)
    
    6.7
    
    5.5
    
    22%Sales volume (million lbs)
    
    10.0
    
    10.5
    
    (5)%Average spot price ($US/lb)Average realized price
    
    45.96
    
    51.00
    
    (10)%($US/lb)
    
    40.64
    
    35.31
    
    15%($Cdn/lb)
    
    43.51
    
    42.77
    
    2%Cost of sales ($Cdn/lb U3O8) (including DDR)
    
    30.29
    
    24.16
    
    25%Revenue ($ millions)
    
    443
    
    450
    
    (2)%Gross profit ($ millions)
    
    132
    
    193
    
    (32)%Gross profit (%)
    
    30
    
    43
    
    (30)%
     Cameco Corporation  Managements discussion and analysis 
 page 49




---



##### 



Fuel services
 6 2
 Three months endedDecember 31Highlights
    
    2009
    
    2008
    
    changeProduction volume (million kgU)
    
    3.9
    
    2.6
    
    50%Sales volume (million kgU)
    
    6.0
    
    4.6
    
    30%Realized price ($Cdn/kgU)
    
    14.89
    
    13.81
    
    8%Cost of sales ($Cdn/kgU) (including DDR)
    
    12.92
    
    11.26
    
    15%Revenue ($ millions)
    
    91
    
    70
    
    30%Gross profit ($ millions)
    
    13
    
    14
    
    (7)%Gross profit (%)
    
    14
    
    20
    
    (30)%
    Cameco Corporation  Managements discussion and analysis 
 page 50




---



##### 



Electricity
 BPLP  (100%  not prorated to reflect our 31.6% interest)
 Three months endedDecember 31Highlights ($ millions except where indicated)
    
    2009
    
    2008
    
    changeOutput  terawatt hours (TWh)
    
    6.4
    
    7.0
    
    (9)%Capacity factor
    
    89%
    
    97%
    
    (8)%Realized price ($/MWh)
    
    621
    
    57
    
    9%Average Ontario electricity
spot price ($/MWh)
    
    30
    
    49
    
    (39)%Revenue
    
    422
    
    399
    
    6%Operating costs (net of cost recoveries)
    
    218
    
    207
    
    5%Cash costs
    
    183
    
    176
    
    4%Non-cash costs
    
    35
    
    31
    
    13%Income before interest
and finance charges
    
    204
    
    192
    
    6%Interest and finance charges
    
    1
    
    11
    
    (91)%Cash from operations
    
    229
    
    176
    
    30%Capital expenditures
    
    40
    
    19
    
    111%Distributions
    
    220
    
    205
    
    7%Operating costs ($/MWh)
    
    331
    
    30
    
    10%
 
 1
    
    Based on actual generation of 6.4 TWh plus deemed generation of 0.4 TWh in the fourth
quarter. Our earnings from BPLP
 ($ millions)
    
    2009
    
    2008
    
    changeBPLPs earnings before taxes (100%)
    
    203
    
    181
    
    12%Camecos share of pretax earnings
before adjustments (31.6%)
    
    64
    
    57
    
    12%Proprietary adjustments
    
    (2)
    
    (2)
    
    Earnings before taxes from BPLP
    
    62
    
    55
    
    13%
    Cameco Corporation  Managements discussion and analysis 
 page 51




---



##### 



Cameco Corporation  Managements discussion and analysis 
 page 52




---



##### 



Our operations and development projects
  UraniumProduction overview
    
    
    55Operating propertiesMcArthur River and Key Lake
    
    
    57Rabbit Lake
    
    
    62Smith Ranch-Highland
    
    
    64Crow Butte
    
    
    66Inkai
    
    
    67Development projectCigar Lake
    
    
    70Projects under evaluationInkai blocks 1 and 2 production increase (see Inkai, above)
    
    
    67Inkai block 3 (see Inkai, above)
    
    
    67McArthur River expansion (see McArthur River, above)
    
    
    57Kintyre
    
    
    74Millennium
    
    
    75Exploration
    
    
    76Fuel servicesRefiningBlind River refinery
    
    
    77Conversion and fuel manufacturingPort Hope conversion services
    
    
    78Cameco Fuel Manufacturing Inc.
    
    
    78Springfields Fuels Ltd.
    
    
    78ElectricityBruce Power Limited Partnership
    
    
    80
 Cameco Corporation  Managements discussion and analysis 
 page 53




---



##### 



Managing the risks
    Regulatory risks
    Environmental risks
  Operational risks
  
    
    environmental incidents and pollution
    
    accidents
    
    social or political activism, including blockades
    
    non-compliance with laws and licences
    
    fire
    
    natural phenomena, including underground floods, cave-ins and pitwall failures
    
    unusual, unexpected or adverse mining or geological conditions
    
    technological failure of mining methods
    
    risks from the transportation of our products and chemicals
  Cameco Corporation  Managements discussion and analysis 
 page 54




---



##### 



Uranium  production overview
   
    
    We accomplished a mining first by successfully developing through the unconformity into the
Athabasca sandstone, and exceeded our production target by 2%.
    
    We successfully reduced the release of both molybdenum and selenium to the environment.
  
    
    We added mineral reserves, extending the expected life of reserves by two years to 2015 and
exceeded our production target by 6%.
  
    
    We commissioned Inkais main processing plant and started commissioning the first satellite
plant, and exceeded our production target by 22%.
 Uranium production
 Three months ended
    
    Year endedCamecos share
    
    December 31
    
    December 31(million lbs U3O8)
    
    2009
    
    2008
    
    2009
    
    2008
    
    2009 planMcArthur River/Key Lake
    
    
    4.0
    
    
    
    3.1
    
    
    
    13.3
    
    
    
    11.6
    
    
    
    13.1Rabbit Lake
    
    
    1.4
    
    
    
    1.8
    
    
    
    3.8
    
    
    
    3.6
    
    
    
    3.6Smith Ranch-Highland
    
    
    0.5
    
    
    
    0.3
    
    
    
    1.8
    
    
    
    1.2
    
    
    
    1.8Crow Butte
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.8
    
    
    
    0.6
    
    
    
    0.8Inkai
    
    
    0.6
    
    
    
    0.1
    
    
    
    1.1
    
    
    
    0.3
    
    
    
    0.9Total
    
    
    6.7
    
    
    
    5.5
    
    
    
    20.8
    
    
    
    17.3
    
    
    
    20.2
 Outlook
 3 8
 Camecos share of production  annual forecast to 2014
 Current forecast(million lbs U3O8)
    
    2010
    
    2011
    
    2012
    
    2013
    
    2014McArthur River/Key Lake
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1Rabbit Lake
    
    
    3.6
    
    
    
    3.6
    
    
    
    3.6
    
    
    
    3.6
    
    
    
    3.0US ISR
    
    
    2.5
    
    
    
    2.6
    
    
    
    3.0
    
    
    
    3.4
    
    
    
    3.8Inkai
    
    
    2.3
    
    
    
    3.1
    
    
    
    3.1
    
    
    
    3.1
    
    
    
    3.1Total
    
    
    21.5
    
    
    
    22.4
    
    
    
    22.8
    
    
    
    23.2
    
    
    
    23.0
  Cameco Corporation  Managements discussion and analysis 
 page 55




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##### 



3 8
  Assumptions
 
    
    we achieve our forecast production for each operation, which requires, among other things,
that our mining plans succeed, processing plants function and our reserve estimates are
accurate
    
    we obtain or maintain the necessary permits and approvals from government authorities
    
    our production is not disrupted or reduced as a result of natural phenomena, labour
disputes, political risks, shortage or lack of supplies critical to production, equipment
failures or other development and operation risks
 Material risks that could cause actual results to differ materially
 
    
    we do not achieve forecast production levels for each operation because of a change in our
mining plans, processing plant availability, lack of tailings capacity or for other reasons
    
    we cannot obtain or maintain necessary permits or government approvals
    
    natural phenomena, labour disputes, political risks, shortage or lack of supplies critical
to production, equipment failures or other development and operation risks disrupt or reduce
our production
 Cameco Corporation  Managements discussion and analysis 
 page 56




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##### 



Uranium  operating properties
 
 McArthur River/Key Lake
   Location
    
    Saskatchewan, CanadaOwnership
    
    69.805%  McArthur River83.33%  Key LakeEnd product
    
    U3O8ISO certification
    
    ISO 14001 certifiedDeposit type
    
    undergroundEstimated reserves
    
    234 million pounds  proven and probable(Camecos share)Average reserve grade
    
    U3O8  19.5%Estimated resources
    
    21.1 million pounds (measured and indicated)(Camecos share)
    
    111.3 million pounds (inferred)Mining methods
    
    currently: raiseboringunder development: boxhole boringLicensed capacity
    
    mine and mill: 18.7 million pounds per year(can be exceeded  see Licencingbelow)Total production 2000 to 2009
    
    171.2 million pounds (McArthur River/Key Lake)1983 to 2002
    
    209.8 million pounds (Key Lake)2009 production
    
    13.3 million pounds (Camecos share)2010 forecast production
    
    13.1 million pounds (Camecos share)
 Background
  Ground freezing
 Raisebore mining
 Cameco Corporation  Managements discussion and analysis 
 page 57




---



##### 



2009 update
 Production on target
 3 8 3 8
 Licensing
 New mining areas
  Cameco Corporation  Managements discussion and analysis 
 page 58




---



##### 



Mill revitalization
  
    
    operational upgrades
    
    treatment of effluent
    
    tailings capacity
 Operational upgrades 
 Treatment of effluent 
 Tailings capacity
 Licensing
  3 8
   Exploration
   Reserves grade
 3 8 3 8.
 Cameco Corporation  Managements discussion and analysis 
 page 59




---



##### 



Planning for the future
 Production
 3 8
 New mining zones
 Zone 2, panel 5
 Lower zone 4
 Exploration
 McArthur River expansion
  Managing near-term risks
 Labour relations
  Transition to new mining areas
  Managing ongoing risks
  Water inflow risk
    Cameco Corporation  Managements discussion and analysis 
 page 60




---



##### 




    
    Ground freezing Before mining an ore zone, we drill freeze holes and freeze the ground to
form an impermeable freezewall around the ore zone. Ground freezing reduces but does not
eliminate the risk of water inflows.
    
    Mine development We carry out extensive grouting and careful placement of mine
development away from known groundwater sources whenever possible. In addition, we assess all
planned mine development for relative risk, and apply extensive additional technical and
operating controls for all higher risk development.
    
    Pumping capacity and treatment limits The total installed pumping capacity from the
McArthur River mine is currently more than 1,850 m3/hr. On the surface, we have
water treatment capacity of 1,500 m3/hr and approximately 50,000 m3 of
surface storage. We have regulatory approval to treat and release 1,500 m3/hr in
non-routine circumstances. In our view, this is sufficient capacity to handle an estimated
maximum inflow. We review our dewatering system and requirements at least once a year and
before beginning work on any new zone.
 Key Lake tailings capacity risk
      Cameco Corporation  Managements discussion and analysis 
 page 61




---



##### 



Uranium  operating properties
 
 Rabbit Lake
  Location
    
    Saskatchewan, CanadaOwnership
    
    100%End product
    
    U3O8ISO certification
    
    not certifiedDeposit type
    
    undergroundEstimated reserves
    
    21.3 million pounds (proven and probable)Average reserve grade
    
    U3O8- 0.88%Estimated resources
    
    10.4 million pounds (measured and indicated)0.9 million pounds (inferred)Mining method
    
    vertical blast-hole stopingLicensed capacity
    
    mill: 16 million pounds per yearTotal production 1975 to 2009
    
    178.7 million pounds2009 production
    
    3.8 million pounds2010 forecast production
    
    3.6 million pounds
 2009 update
 Production on target
 3 8
 Continued to upgrade the mill and expand the tailings facility
   Advanced reclamation planning
  Cameco Corporation  Managements discussion and analysis 
 page 62




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##### 



Worked to extend the mine life
  Planning for the future
 Production
  Milling
  Exploration
  Reclamation
  Managing our risks
  Cameco Corporation  Managements discussion and analysis 
 page 63




---



##### 



Uranium  operating properties
 
 Smith Ranch-Highland
   Location
    
    Wyoming, USOwnership
    
    100%End product
    
    U3O8ISO certification
    
    ISO 14001 certifiedEstimated reserves
    
    5.9 million pounds (proven and probable)Average reserve grade
    
    U3O8 0.10%Estimated resources
    
    23.0 million pounds (measured and indicated)6.6 million pounds (inferred)Mining method
    
    in situ recovery (ISR)Licensed capacity
    
    mine: 2 million pounds per yearmill: 4 million pounds per year including Highland millTotal production
2002 to 2009
    
    11.8 million pounds2009 production
    
    1.8 million pounds2010 forecast production
    
    1.8 million pounds
 2009 update
 Production on target
  Upgrades
  Planning for the future
 Production
  Cameco Corporation  Managements discussion and analysis 
 page 64




---



##### 



Reynolds Ranch expansion
   Exploration
  Managing our risks
  Cameco Corporation  Managements discussion and analysis 
 page 65




---



##### 



Uranium  operating properties
 
 Crow Butte
  Location
    
    Nebraska, USOwnership
    
    100%End product
    
    U3O8ISO certification
    
    ISO 14001 certifiedEstimated reserves
    
    4.1 million pounds (proven and probable)Average reserve grade
    
    U3O8 0.13%Estimated resources
    
    10.4 million pounds (measured and indicated)6.7 million pounds (inferred)Mining method
    
    in situ recovery (ISR)Licensed capacity
    
    1 million pounds per year(mine and mill)Total production 2002 to 2009
    
    6.1 million pounds2009 production
    
    0.8 million pounds2010 forecast production
    
    0.7 million pounds
 2009 update
 Production on target
  Licensing
  Planning for the future
 Production
  Managing our risks
  Cameco Corporation  Managements discussion and analysis 
 page 66




---



##### 



Uranium  operating properties
 
 Inkai
  Location
    
    central KazakhstanOwnership
    
    60%End product
    
    U3O8ISO certification
    
    BSI OHSAS 18001ISO 14001 certifiedEstimated reserves
    
    80.9 million pounds (proven and probable)(Camecos share)Average reserve grade
    
    U3O8- 0.07%Estimated resources
    
    13.1 million pounds (measured and indicated)(Camecos share)
    
    153.0 million pounds (inferred)Mining method
    
    In situ recovery (ISR)Licensed capacity
    
    Approved: 2.6 million pounds per year(mine and mill)
    
    (Camecos share 1.6 million pounds per year)Application: 5.2 million pounds per year(Camecos share 3.1 million pounds per year)2009 production
    
    1.1 million pounds (Camecos share)2010 forecast production
    
    2.3 million pounds (Camecos share)
 2009 update
 Production
 3 8
 Operations
  Supply of sulphuric acid
  Cameco Corporation  Managements discussion and analysis 
 page 67




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##### 



Project funding
    Taxes
  Licensing and Resource Use Contract amendments
  Block 3 exploration
   Planning for the future
 Production
  Doubling production
  
    
    Targets future annual production capacity at 10.4 million pounds (our share 5.7 million
pounds). While the existing project ownership would not change, our share of the additional
capacity under the memorandum would be 50%.
    
    Contemplates studying the feasibility of constructing a uranium conversion facility as well
as other potential collaborations in uranium conversion.
  Block 3 exploration
  
    
    spending $19 million (US) (our share) on exploration drilling in 2010
    
    preparing an application to file with regulators in the first half of 2010, declaring that
we have
made a commercial discovery
 Cameco Corporation  Managements discussion and analysis 
 page 68




---



##### 



Technical report
  Managing our risks
 Regulatory approvals
  Supply of sulphuric acid
  Political risk
    Cameco Corporation  Managements discussion and analysis 
 page 69




---



##### 



Uranium
 development project
 
 Cigar Lake
  Location
    
    Saskatchewan, CanadaOwnership
    
    50.025%End product
    
    U3O8Deposit type
    
    undergroundEstimated reserves
    
    104.7 million pounds (proven and probable)(Camecos share)Average reserve grade
    
    U3O8 17.0%Estimated resources
    
    0.6 million pounds (measured and indicated)(Camecos share)
    
    66.8 million pounds (inferred)Mining method
    
    jet boringTarget production date
    
    mid-2013 (based on current information)Target annual production
    
    9 million pounds after rampup(Camecos share)
 Background
 Development
  Mining method
  
    
    Bulk freezing The sandstones that overlay the deposit and basement rocks are
water-bearing, with large volumes of water under significant pressure. We will freeze the
orebody and surrounding rock to prevent water from entering the mine, and to help stabilize
weak rock formations.
 Cameco Corporation  Managements discussion and analysis 
 page 70




---



##### 




    
    Jet boring The jet boring mining method is new to the uranium mining industry. We have
conducted an initial test mine program and, overall, the program was a success and met all
initial objectives. As we ramp up production, however, there may be some technical challenges.
  Milling
  2009 update
  Dewatering and mine re-entry
   Licensing
  Costs
  
    
    invested $470 million in capital to develop Cigar Lake
    
    expensed $64 million in remediation expenses, including $18 million in 2009
 Planning for the future
  
    
    complete work to secure the underground before October 2010, depending on the condition of
the mine
    
    determine if additional remedial work is needed
    
    file an updated technical report for the Cigar Lake project by the end of the first quarter
    
    begin to restore the underground mine systems and infrastructure to prepare to resume
construction
 Cost update
  Cameco Corporation  Managements discussion and analysis 
 page 71




---



##### 



Remediation
  Production
  Reserves and resources
  Camecos share(million lbs)
    
    2009
    
    2008
    
    changeProven reserves
    
    36.9
    
    113.2
    
    (76.3)Probable reserves
    
    67.8
    
    
    
    67.8Total
    
    104.7
    
    113.2
    
    (8.5)Measured resources
    
    0.2
    
    
    
    0.2Indicated resources
    
    0.4
    
    3.3
    
    (2.9)Total
    
    0.6
    
    3.3
    
    (2.7)Inferred resources
    
    66.8
    
    59.1
    
    7.7
  
    
    re-interpretation of the mineralized envelopes on the east end of the deposit
    
    block modelling in 3D (we used a 2D model in 2007)
    
    revised mine layout and dilution assumptions
    
    recategorization of the resources and reserves
 3 8
  Cameco Corporation  Managements discussion and analysis 
 page 72




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##### 



Assumptions
 
    
    natural phenomena or an equipment failure do not cause a material delay or disrupt our
plans
    
    there are no additional water inflows
    
    the seals used for previous water inflows do not fail
    
    there are no labour disputes
    
    we obtain contractors, equipment, operating parts and supplies, and regulatory permits and
approvals when we need them
 Material risks
 
    
    an unexpected geological, hydrological or underground condition, such as an additional
water inflow, further delays our progress
    
    we cannot obtain or maintain the necessary regulatory permits or approvals
    
    natural phenomena, labour disputes, equipment failure, delay in obtaining the required
contractors, equipment, operating parts or supplies, or other reasons cause a material delay
or disruption in our plans
 Managing our risks
    Bulk freezing
  Mine development
  Pumping capacity and treatment limits
 3 3 3 3
  
    
    uncertainty about the condition of the underground development, which we will know once the
crews have assessed the underground
    
    delay or lack of success in implementing our remediation plan
  Cameco Corporation  Managements discussion and analysis 
 page 73




---



##### 



Uranium
 projects under evaluation
 Kintyre
  Location
    
    Western AustraliaOwnership
    
    70%End product
    
    U3O8Deposit type
    
    open pit
 Background
  2009 update
  
    
    opened an office in Perth to manage the project through the evaluation and prefeasibility
stages
    
    received permits and established a camp to support ongoing diamond drilling
    
    continued to hire professional and support staff
    
    began environmental studies and confirmatory drilling
    
    continued our dialogue with the Martu, the native land title holders for this property
 Planning for the future
  
    
    negotiate a mine development agreement with the Martu
    
    complete delineation drilling of the deposit
    
    estimate a resource
    
    conduct metallurgical testing to define the milling process
    
    continue the environmental assessment for the environmental impact statement we plan to
submit to regulators in 2011
    
    begin a prefeasibility study
    
    build a temporary construction camp
 Managing the risks
  Cameco Corporation  Managements discussion and analysis 
 page 74




---



##### 



Uranium
 projects under evaluation
 Millennium
  Location
    
    Saskatchewan, CanadaOwnership
    
    42%End product
    
    U3O8Deposit type
    
    undergroundEstimated resources
    
    19.6 million pounds (indicated)(Camecos share)
    
    4.1 million pounds (inferred)
 Background
  2009 update
  Planning for the future
  
    
    complete the feasibility study
    
    continue our environmental assessment process
    
    continue with our community consultation
 Managing the risks
   Cameco Corporation  Managements discussion and analysis 
 page 75




---



##### 



Uranium  exploration
  Exploration
and development spending
 
 2009 update
 Brownfield exploration
   Regional exploration
  Plans for 2010
  Brownfield exploration
  Regional exploration
  Cameco Corporation  Managements discussion and analysis 
 page 76




---



##### 



Fuel
services  refining
 Blind River refinery
 3 8 3
 Location
    
    Ontario, CanadaOwnership
    
    100%End product
    
    UO3ISO certification
    
    ISO 14001 certifiedLicensed capacity
    
    approved: 18 million kgU as UO3 per yearapplication: 24 million kgU as UO3 per year
 2009 update
 Production
 3
 Planning for the future
   Managing our risks
  Cameco Corporation  Managements discussion and analysis 
 page 77




---



##### 



Fuel
services  conversion and fuel manufacturing
 Port Hope conversion services
 2 6
 Location
    
    Ontario, CanadaOwnership
    
    100%End product
    
    UF6, UO2ISO certification
    
    ISO 14001 certifiedLicensed capacity
    
    12.5 million kgU as UF6 per year2.8 million kgU as UO2 per year
 Cameco Fuel Manufacturing Inc. (CFM)
  Location
    
    Ontario, CanadaOwnership
    
    100%End product
    
    Candu fuel bundles and componentsISO certification
    
    ISO 9001 certifiedLicensed capacity
    
    1.2 million kgU as UO2as finished bundles
 Springfields Fuels Ltd. (SFL)
  Location
    
    Lancashire, UKToll-processing agreement
    
    annual conversion of 5 million kgU as UO3 to UF6Licensed capacity
    
    6.0 million kgU as UF6 per year
 Cameco Corporation  Managements discussion and analysis 
 page 78




---



##### 



2009 update
 Production
  2 6
 6
 6
 Fuel manufacturing
   Port Hope conversion facility cleanup and modernization (Vision 2010)
  Collective agreements
  Community outreach
  
    
    holding a series of community forums
    
    making presentations to municipal council
    
    reaching out using community newsletters, newspaper advertising, public displays, open
houses and a website dedicated to the Port Hope community
  Planning for the future
 Production
  Port Hope conversion facility cleanup and modernization (Vision 2010)
  Managing our risks
  Cameco Corporation  Managements discussion and analysis 
 page 79




---



##### 



Electricity
 Bruce Power Limited Partnership (BPLP)
  Location
    
    Ontario, CanadaOwnership
    
    31.6%ISO certification
    
    ISO 14001 certifiedExpected reactor life
    
    2017 to 2020Term of lease
    
    2018  right to extend for 25 yearsGeneration capacity
    
    3,260 MWAverage annual fuel
    
    1.2 million pounds of U3O8supplied by Cameco
    
    600 tonnes UO2conversion and fuel fabrication
 Background
  2
 2009 update
 Output
  Licensing
  Planning for the future
 Output
  Managing our risks
    Cameco Corporation  Managements discussion and analysis 
 page 80




---



##### 



Reserves and resources
   Changes this year
  
    
    mining and milling activities, which used 22 million pounds
    
    identifying additional reserves  14 million pounds at McArthur River, and 8 million pounds
at Rabbit Lake
    
    reclassifying reserves to resources  8 million pounds at Cigar Lake and 6 million pounds
at Ruby Ranch and Ruth
  
    
    adding 20 million pounds of resources at Tamarack, Rabbit Lake and Crow Butte
    
    upgrading 14 million pounds of resources to reserves at McArthur River, zone 4
    
    downgrading 6 million pounds of reserves to resources at Ruby Ranch and Ruth
  Cameco Corporation  Managements discussion and analysis 
 page 81




---



##### 



Qualified persons
  McArthur River/Key Lake
 
    
    Alain G. Mainville, director, mineral resources management, Cameco
    
    David Bronkhorst, general manager, McArthur River, Cameco
    
    Greg Murdock, technical superintendent, McArthur River, Cameco
    
    Lorne D. Schwartz, chief metallurgist, mining technical services, Cameco
    
    Les Yesnik, general manager, Key Lake, Cameco
 Inkai
 
    
    Alain G. Mainville, director, mineral resources management, Cameco
    
    Charles J. Foldenauer, deputy general director, operations, Inkai
 Cigar Lake
 
    
    Alain G. Mainville, director, mineral resources management, Cameco
    
    Grant J.H. Goddard, general manager, Cigar Lake, Cameco
    
    C. Scott Bishop, chief mine engineer, Cigar Lake, Cameco
    
    Lorne D. Schwartz, chief metallurgist, mining technical services, Cameco
   
    
    geological interpretation
    
    extraction plans
    
    commodity prices
    
    operating and capital costs.
 Important information for US investors
  
    
    Any or all of a measured or indicated resource will ever be converted into proven
or probable mineral reserves.
    
    Any or all of an inferred resource exists or is economically or legally mineable,
or will ever be upgraded to a higher category. Under Canadian securities regulations,
estimates of inferred resources may not form the basis of feasibility or prefeasibility
studies.
  Cameco Corporation  Managements discussion and analysis 
 page 82




---



##### 



Cameco Corporation  Managements discussion and analysis 
 page 83




---



##### 



Reserves
   Proven and probable
  CamecosPROVEN
    
    
    PROBABLE
    
    
    TOTAL RESERVES
    
    
    share of
    
    
    EstimatedMining
    
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    
    Grade
    
    Content
    
    
    content
    
    
    metallurgicalmethod
    
    
    Tonnes
    
    %U3O8
    
    (lbs U3O8)
    
    
    Tonnes
    
    %U3O8
    
    (lbs U3O8)
    
    
    Tonnes
    
    %U3O8
    
    (lbs U3O8)
    
    
    (lbs U3O8)
    
    
    recovery (%)PROPERTYMcArthur River
    
    
    underground
    
    
    
    498.5
    
    
    
    15.72
    
    
    
    172.7
    
    
    
    
    280.0
    
    
    
    26.33
    
    
    
    162.5
    
    
    
    
    778.5
    
    
    
    19.53
    
    
    
    335.2
    
    
    
    
    234.0
    
    
    
    
    98.7Cigar Lake
    
    
    underground
    
    
    
    130.5
    
    
    
    25.62
    
    
    
    73.7
    
    
    
    
    426.8
    
    
    
    14.41
    
    
    
    135.6
    
    
    
    
    557.3
    
    
    
    17.04
    
    
    
    209.3
    
    
    
    
    104.7
    
    
    
    
    98.5Rabbit Lake
    
    
    underground
    
    
    
    37.4
    
    
    
    0.75
    
    
    
    0.6
    
    
    
    
    1,059.0
    
    
    
    0.89
    
    
    
    20.7
    
    
    
    
    1,096.4
    
    
    
    0.88
    
    
    
    21.3
    
    
    
    
    21.3
    
    
    
    
    96.7Key Lake
    
    
    open pit
    
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61.9
    
    
    
    0.52
    
    
    
    0.7
    
    
    
    
    0.6
    
    
    
    
    98.7Inkai
    
    
    ISR
    
    
    
    6,043.0
    
    
    
    0.08
    
    
    
    11.1
    
    
    
    
    83,434.0
    
    
    
    0.07
    
    
    
    123.6
    
    
    
    
    89,477.0
    
    
    
    0.07
    
    
    
    134.7
    
    
    
    
    80.9
    
    
    
    
    80.0Gas Hills-Peach
    
    
    ISR
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,403.8
    
    
    
    0.13
    
    
    
    19.0
    
    
    
    
    6,403.8
    
    
    
    0.13
    
    
    
    19.0
    
    
    
    
    19.0
    
    
    
    
    72.0North Butte-Brown Ranch
    
    
    ISR
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,803.2
    
    
    
    0.10
    
    
    
    8.2
    
    
    
    
    3,803.2
    
    
    
    0.10
    
    
    
    8.2
    
    
    
    
    8.2
    
    
    
    
    80.0Smith Ranch-Highland
    
    
    ISR
    
    
    
    771.9
    
    
    
    0.12
    
    
    
    2.0
    
    
    
    
    1,931.1
    
    
    
    0.09
    
    
    
    3.9
    
    
    
    
    2,703.0
    
    
    
    0.10
    
    
    
    5.9
    
    
    
    
    5.9
    
    
    
    
    80.0Crow Butte
    
    
    ISR
    
    
    
    968.7
    
    
    
    0.11
    
    
    
    2.3
    
    
    
    
    493.1
    
    
    
    0.17
    
    
    
    1.8
    
    
    
    
    1,461.8
    
    
    
    0.13
    
    
    
    4.1
    
    
    
    
    4.1
    
    
    
    
    85.0Total
    
    
    
    
    
    
    8,511.9
    
    
    
    
    
    
    
    263.1
    
    
    
    
    97,831.0
    
    
    
    
    
    
    
    475.3
    
    
    
    
    106,342.9
    
    
    
    
    
    
    
    738.4
    
    
    
    
    478.7
 Metallurgical recovery
  Estimates of Inkai
 3 8
 Notes
  
    
    are based on the exchange rate at December 31, 2009 ($1.00 US=$1.05 Cdn)
    
    use an average uranium price of $54 (US)/lb U3O8
   Cameco Corporation  Managements discussion and analysis 
 page 84




---



##### 



Resources
   Measured and indicated
  TOTAL MEASUREDMEASURED
    
    
    INDICATED
    
    
    AND INDICATED
    
    
    CamecosMining
    
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    
    Grade
    
    Content
    
    
    
    
    
    
    Grade
    
    Content
    
    
    sharemethod
    
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    
    (lbs U3O8)PROPERTYMcArthur River
    
    
    underground
    
    
    
    162.9
    
    
    
    6.39
    
    
    
    22.9
    
    
    
    
    39.9
    
    
    
    8.37
    
    
    
    7.4
    
    
    
    
    202.8
    
    
    
    6.78
    
    
    
    30.3
    
    
    
    
    21.1Cigar Lake
    
    
    underground
    
    
    
    8.4
    
    
    
    2.07
    
    
    
    0.4
    
    
    
    
    15.6
    
    
    
    2.35
    
    
    
    0.8
    
    
    
    
    24.0
    
    
    
    2.27
    
    
    
    1.2
    
    
    
    
    0.6Rabbit Lake
    
    
    underground
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    792.5
    
    
    
    0.59
    
    
    
    10.4
    
    
    
    
    792.5
    
    
    
    0.59
    
    
    
    10.4
    
    
    
    
    10.4Dawn Lake
    
    
    open pit, underground
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    
    347.0
    
    
    
    1.69
    
    
    
    12.9
    
    
    
    
    7.4Millennium
    
    
    underground
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    468.9
    
    
    
    4.53
    
    
    
    46.8
    
    
    
    
    468.9
    
    
    
    4.53
    
    
    
    46.8
    
    
    
    
    19.6Tamarack
    
    
    underground
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    183.8
    
    
    
    4.42
    
    
    
    17.9
    
    
    
    
    183.8
    
    
    
    4.42
    
    
    
    17.9
    
    
    
    
    10.3Inkai
    
    
    ISR
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,291.0
    
    
    
    0.07
    
    
    
    21.9
    
    
    
    
    13,291.0
    
    
    
    0.07
    
    
    
    21.9
    
    
    
    
    13.1Gas Hills-Peach
    
    
    ISR
    
    
    
    1,964.2
    
    
    
    0.08
    
    
    
    3.4
    
    
    
    
    1,418.2
    
    
    
    0.07
    
    
    
    2.3
    
    
    
    
    3,382.4
    
    
    
    0.08
    
    
    
    5.7
    
    
    
    
    5.7North Butte-Brown Ranch
    
    
    ISR
    
    
    
    762.1
    
    
    
    0.08
    
    
    
    1.4
    
    
    
    
    4,012.0
    
    
    
    0.07
    
    
    
    6.0
    
    
    
    
    4,774.1
    
    
    
    0.07
    
    
    
    7.4
    
    
    
    
    7.4Smith Ranch-Highland
    
    
    ISR
    
    
    
    2,834.9
    
    
    
    0.10
    
    
    
    6.0
    
    
    
    
    13,170.9
    
    
    
    0.06
    
    
    
    17.0
    
    
    
    
    16,005.8
    
    
    
    0.07
    
    
    
    23.0
    
    
    
    
    23.0Crow Butte
    
    
    ISR
    
    
    
    64.3
    
    
    
    0.23
    
    
    
    0.3
    
    
    
    
    2,322.2
    
    
    
    0.20
    
    
    
    10.1
    
    
    
    
    2,386.5
    
    
    
    0.20
    
    
    
    10.4
    
    
    
    
    10.4Ruby Ranch
    
    
    ISR
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,215.3
    
    
    
    0.08
    
    
    
    4.1
    
    
    
    
    2,215.3
    
    
    
    0.08
    
    
    
    4.1
    
    
    
    
    4.1Ruth
    
    
    ISR
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,080.5
    
    
    
    0.09
    
    
    
    2.1
    
    
    
    
    1,080.5
    
    
    
    0.09
    
    
    
    2.1
    
    
    
    
    2.1Shirley Basin
    
    
    ISR
    
    
    
    89.2
    
    
    
    0.16
    
    
    
    0.3
    
    
    
    
    1,638.2
    
    
    
    0.11
    
    
    
    4.1
    
    
    
    
    1,727.4
    
    
    
    0.12
    
    
    
    4.4
    
    
    
    
    4.4Total
    
    
    
    
    
    
    5,886.0
    
    
    
    
    
    
    
    34.7
    
    
    
    
    40,996.0
    
    
    
    
    
    
    
    163.8
    
    
    
    
    46,882.0
    
    
    
    
    
    
    
    198.5
    
    
    
    
    139.6
 Inferred
  Mining
    
    
    
    
    
    
    Grade
    
    Content
    
    
    Camecos shareMethod
    
    
    Tonnes
    
    % U3O8
    
    (lbs U3O8)
    
    
    (lbs U3O8)PROPERTYMcArthur River
    
    
    underground
    
    
    
    604.2
    
    
    
    11.97
    
    
    
    159.4
    
    
    
    
    111.3Cigar Lake
    
    
    underground
    
    
    
    480.4
    
    
    
    12.61
    
    
    
    133.5
    
    
    
    
    66.8Rabbit Lake
    
    
    underground
    
    
    
    119.8
    
    
    
    0.36
    
    
    
    0.9
    
    
    
    
    0.9Millennium
    
    
    underground
    
    
    
    214.3
    
    
    
    2.06
    
    
    
    9.7
    
    
    
    
    4.1Tamarack
    
    
    underground
    
    
    
    45.6
    
    
    
    1.02
    
    
    
    1.0
    
    
    
    
    0.6Inkai
    
    
    ISR
    
    
    
    254,696.0
    
    
    
    0.05
    
    
    
    255.1
    
    
    
    
    153.0Gas Hills-Peach
    
    
    ISR
    
    
    
    861.5
    
    
    
    0.07
    
    
    
    1.3
    
    
    
    
    1.3North Butte-Brown Ranch
    
    
    ISR
    
    
    
    640.6
    
    
    
    0.06
    
    
    
    0.9
    
    
    
    
    0.9Smith Ranch-Highland
    
    
    ISR
    
    
    
    6,370.1
    
    
    
    0.05
    
    
    
    6.6
    
    
    
    
    6.6Crow Butte
    
    
    ISR
    
    
    
    2,843.7
    
    
    
    0.11
    
    
    
    6.7
    
    
    
    
    6.7Ruby Ranch
    
    
    ISR
    
    
    
    56.2
    
    
    
    0.14
    
    
    
    0.2
    
    
    
    
    0.2Ruth
    
    
    ISR
    
    
    
    210.9
    
    
    
    0.08
    
    
    
    0.4
    
    
    
    
    0.4Shirley Basin
    
    
    ISR
    
    
    
    508.0
    
    
    
    0.10
    
    
    
    1.1
    
    
    
    
    1.1Total
    
    
    
    
    
    
    
    
    267,651.3
    
    
    
    
    
    
    
    576.8
    
    
    
    
    353.9
 Notes
  Cameco Corporation  Managements discussion and analysis 
 page 85




---



##### 



Additional information
 Related party transactions
  Critical accounting estimates
   Decommissioning and reclamation
  Property, plant and equipment
   Taxes
   Cameco Corporation  Managements discussion and analysis 
 page 86




---



##### 



Controls and procedures
   Internal Control  Integrated Framework
 New accounting pronouncements
 International financial reporting standards (IFRS)
    Phase 1: Preliminary study and diagnostic  completed in June 2008
  
    
    completed a high-level impact assessment
    
    prioritized areas to evaluate in phase 2
    
    developed a detailed plan for convergence and implementation
    
    determined which information technology systems need to be modified to meet IFRS reporting
requirements. Necessary systems modifications have been tested and implemented as of June 30,
2009
 Phase 2: Detailed component evaluation  in progress
  
    
    assessing the impact of the adoption of IFRS on our results of operations, financial
position and financial statement disclosures
 Cameco Corporation  Managements discussion and analysis 
 page 87




---



##### 




    
    developing a detailed, systematic gap analysis of accounting and disclosure differences
between Canadian GAAP and IFRS, which will help us make final decisions about accounting
policies and our overall conversion strategy
    
    specifying all changes we need to make to existing business processes
  Phase 3: Embedding  in progress
  
    
    carry out the changes to our business processes
    
    receive the audit committees approval of our accounting policy changes
    
    complete the training process for our audit committee, board members and staff
    
    collect the financial information we need to create our 2010 and 2011 financial statements
under IFRS
    
    receive the boards approval of the new statements
 Progress update
    Asset impairment
  
    
    We compare the carrying value of the asset with undiscounted future cash flows to see
whether there is an impairment.
    
    If there is an impairment, we measure it by comparing the carrying value of the asset with
its fair value.
 Impairment of Assets
 
    
    Compare the carrying value of the asset with either its fair value less costs to sell or
its value in use  whichever is higher.
  Employee benefits
  Employee Benefits
 Cameco Corporation  Managements discussion and analysis 
 page 88




---



##### 



First-Time Adoption of International Financial Reporting Standards
 Share-based payments
 Share-Based Payments
  Provisions (Including asset retirement obligations)
 Provisions, Contingent Liabilities and Contingent Assets
 
    
    there is a present obligation because of a past transaction or event
    
    it is probable (i.e. more likely than not) that an outflow of resources will be required to
settle the obligation, and
    
    the obligation can be reliably estimated
   
    
    When there is a range of equally possible outcomes, IFRS uses the midpoint of the range as
the best estimate, while Canadian GAAP uses the low end of the range.
    
    Under IFRS, material provisions are discounted.
 Joint ventures
 Interests in Joint Ventures Joint Arrangements (ED 9)
  Income taxes
 Income
Taxes
  Cameco Corporation  Managements discussion and analysis 
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First-time adoption of IFRS
   Business combinations
    
    We will have the option to apply
IFRS 3, Business Combinations,
retrospectively or prospectively.We plan to apply IFRS 3
prospectively to all business
combinations that occurred before
the transition date, except as
required under IFRS 1.Fair value as deemed cost
    
    We will be able to choose to use the
fair value of property, plant and
equipment as deemed cost at the
transition date, or to use the value
determined under GAAP.We plan to use the historical bases
under Canadian GAAP as deemed cost
at the transition date.Share-based payments
    
    We will be able to apply IFRS 2,
Share-Based Payments,to all equity
instruments granted on or before
November 7, 2002, and to those
granted after November 7, 2002 only
if they had not vested by the
transition date.We plan to apply IFRS 2 to all
equity instruments granted after
November 7, 2002 that had not vested
as of January 1, 2010, and to all
liabilities arising from share-based
payment transactions that existed at
January 1, 2010.Borrowing costs
    
    We will be able to choose to apply
IAS 23 retrospectively, using a date
we specify, or to capitalize
borrowing costs for all qualifying
assets when capitalization begins on
or after January 1, 2010.We plan to apply IAS 23
prospectively. For all qualifying
assets, we will expense the
borrowing costs we were capitalizing
before January 1, 2010, and
capitalize the borrowing costs that
take effect on or after that date.Employee benefits
    
    IAS 19, Employee Benefits, requires
entities to defer or amortize
certain actuarial gains and losses,
subject to certain provisions
(corridor approach), or to
immediately recognize them in
equity.We will have the option of
recognizing cumulative actuarial
gains and losses on benefit plans in
retained earnings at the transition
date.Differences in currency translation
    
    IAS 21, The Effects of Changes in
Foreign Exchange Rates, will require
us to calculate currency translation
differences retrospectively, from
the date we formed or acquired a
subsidiary or associate.IFRS 1 gives us the option of
resetting cumulative translation
gains and losses to zero at the
transition date.We plan to reset all cumulative
translation gains and losses to zero
in retained earnings at the
transition date.
 Cameco Corporation  Managements discussion and analysis 
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Decommissioning 
liabilities
    
    We will have the option of applying IFRIC 1, Changes in
Existing Decommissioning, Restoration and Similar
Liabilities, retrospectively or prospectively.IFRIC 1 will require us to add or deduct a change in our
obligations to dismantle, remove and restore items of
property, plant and equipment, from the cost of the asset it
relates to. The adjusted amount is then depreciated
prospectively over the assets remaining useful life.We plan to adopt IFRIC 1 prospectively at the transition date.
      Business combinations
 Business Combinations,
 Consolidated financial statements
 Consolidated Financial Statements,
 Non-controlling interests in consolidated financial statements
 Non-controlling Interests in Consolidated Financial Statements
 Cameco Corporation  Managements discussion and analysis 
 page 91




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Cameco Corporation  Managements discussion and analysis 
 page 92