##### 



EXHIBIT 99. 3




---



##### 



Exhibit 99.3
 
     Overview
    
    
    2Camecos Businesses
    
    
    2Growth Strategy
    
    
    3Trends in the Nuclear Power Industry
    
    
    4Uranium Business
    
    
    7Fuel Services Business
    
    
    18Nuclear Electricity Generation Business
    
    
    23Gold
    
    
    262005 Fourth Quarter Consolidated Results
    
    
    2820042005 Quarterly Consolidated Financial Highlights
    
    
    282005 Consolidated Results
    
    
    29Consolidated Outlook for 2006
    
    
    31Liquidity and Capital Resources
    
    
    3220032005 Consolidated Financial Highlights
    
    
    34Outstanding Share Data
    
    
    35Risks and Risk Management
    
    
    35Disclosure Controls and Procedures
    
    
    46Critical Accounting Estimates
    
    
    46Caution Regarding Forward-Looking Information
    
    
    47Additional Information
    
    
    47
  1




---



##### 



Overview
 VISION
  MISSION
   VALUES
 SAFETY AND ENVIRONMENT
  PEOPLE
  INTEGRITY
  EXCELLENCE
  Customer Countries>Argentina
    
    >France
    
    >Sweden>Belgium
    
    >Germany
    
    >Taiwan>Canada
    
    >Japan
    
    >United Kingdom>Czech Republic
    
    >South Korea
    
    >United States>Finland
    
    >Spain
 Camecos Businesses
  
    
    uranium,
    
    fuel services,
    
    nuclear electricity generation, and
    
    gold.
  NUCLEAR FUEL
 3 8
 URANIUM
  FUEL SERVICES
  3 3 6 2 6 6
  2




---



##### 



3 6 6 2
  NUCLEAR ELECTRICITY GENERATION
  GOLD
  Growth Strategy
  
    
    maintain our competitive advantage in uranium
and conversion,
    
    maximize growth in uranium markets,
    
    continue vertical integration, and
    
    promote growth in the nuclear energy industry.
   
    
    add significantly to shareholder value, through
new opportunities within the nuclear fuel cycle,
    
    secure projects that have an attractive rate of
return and provide a basis for long-term
profitability,
    
    provide fuel supply, engage Camecos operational
and management expertise, and achieve synergies in
fuel supply logistics and market position,
    
    capture the value added to uranium in each step of the
fuel cycle, including its enormous energy value in the
final generation of electricity,
    
    strengthen Camecos foundation for further expansion
in the nuclear fuel cycle, and
    
    ensure each investment has a prudent risk/reward ratio.The key strategies are to:
    
    maximize choice by considering acquisition and
investment opportunities in all aspects of the
nuclear fuel cycle,
    
    seek opportunities to facilitate change in the
nuclear industry by supporting or leading the
development, assessment, or licensing of new
technology,
    
    guide and encourage Bruce Powers growth strategy,
    
    pursue partnering opportunities throughout the nuclear
fuel cycle by leveraging fuel-supply relationships, and
by enhancing relationships with industry leaders in
nuclear technology,
    
    seek active ownership by structuring each investment
to allow management participation and, where possible,
operational involvement, and
    
    seek to maximize nuclear powers contribution to
global energy supply through two major strategies to:
 -
    
    promote industry initiatives to position nuclear
power as a major part of the solution in addressing
clean air and climate change by providing leadership
and resources to key industry associations and by
developing government relationships, and-
    
    diversify into related technologies that support
nuclear energy development.
  3




---



##### 



Trends in the Nuclear Power Industry
  REACTORS  OPERATING, PLANNED AND
UNDER CONSTRUCTION
   
    
    57 reactors are scheduled to be built in Asia, as
energy demand is driven by rapid economic expansion.
More than half of this growth will occur in China and
India with plans to build 18 and 15 reactors
respectively,
 
    
    in Russia, Ukraine and several other eastern
European countries, it is anticipated that nine
reactors will be built, offset by two closures in
Bulgaria as a result of their accession to the
European Union, for a net gain of seven reactors,
    
    Finland is building a new European Pressurized
Water Reactor (EPR). Upon completion, the country
will have five nuclear reactors. France has also
announced the construction of the new EPR beginning
in 2007, and
    
    in Canada, Bruce Power has committed to restart the
two shutdown A units. The Province of New Brunswick
will proceed with refurbishing the Point Lepreau
reactor, a 680 MW Candu. The refurbishment is
expected to extend the life of the unit by 25 years.
 REACTORS  PENDING
  PLANT PERFORMANCE
 CAPACITY FACTORS 1
  SAFETY
  OPERATING COSTS
  CAPITAL COST
  NUCLEAR ACCEPTANCE
 POSITIVE TRENDS
   
 1
  4




---



##### 



World
Nuclear Reactors
 Cameco estimate2015NuclearOperating
    
    
    
    
    
    
    
    
    
    
    Total

    
    
    
    GWe
    
    
    Electricity2006
    
    
    New

    
    
    Shutdown

    
    
    Operating

    
    
    
    Change
    
    
    2004* (%)Argentina
    
    
    2
    
    
    
    1
    
    
    
    0
    
    
    
    3
    
    
    
    
    0.7
    
    
    
    8Brazil
    
    
    2
    
    
    
    1
    
    
    
    0
    
    
    
    3
    
    
    
    
    1.4
    
    
    
    3Canada
    
    
    18
    
    
    
    2
    
    
    
    0
    
    
    
    20
    
    
    
    
    1.7
    
    
    
    15Mexico
    
    
    2
    
    
    
    0
    
    
    
    0
    
    
    
    2
    
    
    
    
    0
    
    
    
    5US
    
    
    103
    
    
    
    4
    
    
    
    0
    
    
    
    107
    
    
    
    
    4.7
    
    
    
    20Americas
    
    
    127
    
    
    
    8
    
    
    
    0
    
    
    
    135
    
    
    
    
    8.5
    
    
    
    China
    
    
    9
    
    
    
    18
    
    
    
    0
    
    
    
    27
    
    
    
    
    17.4
    
    
    
    2India
    
    
    15
    
    
    
    15
    
    
    
    0
    
    
    
    30
    
    
    
    
    9.0
    
    
    
    3Iran
    
    
    0
    
    
    
    2
    
    
    
    0
    
    
    
    2
    
    
    
    
    2.0
    
    
    
    0Japan
    
    
    54
    
    
    
    10
    
    
    
    1
    
    
    
    63
    
    
    
    
    13.3
    
    
    
    29Korea
    
    
    20
    
    
    
    8
    
    
    
    0
    
    
    
    28
    
    
    
    
    9.6
    
    
    
    38Pakistan
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    
    0.6
    
    
    
    2Taiwan
    
    
    6
    
    
    
    2
    
    
    
    0
    
    
    
    8
    
    
    
    
    2.7
    
    
    
    21Asia
    
    
    106
    
    
    
    57
    
    
    
    1
    
    
    
    162
    
    
    
    
    54.6
    
    
    
    Belgium
    
    
    7
    
    
    
    0
    
    
    
    0
    
    
    
    7
    
    
    
    
    0
    
    
    
    55Czech Republic
    
    
    6
    
    
    
    0
    
    
    
    0
    
    
    
    6
    
    
    
    
    0
    
    
    
    31Finland
    
    
    4
    
    
    
    1
    
    
    
    0
    
    
    
    5
    
    
    
    
    1.6
    
    
    
    27France
    
    
    59
    
    
    
    1
    
    
    
    1
    
    
    
    59
    
    
    
    
    1.4
    
    
    
    78Germany
    
    
    17
    
    
    
    0
    
    
    
    0
    
    
    
    17
    
    
    
    
    0
    
    
    
    32Hungary
    
    
    4
    
    
    
    0
    
    
    
    0
    
    
    
    4
    
    
    
    
    0
    
    
    
    34Lithuania
    
    
    1
    
    
    
    0
    
    
    
    1
    
    
    
    0
    
    
    
    
    (1.3
    )
    
    
    72The Netherlands
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    
    0
    
    
    
    4Romania
    
    
    1
    
    
    
    2
    
    
    
    0
    
    
    
    3
    
    
    
    
    1.4
    
    
    
    10Slovakia
    
    
    6
    
    
    
    2
    
    
    
    2
    
    
    
    6
    
    
    
    
    0
    
    
    
    55Slovenia
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    
    0
    
    
    
    38Spain
    
    
    9
    
    
    
    0
    
    
    
    1
    
    
    
    8
    
    
    
    
    (0.2
    )
    
    
    23Sweden
    
    
    10
    
    
    
    0
    
    
    
    0
    
    
    
    10
    
    
    
    
    0
    
    
    
    52Switzerland
    
    
    5
    
    
    
    0
    
    
    
    0
    
    
    
    5
    
    
    
    
    0
    
    
    
    40UK
    
    
    23
    
    
    
    0
    
    
    
    8
    
    
    
    15
    
    
    
    
    (2.5
    )
    
    
    19Europe
    
    
    154
    
    
    
    6
    
    
    
    13
    
    
    
    147
    
    
    
    
    0.4
    
    
    
    Russia
    
    
    31
    
    
    
    6
    
    
    
    0
    
    
    
    37
    
    
    
    
    5.8
    
    
    
    16Armenia
    
    
    1
    
    
    
    0
    
    
    
    0
    
    
    
    1
    
    
    
    
    0
    
    
    
    39Bulgaria
    
    
    4
    
    
    
    2
    
    
    
    2
    
    
    
    4
    
    
    
    
    1.1
    
    
    
    42Ukraine
    
    
    15
    
    
    
    1
    
    
    
    0
    
    
    
    16
    
    
    
    
    1.0
    
    
    
    51Russia and
Eastern Europe
    
    
    51
    
    
    
    9
    
    
    
    2
    
    
    
    58
    
    
    
    
    7.9
    
    
    
    South Africa
    
    
    2
    
    
    
    2
    
    
    
    0
    
    
    
    4
    
    
    
    
    0.3
    
    
    
    7Total
    
    
    440
    
    
    
    82
    
    
    
    16
    
    
    
    506
    
    
    
    
    71.7
    
    
    
    16
 
 * Source: World Nuclear Association 
     5




---



##### 



Europe
     India
 3 8
 NEGATIVE TRENDS
    SUMMARY OF TRENDS
   
  6




---



##### 



WORLDWIDE
URANIUM SUPPLY AND DEMAND
  URANIUM DEMAND
  
    7




---



##### 



URANIUM SUPPLY
   3 8
  
    
    the strength of uranium prices,
    
    the efficiency of regulatory regimes in various regions,
    
    currency exchange rates in producer countries
compared to the US dollar, and
    
    prices for other mineral commodities produced
in association with uranium (i.e. by product or
co-product producers).
 
     8




---



##### 



URANIUM MARKETS
    URANIUM SPOT MARKET
 3 8
  
  9




---



##### 



LONG-TERM URANIUM MARKET
 3 8 3 8
 3 8
 
  URANIUM BUSINESS  KEY PERFORMANCE DRIVERS
  
    
    prices  spot and long-term,
    
    volume  sales, production and purchases,
    
    costs  production and purchases, and
    
    the relationship between the US and Canadian dollars.
 PRICES  SPOT/LONG-TERM
    Year-end prices($US/lb U3O8)Market*
    
    
    2005
    
    
    
    2004

    
    
    % changeSpot uranium
    
    
    36.38
    
    
    
    20.60
    
    
    
    77Long-term uranium
    
    
    36.13
    
    
    
    25.00
    
    
    
    45
 
 *
    
    TradeTech and Ux average. 3 8
    Uranium Price Sensitivity 2006
   10




---



##### 



Uranium Price Sensitivity Analysis 2006 to 2008
    
 3 8
 Spot Price
    
    2006
    
    
    2007
    
    
    2008$25
    
    $
    18.25
    
    
    
    (73
    %)
    
    $
    19.75
    
    
    
    (79
    %)
    
    $
    23.50
    
    
    
    (94
    %)$35
    
    $
    19.25
    
    
    
    (55
    %)
    
    $
    22.75
    
    
    
    (65
    %)
    
    $
    28.25
    
    
    
    (81
    %)$45
    
    $
    20.50
    
    
    
    (46
    %)
    
    $
    25.75
    
    
    
    (57
    %)
    
    $
    32.75
    
    
    
    (73
    %)
  
    
    2006 uranium sales volumes of about 35 million pounds U3O8 and
similar sales volumes for 2007 and 2008,
    
    sales volume estimates assume no interruption in the companys supply from its own
production or from third parties,
    
    2006 sales volumes are fully committed, 2007 sales volumes are
almost all committed and 2008 is less committed,
    
    all
uncommitted volumes are assumed to be delivered at the prevailing
spot price,
    
    the long-term price in a given year is assumed to
be equal to the average spot price for that year,
    
    all other
price indicators are assumed to trend toward the spot price, and
    
    the annual inflation rate is equal to 2.5%.
  3 8
 2006
    
    
    2005
    
    
    2004Planned
    
    
    Actual
    
    
    ActualMcArthur River/Key Lake
    
    
    13.1
    
    
    
    13.1
    
    
    
    13.1Rabbit Lake
    
    
    5.9
    
    
    
    6.0
    
    
    
    5.4Smith Ranch-Highland
    
    
    1.6
    
    
    
    1.3
    
    
    
    1.2Crow Butte
    
    
    0.8
    
    
    
    0.8
    
    
    
    0.8Total
    
    
    21.4
    
    
    
    21.2
    
    
    
    20.5
 VOLUME  SALES, PRODUCTION AND PURCHASES
     McArthur River/Key Lake
   3 8
   11




---



##### 



Rabbit Lake
 3 8 3 8
   Smith Ranch-Highland and Crow Butte
 3 8
  Cigar Lake
   Inkai
 3 8 3 8
 3 8
   6
      12




---



##### 



3 8 3 8
 3 8
          2006
    
    
    2007
    
    
    2008
    
    
    2009$ millions (US)
    
    
    467
    
    
    
    370
    
    
    
    195
    
    
    
    100 millions
    
    
    9
    
    
    
    11
    
    
    
    7
    
    
    
    5
   Deferred revenue (loss)
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009$ millions (Cdn)
    
    
    29
    
    
    
    3
    
    
    
    (6
    )
    
    
    
    13




---



##### 



URANIUM STRATEGIES
  
    
    remain the low-cost producer,
    
    protect and expand our market position, and
    
    maintain supply flexibility.
      
 
 
     
    
    additional production from the successful expansion
of existing production, startup of mines currently
under construction and development of existing
deposits yet to be developed,
    
    the success of exploration programs in identifying
new commercial uranium deposits that can be developed
in a reasonable period of time,
    
    the exchange rate in various producer country
currencies relative to the US dollar,
    
    the timing and extent of expansion of uranium
produced as a byproduct or co-product of other
commodities, particularly in Australia and South
Africa,
    
    availability of existing and possible new secondary
materials, such as blended down uranium from military
stock including dismantled weapons,
    
    the extent enrichment services are substituted for
natural uranium feed, and
    
    the growth rate of nuclear power.
  14




---



##### 



CAPABILITY TO DELIVER RESULTS
  
    
    other mining methods and other technologies continue
to be advanced to allow us to maintain or expand our
annual production,
    
    timely regulatory approval is secured under an
increasingly stringent regulatory regime,
    
    skilled tradespeople continue to be available,
    
    adequate human resources are available to replace
an aging workforce,
    
    capital is readily available over the longer term
given our expansion plans, and
    
    adequate resources are allocated to exploration.
 MINING METHODS
    REGULATORY APPROVAL
   SKILLED TRADESPEOPLE
   2005
    
    
    2004
    
    
    % changeRevenue ($ millions)
    
    
    690
    
    
    
    581
    
    
    
    19Gross profit ($ millions)
    
    
    159
    
    
    
    104
    
    
    
    53Gross profit %
    
    
    23
    
    
    
    18
    
    
    
    28Earnings before taxes ($ millions)*
    
    
    130
    
    
    
    91
    
    
    
    43Average realized price$US/lb U3O8
    
    
    15.45
    
    
    
    12.89
    
    
    
    20$Cdn/lb U3O8
    
    
    20.14
    
    
    
    17.97
    
    
    
    12Sales volume (million lbs U3O8)
    
    
    34.2
    
    
    
    32.3
    
    
    
    6Production volume (million lbs U3O8)
    
    
    21.2
    
    
    
    20.5
    
    
    
    3
 
 *
    
    Excludes the gain from sale of Energy Resources of Australia Ltd shares.  15




---



##### 



HUMAN RESOURCES
  READY ACCESS TO CAPITAL
  EXPLORATION PROGRAMS
      Hectares at
    
    
    2005 ActualArea
    
    Dec. 31, 2005
    
    
    Expenditures ($ millions)Canada
    
    
    610,000
    
    
    
    18.1Australia
    
    
    2,092,000
    
    
    
    7.3Other regions
    
    

    547,000
    
    
    

    0.3Total
    
    
    3,249,000
    
    
    
    25.7
 URANIUM BUSINESS RESULTS
  REVENUE
  COST OF PRODUCTS AND SERVICES SOLD
  DEPRECIATION, DEPLETION AND RECLAMATION
  GROSS PROFIT
  2006 OUTLOOK FOR URANIUM
 3 8
  16




---



##### 




    
    no significant changes in our estimates for sales
volumes, costs, and prices,
    
    no disruption of supply from our mines or
third-party sources, and
    
    a US/Canadian spot exchange rate of $1.16.
 URANIUM EXPLORATION
    3 8 3 8
  3 8
   
  17




---



##### 



6 2
 3 8 3 8
 CONVERSION DEMAND
 6 2
  CONVERSION SUPPLY
 6 6 6 6
  18




---



##### 



6
 CONVERSION MARKETS
 6 2 2 3 8 6 2
 SPOT/LONG-TERM CONVERSION MARKET
 6
 2
 Spot Conversion Market Review
 Year-end prices($US/kgU as UF6)Markets
    
    2005
    
    
    2004
    
    
    % changeSpot UF6 conversion1North America
    
    
    11.50
    
    
    
    9.00
    
    
    
    28Europe
    
    
    11.50
    
    
    
    10.00
    
    
    
    15Long-term UF6 conversion1,2North America
    
    
    12.00
    
    
    
    10.00
    
    
    
    20Europe
    
    
    12.88
    
    
    
    11.50
    
    
    
    12
 
 1
    
    Prices are industry averages.2
    
    TradeTech only for 2004 prices. CONVERSION BUSINESS  KEY PERFORMANCE DRIVERS
 
    
    prices  spot and long-term,
    
    volume  sales, production and purchases,
    
    costs  production and purchases, and
    
    the relationship between the US and Canadian dollars.
 PRICES  SPOT/LONG-TERM  6
 
   VOLUMES  SALES, PRODUCTION, PURCHASES  Sales Volume
  19




---



##### 



6
 
 3 6 3 3 3
  6
 COSTS
 6
 FOREIGN EXCHANGE
 FUEL FABRICATION
     20




---



##### 



FUEL SERVICES STRATEGIES
  
    
    remain a low-cost producer,
    
    protect and expand market position, and
    
    maintain supply flexibility.
   CAPABILITY TO DELIVER RESULTS
  
    
    community relations at Port Hope continue
to strengthen,
    
    adequate human resources are available to replace
an aging workforce,
    
    capital is available over the longer term given our
expansion plans, and
    
    adequate resources are allocated to maintain and
grow our fuel services business.
 COMMUNITY RELATIONS
     HUMAN RESOURCES
  REGULATORY APPROVALS
   ADEQUATE RESOURCES
  CONVERSION BUSINESS RESULTS
  REVENUE
   21




---



##### 



2005
    
    2004 %
    
    changeRevenue ($ millions)
    
    
    158
    
    
    
    144
    
    
    
    10Gross profit ($ millions)
    
    
    28
    
    
    
    33
    
    
    
    (15
    )Gross profit %
    
    
    18
    
    
    
    23
    
    
    
    (22
    )Earnings before taxes ($ millions)
    
    
    25
    
    
    
    31
    
    
    
    (19
    )Sales volume (million kgU)
    
    
    16.6
    
    
    
    16.9
    
    
    
    (2
    )Production volume (million kgU)
    
    
    11.4
    
    
    
    9.5
    
    
    
    20
 COST OF PRODUCTS AND SERVICES SOLD
 6
 DEPRECIATION, DEPLETION AND RECLAMATION
  GROSS PROFIT
  
  CONVERSION SERVICES OUTLOOK
FOR 2006
    
    
    no significant changes in our estimates for sales volumes,
costs, and prices,
    
    no disruption of supply from our facilities or third-party
sources, and
    
    a US/Canadian spot exchange rate of $1.16.
 CONVERSION SERVICES PRICE SENSITIVITY ANALYSIS
   22




---



##### 



NUCLEAR ELECTRICITY GENERATION
BUSINESS RESULTS
  
  23




---



##### 



NUCLEAR ELECTRICITY GENERATION
BUSINESS HIGHLIGHTS
 EARNINGS
  REVENUE
   
    
    the removal of units A3 and A4 output
after October 31, 2005 from BPLP results
due to the restructuring,
    
    planned outages of units A3 and A4
prior to the restructuring,
    
    planned outages on units B5 and B7,
and
    
    unplanned outages, including the
29-day outage of unit B6 to replace its
main output transformer and 17-day
outage on unit B6 to repair the
refuelling machine.
 Electricity Business Highlights
 Bruce Power Limited Partnership (100% basis)
    
    2005
    
    
    2004
    
    
    % changeOutput-terawatt hours (TWh)
    
    
    30.8
    
    
    
    33.6
    
    
    
    (8
    )Capacity factor %*
    
    
    79
    
    
    
    82
    
    
    
    (4
    )Realized price ($/MWh)
    
    
    58
    
    
    
    47
    
    
    
    23($ millions)Revenue
    
    
    1,858
    
    
    
    1,583
    
    
    
    17Operating costs
    
    
    1,273
    
    
    
    1,178
    
    
    
    8-cash-costs (materials, labour, services and fuel)
    
    
    1,079
    
    
    
    1,017
    
    
    
    6-non-cash costs (depreciation and amortization)
    
    
    194
    
    
    
    161
    
    
    
    20Earnings before interest and taxes
    
    
    585
    
    
    
    405
    
    
    
    44Interest
    
    
    65
    
    
    
    67
    
    
    
    (3
    )Earnings before taxes
    
    
    520
    
    
    
    338
    
    
    
    54Cash from operations
    
    
    771
    
    
    
    446
    
    
    
    73Capital expenditures (including sustaining capital)
    
    
    335
    
    
    
    359
    
    
    
    (7
    )
 
 *
    
    Capacity factor for a given period represents the amount of electricity actually
produced for sale as a percentage of the
amount of electricity the plants are capable of producing for sale. COSTS
  Camecos Earnings From BPLP
 ($ millions)
    
    2005
    
    
    2004
    
    
    % changeBPLP earnings before taxes (100%)1
    
    
    520
    
    
    
    338
    
    
    
    54Camecos share of pre-tax earnings
before adjustments
    
    
    164
    
    
    
    107
    
    
    
    53Adjustments:Sales contract valuation
    
    
    13
    
    
    
    21
    
    
    
    (38
    )Interest capitalization
    
    
    
    
    
    
    2
    
    
    
    Interest income on loan to BPLP
    
    
    7
    
    
    
    8
    
    
    
    (13
    )Fair value increments on assets2
    
    
    (14
    )
    
    
    (17
    )
    
    
    (18
    )Pre-tax earnings from BPLP 1
    
    
    170
    
    
    
    121
    
    
    
    40BPLP distributions
    
    
    1,033
    
    
    
    
    
    
    
    Camecos share
    
    
    326
    
    
    
    
    
    
    
    
 
 1
    
    Excludes loss recorded on the restructuring of Bruce Power.2
    
    Reflects the amortization of Camecos excess purchase price over book value of assets.  24




---



##### 



2006 BPLP Capital Expenditures (100%)
 Bruce Power Limited Partnership($ millions)2006 BPLP Capital Plan
    
    Bruce B Specific
    
    
    Common Capital
    
    
    Total BPLPCategory:Power uprate
    
    
    12
    
    
    
    0
    
    
    
    12Infrastructure
    
    
    6
    
    
    
    9
    
    
    
    15Improvement
    
    
    12
    
    
    
    15
    
    
    
    27Sustaining
    
    
    53
    
    
    
    16
    
    
    
    69Total Capital Plan
    
    
    83
    
    
    
    40
    
    
    
    123
 CASH FROM OPERATIONS
  CAPITAL EXPENDITURES
  OUTLOOK FOR 2006
  2006 PLANNED OUTAGES
  2006 CAPITAL EXPENDITURES (100%)
   ELECTRICITY PRICE SENSITIVITY ANALYSIS
  
  25




---



##### 



CENTERRA
  
   
    
    developing new reserves at existing
mines from in-pit, adjacent and
regional exploration,
    
    advancing late stage exploration
properties by additional drill
programs, and feasibility studies as
warranted, and
    
    actively pursuing selective acquisitions
or mergers, with a disciplined focus
on mid- to advanced-stage exploration
and development properties primarily
in Central Asia, the former Soviet
Union and other emerging markets.
  26




---



##### 



GOLD OPERATING RESULTS
  GOLD FINANCIAL RESULTS
      GOLD OUTLOOK FOR 2006
   Gold Business Financial Highlights
 Fully consolidated financial highlights including the minority interest.2005
    
    
    2004
    
    
    % changeRevenue ($ millions)
    
    
    412
    
    
    
    323
    
    
    
    28Gross profit ($ millions)
    
    
    107
    
    
    
    108
    
    
    
    (1
    )Gross profit (%)
    
    
    26
    
    
    
    34
    
    
    
    (24
    )Selling price ($US/ounce)
    
    
    433
    
    
    
    397
    
    
    
    9Sales volumes (ounces)1
    
    
    781,000
    
    
    
    619,000
    
    
    
    26Production (ounces)2
    
    
    787,000
    
    
    
    641,000
    
    
    
    23
 
 1
    
    Comprising 100% of Boroo and one-third of Kumtor to June 22, 2004 and 100% thereafter.2
    
    Represents 100% of production from the Kumtor and Boroo mines.  27




---



##### 



GOLD PRICE SENSITIVITY ANALYSIS
 2005 Fourth Quarter Consolidated Results
    2005 Q4 Consolidated Financial Highlights
 ($ millions except per share amounts)
    
    Three
    
    ThreeMonths
    
    MonthsEnded
    
    Ended
    
    %Dec. 31/05
    
    Dec. 31/04
    
    changeRevenue
    
    
    522
    
    
    
    361
    
    
    
    45Earnings from operations
    
    
    57
    
    
    
    46
    
    
    
    24Cash provided by operations 1
    
    
    91
    
    
    
    59
    
    
    
    54Net earnings
    
    
    81
    
    
    
    37
    
    
    
    119Earnings per share  basic2
    
    
    0.23
    
    
    
    0.10
    
    
    
    130Earnings per share  diluted2
    
    
    0.22
    
    
    
    0.10
    
    
    
    120Adjusted net earnings 1
    
    
    74
    
    
    
    37
    
    
    
    100
 
 1
    
    After working capital changes.2
    
    Data reflects the stock split on February 17, 2006.3
    
    2005 excludes a net gain of $7 million ($0.04 per share) related to the gain on sale of Energy Resources of Australia Ltd shares ($69 million) and the loss on the restructuring of the Bruce Power Limited Partnership ($62
million).     20042005 Quarterly Consolidated Financial Highlights
  
    
    Revenue, driven by timing of deliveries in our uranium
and conversion businesses, tends to be higher in the
fourth quarter.
    
    However, net earnings do not trend directly with revenue
because they are significantly influenced by results from
BPLP. Prior to November 1, 2005, the equity method of
accounting was applied to the investment in BPLP and thus no BPLP revenue was recorded.
  28




---



##### 




    
    On November 1, 2005, Cameco changed the accounting for BPLP to proportionate
consolidation. As such, for the fourth quarter of 2005, we have included our proportionate
share of revenue, expenses and cash flows from the Bruce B reactors for November and
December.
 
    
    Cash from operations tends to fluctuate due largely to the timing of deliveries and
product purchases in the uranium and conversion businesses.
 (2005 CONSOLIDATED RESULTS)
    
    2005 Consolidated Results
 CONSOLIDATED EARNINGS
 EARNINGS
        CORPORATE EXPENSES
 Administration
  2004-2005 Quarterly Consolidated Financial Highlights
 ($ millions except per share amounts)
    
    
    
    
    
    
    
    
    
    2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2004Q4
    
    Q3
    
    Q2
    
    Q1
    
    Year
    
    Q4
    
    Q3
    
    Q2
    
    Q1
    
    YearRevenue
    
    
    522
    
    
    
    288
    
    
    
    287
    
    
    
    216
    
    
    
    1,313
    
    
    
    361
    
    
    
    313
    
    
    
    242
    
    
    
    132
    
    
    
    1,048Net earnings1
    
    
    81
    
    
    
    79
    
    
    
    32
    
    
    
    26
    
    
    
    218
    
    
    
    37
    
    
    
    52
    
    
    
    151
    
    
    
    39
    
    
    
    279Earnings per share2  basic
    
    
    0.23
    
    
    
    0.22
    
    
    
    0.10
    
    
    
    0.08
    
    
    
    0.63
    
    
    
    0.10
    
    
    
    0.15
    
    
    
    0.44
    
    
    
    0.12
    
    
    
    0.81Earnings per share2  diluted
    
    
    0.22
    
    
    
    0.21
    
    
    
    0.09
    
    
    
    0.08
    
    
    
    0.60
    
    
    
    0.10
    
    
    
    0.15
    
    
    
    0.41
    
    
    
    0.12
    
    
    
    0.78Earnings per share2  adjusted and diluted
    
    
    0.20
    
    
    
    0.21
    
    
    
    0.09
    
    
    
    0.08
    
    
    
    0.58
    
    
    
    0.10
    
    
    
    0.11
    
    
    
    0.18
    
    
    
    0.12
    
    
    
    0.51Cash from operations
    
    
    91
    
    
    
    148
    
    
    
    (45
    )
    
    
    84
    
    
    
    278
    
    
    
    59
    
    
    
    140
    
    
    
    (17
    )
    
    
    46
    
    
    
    228
 
 1
    
    There were no discontinued operations or extraordinary items in 2004 or 2005.2
    
    Data reflects the stock split on February 17, 2006.  29




---



##### 



CASH RESOURCES
 OPERATING ACTIVITIES
  INVESTING ACTIVITIES
   FINANCING ACTIVITIES
  BALANCE SHEET
  Balance Sheet
 ($ millions)Accounts receivable
    
    
    65Property, plant and equipment
    
    
    520Long-term investments
    
    
    (253
    )Accounts payable
    
    
    91Long-term debt
    
    
    204
 CASH
  INVENTORIES
   30




---



##### 



DEBT
  INVESTMENTS
  Investments
 ($ millions)
    
    Book Value
    
    
    Market ValueCenterra
    
    
    411
    
    
    
    1,069UEX Corporation
    
    
    11
    
    
    
    167Total
    
    
    422
    
    
    
    1,236
 OFF-BALANCE SHEET ARRANGEMENTS
  
    
    Financial assurances:
 -
    
    Nuclear Electricity Generation Business,-
    
    Liquidity and Capital Resources,-
    
    Risks and Risk Management, and-
    
    notes 6, 7 and 22 of the consolidated financial statements.
 
    
    Derivative instruments:
 -
    
    Uranium Business,-
    
    Risks and Risk Management,-
    
    Critical Accounting Estimates, and-
    
    note 22 of the consolidated financial statements.
 
    
    Long-term product purchase contracts:
 -
    
    Uranium Business,-
    
    Liquidity and Capital Resources, and-
    
    note 21 of the consolidated financial statements.
 (CONSOLIDATED OUTLOOK FOR 2006)
    
    Consolidated Outlook for 2006
      

    no significant changes in our estimates for sales volumes, costs, and prices,
 

    no disruption of supply from our facilities or third-party sources, and
 

    a US/Canadian exchange rate of $1.16.
     31




---



##### 



Capital Expenditures
 (Camecos share in $ millions)
    
    2006 Plan
    
    
    2005 ActualGrowth CapitalMcArthur River
    
    
    4
    
    
    
    9US ISL
    
    
    5
    
    
    
    Cigar Lake
    
    
    90
    
    
    
    81Conversion Services
    
    
    3
    
    
    
    Inkai
    
    
    35
    
    
    
    18Centerra1
    
    
    100
    
    
    
    22Total Growth
    
    
    237
    
    
    
    130Sustaining CapitalMcArthur River/Key Lake
    
    
    42
    
    
    
    22US ISL
    
    
    28
    
    
    
    19Rabbit Lake
    
    
    32
    
    
    
    13Conversion Services
    
    
    38
    
    
    
    18Bruce Power (BPLP)2
    
    
    39
    
    
    
    23Centerra1
    
    
    18
    
    
    
    18Other
    
    
    22
    
    
    
    16Total Sustaining
    
    
    219
    
    
    
    129Capitalized interest
    
    
    28
    
    
    
    26Total
    
    
    484
    
    
    
    285
 
 1
    
    Represents 100% of Centerras expenditures.2
    
    Includes Camecos proportionate share from November 1, 2005 forward.  
    
    development activity at Cigar Lake and Inkai,
 
    
    expansion of production capacity at McArthur River and US ISL mines, and
 
    
    equipment and infrastructure expenditures to increase mine life at Kumtor.
   (Liquidity and Capital Resources)
    
    Liquidity and Capital Resources
 OVERVIEW
   INDICATORS DEFINED
    Liquidity Indicators
 2005
    
    2004
    
    2003
    
    2002
    
    2001Cash provided by operations ($ millions)
    
    
    278
    
    
    
    228
    
    
    
    250
    
    
    
    241
    
    
    
    102Cash provided by operations/net debt* (%)
    
    
    118
    
    
    
    69
    
    
    
    48
    
    
    
    66
    
    
    
    20Net debt*/total capitalization (%)
    
    
    9
    
    
    
    13
    
    
    
    22
    
    
    
    18
    
    
    
    24
 
 *
    
    Total debt less cash and cash equivalents based on consolidated amounts.  32




---



##### 



CREDIT RATINGS
   Credit Ratings
 Dominion Bond RatingSecurity
    
    Service Limited
    
    
    Standard & PoorsCommercial Paper
    
    R-1 (low)
    
    
    A-2Senior Unsecured Debentures
    
    A (low)
    

BBB+Convertible Debentures
    
    BBB (high)
    
    Not Rated
 DEBT
      DEBENTURES
  CONVERTIBLE DEBENTURES
  Contractual Cash Obligations
 As at December 31, 2005($ millions)
    
    
    
    
    
    Due in Less
    
    Due in 1-3
    
    Due in 4-5
    
    Due After 5Total
    
    Than 1 Year
    
    Years
    
    Years
    
    YearsLong-term debt1
    
    
    884
    
    
    
    157
    
    
    
    16
    
    
    
    22
    
    
    
    689Interest on long-term debt
    
    
    240
    
    
    
    26
    
    
    
    51
    
    
    
    51
    
    
    
    112Other liabilities
    
    
    111
    
    
    
    14
    
    
    
    18
    
    
    
    15
    
    
    
    64Unconditional product purchase obligations2,3
    
    
    1,231
    
    
    
    165
    
    
    
    305
    
    
    
    280
    
    
    
    481Total contractual cash obligations
    
    
    2,466
    
    
    
    362
    
    
    
    390
    
    
    
    368
    
    
    
    1346
 
 1
    
    Includes the unamortized value of the conversion option associated with the convertible debentures. See note 6 to the consolidated financial statements.2
    
    Denominated in US dollars. Converted to Canadian dollars at the December 31, 2005 rate of $1.1659.3
    
    Virtually all of Camecos product purchase obligations are under long-term, fixed-price arrangements.  33




---



##### 



Commercial Commitments
 As at December 31, 2005($ millions)
    
    Total amountscommittedStandby letters of credit1
    
    
    207Bruce Power Limited Partnership guarantees2
    
    
    184Kumtor Gold Company purchase commitments3
    
    
    72Total commercial commitments
    
    
    463
 
 1
    
    The standby letters of credit maturing in 2006 were issued with a one-year
term and will be automatically renewed on a year-by-year basis until the underlying
obligations are resolved. These obligations are primarily the decommissioning and
reclamation of Camecos mining and conversion facilities. As such, the letters of credit
are expected to remain outstanding well into the future.2
    
    At December 31, 2005, Camecos total commitment for financial assurances given on
behalf of BPLP is estimated to be $184 million. See note 16 to the consolidated financial
statements.3
    
    In 2005, Kumtor Gold Company entered into contracts to purchase plant and
equipment for $62 million (US). These commitments are expected to be settled in 2006.
Converted to Canadian dollars at the December 31, 2005 rate of 1.1659.
 
  DEBT COVENANTS
  COMMERCIAL COMMITMENTS
   (20032005 Consolidated Financial Highlights)
    
    20032005 Consolidated Financial Highlights
  
    
    Revenue has trended higher over the three-year period, rising by 59% over 2003. More than
half of this increase was related to the gold business where revenues
have increased due to
the commissioning of the Boroo mine in 2004 as well as a change in ownership interest in the
Kumtor gold mine in the same year, which resulted in the full consolidation of Kumtors
results.
 
    
    Revenue has also been influenced by improved prices in the uranium and conversion
services businesses. Our realized price for uranium concentrates has increased
consistently over the three-year period, averaging $20.14 (Cdn) per pound in 2005 compared
to $16.08 (Cdn) per pound for 2003, a 25% improvement. We have also seen consistent
improvement in the price for conversion services, where our average realized price has
risen by 10% during the period.
 
    
    Earnings from operations have also trended higher during the period but the rise has been
tempered by higher costs for product sold, higher administration charges and greater
investment in exploration. The increase in the cost of sales was attributable to higher
costs for purchased uranium and conversion services, driven by rising spot prices. Our
administration costs have risen significantly over the three-year period due to establishing
Centerra as a separate publicly traded company, higher stock compensation expenses and
higher costs for regulatory compliance.
 
    
    Net earnings have not trended with revenue due to two main reasons. First, our results are
significantly influenced by operating results from Bruce Power. Until November 1, 2005, we used
the equity method to account
 20032005 Consolidated Financial Highlights
 For the year ended December 31($ millions except per share amounts)
    
    2005
    
    
    2004
    
    
    2003Revenue
    
    
    1,313
    
    
    
    1,048
    
    
    
    827Earnings from operations
    
    
    123
    
    
    
    125
    
    
    
    75Net earnings
    
    
    218
    
    
    
    279
    
    
    
    208Earnings per
share  basic1
    
    
    0.63
    
    
    
    0.81
    
    
    
    0.62Earnings per
share  diluted1
    
    
    0.60
    
    
    
    0.78
    
    
    
    0.61Adjusted net earnings2
    
    
    211
    
    
    
    185
    
    
    
    127Cash provided by operations
    
    
    278
    
    
    
    228
    
    
    
    250Total assets
    
    
    4,773
    
    
    
    4,052
    
    
    
    3,431Long-term financial liabilities
    
    
    1,654
    
    
    
    1,306
    
    
    
    1,346Dividends per common share
    
    $
    0.12
    
    
    $
    0.10
    
    
    $
    0.10
 
 1
    
    Data reflects the stock split on February 17, 2006 and a previous
stock split on December 31, 2004.2
    
    Net earnings for 2005 have been adjusted to exclude $7 million in net earnings
related to the gain on sale of Energy Resources of Australia Ltd shares ($69 million) and
the loss recognized in restructuring the Bruce Power Limited Partnership ($62 million).
2004 net earnings were adjusted to exclude a gain of $94 million (after tax) on the
restructuring of our gold business. 2003 net earnings were adjusted to exclude income tax
recoveries of $81 million as the result of changes in tax legislation.  34




---



##### 



for the investment in Bruce Power and therefore no revenue was recorded prior to the time.
Second, our earnings have been influenced by unusual, one-time items over the past three years.
In 2003, we recorded income tax recoveries of $81 million as the result of changes in tax
legislation. In 2004, we recorded a gain of $94 million (after tax) on the restructuring of our
gold business. In 2005, there were two such items: 1) the disposition of our investment in ERA
which resulted in a gain of $69 million (after tax), and 2) the restructuring of the BPLP
partnership which resulted in an after-tax loss of $62 million.
 
    
    Excluding the adjustments noted above, net earnings have increased by 66% in 2005 over the $127
million recorded in 2003. The 46% increase to $185 million in 2004 from 2003 was attributable to
improved results in the uranium and gold businesses as well as stronger performance at Bruce
Power. The improvement in the uranium business was due to a higher realized price, which was
related mainly to the significant increase in the spot price for uranium. Earnings from Bruce
Power benefited from a 37% increase in generation as a result of the restart of two A reactors
(units 3 and 4). Results from the gold business improved due to increased production and a higher
realized selling price. The improvement in net earnings from 2004 to 2005 was due largely to
improved results in our uranium business and higher earnings from Bruce Power. The higher
earnings were partially offset by reduced earnings in gold as well as higher charges for
administration and exploration. The improvement in the uranium profits was due to the higher
average realized price, which was mainly the result of higher prices under fixed-price contracts
and a higher uranium spot price. The earnings from Bruce Power benefited from a 23% increase in
its average realized price to $58.00 per MWh as a result of higher electricity spot prices.
 
    
    In 2005, Cameco generated record cash from operations of $278 million compared to $228 million
in 2004. This increase of $50 million was mainly attributable to higher revenues in the uranium
and gold businesses compared to the previous year and cash distributions received from BPLP. Cash
from operations of $228 million in 2004 represented a decline of $22 million compared to the $250
million recorded in 2003. This decrease was primarily due to an increase in inventory levels
during 2004.
 
    
    The major components of Camecos long-term financial liabilities are long-term debt, future
income taxes and provision for reclamation. In 2005, Camecos total long-term financial
liabilities rose to $1,654 million from $1,306 million at the end of 2004 due primarily to a $340
million increase in long-term debt. This increase was attributable to a $300 million debenture
issue and the proportionate consolidation of financial results from BPLP, which added $204 million to long-term debt. These increases were partially offset by the
repayment of commercial paper during the year. Also, on January 17, 2006, Cameco redeemed $100
million of 6.9% senior unsecured debentures and $50 million of 7% senior unsecured debentures
for a total redemption price of $152 million plus accrued interest.
 
    
    At the end of 2005, Camecos total assets amounted to $4,773 million, an increase of $721
million over the previous year. Most of the increase was due to the proportionate consolidation
of financial results from BPLP. In addition, the cash balance rose by $434 million during the
year. The company used $152 million to redeem outstanding debentures in January 2006. During
2004, total assets increased to $4,052 million from $3,431 million at the end of 2003. The
primary reason for this increase was the restructuring of the companys gold business which
resulted in the full consolidation of Kumtor Gold Company whereas it had previously been
proportionately consolidated. As a result of the restructuring, Cameco recorded goodwill
amounting to $187 million.
 (Outstanding Share Data)
    
    Outstanding Share Data
   (Risks and Risk Management)
    
    Risks and Risk Management
   35




---



##### 



BUSINESS RISKS
 REGULATORY APPROVAL AND EXPEDIENCY
   3 8
 3 8
    2
  36




---



##### 



3
    ENVIRONMENTAL REGULATIONS
       37




---



##### 



LIMITED NUMBER OF CUSTOMERS
  Uranium
and Conversion Services
 3 8 6 6 2 2
   3 8
 6
 Zircatec
  Bruce Power
   RESERVE ESTIMATES
   3 8
  38




---



##### 



3 8
 3 8
 3 8
 3 8
   LABOUR RELATIONS
 6 2
    COUNTERPARTY RISK
   39




---



##### 



MARKET RISKS
 PRODUCT PRICES
      
           40




---



##### 



FOREIGN EXCHANGE RISK
      POLITICAL RISKS
 POLITICAL INSTABILITY RISK
           41




---



##### 



42




---



##### 



RESTRUCTURING OF ONTARIOS ELECTRICITY INDUSTRY
        43




---



##### 



OPERATIONAL RISKS
 OVERVIEW
    ENGINEERING AND TECHNICAL
    
     44




---



##### 



RECLAMATION AND DECOMMISSIONING
      SAFETY, HEALTH AND ENVIRONMENT
     45




---



##### 



ELECTRICITY BUSINESS
    Disclosure
Controls and Procedures
  Critical
Accounting Estimates
        46




---



##### 



Caution Regarding Forward-Looking Information
   Additional Information
  
  47