Sinking of shaft number two is behind schedule as a result of an extensive grouting program undertaken in early 1999 to control water inflow. However, this delay is not expected to impact completion of the overall project. Cameco is in the process of filing its application with federal authorities for the McArthur River mine operating licence. There are five primary areas of concern which the Year 2000 readiness program has been mandated to address. Remediation of centralized business systems is complete and final testing is targeted to be finished by June 30, 1999.
Uncertainties remain with regards to the company s dependence on the systems of business partners.
Cameco continues to seek assurances that business partners are dealing with this issue responsibly. The company is working with key business partners to resolve these uncertainties. However, if they cannot be satisfactorily resolved in a timely manner, business interruptions or delays may occur that could have a material adverse effect on Cameco s business and financial condition. Contingency planning began on March 1, 1999. Certain statements in this report to shareholders constitute forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995.