Cameco Continues Process Of Replacing Debt With Debentures.

SASKATOON, Saskatchewan--(BUSINESS WIRE)--July 5, 1999--

Cameco Corporation(TSE:CCO.) (ME:CCO.) (NYSE:CCJ) Cameco Corporation today announced the sale of $100 million of 6.9 percent debentures Series A, due July 12, 2006.

The debentures are being issued under a $300 million debt shelf prospectus filed by the company earlier in June. The offering is being underwritten by RBC Dominion Securities Inc. and TD Securities Inc. The debentures have received a rating of "A" by the Dominion Bond Rating Service Limited, "A-" by Standard & Poor's Rating Service and "A3" by Moody's Investors Service, Inc. The offering is expected to close on July 12, 1999.

Cameco will use the net proceeds of this offering to repay commercial paper as it matures and therefore, this offering does not represent additional indebtedness.

The final prospectus supplement in connection with this offering has been filed with the securities regulatory authorities in all of the provinces of Canada.

The debentures have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States or to any US person absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the debentures in the United States.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest publicly traded uranium producer. Its products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today.