Cameco Gold Leverages Mongolian Gold Holdings.

Business Editors

SASKATOON, Saskatchewan--(BUSINESS WIRE)--March 6, 2002

Cameco Corporation (NYSE:CCJ) (TSE:CCO) today reports that its subsidiary Cameco Gold Inc. (CGI) of Toronto has acquired a majority interest in AGR Limited (AGR), an Australian-based exploration company listed on OFEX, a London-based exchange. AGR owns 95% of the Boroo gold deposit located within 35 kilometres of CGI's Gatsuurt gold exploration property, near Ulaanbaatar, the capital of Mongolia.

CGI will invest $12 million (US) and contribute a 60% interest, valued at $4.8 million (US), in the Gatsuurt property to obtain a 52% interest in AGR. CGI has also committed to provide AGR $3 million (US) for further exploration near Boroo and Gatsuurt in exchange for an additional 4% interest in AGR. Other than a commitment of $3 million (US) in the event of project cost overruns, no additional cash will be contributed by CGI to AGR. Under the agreement, CGI has the right to acquire an additional interest in AGR by contributing more of the Gatsuurt property.

A feasibility study was completed for the Boroo deposit in 1999 by AGR and Resolute Limited and reviewed in 2001 by AGR under the direct supervision of Geoff G. Jones, group general manager, business development. The reserves were independently estimated by SRK Consulting (Australasia) in May 2000 with an update in February 2001 under the supervision of Clive Seymour, director.

In the 2001 review, AGR reported probable reserves at Boroo of 9.4 million tonnes at an average grade of 3.76 grams/tonne (g/t) for a total of 1.14 million ounces of gold, at a cut-off grade of 1.2 g/t. SRK Consulting confirmed the reserves have been classified in accordance with the Australian JORC code (September 1999). The reserves were calculated based upon an assumed average delivered gold price of $290 (US) per ounce for the six-year mine life. The above category of reserves is consistent with the category recommended in Canadian National Instrument 43-101.

CGI will oversee the construction and operation by AGR of the Boroo open pit mine and mill facility with an annual throughput of 1.75 million tonnes. Production is expected to begin in 2003, at an average of 150,000 ounces per year and total cash cost below $200 (US) per ounce, calculated in accordance with the standards of the Gold Institute. Capital costs to production start-up are estimated at $40 million (US).

AGR has arranged limited recourse project financing of up to $33 million (US) through a bank syndicate led by Macquarie Bank and Standard Bank. The bank financing, in addition to Cameco's $12 million (US) investment, is planned to carry the project through to production start-up.

AGR will benefit from an agreement negotiated with the Mongolian government which provides for stable tax and gold export regimes to the year 2013.

"This investment provides us with the opportunity to leverage our gold exploration activities and business experience in central Asia," said Len Homeniuk, president of CGI. "Mine construction at Boroo can begin this spring and the project is expected to contribute to Cameco's cash flow and earnings by 2003. Also, the Boroo mill facility will be available to process ore reserves which may be found on the Gatsuurt property."

Cameco Gold, based in Toronto, Ontario, operates and owns a one-third interest in the Kumtor gold operation in Kyrgyzstan and conducts a program of international exploration.

The qualified person responsible for the reserve estimate in this release is Clive Seymour, an employee of SRK Consulting (Australasia). Mr. Seymour has sufficient experience relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the Australian Code of Reporting of Mineral Reserves and Ore Resources (1999). Clive Seymour has consented to the publication of the reserve estimate in this release.

Jean Francois Chauvet, director, mining resources and methods, Cameco Corporation, a qualified person, has confirmed that the category of reserves under the Australian JORC code is consistent with that in the Canadian National Instrument 43-101.

Statements contained in this news release which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: volatility and sensitivity to market prices for gold; competition; the impact of change in foreign currency exchange rates and interest rates; imprecision in reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; changes in government regulations and policies, including trade laws and policies; replacement of production and failure to obtain necessary permits and approvals from government authorities; weather and other natural phenomena; ability to maintain and further improve positive labour relations; operating performance of the facilities; and other development and operating risks.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium supplier. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.