URANIUM EXPLORATION: Cameco pays US$345 for share of Australian project

WESTERN AUSTRALIA The world's largest producer of uranium, Saskatoon's CAMECO CORP., has signed a deal to acquire a 70% interest in the Kintyre uranium project 1,250 km northeast of Perth for US$346.5 million. The remaining 30% was purchased from RIO TINTO by MITSUBISHI DEVELOPMENT of Japan. The new owners have created a joint venture with Cameco as operator.

Uranium was first discovered in the area in 1985 and followed up with exploration that identified eight deposits. The Kintyre project was placed in care and maintenance in 1988 when uranium prices declined below US$12/lb. The sale process was initiated by Rio Tinto in 2007.

Cameco estimates that the Kintyre project may host potential mineral deposits ranging from 62 to 80 million lb U3O8 in total, with an average grade between 0.3% and 0.4% U3O8. These estimates are based in part on 355 historical diamond drill holes totalling 70,279 m. A 43-101-compliance resource estimate has yet to be made.

When the sale closes, Cameco and Mitsubishi will begin working toward a mine development agreement with the Martu people, traditional owners of the land. Cameco says it has experience working with traditional owners in Australia, including the Martu, through its ongoing exploration programs.

Check the news releases at www.Cameco.com to learn when the Kintyre deal closes.