Forward-Looking Information

Caution about forward-looking information

Our MD&A includes statements and information about our expectations for the future. When we discuss our strategy, plans, future financial and operating performance, or other things that have not yet taken place, we are making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. We refer to them in this MD&A as forward-looking information.

Key things to understand about the forward-looking information in this MD&A:

It typically includes words and phrases about the future, such as: believe,estimate, anticipate, expect, plan, intend, predict, goal, target, project, potential, strategy and outlook (see examples below).
It represents our current views, and can change significantly.
It is based on a number of material assumptions, including those we have listed below, which may prove to be incorrect.
Actual results and events may be significantly different from what we currently expect, due to the risks associated with our business. We list a number of these material risks below. We recommend you also review our annual information form, which includes a discussion of other material risks that could cause actual results to differ significantly from our current expectations.
Forward-looking information is designed to help you understand management's current views of our near and longer term prospects, and may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.

Examples of forward-looking information in this MD&A

our expectations about 2012 and future global uranium supply, consumption, demand and number of operable reactors, including the discussion on the expected impact resulting from the March 2011 nuclear incident in Japan
our expectations for spot prices in 2012
our strategy for increasing annual productionto 40 million pounds by 2018 and our expectation that existing cash balances and operating cash flows will meet anticipated capital requirements without the need for any significant additional financing to reach this goal
our expectationsregarding uranium demand in the near term
our 2012 objectives
the outlook for each of our operating segments for 2012, and our consolidated outlook for the year
our expectation that we will invest significantly in expanding production at our existing mines and advancing projects as we pursue our growth strategy
our expectation that cash balances will decline as we use the funds in our business and pursue our growth plans
our expectations for 2012, 2013 and 2014 capital expenditures
our expectation that our operating and investment activities in 2012 will not be constrained by the financial covenants in our unsecured revolving credit facility
our uranium price sensitivity analysis
forecast production at our uranium operations from 2012 to 2016
the likely terms and volumes to be covered by long-term delivery contracts that we enter into in 2012 and in future years
future production at our fuel services operations
future royalty and tax payments and rates
our future plans for each of our uranium operating properties, development projects and projects under evaluation, and fuel services operating sites
our expectations regarding Cigar Lake
our mineral reserve and resource estimates

Material risks

actual sales volumes or market prices for any of our products or services are lower than we expect for any reason, including changes in market prices or loss of market share to a competitor
we are adversely affected by changes in foreign currency exchange rates, interest rates or tax rates
our production costs are higher than planned, or necessary supplies are not available, or not available on commercially reasonable terms
our estimates of production, purchases, costs, decommissioning or reclamation expenses, or our tax expense estimates, prove to be inaccurate
we are unable to enforce our legal rights under our existing agreements, permits or licences, or are subject to litigation or arbitration that has an adverse outcome
there are defects in, or challenges to, title to our properties
our mineral reserve and resource estimates are not reliable, or we face unexpected or challenging geological, hydrological or mining conditions
we are affected by environmental, safety and regulatory risks, including increased regulatory burdens or delays
we cannot obtain or maintain necessary permits or approvals from government authorities
we are affected by political risks in a developing country where we operate
we are affected by terrorism, sabotage, blockades, civil unrest, accident or a deterioration in political support for, or demand for, nuclear energy
we are impacted by changes in the regulation or public perception of the safety of nuclear power plants, which adversely affect the construction of new plants, the relicensing of existing plants and the demand for uranium
there are changes to government regulations or policies that adversely affect us, including tax and trade laws and policies
our uranium and conversion suppliers fail to fulfil delivery commitments
our Cigar Lake development, mining or production plans are delayed or do not succeed, including as a result of any difficulties encountered with the jet boring mining method or our inability to acquire any of the required jet boring equipment
we are affected by natural phenomena, including inclement weather, fire, flood and earthquakes
our operations are disrupted due to problems with our own or our customers' facilities, the unavailability of reagents, equipment, operating parts and supplies critical to production, equipment failure, lack of tailings capacity, labour shortages, labour relations issues, strikes or lockouts, underground floods, cave ins, ground movements, tailings dam failures, transportation disruptions or accidents, or other development and operating risks

Material assumptions

our expectations regarding sales and purchase volumes and prices for uranium, fuel services and electricity
our expectations regarding the demand for uranium, the construction of new nuclear power plants and the relicensing of existing nuclear power plants not being adversely affected by changes in regulation or in the public perception of the safety of nuclear power plants
our expected production level and production costs
our expectations regarding spot prices and realized prices for uranium, and other factors discussed in Price sensitivity analysis: uranium
our expectations regarding tax rates, foreign currency exchange rates and interest rates
our decommissioning and reclamation expenses
our mineral reserve and resource estimates, and the assumptions upon which they are based, are reliable
the geological, hydrological and other conditions at our mines
our Cigar Lake development, mining and production plans succeed, including the success of the jet boring mining method at Cigar Lake and that we will be able to obtain the additional jet boring system units we require on schedule
our ability to continue to supply our products and services in the expected quantities and at the expected times
our ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals
our operations are not significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, blockades, civil unrest, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, the unavailability of reagents, equipment, operating parts and supplies critical to production, labour shortages, labour relations issues, strikes or lockouts, underground floods, cave ins, ground movements, tailings dam failure, lack of tailings capacity, transportation disruptions or accidents or other development or operating risks