Message From the Chair

Dear Shareholder,

Cameco’s resilience as a company was clearly evident in 2013, as market conditions continued to challenge our industry. Although we saw uranium prices continue to decline and uncertainty persist, I am proud of the response from across the organization that resulted in strong operational and financial results.

Your board of directors is responsible for overseeing management to ensure the company stays on track to achieve its strategy and deliver value to you, the shareholder. We are committed to continual improvement, and this year achieved that goal on a number of fronts. We enhanced our risk oversight process by initiating quarterly presentations by management to allow a fuller understanding of the major enterprise risks and management’s mitigation strategies. Similarly, we enhanced our focus on financial performance and strategic growth and direction, with a quarterly review of strategic matters.

On that subject, at the end of 2013, the decision was made to move away from our plan to increase production to a fixed target by 2018. The board spent a significant amount of time working with Cameco’s management team on this decision. We are confident this move ensures the near-term challenges are addressed, while also positioning the company to benefit from the long-term growth we see for the industry. We believe the change is in line with our focus on providing value, and will serve the company and the shareholders well.

Another key responsibility for the board is to ensure strong board leadership and effective succession planning at the board level. We have added significant financial expertise over the last few years with a view to enhancing focus on financial performance and, this year, have enhanced our project value analysis expertise with the addition of a new board member. Catherine Gignac will stand for election at our Annual Meeting of Shareholders in May. Ms. Gignac has more than 30 years of experience as a mining equity research analyst and geologist. Her extensive knowledge of finance and mineral resource estimation will be of great benefit to Cameco.

Of course, the other change to the board in 2013 was a change in leadership as Victor Zaleschuk stepped down from the position of chair after 10 years of service. Under his leadership, the company successfully met and dealt with multiple challenges in this very difficult market. I am pleased to say that Mr. Zaleschuk will continue to lend his wisdom as a director, and I have appreciated his guidance as I assumed my new position as chair of the board last May.

As we enter 2014, I am confident in our strategic plan and the team we have in place to carry it out. That includes our excellent senior management team and our talented employees, whom I sincerely thank for all their hard work over the past year. I believe we are uniquely positioned to face any challenges the year ahead may bring, and capitalize on opportunities as they arise.

Neil McMillan
Chair of the board
March 10, 2014