Quarterly Report - 2016 - Q1

Summary Information

• Results reflective of quiet market during the first quarter
• Maintaining annual delivery and cost of sales guidance
• Undertook restructuring activities to support the long-term health and sustainability of the company
• Continued success ramping up Cigar Lake
• Lower uranium production guidance due to operational changes at Rabbit Lake, US ISR and McArthur River/Key Lake

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the first quarter ended March 31, 2016 in accordance with International Financial Reporting Standards (IFRS).

“Although we believe there is a bright long-term future for nuclear power, we continued to experience challenging market conditions in the uranium space during the first quarter,” said president and CEO, Tim Gitzel.

Our results were influenced by a very quiet market with little contracting activity. While net earnings were up over the first quarter of 2015, after adjustments we reported a net loss, which is not considered indicative of our annual expectations.

You’ve seen us respond by exercising our strategy of flexibility when it comes to both sales and operations in a weak market. And while that response has also contributed to the weaker first quarter results, we expect that the decisions to restructure NUKEM, to not force more mined production into an oversupplied market, and to purchase low-cost pounds where we see opportunities, will yield positive results over the medium to longer term. Until we see a sustained recovery in the uranium price, we have to prepare for a scenario where the market remains low for even longer. We believe the best way to do so, and to continue creating value for all of our stakeholders, is to maintain a strong balance sheet, and to remain focused on prudently expanding our tier-one capacity to be ready when the market calls for more uranium.”