Quarterly Report - 2016 - Q2

Summary Information

• Maintaining annual delivery and cost of sales guidance
• Signed an agreement with Kazatomprom to restructure and enhance JV Inkai
• Continued focus on controlling costs amid difficult market conditions

Cameco (TSX: CCO; NYSE: CCJ) today reported its consolidated financial and operating results for the second quarter ended June 30, 2016 in accordance with International Financial Reporting Standards (IFRS).

“Our quarterly results were again influenced by a quiet market, as well as a number of notable and one-time items” said president and CEO, Tim Gitzel. “However, our annual sales guidance and cost of sales expectations remain unchanged, our long-term contract portfolio continues to keep our average realized price above market prices, and we remain focused on controlling costs across the organization.

“Market conditions have become increasingly challenging over the past five years. Primary supply has simply not responded to decreased demand, and coupled with an abundance of secondary material available today, the uranium market continues to be oversupplied. As a result, prices have remained under pressure, and because we don’t know how long the current weak conditions will persist, we must manage the company with that uncertainty in mind.

“Despite the current market challenges, we remain confident in nuclear power as an important part of the long-term global energy mix. Based on the reactor construction that is underway around the world today, we continue to expect uranium demand to increase in the long-term.”