An anonymous director reports

PRODUCTION SUSPENSION CONTINUES AT MCARTHUR RIVER AND KEY LAKE OPERATIONS DUE TO LABOUR DISPUTE

Production continues to be suspended at Cameco Corp.'s McArthur River mine and Key Lake mill operations in Northern Saskatchewan due to a labour dispute.

The United Steelworkers Local 8914 advised Cameco on Aug. 26 of its intention to commence strike action at 12:01 a.m. on Aug. 30, 2014. In response to the strike notice, Cameco issued a lockout notice to assure a safe and orderly shutdown of its facilities and continued protection of the environment.

Cameco presented its final offer to the union bargaining committee on Aug. 28 and requested that it be submitted to the union membership for a vote. The union bargaining committee rejected the offer and advised Cameco that it would not present it to the membership for a vote.

To assure safe and orderly departure of unionized employees from the remote northern sites, Cameco began flying unionized workers to their home communities at 7 p.m. on Aug. 29.

The facilities will be maintained in a safe shutdown state by salaried Cameco employees and unionized personnel under an essential services agreement with the union.

The work stoppage involves approximately 535 unionized employees at the two operations. Contract negotiations began in November, 2013. The previous four-year contract expired Dec. 31, 2013. In July, the company and union jointly applied for conciliation under the Canada Labour Code.

The work stoppage is not expected to affect the company's 2014 uranium delivery commitments to customers.

We seek Safe Harbor.