Mr. Tim Gitzel reports

CAMECO ANNOUNCES SECOND QUARTER RESULTS; GROSS PROFIT BENEFITTING FROM TRANSITION TO TIER-ONE RUN RATE; FULL-YEAR REVENUE OUTLOOK INCREASED DRIVEN BY IMPROVING MARKET FUNDAMENTALS; URANIUM MARKET IS MOVING TOWARD REPLACEMENT-RATE CONTRACTING

Cameco Corp. has released its consolidated financial and operating results for the second quarter ended June 30, 2023, in accordance with international financial reporting standards (IFRS).

"Our financial performance, which reflects the expected quarterly variation in our contract deliveries this year, is benefiting from our strategic decisions, with gross profit improving as we transition to our tier 1 run rate. The significant momentum seen in the nuclear energy industry and the heightened supply risk caused by geopolitical developments are translating into increased opportunities for Cameco. As a result, for 2023, we have increased our consolidated revenue outlook, which is primarily driven by higher expected average realized prices under our contract portfolio and increased deliveries in our uranium segment," said Tim Gitzel, Cameco's president and chief executive officer.

"All over the world, government policies and corporate decisions are being followed up with proposals, commitments and actions to support the nuclear fuel cycle, and re-energize nuclear power as a fundamental source of clean, secure and low-cost energy. We are seeing improving market fundamentals with prices for uranium rising, and UF6 conversion prices hitting new record-highs.

"With over 118 million pounds of long-term contracting industry wide so far this year, we are happy to say that we believe there is clear evidence that the broader uranium market is moving toward replacement-rate contracting. Based on the rate of contracting seen year-to-date, we expect industry long-term contracting volumes in 2023 to exceed those in each of the last 10 years. We believe this is a good indication that a new long-term contracting cycle is under way.

"The improving fundamentals are creating increased interest from the investment community. In addition to seeing interest from our traditional resource investors, Cameco is seeing interest from energy investors, clean energy investors, infrastructure investors and generalists. We believe this increased interest reflects the recognition that Cameco is a proven reliable nuclear fuel supplier that supplements tier 1 mining assets with critical fuel service capabilities, and it is an endorsement of our strategy to capture full-cycle value.

"We continue to be disciplined in our production decisions, selectively committing our unencumbered, in-ground uranium inventory and UF6 conversion capacity under long-term contracts to help maintain additional exposure to future improvements in the market. If we took advantage of all our tier 1 expansion opportunities, our annual share of tier 1 uranium supply could be about 32 million pounds.

"We are a responsible, commercial supplier with a strong balance sheet, long-lived, tier 1 assets, and a proven operating track record, and are returning to our tier 1 cost structure. We are invested across the nuclear fuel cycle, and are looking forward to closing the Westinghouse acquisition with our partner Brookfield Renewable Partners, which we expect will occur later this year. We will continue to do what we said we would do, executing on our strategy, and, consistent with our values, we will do so in a manner we believe will make our business sustainable over the long term."

Highlights:

• Q2 net earnings of $14-million, adjusted net losses of $3-million: Results reflect normal quarterly variations in contract deliveries, which were expected to be lower than in the second quarter of 2022. Despite lower deliveries and higher unit costs in Cameco's uranium segment, gross profit improved due to a higher average realized price as its market-related contracts benefited from increases in the uranium spot price relative to a year ago. However, unrealized losses on the company's United States dollar cash balances, reflected in the $44-million of reported foreign exchange losses for the quarter, contributed to lower net earnings and adjusted net earnings compared with the same period of 2022. Cameco must treat its foreign currency cash balances as though they are converted to Canadian dollars at the exchange rate at the end of the quarter. The unrealized losses in the quarter were primarily due to higher-than-normal U.S. dollar cash balances, being held for the pending acquisition of Westinghouse, and a strengthened Canadian dollar relative to at the end of the first quarter. Cameco does not adjust net earnings for these losses. Adjusted net earnings is a non-IFRS measure.
• Strong performance in the uranium and fuel services segments, and improving 2023 consolidated revenue outlook: Results for the first six months of the year reflect the impact of higher sales volumes and average realized prices in both the uranium and fuel services segments under the company's long-term contract portfolio. In Cameco's uranium segment, it has delivered 15.2 million pounds, in line with the delivery pattern disclosed in its annual MD&A (management's discussion and analysis), at an average realized price 11 per cent higher than in the same period last year. In the company's fuel services segment, sales were 12 per cent higher than in the first six months of 2022 and at an average realized price 5 per cent higher. With improving market fundamentals, for 2023, Cameco has increased its consolidated revenue outlook to between $2.4-billion and $2.5-billion (previously $2.2-billion and $2.4-billion), which is primarily driven by higher expected average realized prices under its contract portfolio and increased deliveries in its uranium segment. In addition, Cameco has updated its outlook for direct administrative costs, uranium purchases and average unit cost of sales. See outlook for 2023 in the company's second quarter MD&A for more information.
• Long-term contracting success continues while maintaining exposure to higher prices: As of June 30, 2023, Cameco had long-term contracting commitments requiring annual delivery of an average of 28 million pounds over the next five years, compared with 26 million at the end of March, due to the inclusion of volumes under contracts previously accepted that are now finalized. The company also has contracts in its uranium and fuel services segments that span more than decade, and, in the company's uranium segment, many of those contracts benefit from market-related pricing mechanisms. In addition, Cameco has a large and growing pipeline of business under discussion, which it expects will help further build its long-term contract portfolio.
• Joint venture (JV) Inkai shipments: The first shipment of the company's share of Inkai's 2023 production, which has been delayed, is expected to begin transit in the third quarter. The geopolitical situation continues to cause transportation risks in the region. Cameco continues to work closely with JV Inkai and its joint venture partner, Kazatomprom, to receive its share of production via the Trans-Caspian International Transport Route, which does not rely on Russian rail lines or ports. Cameco could experience further delays to its expected Inkai deliveries this year if transportation using this shipping route takes longer than anticipated. To mitigate the risk of delays, the company has inventory, long-term purchase agreements and loan arrangements in place it can draw on. Depending on when the company receives the shipment of its share of Inkai's production, the company's share of earnings from this equity-accounted investee and the timing of the receipt of its share of dividends from the joint venture may be impacted.
• Canada Revenue Agency (CRA) tax dispute: In March, CRA issued revised reassessments for the 2007 through 2013 tax years, which resulted in a refund of $297-million of the $780-million in cash and letters of credit held by CRA at the time. The refund consisted of cash in the amount of $86-million and letters of credit in the amount of $211-million, which were returned in the second quarter. See transfer pricing dispute in the company's Q2 MD&A for more information.
• Strong balance sheet: As of June 30, 2023, Cameco had $2.5-billion in cash and cash equivalents, and short-term investments, and $1-billion in total debt. In addition, it has a $1-billion undrawn credit facility which matures Oct. 1, 2026.

The financial information presented for the three months and six months ended June 30, 2022, and June 30, 2023, is unaudited.

Net earnings

The associated table shows what contributed to the change in net earnings (losses) and adjusted net earnings (non-IFRS measure) in the second quarter and first six months of 2023, compared with the same periods in 2022.

Board of directors' update

Cameco's board of directors has appointed chief Tammy Cook-Searson and Dominique Miniere as board members effective Sept. 1, 2023.

Ms. Cook-Searson currently serves as chief of the Lac La Ronge Indian Band and is the president of Kitsaki Management LP, the entity that manages the band's economic development activities. She was the band's first female chief when she was elected in 2005. Prior to being elected chief, Ms. Cook-Searson had served on the band's council since 1997. She currently sits on the boards of Prince Albert Grand Council, Federation of Sovereign Indigenous Nations, Saskatoon Airport Authority, Saskatchewan Indian Gaming Authority and the Assembly of First Nations. She holds a graduate diploma in management and is completing her master of business administration with Athabasca University. She also holds honourary degrees from the University of Regina and the Saskatchewan Indian Institute of Technologies. Ms. Cook-Searson will serve on Cameco's safety, health and environment committee, and technical committee upon her appointment as a director.

Mr. Miniere is the retired executive vice-president in charge of new nuclear and international development of Ontario Power Generation. Prior to that role, he served as executive vice-president and chief strategy officer at Ontario Power Generation, and as chief operating officer of Electricite de France. Mr. Miniere serves on the boards of Holtec International Inc., Ortec Group, a French services company involved in services and engineering, and Engineering Planning and Management Inc., a United States engineering company. He holds an engineering degree from the Ecole des Mines de Paris. Mr. Miniere will serve on Cameco's human resources and compensation committee, safety, health and environment committee, and technical committee upon his appointment as a director.

Management's discussion and analysis (MD&A) and financial statements

The second quarter MD&A and unaudited condensed consolidated interim financial statements provide a detailed explanation of the company's operating results for the three and six months ended June 30, 2023, as compared with the same periods last year. This news release should be read in conjunction with these documents, as well as the company's audited consolidated financial statements and notes for the year ended Dec. 31, 2022, first quarter and annual MD&A, and the company's most recent annual information form, all of which are available on Cameco's website, on SEDAR+ and on EDGAR.

Qualified persons

The technical and scientific information discussed in this document for the company's material properties -- McArthur River/Key Lake, Cigar Lake and Inkai -- were approved by the following individuals, who are qualified persons for the purposes of National Instrument 43-101:

• McArthur River/Key Lake:
  • Greg Murdock, general manager, McArthur River, Cameco;
  • Daley McIntyre, general manager, Key Lake, Cameco.
• Cigar Lake:
  • Lloyd Rowson, general manager, Cigar Lake, Cameco.
• Inkai:
  • Sergey Ivanov, deputy director general, technical services, Cameco Kazakhstan LLP.

Conference call

Cameco invites you to join its second quarter conference call on Wednesday, Aug. 2, 2023, at 8 a.m. ET.

The call will be open to all investors and the media. To join the call, please dial 800-319-4610 (Canada and United States) or 604-638-5340. An operator will put your call through. The slides and a live webcast of the conference call will be available from a link at the company's website. Access the link on the company's home page on the day of the call.

A recorded version of the proceedings will be available:

• On the company's website shortly after the call;
• On postview until midnight, ET, Sept. 2, 2023, by calling 800-319-6413 (Canada and U.S.) or 604-638-9010 (passcode 0267).

Q3 2023 report release date

Cameco plans to announce its 2023 third quarter results before markets open on Oct. 31, 2023.

About Cameco Corp.

Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. The company's competitive position is based on its controlling ownership of the world's largest high-grade reserves and low-cost operations. Utilities around the world rely on the company's nuclear fuel products to generate safe, reliable, carbon-free nuclear power. The company's head office is in Saskatoon, Sask.

We seek Safe Harbor.