Ms. Rachelle Girard reports

CAMECO PROVIDES PRODUCTION AND MARKET UPDATE

Cameco Corp. has provided a market update regarding challenges at the Cigar Lake mine and the Key Lake mill that are expected to impact its 2023 production forecast.

At the Cigar Lake mine, it expects to produce up to 16.3 million pounds of uranium concentrate (U3O8) (100-per-cent basis) this year, a reduction from the previous forecast of 18 million pounds U3O8 (100-per-cent basis). Production from the McArthur River/Key Lake operations for 2023 is anticipated to be 14 million pounds U3O8 (100-per-cent basis), down from the previous forecast of 15 million pounds U3O8 (100-per-cent basis).

As previously reported, mining activities at the Cigar Lake operation were initiated from a new zone in the orebody (west pod) in the second quarter of this year, which impacted productivity. As mining activities continued in the west pod during the third quarter, equipment reliability issues emerged, which further affected performance. The mine is scheduled to enter its planned annual maintenance shutdown that will run through most of September.

At the Key Lake mill, ramp-up activities remain in progress. However, as noted in its second quarter management's discussion and analysis, there is continued uncertainty regarding planned production in 2023 at Key Lake due to the length of time the facility was in care and maintenance, the operational changes that were implemented, availability of personnel with the necessary skills and experience, and the impact of supply chain challenges on the availability of materials and reagents. These factors have combined to impact production at Key Lake, leading to the reduced forecast. The McArthur River mine continues to operate well and is expected to achieve its planned production for the year. Any ore from McArthur River that is not immediately processed at Key Lake will be stored in inventory for future milling.

Cameco's strategy of full-cycle value capture positions it to effectively manage the expected production shortfall and meet its delivery commitments to its customers. It maintains the flexibility to source material through various means beyond production if required, including increasing its market purchases, pulling forward long-term purchases, using inventory or borrowing product. Any pounds it does not produce this year will remain available to it and, with increasing supply pressures, potentially become more valuable when delivered in the future. It has exposure to higher prices under the market-related contracts in its long-term portfolio and a pipeline of contracting discussions under way, which it expects will also benefit from the increased focus on securing access to scarce supplies and generate long-term value for Cameco. It has a strong balance sheet to help it self-manage risk.

This expected production shortfall further highlights the growing security of supply risk at a time when it believes the demand outlook is stronger and more durable than ever and where the risk has shifted from producers to utilities. Uncertainty about where nuclear fuel supplies will come from to satisfy growing demand continues to drive long-term contracting, with clear evidence that the broader uranium market is moving toward replacement rate contracting for the first time in over a decade. This is the type of contracting necessary to promote the price discovery already seen in the enrichment and conversion markets and that is expected to incentivize investments in the supply needed to satisfy the growing long-term requirements.

This unplanned event may lead to variability in the other outlook provided in its second quarter management's discussion and analysis for 2023; however, it is too soon to quantify what the impact might be. It will provide an update when it better understands the implications these production challenges may have on market dynamics.

The Cigar Lake operation is owned 54.547 per cent by Cameco, 40.453 per cent by Orano Canada Inc. (Orano) and 5 per cent by Tepco Resources Inc.

The McArthur River mine is owned 69.805 per cent by Cameco and 30.195 per cent by Orano. The Key Lake mill is owned 83.333 per cent by Cameco and 16.667 per cent by Orano.

Qualified persons

The technical and scientific information discussed in this document for Cigar Lake and McArthur River/Key Lake was approved by the following individuals, who are qualified persons for the purposes of National Instrument 43-101: Lloyd Rowson, general manager, Cigar Lake, Cameco; Greg Murdock, general manager, McArthur River, Cameco; Daley McIntyre, general manager, Key Lake, Cameco.

About Cameco Corp.

Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Its 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 its nuclear fuel products to generate safe, reliable, carbon-free nuclear power. Its shares trade on the Toronto and New York stock exchanges. Its head office is in Saskatoon, Sask.

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