Mr. Tim Gitzel reports

CAMECO ANNOUNCES 2023 RESULTS; STRATEGICALLY POSITIONED TO INCREASE TIER-ONE PRODUCTION AS SECURITY OF SUPPLY CONTRACTING CYCLE ADVANCES; MAINTAINING DISCIPLINED FINANCIAL MANAGEMENT AND GROWTH; IMPROVING WESTINGHOUSE OUTLOOK

Cameco Corp. has released its consolidated financial and operating results for the fourth quarter and year ended Dec. 31, 2023, in accordance with international financial reporting standards (IFRS).

"Our 2023 financial performance benefitted from higher sales volumes and realized prices in our uranium and fuel services segments. Our net earnings, adjusted net earnings and cash from operations all more than doubled compared to 2022, with adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] up 93 per cent. In 2024, we expect strong financial performance as we begin to realize the benefits from our investment in Westinghouse. We plan to continue to transition to our Tier 1 cost structure and make the capital and other expenditures we believe are necessary to position the company for continued sustainable growth. Growth that will be sought in the same manner as we approach all aspects of our business; strategic, deliberate, disciplined and with a focus on generating full-cycle value," said Tim Gitzel, Cameco's president and chief executive officer.

"Heightened geopolitical uncertainty, global production shortfalls and transportation challenges in 2023 further highlighted the growing security of supply risk at a time when we believe the demand outlook is stronger and more durable than ever. The benefits of nuclear power have come clearly into focus, with 28 countries around the world declaring support for the tripling of capacity to help achieve global net-zero greenhouse gas emissions by 2050. The uncertainty about where nuclear fuel supplies will come from to satisfy growing demand has led to increased long-term contracting activity, and in 2023, about 160 million pounds of uranium was placed under long-term contracts by utilities. Prices across the nuclear fuel cycle continued to rise. Spot enrichment prices are up 38 per cent and conversion prices continue to achieve record highs. Uranium spot prices have more than doubled from around $48 (U.S.) per pound at the end of 2022 to $100 (U.S.) per pound at the end of January, 2024, after peaking at $106 (U.S.) per pound earlier in the month, and the long-term price for uranium was $72 (U.S.) per pound, an increase of about 38 per cent over the same period.

"We continue to believe that Cameco remains an excellent opportunity to invest in the recovery of the nuclear fuel cycle. We have 35 years of experience in this market and have built a strong reputation as a proven and reliable supplier with a diversified production portfolio that provides us with the flexibility to work with our customers to ensure they maintain access to our reliable supplies to satisfy their ongoing fuel requirements. We have designed our strategy of full-cycle value capture to be resilient. We have multiple supply options, including production, purchases, inventory and loans we can draw on to help ensure we continue to meet our delivery commitments to our customers. Given the nature of our contracts, we have good visibility into when and where we need to deliver material, and we have put in place a number of tools that allow us to self-manage risk.

"We continue to have success gaining and preserving exposure to the improving market fundamentals under long-term contracts that will underpin the sustainable operation of our assets. In our uranium segment, our contracting focus has been on obtaining market-related pricing mechanisms, while also providing adequate downside protection. We continue to be strategically patient in our discussions to maximize value in our contract portfolio and to maintain exposure to higher prices with unencumbered future productive capacity.

"With ongoing improvements in the market, the new long-term contracts we have put in place and our pipeline of contracting discussions, we are planning to produce 18 million pounds (100-per-cent basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. We have also converted 73.4 million pounds (100-per-cent basis) (40 million pounds our share) of resources to reserves at Cigar Lake, and plan to begin the work necessary to extend the estimated mine life to 2036. At McArthur River/Key Lake, we will undertake an evaluation of the work and investment necessary to expand production up to its annual licensed capacity of 25 million pounds (100-per-cent basis), which we expect will allow us to take advantage of this opportunity when the time is right.

"We are excited to have added a 49-per-cent interest in Westinghouse to our portfolio of investments in 2023. We believe Westinghouse is well positioned for long-term growth driven by the expected increase in global demand for nuclear power. In 2024, we expect our share of its adjusted EBITDA to be between $445-million and $510-million. Further, over the next five years, we expect its adjusted EBITDA will grow at a compound annual growth rate of 6 per cent to 10 per cent.

"Thanks to the disciplined execution of our strategy, including our conservative financial management, our balance sheet remains strong. We expect it will enable us to continue executing our strategy and self-managing risk, including risks related to global macro-economic uncertainty and volatility. As of Dec. 31, 2023, we had $567-million in cash and cash equivalents with approximately $1.8-billion in total debt. And, we recently initiated a partial repayment of $200-million (U.S.) on the $600 million (U.S.) floating-rate term loan that was used to finance the acquisition of Westinghouse. Our $1-billion credit facility continues to be undrawn.

"With the renewed recognition of the role nuclear power must play in providing clean and secure baseload power, we are optimistic about Cameco's role in supporting the transition to a net-zero carbon economy. We have a plan to achieve a 30-per-cent absolute reduction from our total scope 1 and 2 emissions level by 2030 from our 2015 baseline, which is the first major milestone on the journey to achieve our ambition of being net-zero. We believe our largest contribution to the net-zero transition comes from the uranium, nuclear fuel, services and technology that we supply to support the generation of nuclear power -- 100 per cent carbon-free electricity. Recently, we put further support behind our commitment to climate action and our vision of energizing a clean-air world by joining Net Zero Nuclear, an initiative between government, industry leaders and civil society to triple global nuclear capacity to achieve carbon neutrality by 2050.

"We believe we have the right strategy to achieve our vision of energizing a clean-air world and we will do so in a manner that reflects our values. Embedded in all our decisions is a commitment to addressing the environmental, social and governance risks and opportunities that we believe will make our business sustainable over the long term."

Summary of Q4 and 2023 results and developments:

• 2024 guidance: With the improvements in the market, the new long-term contracts Cameco has put in place and a pipeline of contracting discussions, the company's plan is to produce 18 million pounds (100-per-cent basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. It also plans to begin the work necessary to extend the estimated mine life at Cigar Lake to 2036. In addition, at McArthur River/Key Lake, it plans to undertake an evaluation of the work and investment necessary to expand production up to its annual licensed capacity of 25 million pounds (100-per-cent basis), which it expects will allow Cameco to take advantage of this opportunity when the time is right. Based on Kazatomprom's (KAP) announcement on Feb. 1, 2024, production in Kazakhstan is expected to remain 20 per cent below the level stipulated in subsoil use agreements, similar to in 2023, primarily due to the sulphuric acid shortage in the country. The company is still in discussions with joint venture Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore the company's corresponding purchase obligation. At the company's Port Hope conversion facility, it plan to produce between 13.5 million and 14.5 million kgU (kilograms uranium), including 12 million kgU of UF6 to satisfy the company's book of long-term business for conversion services and customer demand at a time when conversion prices are at historic highs. As a result of these plans, it expect strong financial performance in 2024, including cash flow generation.
• Fourth quarter net earnings of $80-million; adjusted net earnings of $90-million: Fourth quarter results are driven by normal quarterly variations in contract deliveries and the continued execution of the company's strategy. The company's results include the addition of a new segment with the close of the acquisition of Westinghouse Electric Company in the fourth quarter.
• Annual net earnings of $361-million; adjusted net earnings of $339-million: Annual results reflect the continued transition back to a Tier 1 cost structure. The company's results also reflect higher sales volumes and the improvement in average realized prices as uranium and conversion prices continued to increase, catalyzed by security of supply concerns. In the company's uranium segment, it delivered 32 million pounds of uranium at an average realized price of $67.31. Production for 2023 was 17.6 million pounds in the company's uranium segment, slightly lower than anticipated in September. In the company's fuel services segment, it delivered 12 million kgU under contract at an average realized price of $35.61 and produced 13.3 million kgU. In addition, it generated $688-million in cash from operations and adjusted EBITDA of $831-million. The company's annual results include $101-million in adjusted EBITDA from the company's investment in Westinghouse.
• Disciplined long-term contracting continues: As of Dec. 31, 2023, in the company's uranium segment, it had commitments requiring delivery of an average of about 27 million pounds of uranium per year from 2024 through 2028, with commitment levels higher than the average in 2024 and 2025, and below the average in 2026 through 2028. The company's total portfolio of long-term contracts includes commitments for approximately 205 million pounds of uranium. These commitments only represent about 20 per cent of the company's current reserve and resource base, providing it with a great deal of exposure to improving demand from the company's customers as they look to secure their long-term needs. Cameco continues to have a large and growing pipeline of uranium business under discussion. The company's focus continues to be on obtaining market-related pricing mechanisms, while also providing adequate downside protection. Cameco continues to be strategically patient in the company's discussions to maximize value in the company's contract portfolio and to maintain exposure to higher prices with unencumbered future productive capacity. In addition, with strong demand in the UF6 conversion market, the company was successful in adding new long-term contracts that bring the company's total contracted volumes to over 75 million kgU of UF6 that will underpin the company's Port Hope conversion facility for years to come.
• JV Inkai shipments: The first shipment containing approximately two-thirds of the company's share of Inkai's 2023 production was received in the fourth quarter. The second shipment with the remaining volume of the company's share of 2023 production has arrived at a Canadian port. The company continues to work closely with JV Inkai and the company's joint venture partner, KAP, to receive the company's 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 the company's expected Inkai deliveries if transportation using this shipping route takes longer than anticipated. To mitigate the risk of delays, it has inventory, long-term purchase agreements and loan arrangements in place it can draw on to meet the company's commitments. Depending on when it receive shipments of the company's share of Inkai's production, the company's share of earnings from this equity-accounted investee and the timing of the receipt of the company's share of dividends from the joint venture may be impacted.
• Acquisition of Westinghouse: In November, Cameco announced the closing of the acquisition of Westinghouse in a strategic partnership with Brookfield Asset Management alongside its publicly listed affiliate Brookfield Renewable Partners (Brookfield) and institutional partners. Cameco now owns a 49-per-cent interest and Brookfield owns the remaining 51 per cent in Westinghouse. Cameco believes bringing together the company's expertise in the nuclear industry with Brookfield's expertise in clean energy positions nuclear power at the heart of the clean energy transition and creates a powerful platform for strategic growth across the nuclear sector. In 2024, it expects the company's share of its adjusted EBITDA to be between $445-million and $510-million. Further, over the next five years, the company expects its adjusted EBITDA will grow at a compound annual growth rate of 6 per cent to 10 per cent.
• Strong balance sheet: As of Dec. 31, 2023, Cameco had $567-million in cash and cash equivalents and $1.8-billion in total debt. In addition, it has a $1-billion undrawn credit facility. The company has a $500-million senior unsecured debenture maturing on June 24, 2024. Over the coming months, it will look for an opportunity to refinance this debenture, prior to maturity or as it comes due. Ultimately, the company's decision will be made with consideration for its cash generation, the interest rate environment and other capital allocation considerations. In addition, it has initiated a partial repayment of $200-million (U.S.) on the $600-million (U.S.) floating-rate term loan that was used to finance the acquisition of Westinghouse. The prepayment will be applied to the $300-million (U.S.) tranche, which matures in November, 2026.
• Received dividends from JV Inkai: In the first quarter of 2023, Cameco disclosed the receipt of a cash dividend payment from JV Inkai totalling $79-million (U.S.), net of withholdings. JV Inkai distributes excess cash, net of working capital requirements, to the partners as dividends.
• Canada Revenue Agency (CRA) tax dispute: In March, Cameco announced 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. In the third quarter management discussion and analysis, the company disclosed the receipt of $12-million from CRA for disbursements related to costs awarded by the courts, based on their decisions in the company's favour for the 2003, 2005 and 2006 tax years. The costs were in addition to the $10-million it received from CRA in April, 2021, as reimbursement for legal fees. In late 2023, Cameco received a reassessment for the 2017 tax year based on CRA's alternate reassessing position and expects it will be required to provide letters of credit of about $70-million as security.
• Licence renewals: In January, the Canadian Nuclear Safety Commission (CNSC) granted a 20-year licence renewal for Cameco Fuel Manufacturing, which also allows for a slight increase to 1,650 tonnes as UO2 fuel pellets (previously 1,200 tonnes). In October, the CNSC renewed the licences for McArthur River, Key Lake and Rabbit Lake. Cameco was pleased to receive 20-year licences for McArthur River and Key Lake and a 15-year licence for Rabbit Lake. The company believes that its commitment to protecting the health and safety of the company's employees, the public and the environment is reflected in the extended duration of the licences.

The 2023 annual financial statements have been audited; however, the 2022 fourth quarter and 2023 fourth quarter financial information presented is unaudited. You can find a copy of the 2023 annual MD&A and the 2023 audited financial statements on Cameco's website.

Net earnings

The attached table shows what contributed to the change in net earnings and adjusted net earnings in the three months and year ended Dec. 31, 2023, compared with the same period in 2022.

The bargain purchase gain that was recognized when Cameco acquired its pro rata share of Idemitsu Canada Resources Ltd.'s 7.875-per-cent participating interest in the Cigar Lake joint venture has also been removed in calculating ANE since it is non-cash, non-operating and outside of the normal course of the company's business. The gain was recorded in the statement of earnings as part of other income (expense).

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

The 2023 annual MD&A and consolidated financial statements provide a detailed explanation of Cameco's operating results for the three and 12 months ended Dec. 31, 2023, as compared with the same periods last year, and the company's outlook for 2024. This news release should be read in conjunction with these documents, as well as Cameco's most recent annual information form, all of which are available on its website, on SEDAR+ and on EDGAR.

Qualified persons

The technical and scientific information discussed in this document for Camecos' material properties McArthur River/Key Lake, Cigar Lake and Inkai was 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.

Inkai:

• Sergey Ivanov, deputy director general, technical services, Cameco Kazakhstan LLP.

Cigar Lake"

• Lloyd Rowson, general manager, Cigar Lake, Cameco;
• Scott Bishop, director, technical services, Cameco;
• Alain D. Renaud, principal resource geologist, technical services, Cameco;
• Biman Bharadwaj, principal metallurgist, technical services, Cameco.

Conference call

Cameco invites you to join its fourth quarter conference call on Thursday, Feb. 8, 2024, at 8 a.m. Eastern Time.

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 on Cameco's website. See the link on the comany's home page on the day of the call.

A recorded version of the proceedings will be available:

• On Cameco's website, shortly after the call;
• on postview until midnight, Eastern Time, March 8, 2024, by calling 800-319-6413 (Canada and U.S.) or 604-638-9010 (passcode 0554).

2024 first quarter report release date

Cameco plans to announce its 2024 first quarter results before markets open on April 30, 2024.

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, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. The company's shares trade on the Toronto and New York stock exchanges. Its head office is in Saskatoon, Sask., Canada.

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