Mr. Tim Gitzel reports

CAMECO INCREASES OWNERSHIP STAKE IN CIGAR LAKE MINE

Cameco Corp. has reached an agreement with Idemitsu Canada Resources Ltd. to acquire Idemitsu's 7.875-per-cent participating interest in the Cigar Lake joint venture. Upon closing, Cameco's ownership stake in the Cigar Lake uranium mine in Northern Saskatchewan will increase by 4.522 percentage points to 54.547 per cent, while Orano's share will rise by 3.353 percentage points to 40.453 per cent. Tepco Resources Inc. retains the remaining 5-per-cent interest in the property.

"As the world's largest high-grade uranium mine, Cigar Lake is quite simply one of the best and most prolific uranium producing assets on the planet," said Cameco president and chief executive officer Tim Gitzel. "Cameco is very pleased to increase our ownership stake in this outstanding Tier 1 operation. As the operator of Cigar Lake since 2002, it's an asset we know incredibly well. It's a proven, permitted and fully licensed mine in a safe and stable jurisdiction that operates with the tremendous participation and support of our neighbouring indigenous partner communities."

Cameco's purchase cost to acquire its respective share of Idemitsu's interest in Cigar Lake is approximately $107-million, subject to customary closing adjustments. The acquisition is subject to certain regulatory approvals and other standard closing conditions. The transaction is expected to close in the second quarter of 2022.

The 2022 production outlook for the Cigar Lake mine is 15 million pounds of uranium concentrate (U3O8) on a 100-per-cent basis, which would make it the largest uranium producing operation in the world this year. The Cigar Lake reserve and resource base includes proven and probable reserves estimated at 152.4 million pounds of U3O8, measured and indicated resources of approximately 103.7 million pounds, and inferred resources of 22.9 million pounds. Cameco's increased share in the operation will therefore provide the company with access to an additional 6.9 million pounds of proven and probable reserves, 4.7 million pounds of measured and indicated resources, and one million pounds of inferred resources.

The company's present plan is to reduce annual production at Cigar Lake to 13.5 million pounds of U3O8 (100-per-cent basis), 25 per cent below licensed capacity, starting in 2024. Extending the mine life at Cigar Lake by aligning production with market opportunities and Cameco's contract portfolio is consistent with Cameco's Tier 1 strategy and is expected to allow more time to evaluate the feasibility of extending the mine life beyond its current reserve base while continuing to supply ore to Orano's McClean Lake mill. This will remain Cameco's production plan until the company sees further improvement in the uranium market and contracting progress, demonstrating Cameco's continuing commitment to be a responsible supplier of uranium fuel.

Please see pages 79 and 80 of Cameco's March 22, 2022, annual information form for the key assumptions, parameters and methods used to estimate the Cigar Lake mineral reserves and resources.

Qualified person

The technical and scientific information discussed in this document for Cigar Lake was approved by Lloyd Rowson, general manager, Cigar Lake, Cameco, and a qualified person for the purposes of National Instrument 43-101.

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 Cameco's nuclear fuel products to generate power in safe, reliable, carbon-free nuclear reactors. Cameco's shares trade on the Toronto Stock Exchange and New York Stock Exchange. The company's head office is in Saskatoon, Sask.

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