SASKATOON, SASKATCHEWAN--(Marketwire - June 2, 2008) -
ALL AMOUNTS ARE STATED IN CDN $
Cameco Corporation (TSX:CCO) (NYSE:CCJ) reported today that previously announced agreements involving the Kyrgyz government and Centerra Gold Inc. have not been ratified by the Kyrgyz parliament within the timeframe agreed by the parties and have thus expired. The agreements were described in Cameco's August 30, 2007 news release and the original ratification date was extended to June 1, 2008.
The terms of the agreements were carefully negotiated to meet the objectives of all parties. It is unfortunate the agreements could not be concluded.
Gold production continues at the Kumtor mine and is unaffected by a recent Supreme Court ruling that was referenced in Cameco's first quarter news release. However, the State Agency for Geology and Mineral Resources Management of the Kyrgyz Republic advised Centerra Gold that some exploration activity should be temporarily suspended pending a decision by a lower court. All parties have previously agreed that disputes are subject to international arbitration.
Cameco owns 53% of Centerra while Kyrgyzaltyn owns 16%. Cameco and Kyrgyzaltyn JSC, a joint stock company owned by the Kyrgyz government, are partners in the gold company that developed and began production at the Kumtor gold mine, which subsequently became part of Centerra.
Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium producer. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.
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