AREVA Resources Canada is a key factor in the AREVA group’s integrated ability to provide nuclear energy to its customers worldwide. AREVA is firmly committed to expansion of its operations in Canada.

In 2008, AREVA Resources Canada, based in Saskatoon, was named head office for the North American Mining Division.

Operations

AREVA Resources’ production in 2008 increased slightly from the prior year to over seven million pounds U₃O₈. A decline in production from the McArthur River mine was more than offset by a significant improvement in production at McClean Lake. A brief review by project follows:

• The 70% owned McClean Lake operation, which is operated by AREVA Resources, produced 3.2 million pounds U₃O₈ in 2008, compared to 1.9 million in 2007. This production increase was driven by increased throughput at the McClean Lake mill combined with slightly higher grade ore available from the Sue E deposit. Mining of Sue E began in 2005, continued throughout 2007, and was completed in March of 2008. Mining of the Sue B deposit was started and completed in 2008. The stockpile from the Sue E and Sue B deposits will continue to provide ore for the mill.
• McArthur River production reached 16.6 million pounds U₃O₈ for 2008, compared to 18.7 million pounds in 2007. All McArthur River ore is milled at the Key Lake facility. AREVA Resources received 5 million pounds U₃O₈ production through its 30.195% ownership of the McArthur River operation. This level of production was lower than anticipated due to a milling shortfall at Key Lake that resulted from various equipment breakdowns.
• A setback occurred in the remediation efforts on the Cigar Lake project in 2008, as another water inflow occurred while the mine was being dewatered. Because of this, the timing of the start-up of production is uncertain. AREVA Resources Canada has a 37.1% ownership interest in the project.
• In late 2008, the joint venture partners in the Midwest uranium mine project announced a decision to postpone development of the project due to current unfavourable economic and market conditions, and significant increases in capital cost estimates.
• In addition to an active exploration program for a range of projects in northern Saskatchewan, AREVA Resources is the operator of the Kiggavik project in Nunavut, which is currently undergoing a feasibility study. AREVA Québec is currently managing an ambitious exploration program with some 9,000 exploration claims in Quebec.

Revenue

Revenue increased from $293 million in 2007 to $302 million in 2008 as higher sales volumes more than offset a small decline in average selling prices.

Despite the significant decline in the uranium spot price in 2008, selling prices remained firm as sales are made under a variety of long-term contracts, some of which have minimal exposure to spot prices.

Market

The spot price of U₃O₈ opened the year at $89 US and decreased to close the year at $53 US. Prices have continued to decrease in early 2009 to the $40 US range as of early April, climbing into the $50 range by summer.

Corporate Governance

Executive Management

Vincent Martin, President and Chief Executive Officer, AREVA Resources Canada Inc.

Board of Directors

Sébastien de Montessus, Executive Vice President, AREVA Business Unit Mines
Xavier Chabot, Industrial Director, AREVA Business Unit Mines
Roger Alexander, President, AREVA Canada Inc.
Vincent Martin, President and Chief Executive Officer, AREVA Resources Canada Inc.
Gerald Scherman, Senior Vice President and Chief Financial Officer, AREVA Resources Canada Inc.
Tammy Van Lambalgen, Vice President Regulatory Affairs and General Counsel, AREVA Resources Canada Inc.
Jean-Pierre Nicoud, Vice President Engineering and Projects, AREVA Resources Canada Inc.