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NEWS RELEASE

FOR IMMEDIATE RELEASE: April 3, 1998

COGEMA PLEASED WITH GOVERNMENTS APPROVAL TO PROCEED ON MIDWEST AND CIGAR LAKE URANIUM PROJECTS

COGEMA Resources Inc. the operator and majority owner of the Midwest uranium project, and minority owner and mill operator of the Cigar Lake project, today responded to the recently released Federal and Provincial governments approvals to proceed on the Midwest and Cigar Lake uranium projects.

In the Saskatchewan report, Environment and Resource Minister Lorne Scott announced his approval under The Environmental Assessment Act for the proposed Cigar Lake and Midwest uranium projects. Federal Natural Resources Minister Ralph Goodale also gave the green light to the projects on behalf of the federal government.

Both projects remain subject to appropriate regulatory and licensing approvals.

"We are very pleased with the government's response", said COGEMA Resources President Arnaud de Bourayne. "We agree that these projects can be built, operated and decommissioned in a safe and environmentally friendly manner."

As part of their approvals, the governments have attached certain conditions, notably a requirement on the proponents to report on all construction, operation and environmental activities and to ensure that northern communities are fully informed during all phases of the projects. As well, the proponents must conduct research and evaluate options for dealing with issues such as waste rock disposal, reduction of liquid effluent volumes and contaminant concentrations, reduction of process chemical and recycling of mill effluent, and reduction of mine water inflows.

"Environmental protection and worker safety are our top priorities" de Bourayne stated, "COGEMA Resources is committed to continually improving the quality of our operations over their multi-year lifespan to ensure that the environment and our workers will be protected now and in the future."

In addition to approving the Midwest and Cigar Lake projects, Saskatchewan Environment Minister Scott also approved an amendment to the 1993 approval for McClean Lake to accommodate the milling and tailings management components of the Cigar Lake and Midwest projects.

"The approval for McClean Lake to accommodate the milling and tailings from the Cigar Lake and Midwest projects, is a significant component in the overall mining development plans" de Bourayne said. "The future is much more certain for these projects with these approvals in hand" he noted. "These projects will provide jobs and economic growth in the north for many years to come."

De Bourayne was also pleased that the government of Saskatchewan has recognized that COGEMA Resources has implemented changes to its management personnel and reporting relationships and is increasing its staff complement responsible for radiation protection and environmental protection. "We committed to make improvements in our organization, and we have lived up to our commitment" de Bourayne said, "and we will continue on a course of continuous improvement throughout the life of our projects."

The Midwest uranium deposit is located about 60 km west of the nearest community, Wollaston Lake, and about 700 km north of Saskatoon. The project is a joint venture among COGEMA Resources Inc. (56%), Uranerz Exploration and Mining Ltd. (20%), Tenwest Uranium Ltd., as subsidiary of Denison Mines Ltd. (19.5%), and OURD (Canada) Co. Ltd. (4.5%).

The Cigar Lake project is located about 660 km north of Saskatoon. It is a joint venture among Cameco Corporation (48.75%), COGEMA Resources Inc. (36.375%), Idemitsu Uranium Exploration Canada Ltd. (7.875%), Tepco Resources Inc. (5%), and Korea Electric Power Corporation (2%).

COGEMA has been operating the world-class Cluff Lake uranium mine in northwest Saskatchewan since 1980.

For further information please contact:

Tim Gitzel
Senior Vice President & Corporate Counsel
COGEMA Resources Inc.
Phone: (306) 343-4504

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