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NEWS RELEASE

For Immediate Release: December 7, 1999

MINING BEGINS AT MCARTHUR RIVER

COGEMA Resources Inc. of Saskatoon announced today that mining has begun at the underground mine at McArthur River in northern Saskatchewan. COGEMA is a 30% owner of the McArthur River operation. Cameco Corporation is the operator and 70% owner of the project.

"We recently increased our interest in McArthur River, the world's largest known high-grade uranium deposit, to take advantage of this significant production opportunity," said COGEMA Resources President and CEO Arnaud de Bourayne. "By acquiring an interest in the Key Lake project at the same time, we became partners in the milling of this ore as well," de Bourayne added.

In a joint venture with Cameco Corporation of Saskatoon, COGEMA owns 30.195% of the McArthur River project. Reserves and resources are close to 500 million pounds U₃O₈ at an average grade of 14%. The ore will be processed at the Key Lake mill, operated by Cameco and owned 16.667% by COGEMA.

The McArthur River deposit was discovered in 1988. Following an EIS and federal-provincial panel hearings, the government approvals to construct the project were received in May 1997. The McArthur River ore body will be mined using various non-entry mining methods and remote controlled equipment. The ore will be trucked to the Key Lake mill for processing. McArthur's annual production capacity, expected to be reached in 2002, will be 18 million pounds of U₃O₈ as processed at the Key Lake mill.

Headquartered in Saskatoon, COGEMA Resources Inc. operates mining and milling facilities at Cluff Lake in northern Saskatchewan, is operator and majority owner of the McClean Lake and Midwest uranium projects, and part owner of the Cigar Lake, McArthur River and Key Lake uranium projects. Of the company's employees at the mine sites, more than 50% are from northern communities.

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For further information please contact:

Tim Gitzel
Senior Vice President & Corporate Counsel
COGEMA Resources Inc.
Phone: (306) 343-4501