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NEWS RELEASE

For Immediate Release: January 7, 1999

COGEMA PARTIALLY SUSPENDS OPERATIONS
AT McCLEAN LAKE

COGEMA Resources Inc. of Saskatoon announced today the partial suspension of operations at the McClean Lake site until further notice pending resolution of issues related to licensing the mill and the JEB tailings management facility (TMF). COGEMA is operator and 70% owner of the project. Its partners are Denison Mines Limited (22.5%) and OURD (Canada) Co. Ltd. (7.5%).

About half of the present COGEMA McClean Lake workforce, approximately 120 COGEMA staff, will be temporarily layed off. In addition, certain contractors engaged in activities at the site will be affected. Core staff at the site will be maintained to ensure that site safety and environmental protection requirements are fulfilled and to continue the licensing process. Full employment levels during operation of the mine and mill will be about 300 COGEMA employees plus contractor staff.

"More than 6 months of ore supply is stockpiled at the mill from the earlier mining of the JEB ore body," said Tim Gitzel, COGEMA senior vice president and corporate counsel. "As well, the ore zone in the Sue open pit has been reached and mining will stop until the mill becomes operational."

Gitzel noted that construction and other work is continuing on the JEB TMF to resolve construction issues and fulfill regulatory requirements so that final construction and operating licenses can be issued.

"We regret having to take this decision because of the effect it has on our employees," said Gitzel. "We hope to have licensing in place by spring which will allow us to bring our people back to work and start up the operation."

The McClean uranium deposit was first discovered in 1979. The mill, constructed in 1997, will process the ore from the mined JEB pit, the nearby Sue pits, and the McClean and Midwest underground mines planned for future development. The mill will also handle a portion of the ore from the Cigar Lake mine. The JEB TMF is designed to handle the tailings from the ore processed at this mill.

Headquartered in Saskatoon, COGEMA Resources Inc. operates mining and milling facilities at Cluff Lake in northern Saskatchewan. COGEMA Resources is also operator and majority owner of the McClean Lake and Midwest uranium projects, and part owner of the Cigar Lake and McArthur River uranium mines. Of the company's employees at the minesites, over 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