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NEWS RELEASE

For Immediate Release:May 5, 1999

Saskatoon, Saskatchewan, Canada

COGEMA RESOURCES INC. ACQUIRES SASKATCHEWAN URANIUM INTERESTS

COGEMA Resources Inc. announced today that it has acquired from Cameco Corporation selected uranium assets located in Saskatchewan for approximately $243 million. The transaction is subject to receipt of all necessary regulatory approvals and will be effective as of January 1, 1999.

The principal assets being acquired include a 14% interest in the McArthur River project, a 17% interest in the Key Lake project where the McArthur River ore will be milled beginning in late 1999 and (subject to existing rights of first refusal) 20% of the Midwest project.

With this acquisition COGEMA Resources increases its interest in the McArthur River project to over 30% and becomes a new partner in the Key Lake project.

"This acquisition, combined with our existing interests in the Cluff Lake, McClean Lake, Midwest, Cigar Lake and McArthur River uranium projects firmly establishes our company's commitment to uranium mining in the province of Saskatchewan," said Arnaud de Bourayne, President and Chief Executive Officer of COGEMA Resources. "The transaction increases our ore reserves and resources by approximately 20% or 80 million pounds U₃O₈," de Bourayne added.

COGEMA Resources also announced that it has purchased an additional 0.725% interest in the Cigar Lake project from Korea Electric Power Corporation bringing its consolidated interest in that project to 37.1%.

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 and now Key Lake uranium mines. Of the company's employees at the mine sites, more than 50% are from northern communities.

Ownership Changes

¹Acquisition from Cameco Corporation

²Purchase from Korea Electric Power Corporation

³Subject to rights of first refusal

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For further information please contact:

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