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NEWS RELEASE

For Immediate Release: December 21, 2004

Saskatoon, Saskatchewan, Canada

Cigar Lake Mine to Begin Construction

Tim Gitzel, Chairman of the Board of AREVA subsidiary COGEMA Resources Inc., is pleased to announce the decision by the Cigar Lake Joint Venture partners to proceed with the development of the Cigar Lake uranium mine. Cigar Lake is the world's second largest known high-grade uranium deposit.

"The mine will provide a secure, long-term supply of ore for our McClean Lake mill," said Tim Gitzel. "This development is an important part of our company's future in Saskatchewan and, given the strong uranium market, a key to maintaining our part in the worldwide uranium supply."

Initially, all of the Cigar Lake ore slurry will be trucked about 70 km. to COGEMA Resources' McClean Lake mill for processing. In the future, a portion, subject to regulatory approvals, will receive final processing at the Cameco Rabbit Lake mine. The McClean Lake mill expansion is an integral part of the Cigar Lake project. The mill expansion construction is expected to begin in the summer of 2005.

On December 20, the Canadian Nuclear Safety Commission issued a licence for the mine's development following an Environmental Assessment that was approved this summer.

COGEMA geologists discovered the Cigar Lake orebody in 1981. COGEMA Resources owns 37% of the project. Cameco owns 50% and operates the mine, while the Japanese companies Idemitsu and TEPCO own 8% and 5%, respectively. Construction will begin in January 2005 with operation and uranium production in 2007. At full production, Cigar Lake will produce about 18 million pounds of U3O8 (yellowcake) annually.

The Cigar Lake mine is 660 kilometres north of Saskatoon. During construction of the site, the workforce will peak at about 350, dropping to about 250 permanent employees for operation. Including the expansion to the mill at McClean Lake to process the high-grade Cigar Lake ore, the total investment will be about $450 million over two years. Development activities include a second mine shaft, underground drifts and facilities, surface facilities and an employee camp.

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With manufacturing facilities in over 40 countries and a sales network in over 100, AREVA offers customers technological solutions for nuclear power generation and electricity transmission and distribution. The group also provides interconnect systems to the telecommunications, computer and automotive markets. These businesses engage AREVA's 70,000 employees in the 21st century's greatest challenges: making energy and communication resources available to all, protecting the planet, and acting responsibly towards future generations.

AREVA subsidiary COGEMA Resources owns and operates the Cluff Lake mine located about 700 kilometres northeast of Saskatoon. The company is the operator and majority owner of the McClean Lake uranium operation, operates the Midwest uranium project, and owns shares of the Cigar Lake, McArthur River and Key Lake uranium mines. About half of COGEMA Resources' mine workers are residents of northern Saskatchewan. For more information, please go to www.cogema.ca.