Cameco’s Approach to Relationships with Local Communities

1. Cameco’s Approach to Relationships with Local Communities Jamie Dickson Legal Advisor, Corporate Responsibility Cameco Corporation October 28th (Calgary), November 5th (Toronto), 2013

2. Agenda • Background • Unique Legal Context in Northern SK Uranium Industry • Cameco’s “Five Pillar” Approach to its Relationships with Local Communities • Notable Successes • Cameco’s Recent Experience with Community/ Industry Agreements

3. Corporate head office in Saskatoon, SK Major operations in Northern SK One of the world’s largest uranium producers Account for ~16% of total global uranium production Canada’s #1 industrial employer of Aboriginal people Approximately 750 direct and 1500 indirect About Cameco

4. Major Uranium Regions in Canada Hornby Basin Labrador Central Belt Thelon Basin Otish Basin Athabasca Basin

5. The Heartbeat of Cameco: Northern SK Black Lake FN Fond du Lac FN Hatchet Lake FN English River First Nation Pinehouse Metis Lac La Ronge Indian Band

6. Unique Legal Context in Northern SK Uranium Industry • Cameco’s 4 major operations all undertaken on leased lands • Surface Lease Agreements • Explicitly delegate responsibilities to companies in relation to local community involvement • Express targets mandated • 67% northern employment • 35% procurement of goods/services from northern companies • Companies mandated to enter agreements with effected land users • Companies mandated to designate “Priority Recruitment Communities” for each operation • Companies mandated to work with 40+ northern communities generally

7. Motivation • Community Realities • High poverty • Young populations • Increased activism • Alignment with Business • Competitive advantage re hiring/retaining northern employees • Strong track record as value-adding asset • Proactive vs Reactive • Regulatory delays ($$$)

8. Cameco’s five-pillar strategy Workforce Development Community Engagement Business Development Community Investment Environmental Stewardship

9. Workforce Development Target: SLA target - 67% RSN Result: 50% RSN Action: • Northern Career Quest (NCQ) • Northern Skills Assessment • Northern Summer Student Program • Underground Mining Program • Mine Engineer Technician Program • Career Compass • Week In / Week Out Schedule

10. Business Development Target: SLA target – 35% northern procurement Result: ~ 70% Action: Northern Preferred Supplier Program Northern Business Directory Mentoring

11. Community Investment • $15+ million in northern donations since 2004 all focused on: • Education • Health and wellness • Sports and recreation • Shifting to community-managed community investment programs

12. Community Engagement/Environmental Stewardship Many Spokes on our Engagement/Consultation Wheel • Community Liaisons/Satellite Offices • Northern Tours/Roundtables • Northern SK Environmental Quality Committees • Project-Specific Engagement/Consultation • Mine Site Elders • Traditional Knowledge Collection • Involvement of northerners in environmental monitoring and country foods studies • www.cameco.com/northernsk The Cameco Story

13. Notable Successes • 70% goods and services procured from majority-northern-owned businesses • $2 billion + since 2004 • 50% northern SK employees (most are First Nation or Metis) • 760 employees from northern SK • $73M in northern salaries (2012) • additional 880 contractor employees • 25% of trades are northern • 100% of apprentices northern • Canada’s #1 industrial employer of Aboriginal people • $15M+ in targeted investment since 2004 • Recent Polling - 78% Support for Uranium Industry in Northern SK

14. Cameco’s Approach to Community Agreements • Overview • Impact Management Agreement – 1990s • Collaboration Agreements – 2012 onwards • Second generation agreements • Jointly with AREVA Resources Canada Inc. • Managing higher community expectations/risks • Two signed so far • Pinehouse Metis in Dec, 2012 (est. value – 200M) • English River First Nation in May, 2013 (est. value – 600M) • Other agreements being negotiated • Australian Experience

15. Collaboration Agreements • Second Generation Agreements • Agreements codify/package existing programming • Focus on improvement • Largely Focused on “Brownfield” Operations • Partnership Model • Companies agree to increase or “lock in” benefits • Communities agree to continue to provide support

16. Collaboration Agreements Benefits Highlights • Annual payments tied to production levels (not revenues) • Step-scale model: the more we produce, the greater the payment • Communities make their own investment decisions • Signing/Milestone payments • Primary focus still on jobs and contracts • “Evergreen” contracts introduced • Satellite offices

17. Collaboration Agreements Greater certainty/ predictability for company • Conditional community support pledged in agreements for existing and proposed activity • Clarity on: • types of activities that compel consultation • which operations potentially impact which communities based on known info • Sub-committees set up to standardize things like community engagement/ consultation generally • Future operations may be folded in later by agreement

18. Cameco in Australia The Kintyre Story • Acquired project based on strong track record in working with local/indigenous communities • Northerners from SK were our best ambassadors in agreement negotiations • Martu Peoples trip to northern SK • “Indigenous Land-Use Agreement” signed in late 2012

19. Cameco’s Approach to Relationships with Local Communities • Thank you • Questions? • www.cameco/northernsk