Cameco London, UK (CCO-TSX; CCJ-NYSE)

May 1, 2013 Research Comment Cameco London, UK (CCO-TSX; CCJ-NYSE)

Stock Rating: Outperform Edward Sterck Industry Rating: Market Perform BMO Capital Markets Ltd. +44 (0)20 7246 5421 [email protected]

Price (30-Apr) $19.64 52-Week High $23.48 Target Price $25.00  52-Week Low $16.50 Q1/13 Results Slightly Ahead of Estimates; 2013 Cameco Corp (CCO) Price: High,Low,Close Earnings/Share Earnings Forecasts Remain Biased Toward Q4 1.8

40 1.6 Event 30 1.4 Cameco reported Q1/13 adjusted earnings of C$27M or C$0.07/share, beating BMO Research’s estimate of C$0.05/share. The beat versus forecasts was 20 1.2 primarily the function of lower-than-expected unit production costs and 10 1.0 Volume (mln) royalties in the uranium division. Although the Q1/13 result was light versus 100 100 Q1/12 (C$0.31/share), this was anticipated with uranium sales and therefore 50 50 earnings are expected to be biased toward the second half of the year. 0 0 CCO Relative to S&P/TSX Comp 150 150

Impact 100 100 Neutral. Cameco’s MD&A contained no major changes to guidance for 2013 or 50 50 beyond. As such, BMO Research’s valuation and earnings estimates for 2008 2009 2010 2011 2012 Last Data Point: April 30, 2013 Cameco remain broadly unchanged. (FY-Dec.) 2011A 2012A 2013E 2014E

EPS $1.28 $1.19 $1.24 $1.33 Forecasts P/E 15.8x 14.8x

BMO Research forecasts Cameco to return earnings of C$1.24/share in 2013 CFPS $1.84 $1.62 $2.26 $2.43 P/CFPS 8.7x 8.1x and C$1.33/share in 2014. U Price (US$/lb) $48 $47 $50 $60 U Sales (Mlb U3O8) 32.9 32.5 32.6 33.3 Valuation C$/US$ 1.01 1.00 0.98 1.01 EV/EBITDA 9.5x 11.3x 14.4x 12.3x BMO Research estimates Cameco to have a 10% NPV of C$17.64/share, up Quarterly EPS Q1 Q2 Q3 Q4 from C$16.11/share previously. The main drivers for the increase in valuation 2011A $0.21 $0.18 $0.26 $0.63 are the extension to the OPA floor price agreement, which is expected to allow 2012A $0.31 $0.15 $0.13 $0.59 2013E $0.07a $0.16 $0.23 $0.79 the four Bruce B units to operate for longer than previously anticipated, and an Dividend $0.40 Yield 2.0% improvement in Cameco’s net debt position as a result of working capital Book Value $11.79 Price/Book 1.7x adjustments (principally reduced receivables partially offset by increased Shares O/S (mm) 397.1 Mkt. Cap (mm) $7,799 Float O/S (mm) 395.3 Float Cap (mm) $7,764 inventory). Wkly Vol (000s) 14,152 Wkly $ Vol (mm) $295.2 Net Debt ($mm) $776 Next Rep. Date Aug (E) Notes: All figures in C$ unless otherwise noted Recommendation Major Shareholders: Widely Held Cameco remains BMO Research’s top pick in the uranium space. BMO First Call Mean Estimates: CAMECO CORP (C$) 2013E: $1.15; 2014E: $1.34 Research rates Cameco Outperform with a C$25 target price (1.4x NPV).

Changes Annual EPS Annual CFPS Quarterly EPS 2013E $1.25 to $1.24 2013E $2.34 to $2.26 Q2/13E $0.14 to $0.16 2014E $1.34 to $1.33 2014E $2.46 to $2.43 Q3/13E $0.24 to $0.23 Q4/13E $0.82 to $0.79

This report was prepared by an analyst(s) employed by BMO Capital Markets Ltd., authorised and regulated by the Financial Conduct Authority in the UK. The analyst(s) is (are) not registered as a research analyst(s) under FINRA rules. For disclosure statements, including the Analyst's Certification, please refer to pages 5 to 8. BMO Capital Markets Cameco

2013 Uranium Sales and Earnings Seasonality

Cameco has left uranium sales guidance for 2013 unchanged at 31Mlb to 33Mlb U3O8 with 60% of sales expected to fall into H2/13. Given that the same seasonality has been exhibited in every year since 2008 and Cameco’s customers must typically give six months notice for deliveries (implying good visibility to the end of October), BMO Research sees Cameco missing guidance on an annual basis as a relatively unlikely scenario. As such, BMO Research has made no changes to uranium sales forecasts for quarters two through four, leaving a strong sales bias toward the fourth quarter that reflects results in 2011 and 2012.

Fig 1: Cameco Quarterly Uranium Sales (Mlb U3O8, %)

16 50% Percentage of Annual Sales (%) 14 40% 12

10 30% Uranium sales 8 seasonality biased 6 20% toward Q4/13 as in the 4 10%

last five years. Sales (Mlb U3O8) Uranium 2 0 0% Q1/07A Q2/07A Q3/07A Q4/07A Q1/08A Q2/08A Q3/08A Q4/08A Q1/09A Q2/09A Q3/09A Q4/09A Q1/10A Q2/10A Q3/10A Q4/10A Q1/11A Q2/11A Q3/11A Q4/11A Q1/12A Q2/12A Q3/12A Q4/12A Q1/13A Q2/13E Q3/13E Q4/13E Uranium Sales (lhs) Percentage of Annual Sales (rhs)

Source: BMO Capital Markets

As uranium sales remain the key driver for Cameco, earnings are also expected to be heavily biased toward the fourth quarter. Fig 2: Cameco Quarterly Earnings (C$/Share, %)

0.90 70% Percentage of Annual Earnings (%)

0.80 60% 0.70 50% 0.60 0.50 40% This also results in 0.40 30% earnings being heavily EPS (C$) 0.30 20% biased toward year end. 0.20 0.10 10% 0.00 0% Q1/07A Q2/07A Q3/07A Q4/07A Q1/08A Q2/08A Q3/08A Q4/08A Q1/09A Q2/09A Q3/09A Q4/09A Q1/10A Q2/10A Q3/10A Q4/10A Q1/11A Q2/11A Q3/11A Q4/11A Q1/12A Q2/12A Q3/12A Q4/12A Q1/13A Q2/13E Q3/13E Q4/13E Adjusted EPS (lhs) Percentage of Annual Earnings (rhs)

Source: BMO Capital Markets

Page 2  May 1, 2013 BMO Capital Markets Cameco

Bruce Power Extension Increases Valuation

Bruce Power extension Cameco announced in its MD&A that Bruce Power has agreed with the Ontario Power increases the divisional Authority to amend the Bruce Power Refurbishment Implementation Agreement to valuation by 68%. extend the floor price applicable to power generated from the Bruce B reactors to between 2019 and 2020. This is expected to allow the reactors to continue to operate for longer than BMO Research’s previous forecasts, which assumed they ceased operations between 2015 and 2018 depending on the reactor. BMO Research now assumes that units 5 and 6 close at the end of 2019 and units 7 and 8 at the end of 2020. The net impact is to increase the valuation of Cameco’s interest in Bruce Power from C$99M to C$166M. Maintain Outperform and C$25 Target Price

Cameco remains BMO Research’s top pick in the uranium space. Cameco offers exposure to potential increases in the uranium price, as well as earnings downside protection through its contract book. The company is trading on a one year forward earnings multiple of 16x, versus an historical fair value range of 20–22x and up to 36x in the months preceding Fukushima. BMO Research maintains an Outperform recommendation for Cameco and a C$25 target C$25 target price price. represents 20x one year Although Cameco’s valuation has increased as a result of the Bruce Power extension and forward earnings. working capital adjustments, the C$25 target price continues to represent 20x one year forward forecast earnings. Fig 3: BMO Research Uranium Coverage Summary Table

Share Shares Market Cap EV P/NPV 2013E 2013E 2013E EPS Target Total Company Rating NPV/Share Price O/S (M) (US$M) (US$M) (X) P/E (X) EV/EBITDA (X) Growth Price Return Bannerman Market Perform (S) A$0.06 275 17 20 A$0.58 0.1 n/a n/a n/a n/a n/a Berkeley Not Rated A$0.32 174 57 NR NR NR NR NR NR NR NR Cameco Outperform C$19.64 397 7479 8195 C$17.64 1.1 15.8 14.4 5% C$25.00 27% Denison Market Perform (S) C$1.25 397 476 438 C$1.75 0.7 na n/a 16% C$1.50 20% ERA Market Perform A$1.03 518 548 68 A$5.08 0.2 na n/a -3% A$1.35 31% Paladin Market Perform C$0.81 837 650 1213 C$1.62 0.5 na 9.6 -62 C$1.20 48% Uranium One Restricted C$2.80 957 2570 RRRRR RRR Sector Totals/Averages 9170 9934 1.0 15.8 14.0 Source: BMO Capital Markets. Priced as of Close 30th April 2013

Page 3  May 1, 2013 BMO Capital Markets Cameco

Fig 4: Cameco - Financial Summary Model

Cameco Corp CCO:CCJ CASH FLOW ANALYSIS - C$M TSX:NYSE (Dec Year End) 2011A 2012A 2013E 2014E 2015E As at 30-Apr-13 Recommendation: Outperform Edward Sterck Cash Flows From Operating Activities BMO Capital Markets Receipts From Customers 2348.9 2293.0 2533.1 2937.1 3120.1 Payments To Suppliers (1159.9) (1209.4) (1506.7) (1749.0) (1755.8) Share Price (US$) $18.83 Share Price (C$) $19.64 Net Interest (55.6) (8.1) (51.9) (59.3) (57.2) Other (401.8) (431.6) (69.0) (160.4) (259.6) Target Value (US$) $23.98 Target Value (C$) $25.00 NPV (US$) $16.92 NPV (C$) $17.64 Cash Flows From Investing Activities Acq.of Property, Plant and Equip. (647.2) (1310.1) (861.3) (700.1) (553.7) Exploration Expenditure 0.0 0.0 (83.5) (84.5) (84.5) Ordinary Shares (M) 397.1 Other 119.2 731.5 0.0 0.0 0.0 Options + Notes (M) 0.6 Cash Flows From Financing Activities Market Cap (US$M) $7,479 Market Cap (C$M) $7,799 Net Change in Borrowings (2.6) 492.0 0.0 (6.1) 0.0 Dividends Paid and Share Buy-Back (146.0) (158.1) (159.7) (159.7) (159.7) Share Issuance and 'Other (40.0) (46.9) (46.9) (46.9) (46.9)

PRICE ASSUMPTIONS Net Increase In Cash Held 15.0 352.3 (245.9) (28.9) 202.8 (Dec Year End) 2011A 2012A 2013E 2014E 2015E Cash At End of Year 399.3 749.8 503.9 475.0 677.8

Exchange Rate US$:C$ 1.01 1.00 0.98 1.01 1.02 Uranium - Spot US$/lb 57.00 48.90 49.43 70.00 70.00 Realised Price US$/lb 47.71 47.10 49.42 60.36 61.45 BALANCE SHEET ANALYSIS - C$M Realised Price C$/lb 47.98 46.19 50.44 59.71 60.25 (Dec Year End) 2011A 2012A 2013E 2014E 2015E Current Assets Cash and Liquids 1203.4 799.4 553.4 524.6 727.3 Other 1381.9 1368.6 1375.6 1382.6 1389.6

Non-Current Assets Investments 504.0 510.6 510.6 510.6 510.6 Fixed Assets 4532.1 5249.1 5922.8 6423.6 6751.0 FINANCIAL SUMMARY Other 180.3 287.4 292.4 297.4 302.4 (Dec Year End) 2011A 2012A 2013E 2014E 2015E Current Liabilities NPAT (Adj) (C$M) 474.8 451.9 484.7 526.5 560.4 Borrowings 106.6 122.9 122.9 122.3 122.3 EPS (C$ps) 1.28 1.19 1.24 1.33 1.41 Creditors 457.3 468.8 478.8 488.8 498.8 PER (x) 15.4 16.6 15.8 14.8 13.9 Other 144.2 116.1 116.5 116.9 117.3 EPS Growth (%) 2.2 -7.2 4.8 6.82 6.4 EBITDA (C$M) 802.8 752.7 619.9 728.7 866.6 Non-Current Liabilities EBITDA per Share (C$ps) 2.02 1.90 1.6 1.83 2.2 Borrowings 932.3 1407.1 1513.6 1508.1 1508.1 EV/EBITDA (x) 9.5 11.3 14.4 12.3 10.1 Other 1056.1 1155.8 1155.8 1155.8 1155.8 Dividend (C$ps) 0.40 0.40 0.40 0.40 0.40 Minority Interest 0.0 0.6 0.6 0.6 0.6 Yield (%) 2.0% 2.0% 2.0% 2.0% 2.0% SHAREHOLDERS FUNDS 5105.5 4943.7 5266.6 5746.2 6278.1 Net Debt/Equity % -3.2% 14.8% 20.6% 19.2% 14.4%

PROFIT AND LOSS STATEMENT - C$M DIVISIONAL EARNINGS (EBIT) - C$M (Dec Year End) 2011A 2012A 2013E 2014E 2015E (Dec Year End) 2011A 2012A 2013E 2014E 2015E

Sales Revenue 2350.5 2321.5 2533.2 2937.1 3120.1 Uranium 521.9 382.3 491.5 567.8 677.4 Revenue Adjustments 1.6 28.5 0.1 0.0 0.0 Bruce Power 120.4 201.0 104.5 116.5 124.8 Operating Costs 1159.9 1209.4 1506.7 1749.0 1755.8 Fuel Services 56.8 38.9 56.9 47.8 48.2 Gross Operating Profit 1192.1 1140.6 1026.6 1188.1 1364.3 NUKEM 0.0 0.0 18.5 36.4 37.1 Depreciation 266.1 293.3 271.1 283.8 310.7 Corporate Adjustments -169.7 -168.8 -326.9 -328.1 -336.0 Corporate/Royalties/Other 395.0 365.4 411.1 463.8 502.2 EBIT (Subsidiaries & JV) 531.0 481.9 344.5 440.5 551.5 Group EBIT 529.4 453.4 344.4 440.5 551.5 Less Net Interest Expense 49.1 59.6 47.0 59.3 57.2 Pre-Tax Profits 481.9 422.3 297.5 381.3 494.3 Tax 11.8 -56.4 -65.3 -19.2 49.8 Less Minorities Plus Associates 4.7 1.7 118.0 122.3 112.3 NPAT (pre-Abs) 474.8 480.4 480.8 522.8 556.7 Net Abnormals -24.6 -186.4 -18.0 0.0 0.0 Reported Profit 450.3 265.5 466.7 526.5 560.4 Dividends 157.8 158.5 158.8 158.8 158.8 ADJUSTED PROFIT (ex FX & Deriv's) 468.9 412.5 493.9 526.5 560.4

DIVISIONAL VALUATION RESERVES AND RESOURCES ATTRIBUTABLE URANIUM SALES BY DIVISION NPV C$M Attributable Contained Mine Percent 2011A 2012A 2013E 2014E 2015E Purchased Uranium Sales 117 U3O8 Life Owned McArthur River 3159 (Mlb) (Years) Purchased U Sales 100% Mlb 11.17 9.97 9.68 8.25 7.13 Rabbit Lake 140 McArthur River 70% Mlb 13.67 14.21 13.31 13.12 13.12 US ISL 148 Reserves 465 12 Rabbit Lake 100% Mlb 3.53 3.97 4.24 4.19 4.19 Inkai 1138 Resources 918 23 US ISL 100% Mlb 2.05 1.85 2.45 2.90 2.90 Cigar Lake 1542 BMO Guesstimate 732 18 Inkai 60% Mlb 2.48 2.52 2.91 3.01 3.01 Exploration and Investments 1623 Cigar Lake 50% Mlb 0.00 0.00 0.00 1.79 5.52 Bruce P and Fuel Services 706 NUKEM 423 Total Attrib Uranium Mlb 32.9 32.5 32.6 33.3 35.9 Corp, Net Cash and Options -1980 TOTAL NPV (C$M) 7,015 U3O8 Cash Cost US$/lb 21.81 30.14 26.04 30.57 28.70 NPV per Share (C$) Diluted $17.64

Source: BMO Capital Markets

Page 4  May 1, 2013 BMO Capital Markets Cameco

Cameco Corp (CCO)

Target Price Quarterly Price Share Price 45 45

40 40 50 50 35 35 40 40 30 30

30 30 25 25

20 20 20 20

1) OP 10 10 15 15 10 10

CCO Relative to S&P/TSX Comp. CCO Relative to S&P/TSX Comp. CCO Relative to Oil/Gas/Consumable Fuels CCO Relative to Oil/Gas/Consumable Fuels 160 160 500 500 140 140 400 400 120 120 300 300 100 100 200 200 80 80 100 100 60 60 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2010 2011 2012

Revenue / Share BMO 2013FY EPS ( Apr 13 = 1.25 ) Price / Revenue IBES 2013FY Cons.EPS ( Apr 13 = 1.22 ) 10 20 2.0 2.0 10 5 1.5 1.5 0 1.0 1.0 EPS (4 Qtr Trailing) BMO 2014FY EPS ( Apr 13 = 1.34 ) Price / Earnings IBES 2014FY Cons.EPS ( Apr 13 = 1.36 ) 2 100

1 50 1 1

0 0 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2010 2011 2012

FYE EPS P/E DPS Yield% Payout BV P/B ROE CCO - Rating as of 20-May-10 = Mkt (Dec.) $ Hi - Lo $ Hi - Lo % $ Hi - Lo % 1992 0.22 14.1 10.0 0.08 3.8 2.7 38 3.6 0.9 0.6 1993 0.23 20.5 11.9 0.08 3.0 1.7 36 3.7 1.3 0.7 6 Date Rating Change Share Price 1994 0.26 20.0 13.9 0.08 2.3 1.6 32 3.9 1.3 0.9 7 1995 0.33 26.7 14.9 0.08 1.7 1.0 26 4.1 2.1 1.2 8 1 22-Jun-11 Mkt to OP $23.75 1996 0.43 29.3 18.7 0.08 1.0 0.7 19 4.4 2.9 1.8 10 1997 0.25 39.7 26.5 0.08 1.3 0.8 33 4.9 2.0 1.4 5 1998 0.19 45.2 20.9 0.08 2.1 1.0 43 5.0 1.7 0.8 4 1999 0.12 56.3 28.8 0.08 2.4 1.2 69 5.1 1.3 0.7 2 2000 0.14 34.9 17.9 0.08 3.4 1.8 62 4.8 1.0 0.5 3 2001 0.17 43.0 23.7 0.08 2.1 1.2 50 4.9 1.5 0.8 3 2002 0.14 58.6 30.3 0.08 2.0 1.0 60 4.9 1.6 0.9 3 2003 0.35 36.7 13.8 0.10 2.1 0.8 29 5.4 2.4 0.9 7 2004 0.51 41.8 18.9 0.10 1.0 0.5 20 6.2 3.4 1.5 9 2005 0.58 65.2 29.9 0.12 0.7 0.3 21 6.8 5.5 2.5 9 2006 0.77 64.9 42.8 0.16 0.5 0.3 21 7.8 6.4 4.2 11 2007 1.52 39.4 23.2 0.20 0.6 0.3 13 8.0 7.5 4.4 19 2008 1.72 25.8 8.3 0.24 1.7 0.5 14 9.6 4.6 1.5 20 2009 1.48 23.3 10.8 0.24 1.5 0.7 16 12.3 2.8 1.3 13 2010 1.25 32.8 17.3 0.28 1.3 0.7 22 13.2 3.1 1.6 10 2011 1.28 34.6 13.5 0.40 2.3 0.9 31 12.5 3.6 1.4 10 2012 1.19 22.2 13.8 0.40 2.4 1.5 34 12.5 2.1 1.3 10 Range*: 65.2 8.3 3.8 0.3 7.5 0.5 Current* 1.19 17.8 0.40 1.9 34 11.8 1.8 10

Growth(%): 5 Year: -7.1 10.8 8.2 10 Year: 17.7 14.9 9.1 20 Year: 8.8 8.2 6.1 * Current EPS is the 4 Quarter Trailing to Q4/2012. * Valuation metrics are based on high and low for the fiscal year. * Range indicates the valuation range for the period presented above. Last Price ( April 30, 2013): $ND Sources: IHS Global Insight, Thomson Reuters, BMO Capital Markets.

Page 5  May 1, 2013 BMO Capital Markets Cameco

IMPORTANT DISCLOSURES

Analyst's Certification I, Edward Sterck, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.

Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Ltd. are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosure Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to this issuer within the past 12 months. Disclosure 2: BMO Capital Markets has provided investment banking services with respect to this issuer within the past 12 months. Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from this issuer within the past 12 months. Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months. Disclosure 6: This issuer is a client (or was a client) of BMO NB, BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Investment Banking Services & Non-Securities Related Services. Disclosure 8: BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of this issuer. Disclosure 9: BMO Capital Markets makes a market in this security.

Methodology and Risks to Price Target/Valuation Methodology: Cameco's target price is 1.4x its estimated 10% NPV. Risks: Cameco may fail to develop its projects in line with BMO Research's forecasts and may fail in remediation efforts at Cigar Lake. If the price of uranium decreases, Cameco's estimated NPV could reduce.

Distribution of Ratings (March 31, 2013) Rating BMOCM US BMOCM US BMOCM US BMOCM BMOCM Starmine Category BMO Rating Universe* IB Clients** IB Clients*** Universe**** IB Clients***** Universe Buy Outperform 37.3% 16.5% 53.8% 38.2% 51.3% 53.2% Hold Market Perform 58.0% 8.8% 44.6% 56.8% 47.7% 41.1% Sell Underperform 4.7% 3.7% 1.5% 4.9% 1.0% 5.7% * Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts. ** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage within ratings category. *** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage of Investment Banking clients. **** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts. ***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as percentage of Investment Banking clients.

Rating and Sector Key (as of April 5, 2013): We use the following ratings system definitions: OP = Outperform - Forecast to outperform the analyst’s coverage universe on a total return basis Mkt = Market Perform - Forecast to perform roughly in line with the analyst’s coverage universe on a total return basis Und = Underperform - Forecast to underperform the analyst’s coverage universe on a total return basis on a total return basis (S) = speculative investment; NR = No rating at this time; R = Restricted – Dissemination of research is currently restricted.

Page 6  May 1, 2013 BMO Capital Markets Cameco

BMO Capital Markets' seven Top 15 lists guide investors to our best ideas according to different objectives (CDN Large Cap, CDN Small Cap, US Large Cap, US Small cap, Income, CDN Quant, and US Quant have replaced the Top Pick rating).

Prior BMO Capital Markets Ratings System (January 4, 2010–April 5, 2013): http://researchglobal.bmocapitalmarkets.com/documents/2013/prior_rating_system.pdf

Other Important Disclosures For Other Important Disclosures on the stocks discussed in this report, please go to http://researchglobal.bmocapitalmarkets.com/Public/Company_Disclosure_Public.aspx or write to Editorial Department, BMO Capital Markets, 3 Times Square, New York, NY 10036 or Editorial Department, BMO Capital Markets, 1 First Canadian Place, Toronto, Ontario, M5X 1H3. Dissemination of Research Our research publications are available via our web site http://www.bmocm.com/research/. Institutional clients may also receive our research via FIRST CALL, FIRST CALL Research Direct, Reuters, Bloomberg, FactSet, Capital IQ, and TheMarkets.com. All of our research is made widely available at the same time to all BMO Capital Markets client groups entitled to our research. Additional dissemination may occur via email or regular mail. Please contact your investment advisor or institutional salesperson for more information.

Conflict Statement A general description of how BMO Financial Group identifies and manages conflicts of interest is contained in our public facing policy for managing conflicts of interest in connection with investment research which is available at http://researchglobal.bmocapitalmarkets.com/Public/Conflict_Statement_Public.aspx.

General Disclaimer “BMO Capital Markets” is a trade name used by the BMO Investment Banking Group, which includes the wholesale arm of Bank of Montreal and its subsidiaries BMO Nesbitt Burns Inc., BMO Capital Markets Ltd. in the U.K. and BMO Capital Markets Corp. in the U.S. BMO Nesbitt Burns Inc., BMO Capital Markets Ltd. and BMO Capital Markets Corp are affiliates. Bank of Montreal or its subsidiaries (“BMO Financial Group”) has lending arrangements with, or provide other remunerated services to, many issuers covered by BMO Capital Markets. The opinions, estimates and projections contained in this report are those of BMO Capital Markets as of the date of this report and are subject to change without notice. BMO Capital Markets endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, BMO Capital Markets makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to BMO Capital Markets or its affiliates that is not reflected in this report. The information in this report is not intended to be used as the primary basis of investment decisions, and because of individual client objectives, should not be construed as advice designed to meet the particular investment needs of any investor. This material is for information purposes only and is not an offer to sell or the solicitation of an offer to buy any security. BMO Capital Markets or its affiliates will buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. BMO Capital Markets or its affiliates, officers, directors or employees have a long or short position in many of the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. The reader should assume that BMO Capital Markets or its affiliates may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. Additional Matters To Canadian Residents: BMO Nesbitt Burns Inc., affiliate of BMO Capital Markets Corp., furnishes this report to Canadian residents and accepts responsibility for the contents herein subject to the terms set out above. Any Canadian person wishing to effect transactions in any of the securities included in this report should do so through BMO Nesbitt Burns Inc. The following applies if this research was prepared in whole or in part by Andrew Breichmanas, Tony Robson, or Edward Sterck: This research is not prepared subject to Canadian disclosure requirements. This research is prepared by BMO Capital Markets Limited and subject to the regulations of the Financial Conduct Authority (FCA) in the United Kingdom. FCA regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 5% or more of the equity of the issuer. Canadian regulations require that a firm providing research disclose its ownership interest in the issuer that is the subject of the research if it and its affiliates own 1% or more of the equity of the issuer that is the subject of the research. Therefore BMO Capital Markets Limited will only disclose its and its’ affiliates ownership interest in the subject issuer if such ownership exceeds 5% of the equity of the issuer. To U.S. Residents: BMO Capital Markets Corp. and/or BMO Nesbitt Burns Securities Ltd., affiliates of BMO NB, furnish this report to U.S. residents and accept responsibility for the contents herein, except to the extent that it refers to securities of Bank of Montreal. Any U.S. person wishing to effect transactions in any security discussed herein should do so through BMO Capital Markets Corp. and/or BMO Nesbitt Burns Securities Ltd. To U.K. Residents: In the UK this document is published by BMO Capital Markets Limited which is authorised and regulated by the Financial Conduct Authority. The contents hereof are intended solely for the use of, and may only be issued or passed on to, (I) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (II) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together referred to as “relevant persons”). The contents hereof are not intended for the use of and may not be issued or passed on to, retail clients.

Page 7  May 1, 2013 BMO Capital Markets Cameco

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST BMO Financial Group (NYSE, TSX: BMO) is an integrated financial services provider offering a range of retail banking, wealth management, and investment and corporate banking products. BMO serves Canadian retail clients through BMO Bank of Montreal and BMO Nesbitt Burns. In the United States, personal and commercial banking clients are served by BMO Harris Bank N.A., (Member FDIC). Investment and corporate banking services are provided in Canada and the US through BMO Capital Markets. BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale banking businesses of Bank of Montreal, BMO Harris Bank N.A (Member FDIC), BMO Ireland Plc, and Bank of Montreal (China) Co. Ltd. and the institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC), BMO Nesbitt Burns Securities Limited (Member SIPC) and BMO Capital Markets GKST Inc. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc. (Member Canadian Investor Protection Fund) in Canada, Europe and Asia, BMO Capital Markets Limited in Europe, Asia and Australia and BMO Advisors Private Limited in India. “Nesbitt Burns” is a registered trademark of BMO Nesbitt Burns Corporation Limited, used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license. "BMO (M-Bar roundel symbol)" is a registered trademark of Bank of Montreal, used under license. ® Registered trademark of Bank of Montreal in the United States, Canada and elsewhere. TM Trademark Bank of Montreal

Page 8  May 1, 2013