CAMECO RESOURCES Corporate Office 2020 Carey Avenue Cam eco Suite 600 Cheyenne, WY $2001 USA

Tel: (307) 316-7600 December 15, 2011 Fax: (307) 635-9949 www.cameco.com U.S. Nuclear Regulatory Commission Attn: Douglas Mandeville 11545 Rockville Pike Two White Flint North, Mailstop T8 F5 Rockville, MD 20852-2738

RE: License SUA-1548, Docket No. 40-8964 North Butte Scotiabank Letter of Credit No.

Dear Mr. Mandeville:

Pursuant to License Condition 9.5, Power Resources, Inc. d/b/a Cameco Resources (Cameco) is herein providing (2) copies of Scotiabank Letter of Credit No. or the North Butte Project as accepted by the Wyoming Department of Environmental Quality, Land Quality Division. This letter of credit in the amount of $6,773,000, combined with Cameco's previously existing letter of credit in the amount of $1,745,000 through the Royal Bank of Canada, brings the total aggregate surety amount to $8,518,000 for the North Butte project.

If you have any questions, please contact me at 307.316.7588 or email [email protected].

Sincerely, CAMECO RESOURCES

Josh Leftwich Director of Radiation Safety and Licensing

Attachment: WDEQ/LQD Acceptance Letter and Scotiabank Letter of Credit No.'

cc: Document Control Desk, NRC File NB ec: Cameco-Cheyenne Department of Environmental Quality

To protect, conserve and enhance the quality of Wyoming's environment for the benefit of current and future generations.

Matthew H. Mead, Governor John Corra, Director

December 13, 2011

Mr. Josh Leftwich IU Dllzc 1202011 LL Power Resources, Inc. d/b/a J~dOa ~~1 CA yo 0~f•;:E:"" .lINC. , Cameco Resources YL-NI R . .. t.,CE 2020 Carey Ave. Cheyenne, WY 82001

RE: Permit No. 632 - Scotiabank/The Bank of Nova Scotia Letter of Credit No.

Dear Mr. Leftwich:

The above referenced letter of credit in the amount of Six Million, Seven Hundred Seventy-Three Thousand Dollars ($6,773,000) has been accepted by the department. Your bonding aggregate is now Eight Million, Five Hundred Eighteen Thousand Dollars ($8,518,000) in compliance with the Director's November 1, 2011. Receipt no. 0510 is enclosed.

If you have any questions, please contact the Sheridan District IIn office (307-673-9337).

Sincerely,

Carol Bilbrough Program Manager Land Quality Division Enclosure CB:DH:bb

xc: District III w/encl.

Herschler Building • 122 West 25th Street • Cheyenne, WY 82002 • http:l/deq.state.wy.us ADMINIOUTREACH ABANDONED MINES AIR QUALITY INDUSTRIAL SITING LAND QUALITY SOLID & HAZ, WASTE WATER QUALITY (307) 777-7758 (307) 777-6145 (307) 777-7391 (307) 777-7369 (307) 777-7756 (307) 777-7752 (307) 777-7781 FAX 777-7682 FAX 777-6462 FAX 777-5616 FAX 777-6937 FAX 777-5864 FAX 777-5973 FAX 777-5973 a4 Scotiabank THE BANK OF NOVA SCOTIA

Norw Yr ik Aqiecy. One Lihcr ly Pla/,. N(,w York. N.Y 10006

DEC 8 2011

COPY ftCENIE

DECEMBER 7, 2011

WYOMING DEPARTMENT OF ENVIRONMENTAL QUALITY HERSCHLER BUILDING 122 WEST 2 5 TH STREET CHEYENNE, WY 82002 ATTENTION: DEANNA HILL

GENTLEMEN:

RE: IRREVOCABLE STANDBY LETTER OF CREDIT NO.

AT THE REQUEST OF CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC D/B/A CAMECO RESOURCES, 2020 CAREY AVENUE, SUITE 600, CHEYENNE, WY 82001 WE ENCLOSE HEREWITH OUR IRREVOCABLE LETTER OF CREDIT NO. hJ SSUED IN YOUR FAVOR.

YOURS

ASANDRA EDWARDS MANAGER STANDBY LETTER OF CREDIT DEPARTMENT TEL: 212-225-5424 FAX: 212-225-6464/5499 Scotiabank 5 THE BANK OF NOVA SCOTIA New York Agency DEC 82011 One Liberty Plaza, New York, N.Y. 10006

DATE OF ISSUE: DECEMBER 7, 2011 ftCENf9 LETTER OF CREDIT NO.: AMOUNT: NOT EXCEEDING USD6,773,000.00 EXPIRY DATE AND PLACE: DECEMBER 06, 2012 AT THE COUNTERS OF ISSUING BANK

BENEFICIARY: APPLICANT: WYOMING DEPARTMENT OF ENVIRONMENTAL CAMECO CORPORATION ON BEHALF OF QUALITY POWER RESOURCES INC. D/B/A HERSCHLER BUILDING CAMECO) RESOURCES 122 WEST 25' STREET 2020 CAREY AVENUE CHEYENNE, WY 82002 SUITE 600 CHEYEN NE, WY 82001

DEAR SIRS,

WE, THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, ONE LIBERTY PLAZA, NEW YORK, N.Y. 10006, U.S.A. (THE -BANK") HEREBY ESTABLISH OUR IRREVOCABLE LETTER OF CREDIT NO. IN YOUR FAVOUR FOR THE ACCOUNT OF CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC. D/B/A CAMECO RESOURCES (ALSO REFERRED TO HEREIN AS THE PERMITTEE OR OPERATOR) IN THE AGGREGATE AMOUNT OF UNITED STATES DOLLARS SIX MILLION SEVEN HUNDRED SEVENTY THREE THOUSAND AND 00/100 (USD6,773,000.00) AVAILABLE BY YOUR DRAFTS AT SIGHT DRAWN ON THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, ONE LIBERTY PLAZA, NEW YORK, N.Y. 10006, U.S.A. ACCOMPANIED BY THE FOLLOWING DOCUMENT:

A SIGNED AND DATED STATEMENT FROM THE DIRECTOR OF THE WYOMING DEPARTMENT OF ENVIRONMENTAL QUALITY AND THE LAND QUALITY ADMINISTRATOR IN ANY ONE OF THREE FOLLOWING FORMS:

A. "THE UNDERSIGNED HEREBY ADVISE THAT AN ORDER IN AN AMOUNT IDENTICAL TO THE AMOUNT OF THE SIGHT DRAFT WHICH THIS STATEMENT ACCOMPANIES HAS BEEN ENTERED BY THE ENVIRONMENTAL QUALITY COUNCIL PURSUANT TO W.S. NO. 35-11-421, FORFEITING ALL OR PART OF THE AMOUNT OF THE CREDIT BECAUSE OF ANY VIOLATION OF THE WYOMING ENVIRONMENTAL QUALITY ACT, BY CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC. D/B/A CAMECO RESOURCES, PERMIT NO. 632 , A CERTIFIED COPY OF THE ORDER OF FORFEITURE IS ATTACHED."

I-i 99

9 Page I THIS PAGE 2 FORMS AN INTEGRAL PART OF LETTER OF CREDIT NO.

B. "THE UNDERSIGNED HEREBY ADVISE THAT A SETTLEMENT AGREEMENT IN AN AMOUNT IDENTICAL TO THE AMOUNT OF THE SIGHT DRAFT WHICH THIS STATEMENT ACCOMPANIES HAS BEEN SIGNED ON BEHALF OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY AND ON BEHALF OF THE OPERATOR, CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC. D/B/A CAMECO RESOURCES, PERMIT NO. 632 , IN WHICH THE PARTIES HAVE AGREED TO AN AMOUNT DUE TO THE DEPARTMENT BECAUSE OF A VIOLATION OF THE WYOMING ENVIRONMENTAL QUALITY ACT, AND THAT CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC. D/B/A CAMECO RESOURCES, HAS FAILED TO PAY THE AMOUNT DUE WITHIN THE PERIOD OF TIME SPECIFIED IN THE AGREEMENT."

C. "THE UNDERSIGNED CERTIFY THAT THE OPERATOR, CAMECO CORPORATION ON BEHALF OF POWER RESOURCES INC. D/B/A CAMECO RESOURCES, PERMIT NO. 632 , HAS NOT FILED WITH THE DEPARTMENT AN EXTENSION OF THIS LETTER OF CREDIT, A SUBSTITUTE LETTER OF CREDIT OR OTHER ACCEPTABLE EVIDENCE OF FINANCIAL RESPONSIBILITY IN THE PLACE OF THE LETTER OF CREDIT; AND THAT IT IS THIRTY (30) DAYS OR LESS UNTIL THE CURRENT OR ANY AMENDED EXPIRATION DATE OF THIS IRREVOCABLE LETTER OF CREDIT."

PURSUANT TO CHAPTER 12, LAND QUALITY DIVISION NONCOAL REGULATIONSm THE BANK SHALL GIVE IMMEDIATE NOTICE TO THE PERMITTBE AND THE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENTAL QUALITY OF (A) ANY c NOTICE RECEIVED OR ACTION FILED ALLEGING THE INSOLVENCY OR BANKRUPTCY OF THE BANK; OR (B) ALLEGING ANY VIOLATIONS OF c REGULATORY REQUIREMENTS WHICH COULD RESULT IN SUSPENSION OR REVOCATION OF THE BANK'S CHARTER OR LICENSE TO DO BUSINESS; OR (C) THE BANK, FOR ANY REASON, BECOMES UNABLE TO FULFILL ITS OBLIGATION UNDER THE LETTER OF CREDIT.

EACH DRAFT MUST BEAR UPON ITS FACE THE CLAUSE "DRAWN UNDER LETTER OF CREDIT NO.i MDATED DECEMBER 7, 2011", AND THE TOTAL OF THIS DRAFT AND ALL OTHER DRAFTS PREVIOUSLY DRAWN UNDER THIS LETTER OF CREDIT DOES NOT EXCEED USD6,773,000.00 (UNITED STATES DOLLARS SIX MILLION SEVEN HUNDRED SEVENTY THREE THOUSAND AND 00/100).

IT IS A CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE DEEMED AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR ONE YEAR FROM THE PRESENT OR ANY FUTURE EXPIRATION DATE HEREOF, UNLESS AT LEAST NINETY (90) DAYS PRIOR TO ANY SUCH DATE WE SHALL NOTIFY THE DIRECTOR OF THE WYOMING DEPARTMENT OF ENVIRONMENTAL QUALITY IN WRITING BY OVERNIGHT COURIER SERVICE AT THE ABOVE MENTIONED ADDRESS THAT WE ELECT NOT TO CONSIDER THIS LETTER OF CREDIT RENEWED FOR ANY SUCH ADDITIONAL PERIOD. UPON RECEIPT BY YOU OF SUCH NOTICE, YOU MAY DRAW HEREUNDER.

ýý/Volage2 THIS PAGE 3 FORMS AN INTEGRAL PART OF LETTER OF CREDIT NO.vm gh

WE HEREBY AGREE WITH YOU THAT DRAFT(S) DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS LETTER OF CREDIT WILL BE DULY HONOURED IF PRESENTED TO THE BANK ON OR BEFORE DECEMBER 06, 2012.

ALL QUESTIONS ARISING IN CONNECTION WITH THIS LETTER OF CREDIT SHALL BE DETERMINED ACCORDING TO THE LAWS OF THE STATE OF WYOMING. THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS, 2007 REVISION, INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 600, EXCEPT TO THE EXTENT IT IS INCONSISTENT WITH THE LAWS OF WYOMING.

YOURS TRULY, THE BANK OF NOVA SCOTIA NEW YORK AGENCY

/ AUTHORIZED SIGNIATUIRUE E

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