Cameco lowers McArthur River's 2025 production forecast

Mr. Cory Kos reports CAMECO PROVIDES PRODUCTION UPDATE; STRATEGICALLY WELL-POSITIONED FOR CONTINUED LONG-TERM VALUE CREATION Cameco Corp. has provided an operational update regarding its 2025 production plans. Development delays in transitioning the McArthur River mine to new mining areas are expected to defer the extraction of pounds planned in 2025 and therefore impact its 2025 production forecast. However, strong performance at the Cigar Lake mine provides an opportunity to partially offset the deferred McArthur River production. The company believes its balanced and disciplined strategy and embedded risk management, which include diversified production assets and access to multiple sources of supply, position it well to effectively mitigate the impact of these types of disruptions, meet its delivery commitments and continue to deliver long-term value. At the beginning of 2025, the company highlighted several potential risks to the McArthur River mine's production schedule that could impact the timing of packaged production from the Key Lake mill and its consolidated production outlook for 2025. The risks included development delays and the expected timing of ground freezing as the mine transitioned into two new mining areas, as well as access to adequate skilled labour, and the timing of commissioning for new customized equipment. The impact of these risks was dependent on the magnitude of the delay, the McArthur River mine's ability to substitute feed for the Key Lake mill with production from alternative mining areas and its ability to offset reduced production from McArthur River/Key Lake with additional production from the Cigar Lake mine. The company has determined that it is unable to fully mitigate the expected impact of the delayed development and slower-than-anticipated ground freezing in the first half of 2025. Production from the McArthur River/Key Lake operation is anticipated to be between 14 million and 15 million pounds of uranium concentrate (triuranium octoxide) (100-per-cent basis; 9.8 million to 10.5 million pounds its share) in 2025, down from its previous forecast of 18 million pounds U3O8 (100-per-cent basis; 12.6 million pounds its share). At the Cigar Lake mine, it continues to expect to produce 18 million pounds U3O8 (100-per-cent basis; 9.8 million pounds its share) this year; however, performance to date at Cigar Lake has been strong, creating an opportunity to potentially offset up to one million pounds (100-per-cent basis) of the shortfall at the McArthur River/Key Lake operation. Cameco's strategy, which aligns its marketing, operational and financial decisions to capture full-cycle value, positions the company to effectively manage the expected production shortfall and meet its delivery commitments to its customers. With favourable market prices for uranium today, it continues to have the option to buy in the spot market if it is advantageous for it to do so. However, it plans its supply sources several years prior to delivery to mitigate the impact of potential disruptions. Therefore, beyond production and spot market purchases, it has the flexibility to source material through various other means, including using its inventory, borrowing product and pulling forward long-term purchases. Any uranium it does not produce this year will remain available to it and, with increasing upstream supply pressures, potentially become more valuable when delivered in the future. The company has maintained exposure to higher prices under both the market-related contracts in its long-term portfolio and its pipeline of contract negotiations, which it expects will generate long-term value for Cameco. It has also maintained a strong balance sheet to help it self-manage risk. This unplanned event may lead to variability in the other outlook provided in its second quarter management's discussion and analysis for 2025; however, it is too soon to quantify the impact. It will provide an update when it better understands the implications of the deferred production. The McArthur River mine is owned 69.805 per cent by Cameco and 30.195 per cent by Orano. The Key Lake mill is owned 83.333 per cent by Cameco and 16.667 per cent by Orano. The Cigar Lake operation is owned 54.547 per cent by Cameco, 40.453 per cent by Orano Canada Inc. (Orano) and 5 per cent by Tepco Resources Inc. Qualified persons The technical and scientific information discussed in this document for McArthur River/Key Lake and Cigar Lake was approved by the following individuals who are qualified persons for the purposes of National Instrument 43-101: Greg Murdock, general manager, McArthur River, Cameco; Daley McIntyre, general manager, Key Lake, Cameco; Kirk Lamont, general manager, Cigar Lake, Cameco. About Cameco Corp. Cameco is one of the largest global providers of the uranium fuel needed to power a secure energy future. Its competitive position is based on its controlling ownership of the world's largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Its shares trade on the Toronto and New York stock exchanges. Its head office is in Saskatoon, Sask., Canada. We seek Safe Harbor.