Jamie DicksonLegal Advisor, Corporate Responsibility Cameco CorporationOctober 28th (Calgary), November 5th (Toronto), 2013

Cameco’s Approach to Relationships with Local Communities

Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model

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

Building Value: Cameco’s CR Model

About Cameco

● 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

Building Value: Cameco’s CR Model

Major Uranium Regions in Canada

Athabasca BasinAthabasca Basin

Labrador Labrador

Central BeltCentral Belt

Otish BasinOtish Basin

Hornby BasinHornby Basin

Thelon BasinThelon Basin

Building Value: Cameco’s CR Model

The Heartbeat of Cameco: Northern SK

Black Lake FNBlack Lake FNBlack Lake FNBlack Lake FN

Hatchet Lake FNHatchet Lake FNHatchet Lake FNHatchet Lake FN

Fond du Lac FNFond du Lac FNFond du Lac FNFond du Lac FN

English River First NationEnglish River First Nation English River First NationEnglish River First Nation

Pinehouse MetisPinehouse MetisPinehouse MetisPinehouse Metis

Lac La Ronge Indian BandLac La Ronge Indian BandLac La Ronge Indian BandLac La Ronge Indian Band

Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model

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

Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model

Motivation

7

● 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 ($$$)

Building Value: Cameco’s CR Model

Cameco’sCameco’s

Workforce

Development Business

DevelopmentCommunity

Engagement

Community

InvestmentEnvironmental

Stewardship

strategy strategy five-pillar five-pillar

Building Value: Cameco’s CR Model

Workforce Development

9

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

Building Value: Cameco’s CR Model

Business Development

10

Target: SLA target – 35% northern procurement

Result: ~ 70%

Action:

Northern Preferred Supplier Program

Northern Business Directory

Mentoring

Building Value: Cameco’s CR Model

Community Investment

11

• $15+ million in northern donations since 2004 all focused on:

• Education

• Health and wellness

• Sports and recreation

• Shifting to community-managed community investment programs

Building Value: Cameco’s CR Model

Community Engagement/Environmental Stewardship

12 The Cameco StoryThe Cameco Story

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

Building Value: Cameco’s CR Model

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

Building Value: Cameco”s CR ModelBuilding Value: Cameco”s CR Model

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

Building Value: Cameco’s CR Model

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

Building Value: Cameco’s CR Model

Collaboration Agreements

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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

Building Value: Cameco’s CR Model

Collaboration AgreementsGreater 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

Building Value: Cameco’s CR Model

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

Building Value: Cameco’s CR Model

Cameco’s Approach to Relationships with Local Communities

● Thank you

● Questions?

● www.cameco/northernsk