AREVA Resources Canada Activities December AREVA, Cameco and Northern Village of Pinehouse Agree to Strengthen Relationship

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1 Community Update AREVA Resources Canada Activities December 2012 AREVA, Cameco and Northern Village of Pinehouse Agree to Strengthen Relationship On December 12, 2012 AREVA Resources Canada Inc., Cameco Corp., the Northern Village of Pinehouse and Kineepik Metis Local (#9) announced the signing of an agreement that strengthens the longtime relationship between the groups and outlines future cooperation, workforce development and investment commitments in this Northern community. The agreement builds on a positive relationship between the uranium mining companies and the community of about 1,000 residents that spans decades and sets out specific commitments the companies will make with regard to the workforce development, business development, community engagement, environmental stewardship and community investment. The benefits to the community of this agreement total an estimated $194 million over 10 years. The agreement also reaffirms the support of the Village of Pinehouse and Kineepik Metis Local for AREVA and Cameco s existing operations subject to the companies continued commitment to operate in a responsible manner, protect the environment and public health and safety, and regularly address residents concerns. We have worked closely with Northern communities for decades and are proud of our long-term relationships with the people of Northern Saskatchewan. Many of our employees come from Northern communities as do many of the businesses upon which we rely. This agreement strengthens our longterm cooperation to ensure the ongoing shared success of uranium mining in Saskatchewan, said Vincent Martin, president and CEO of AREVA Resources Canada. Pinehouse Mayor Mike Natomagan said the stronger relationship with Cameco and AREVA will help grow the community as well as its contributions to the economy of northern Saskatchewan. This agreement will provide long-term benefits to our community, said Natomagan. It allows us to expand on our strong mining culture and do it our way. From left: Richard Gladue (AREVA), Pinehouse Mayor Mike Natomagan, Tim Gitzel (Cameco) and Gary Merasty (Cameco). Highlights of the agreement include: A commitment to continually increase the number of Pinehouse people working at AREVA and Cameco operations through a range of initiatives including preferential hiring, establishment of a full-time community liaison at Pinehouse to support individuals seeking employment in the industry, and education, training and professional development opportunities Contracting with qualified Pinehouse- AREVA Resources Canada Inc.

2 owned businesses for specific opportunities and collaborating with Pinehouse to identify future opportunities to provide goods and services to AREVA and Cameco Measures to ensure Pinehouse residents are aware of, understand, and have opportunities to raise concerns with respects to AREVA and Cameco s existing operations and future projects including establishment of a joint committee to plan and implement community engagement activities A one-time community investment payment of $1 million upon signing of the collaboration agreement Additional one-time payments upon the start of production from the Cigar Lake project ($500,000) and the start of construction of the Millennium mine project ($500,000) Annual payments ranging from $200,000 to $1 million depending upon the volume of production achieved at AREVA and Cameco s Saskatchewan operations. Community investment contributions will be made to a community trust to be established by Pinehouse following the signing. An independent trustee will administer the trust; which will be directed by a board of consisting of Pinehouse residents and one member appointed by Cameco and AREVA. AREVA Exploration Field Programs Wrap Up for 2012 AREVA Resources Canada has completed is 2012 exploration field programs. In total, AREVA s exploration team drilled 31,831 metres. This year exploration teams achieved: 289 km of line cutting 165km of ground geophysics 751 line km of airborne geophysics 8,451 m of drilling on the East Athabasca projects 11,522 m of drilling on the West Athabasca projects 11,858 m of drilling at the Kiggavik Project Overall the total amount of work performed for the 2012 field program was similar to the 2011 program; however it allowed us to add additional uranium resources to our West Athabasca and Kiggavik projects data. The total includes drilling at Shea Creek, where the exploration campaign ended in late November. AREVA s exploration team anticipates that the 2013 program will be similar to Page 2 of 5

3 Shipping containers with uranium concentrate prepare for their voyage to France. AREVA Resources Canada Sets Shipping Record, Again! AREVA Resources Canada has set a new record for delivering a record 52 shipping containers to a single facility less than one month. Between November 12 and December 3, AREVA managed to deliver 669 tonnes of uranium concentrate in 52 ISO containers to its COMURHEX conversion facility in southern France. This exceeds its previous record established only one month before. During the month of October, AREVA Resources Canada made a record delivery to a single conversion facility with a shipment of 612 tonnes of uranium concentrate in 48 ISO sea containers of uranium concentrate to COMURHEX. Cluff Lake Airstrip Set For Temporary Closure With the completion of this summer s Shea Creek drilling program and the corresponding reduction of site personnel at Cluff Lake, AREVA plans to close the Cluff Lake Airstrip temporarily at the end of December. It is anticipated that we may reopen the strip to support exploration efforts and remaining site demolition activities next May. AREVA Participates in Kivalliq Trade Show AREVA representatives attended the Kivalliq Trade Show in Rankin Inlet, Nunavut, from November 19 to 21. The Trade Show includes an art market, trade show exhibits from dozens of delegates, and presentations from community & business leaders. In line with the conference theme of Celebrating Small Business, AREVA s Barry McCallum provided an update on the Kiggavik Project and our vision for small business in Nunavut. Page 3 of 5

4 Environmental Monitoring at McClean Lake AREVA Resources' network of policies, procedures and monitoring programs ensures that emissions from mining and processing remain as low as reasonably achievable. The graphs below show the differences between the regulatory limits and the sampling results from water released to the environment at the water treatment plant at McClean Lake for the past 12 months. The bars at the bottom of each graph show the concentrations of elements in water from our treatment plant. The lines across the top show the regulatory limits. The graphs indicate that concentrations of elements in our waste water are well below the regulatory limits. Minor Spill Reported at McClean Lake Operation AREVA staff discovered a release of 2-3 cubic meters of treated water at its McClean Lake operation on November 6. The water was found near a drain vent along the Sue discharge line. The effects on the environment were negligible as the material was promptly cleaned up. There are no issues relating to health, safety and security to any person as a result of this incident. Provincial and federal regulatory agencies were notified with 24 hours of the discovery. Page 4 of 5

5 Human Resources for AREVA in Northern Saskatchewan As of November 30, 2012 TOTAL WORKFORCE NORTHERNERS McCLEAN LAKE AREVA Employees % Long Term Contractors Total Staff Athabasca Catering Limited Partnership Athabasca Basin Development Corp. o Janitorial Services o Security Services Gabriel Construction/Primrose Resources Ltd. Snake Lake Broda JV % 66% 100% 29% 54% 67% CLUFF LAKE AREVA Employees 3 67% Long Term Contractors Total Staff Sakitawak Development Corp Labour Clearwater Catering/Beaver Foods % 100% 60% Donations and Sponsorships We are pleased to have been able to help the following organizations during October 2012: Rossignol Elementary Community School Athabasca Health Authority Minahik Waskahigan Elementary School Pre-Cam Community School Opswakun Sepe School Minahik Waskahigan Community School Pahkisimon Nuyeah Library System Prince Albert Grand Council Birch Narrows Health Centre Hatchet Lake Denesuline First Nation Chief Moses Ratt School Kikinahk Friendship Centre Page 5 of 5