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Minerals & Metals Presented by: Albert Chou Davis (Jinqiu) Wei Mike Bergmann Xin Lu

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Copper Mining Industry Overall Introduction Overall Introduction Product Use Product Use Production Process Production Process Structure of Industry Structure of Industry Financial Structure Financial Structure Risk Assessment Risk Assessment Recommended Strategy Recommended Strategy

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Overall Introduction-1 Oldest metal known to humans Oldest metal known to humans Infinite recyclable life Infinite recyclable life 3 rd most widely used metal 3 rd most widely used metal Sensitive to political situation Sensitive to political situation Producers store copper in warehouses until it is sold and shipped to buyer Producers store copper in warehouses until it is sold and shipped to buyer

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Overall Introduction-2 Known resource 5.8 trillion pounds Known resource 5.8 trillion pounds Only 0.7 trillion pounds (12%) are mined Only 0.7 trillion pounds (12%) are mined Also essential to human health Also essential to human health

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Products Sources Sources Ore Ore Scraps Scraps Forms Forms Rods Rods Cathodes Cathodes Concentrate Concentrate

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Products Wires Wires Substitution Substitution Fiber Optics Fiber Optics Pipes/Tubes Pipes/Tubes Substitution Substitution Steel Steel Plastics Plastics Aluminum Aluminum

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Copper Use Used in highly cyclical industries Used in highly cyclical industries Source: http://www.nymex.com, http://www.copper.org, http://www.lme.co.ukhttp://www.nymex.comhttp://www.copper.orghttp://www.lme.co.uk IndustryBuildingElectrical Gen. engineering Light engineering TransportOther%481716874Total100

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Production of Copper Source: http://www.nymex.com, http://www.copper.org, http://www.lme.co.ukhttp://www.nymex.comhttp://www.copper.orghttp://www.lme.co.uk

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Industry

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Industry

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Rivals 77 firms internationally competing 77 firms internationally competing Compete on price/low cost production Compete on price/low cost production Product Quality Product Quality Customer Service Customer Service

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Key Success Factors Economies of Scale Economies of Scale Refining technologies Refining technologies Location Location

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Cost Structure Research and Development Research and Development Exploration Exploration Transportation Transportation Storage Storage

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Cost Structure General Operation Cost General Operation Cost Sales and Administrative Sales and Administrative Interest expenses Interest expenses Depreciation, Depletion and Amortization Depreciation, Depletion and Amortization

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Risk Assessment-1 Economic and Political Economic and Political Cyclical and Volatile price of Copper and other substitutes Cyclical and Volatile price of Copper and other substitutes Environmental Conditions Environmental Conditions Licenses and Permits Licenses and Permits Laws and Regulations Laws and Regulations

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Risk Assessment-2 Nature of Mineral Exploration and Mining Nature of Mineral Exploration and Mining Environmental Risks Environmental Risks Reserve Estimates Reserve Estimates Worldwide Operations Worldwide Operations Licenses and Permits Licenses and Permits

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Recommended Strategy Selection Criteria for Long Term Investment Larger companies with strong financial resources Larger companies with strong financial resources Companies that have good access to resources and (potential) markets Companies that have good access to resources and (potential) markets Companies that already demonstrate superior cost structure and lower production costs Companies that already demonstrate superior cost structure and lower production costs Companies with large reserves of high grade ore Companies with large reserves of high grade ore

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Uranium Mining Industry Overall Introduction Overall Introduction Product Use Product Use Production Process Production Process Structure of Industry Structure of Industry Important Trend Important Trend Risk Assessment Risk Assessment Recommended Strategy Recommended Strategy

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Overall Introduction 15% of Canada's electricity comes from nuclear power 15% of Canada's electricity comes from nuclear power Increasing demand for nuclear fuel Increasing demand for nuclear fuel Uranium is most commonly found in nature as an oxide, and usually as an ore in a chemically complex body Uranium is most commonly found in nature as an oxide, and usually as an ore in a chemically complex body A significant amount can be found in the oceans of the world A significant amount can be found in the oceans of the world

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Overall Introduction Uranium (U): A mildly radioactive element with two isotopes which are fissile (U-235 and U-233) and two which are fertile (U-238 and U-234). Uranium is the basic fuel of nuclear energy. Uranium (U): A mildly radioactive element with two isotopes which are fissile (U-235 and U-233) and two which are fertile (U-238 and U-234). Uranium is the basic fuel of nuclear energy. Uranium hexafluoride (UF 6 ): A compound of uranium which is a gas above 56oC and is thus a suitable form in which to enrich the uranium. Uranium hexafluoride (UF 6 ): A compound of uranium which is a gas above 56oC and is thus a suitable form in which to enrich the uranium. Uranium oxide concentrate (U 3 O 8 ): The mixture of uranium oxides produced after milling uranium ore from a mine. Sometimes loosely called yellowcake. It is khaki in colour and is usually represented by the empirical formula U3O8. Uranium is sold in this form. Uranium oxide concentrate (U 3 O 8 ): The mixture of uranium oxides produced after milling uranium ore from a mine. Sometimes loosely called yellowcake. It is khaki in colour and is usually represented by the empirical formula U3O8. Uranium is sold in this form.

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Product Application Application Providing electricity Providing electricity Producing medical isotopes Producing medical isotopes Using it as a weapon & armour (depleted uranium) Using it as a weapon & armour (depleted uranium) Co-product Co-product a co-product with copper (at Olympic Dam in Australia) a co-product with copper (at Olympic Dam in Australia) a by-product from the treatment of other ores, such as the gold-bearing ores of South Africa (low concentration of uranium) a by-product from the treatment of other ores, such as the gold-bearing ores of South Africa (low concentration of uranium)

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Product Substitutes Substitutes Fossil fuel Fossil fuel Coal Coal Any other alternative fuels (solar, wind-driven, or tidal reserves) Any other alternative fuels (solar, wind-driven, or tidal reserves)

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World Electricity

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Major Types of Ore

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Production Process

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Enrichment Process-Nuclear Fuel

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Uranium Geographic Distribution

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Known Deposits of Uranium (2005) tonnes U percentage of world Australia1,074,00030% Kazakhstan622,00017% Canada439,00012% South Africa 298,0008% Namibia213,0006% Russian Fed. 158,0004% Brazil143,0004% USA102,0003% Uzbekistan93,0003% World total 3,622,000

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Quality of Uranium Reserves

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Canadian Mines

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Canadian Uranium Production ( tonnes U 3 O 8 ) 199419951996199719981999200020012002200320042005 McArthur River 440978308490687784918491 Key Lake 598464446402640863254400474353**-- McClean Lake 660272229942762273427242490 Rabbit Lake 33823712468554995309317532902070519269024622732 Cluff Lake 12561432227123161225145517021496191832-- TOTAL 11 377 12 351 13 804 14 223 12 886 9 690 12 597 14 743 13 689 12 333 13 676 13 713 cf. World 37 890 39 271 42 200 42 092 40 008 36 643 40 962 42 886 42 529 41 998 47 430

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Strengths Canada has Canada has Highest quality reserve Highest quality reserve 3 rd largest reserve 3 rd largest reserve Growing demand for uranium fuel to replace polluting fossil fuel Growing demand for uranium fuel to replace polluting fossil fuel Nuclear power is cheaper to produce electricity Nuclear power is cheaper to produce electricity Raising uranium price Raising uranium price

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Risk Assessment Environmental Protests Environmental Protests Green peace Green peace Political issue Political issue Long regulatory approval period Long regulatory approval period High startup cost High startup cost Safety concerns Safety concerns Power plant & Evacuation Power plant & Evacuation Hard to find storage location Hard to find storage location

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Important Trends Raising prices Raising prices High demand due to need for electricity High demand due to need for electricity Production from world uranium mines now supplies only 55% of the requirements of power utilities Production from world uranium mines now supplies only 55% of the requirements of power utilities Mine production is increasingly supplemented by ex-military material Mine production is increasingly supplemented by ex-military material

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Recommended Strategy Selection Criteria for Long Term Investment Larger companies with strong financial resources Larger companies with strong financial resources Companies that have good access to resources and (potential) markets Companies that have good access to resources and (potential) markets Companies that already demonstrate superior cost structure and lower production costs Companies that already demonstrate superior cost structure and lower production costs Companies with large reserves of high grade ore Companies with large reserves of high grade ore

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Gold Mining Industry Overall Introduction Overall Introduction Product Use Product Use Production Process Production Process Structure of Industry Structure of Industry Financial Structure Financial Structure Risk Assessment Risk Assessment Recommended Strategy Recommended Strategy

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Overall Introduction Major Product Major ProductGOLD Substitutes Direct Substitutes Currency Other precious metals

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Production Process - 1 ExplorationExploration DrillingOpen Pit Mining BlastingUnderground MiningOre and Waste Haulage

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Production Process - 2 Heap leachingMilling Oxidization LeachingStrippingElectro-winning

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Production Process - 3 SmeltingGold Bullion Reclamation Refining

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Industry Structure Market Dynamics: Market Dynamics: Gold price change Gold price change

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Recent Change in Gold Price Year 2000 present Year 2000 present

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Industry Structure-2 Barrick Gold Corp. Barrick Gold Corp. Newmont Mining Newmont Mining Kinross Gold Corp. Kinross Gold Corp. Meridian Gold Agnico-Eagle Mines Glamis Gold Goldcorp Inc. Cambior Inc. Ivanhoe Mines Placer Dome Major companies (selected by assets)

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Financial Structure Cost Structure Cost Structure Exploration, research and development Exploration, research and development General operation costs General operation costs Depreciation, depletion and amortization Depreciation, depletion and amortization Interest expenses Interest expenses Write-down of assets Write-down of assets

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Risk Assessment Nature of Mineral Exploration and Mining Nature of Mineral Exploration and Mining Environmental Risks Environmental Risks Reserve Estimates Reserve Estimates Worldwide Operations Worldwide Operations Licenses and Permits Licenses and Permits Supply and Demand Supply and Demand

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Recommended Strategy Selection Criteria for Long Term Investment Larger companies with strong financial resources Larger companies with strong financial resources Companies that have good access to resources and (potential) markets Companies that have good access to resources and (potential) markets Companies that already demonstrate superior cost structure and lower production costs Companies that already demonstrate superior cost structure and lower production costs Companies with large reserves of high grade ore Companies with large reserves of high grade ore

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Phelps Dodge Phelps Dodge Corp. is one of the worlds largest copper producers World leader in the production of molybdenum-based chemicals Leading producers of continuous-cast copper rod

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Financial Statistics- PD (NYSE)

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2 years Stock Price Chart

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Major Divisions Phelps Dodge Mining Company (PDMC) Phelps Dodge Industries (PDI)

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PDMCs Major Operations Worldwide and vertically integrated copper operations from mining through rod production, marketing and sales Molybdenum operations from mining through conversion to chemical and metallurgical products, marketing and sales Other mining operations and investment Worldwide mineral exploration, technology and project development programs

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PDMCs Major Products Copper related products Copper cathode Copper concentrate Copper rod By-Products (Gold, silver, rhenium and sulfuric acid) Molybdenum related products

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Copper In 2005, PDMC produced 1,228,000 tons of copper on a consolidated basis (1,042,300 tons on a pro rata basis) An additional 60,000 tons of copper for 15% undivided interest in the Morenci mine Production of copper on pro rata basis constituted 53%of the copper mined in US

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Molybdenum Concentrate In 2005, PDMC produced 62.3 million pounds of molybdenum High-purity, chemical-grade molybdenum concentrate is produced at Henderson mine in Colorado Most of concentrate is produced for metallurgical markets (steel industries) to strengthen the steel and lubricant industry

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PDIs Wire and Cable PDI produces magnet wire, copper and aluminum energy cables, specially conductors and other products for sale to original equipment manufacturers for US in electrical motors, generators, transformers, medical applications and public utilities

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PDMCs Segments South American Mines Morenci, Bagdad, Sierrita, Chino/Cobre And Tyrone Candelara/ Ojos del Salado, CerroVerde and El Abra Copper ready for production process Refined copper rod for delivery to customers Smelt, Refine Manufacturing U.S. Mines customers Sold as copper to the 3 rd party Sold as processed wires and cables

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Financial data with different mines

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PDs mines segments US Mines South American Mines

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Performance in geographical areas

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Locations of US Mines

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Morenci Leading position: the largest copper producing operation in North America Operation Description: an open-pit mine, a concentrator, 4 solution extraction facilities 3 electronwinning tank houses. Ownership: 85% undivided interest Annual Capacity: 410,000 tons electrowon cathode production crush-leach facility processes approximately 85,000 tons of ore daily with the remaining ore processed through stockpile leaching.

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Morencis Key Future Growth Factors On June 1, 2005, the Companys board of directors approved expenditures of $210 million to construct a concentrate-leach, direct-electrowinning facility at Morenci, and to restart its concentrator. The concentrate-leach, direct-electrowinning facility is expected to be in operation by mid-2007, and copper production is projected to be approximately 150 million pounds per year.

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Bagdad Location: Northwestern Arizona Material: Copper Sulfide and Oxide Ore. Description of Operation: an open-pit mine, a sulfide ore concentrator producing copper and molybdenum concentrates a leaching system with an SX/EW operation producing copper cathode. Ownership: 100% Undertaken an alternative technology that generates significantly less sulfuric acid and requires less oxygen than the high-temperature process. The benefit: Potential application in operations and projects where excess by-product sulfuric acid cannot be beneficially used in stockpile or heap leaching operations Lower-cost option for certain applications.

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Sierrita Description of Operation: an open-pit mine, one sulfide ore concentrator producing copper and molybdenum concentrates 2 molybdenum roasters and a rhenium processing facility. Technology: an oxide and low-grade sulfide ore stockpile leaching system with an SX/EW operation to produce copper cathode. Ownership: 100% Key Strengths: Sierritas on-site roasters process molybdenum concentrates produced at Sierrita, Bagdad and Chino, as well as purchased concentrates or concentrates tolled for third parties. Late in 2004, the Company completed construction of a plant that is capable of producing approximately 40 million pounds of copper sulfate pentahydrate. This is an alternative to cathode production and production commenced in early 2005..

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Miami/Bisbee Description of Operation: an open-pit copper mine (closed for 2005) an SX/EW operation producing copper cathode a smelter (closed for 2005) an acid plant a copper rod plant Cost of closure: an asset impairment charge of $59.1 million ($45.2 million after-tax) in the 2005 second quarter

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Chino/Cobre Description of Operation: an open-pit copper mine, concentrator, leaching and SX/EW facility near Silver City, New Mexico. Ownership: 100% ( PD acquired the remaining one-third general partnership interest in Chino On December 19, 2003) Cobre Mining Company Inc. southwestern New Mexico, adjacent to our Chino operations. The primary assets including an open-pit copper mine a concentrator the surrounding 12,000 acres of land with mineral rights. Closure of Chinos refinery due to projected higher acid, external smelting and freight costs an asset impairment charge of $59.9 million ($45.9 million after-tax)

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Tyrone Description of Operation: wholly owned Tyrone open-pit mine SX/EW plant near Tyrone, New Mexico New company strategy: In June 2005, PD decided to construct a concentrate-leach, direct-electrowinning facility at the Morenci copper mine Tyrones response to the new strategy: Reassessment of Tyrones long-lived asset an asset impairment charge of $210.5 million ($161.2 million after-tax) Accelerating reclamation of portions of stockpiles around the mine perimeter. Increased production cost decreased Tyrones copper ore reserves by approximately155 million pounds, or 14 percent.

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South American Mines

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Candelaria/Ojos del Salado Description of Operation: an open-pit and underground copper mines a concentrator, port and associated facilities Ownership: 80 % partnership interest of a Chilean contractual mining company in Candelaria Acquisition on Ojos del Salado by SMMA On December 22, 2005, SMMA Candelaria, Inc. acquired a 20 percent equity interest in Ojos del Salado from PD Received cash of $24.8 million (net of $0.2 million of expenses) Phelps Dodges interest in Ojos del Salado was reduced to 80 percent from 100 percent.

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El Abra Description of Operation: Mine-for-leach, open-pit mining operation that uses three stages of crushing prior to leaching an on/off heap leach pad an SX/EW operation to produce copper cathode Ownership: 51 percent partnership interest in Sociedad Contractual Minera El Abra (El Abra), a Chilean contractual mining company. The remaining 49 percent is owned by the state- owned copper enterprise Corporacin Nacional del Cobre de Chile (CODELCO) El Abra holds mining concessions over more than 33,000 acres of land near Calama in the copper-rich Second Region of northern Chile.

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Cerro Verde Location: approximately 30 kilometers southwest of Arequipa, Peru. Description of Operation: two open-pit mines, Cerro Verde and Santa Rosa, a heap-leach operation an SX/EW operation. Cerro Verde produces copper cathode. The ore is processed through three stages of crushing and placed on a leach pad after agglomeration. New acquisitions led by other parties SMM Cerro Verde Netherlands B.V., acquired and increased its equity position in Cerro Verde to 21% Compaa de Minas Buenaventura S.A. (Buenaventura), a publicly traded Peruvian mining company, increased its ownership position in Cerro Verde to 18.2 percent. PDs equity position reduced from 82.5% to 53.6%

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Material Mined Comparison

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Grade of ore mined

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Copper Sale Comparison

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Other Metal Sales

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Manufacturing and production

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Reserves (End of 2005)

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Reserves (End of 2004)

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Consolidated Financial Statements Income Statement Balance sheet statement Cash flow statement

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Income Statement

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Income Statement Cont

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Balance Sheet Statement

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Balance Sheet Statement Cont

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Cash Flow Statement

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Cash Flow Statement Cont

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Evaluation Dimensions Sale and Competition 2006s Copper Price Cost Factor Level of recoverable reserves Financial Strength $ Profitability Net cash position

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Sale Performance Comparison

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Copper price Determined by London Metal Exchange (LME) the New York Commodity Exchange (COMEX) the Shanghai Futures Exchange (SHFE) Factors affecting copper price: the worldwide balance of copper demand and supply, rates of global economic growth, trends in industrial production and conditions in the housing and automotive industries, all of which correlate with demand for copper, economic growth and political conditions in China, which has become the largest consumer of refined copper in the world, and other major developing economies, speculative investment positions in copper and copper futures, the availability and cost of substitute materials and currency exchange fluctuations, including the relative strength of the U.S. dollar. Conclusion: modest demand for copper globally, copper price will stay relatively stable for most of 2006.

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Copper and Molybdenum Prices

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Production Cost High energy cost: diesel fuel, natural gas, electricity, and purchased petroleum. High copper production cost Mine closure also incurred large loss

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Recoverable reserves Levels of Ore Reserves and Mill and Leach Stockpiles Are Subject to Uncertainty and PDs Ability to Replenish Ore Reserves Is Important for Long-Term Viability

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Mill and leach stockpiles

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Mill Stockpiles & Leach stockpiles Mill stockpiles contain low-grade ore that has been extracted from the mine and is available for processing to recover the contained copper by milling, concentrating, smelting and refining, or alternatively, by concentrate leaching. Leach stockpiles contain low-grade ore that has been extracted from the mine and is available for processing to recover the contained copper through a leaching process. Leach stockpiles are exposed to acidic solutions that dissolve contained copper and deliver the copper in solution to the extraction processing facilities.

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The estimated recoverable copper contained stockpile in each mine

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Financial Strength Conclusion: PD is less leveraged on average in the mining industry

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Profitability Conclusion: net margin is higher than the industry on average for the trailing year

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Net cash position Strength: net cash increased by $716.6m ending with $1,916.7m

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Recommendation Short term: Hold Long term: Sell

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Section Agenda Corporate Profile Stock Performance Management Recent History Competitive Strategy Uranium Overview Industry Competitors/ Positioning

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Section Agenda Core Business Properties: Uranium production Diversified operations Reserves and Resources Segmented performance/ CAPEX Financial statements Evaluation Metrics Recommendations/Conclusions

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Corporate Profile Created 1988 by the merger of two Crown corporations Saskatchewan Mining Development Corporation and Eldorado Nuclear Limited. Worlds largest low cost uranium production company Core businesses: Uranium production 20% of world supply Conversion services Nuclear electricity generation, Gold mining Market Capitalization: $7.316 Billion (CAD) Listings: Common Stock TSX (CCO), NYSE(CCJ)Common Stock TSX (CCO), NYSE(CCJ) Convertible Debentures (Toronto) CCO.DBConvertible Debentures (Toronto) CCO.DB

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Stock Performance Cameco Corp.Cameco Corp. CCO-T EST Last: C$ 41.640 Net Change: C$ 0.090 % Change: 0.22% Bid 41.420 High 42.000 Ask 41.680 Low 41.300 EPS 1.26 Volume 1,272,811 P/E 33.00 52-Week High 46.820 Indicated Annual Div. 0.16 52-Week Low 22.325 Yield 0.39

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Management Gerald W. Grandey President and CEO Appointed chief executive officer January 1, 2003. Joined Cameco in 1993 as senior vice-president marketing and corporate development. Terry V. Rogers Senior Vice-President and COO Twenty-five years experience in mining engineering and project and operations management including a wide range of positions of increasing responsibility in both operations and corporate appointments. O. Kim Goheen O. Kim Goheen Senior VP and CFO Senior VP and CFO Joined Cameco in February 1997 as treasurer and was appointed vice-president in May 1999. Appointed senior vice-president and chief financial officer August 1, 2004.

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Recent History 2005 Cameco negotiates a toll-processing agreement with British nuclear fuels plc (BNFL) to secure 5 million kgU of additional conversion services from BNFL's Springfields plant in the united kingdom British nuclear fuels plcBritish nuclear fuels plc 2004 Cameco creates Centerra gold and consolidates gold assets Centerra goldCenterra gold Cameco announces development of uranium mine at Inkai, Kazakhstan Inkai Cameco decides to proceed with construction of a new mine at cigar lake in northern Saskatchewan cigar lakecigar lake Cameco announces a three-for-one share split and increases its annual cash dividend three-for-one share splitthree-for-one share split 2002 All of Cameco's common shares are publicly traded after the government of Saskatchewan sold its remaining 10% ownership in February Cameco increases its stake in Bruce power to 31.6%

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Competitive Strategy ..Simply stated it is our objective to be involved in every stage of the nuclear fuel cyclefrom exploring for, and extracting the raw uranium oreto conversion to a purer productto further upgrading enrichmentto manufacturing fuel rodsand, finally, to the generation of nuclear electricity. Jerry Grandey President & CEO

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The Uranium Fuel Cycle

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Industry Outlook Expected growth worldwide in nuclear reactors to 506 by 2016 from current 440 90 reactors under construction, on order, or planned for Asia alone in the next 20 years Inelastic consumption patterns of buyers exceeding uranium production annually, drawing down inventories Annual consumption = 176 million lbs U308 Expected demand growth (annually) = 2% Skyrocketing uranium (U3O8) spot price: $15.55 (2003) to $40.00 USD (2005)

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The Uranium Market

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Uranium Prices (U3O8) Current price as of March 13, 2006 : $40 USD per lbs U308

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Industry Competitors 2004 World Production Producer Million pounds U 3 O 8 Cameco21 Cogema11 Energy Resources of Australia Ltd. 10 WMC Resources Ltd. 9 Priargunsky Industrial Mining and Chemical Enterprise (Russia) 8 Rossing Uranium Limited 5 NAVOI Mining Metallurgical Kombinat (Uzbekistan) 5 Others21 TOTAL104

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Competitive Position Long term production contracts ranging from: 2- 10 years: average realized price 28.50 USD/lbs U308 (approx. 81% of spot) Average Cost = $17.50 per lbs 40/60 blend on fixed/spot market prices on delivery to major clients Long term UF6 conversion market price increased average of 74% from 2004-2006 to between 11.75 and 12.68 per lbs. Current production 21 million lbs U308 Planned production 31 million by 2010 Largest single uranium producer and converter

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Core Business: Uranium Production Uranium Properties MacArthur RiverMacArthur River Cigar LakeCigar Lake Key LakeKey Lake Rabbit LakeRabbit Lake Crowe ButteCrowe Butte Smith Ranch HighlandSmith Ranch Highland InkaiInkai

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MacArthur River Flagship operation (all figures 100% basis) Total reserves: 437 million lbs. U308 Avg. ore grade = 25% Annual production capacity 18.7 million lbs. U308 Cameco primary operator

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Cigar Lake Largest undeveloped high grade (19%) U308 deposit Proven + probable reserves = 232 million lbs U308 Expected production life = 20 years Production startup 2007 Cameco primary operator

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Key Lake Camecos primary milling operation Production capacity 18 million lbs. U308 Milling support for MacArthur and Cigar Lake operations Cameco primary operator

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Rabbit Lake Longest operating milling production facility in Saskatchewan since 1975 First Canadian mine to introduce 7 days in 7 days out production cycle Eagle point property total reserves = 12.5 million lbs. U308 Total production 2005 6 million lbs. U308

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Crowe Butte/ Smith Highland Ranch United States uranium operations: total annual production = 3.1 million lbs. U308 Total reserves proven + probable = 24.9 million lbs. U308 Both properties use (ISL) In situ leach for extraction Cameco 100% operator

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Inkai Cameco Kazakhstan joint venture operation Proven + probable reserves = 114 million lbs. U308 Test mining production in 2005 = 0.8 million lbs. U308 Production ramp up to 5.3 million lbs. annually by 2010

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Conversion Operations Cameco is 100% owner and operator of Canada's only uranium refining and conversion facilities, located in Ontario. These include the Blind River refinery, the world's largest, where uranium concentrates are processed into high-purity uranium trioxide (UO 3 ), an intermediate product used as feed at the company's Port Hope conversion plants. The Port Hope facility is one of only three commercial suppliers of uranium hexafluoride (UF 6 ) in the western world. UF 6 produced at the plant is delivered to others for enrichment and fabrication into the fuel pellets used in most nuclear reactors. The Port Hope facility is also the world's only commercial supplier of natural uranium dioxide (UO 2 ) used to manufacture fuel for the Candu reactors.

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Bruce Power Ltd. Partnership (BPLP) Operating costs 95% fixed Realized average price over 2005 = $58 per MWh Average cost of 2005 operation = $40 per MWh 48% of output for 2006 under fixed term contracts Operating capacity outlook for 2006 up to 90% from 79% 2005 The plants use about 1.5 million pounds U 3 O 8 and 600 tonnes of uranium dioxide conversion services per year

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Centerra Gold Cameco owns 53% interest in Centerra Traded on TSX under ticker CG 100% un-hedged on Gold production.. 4 gold production/exploration properties 100% of the Kumtor mine in the Kyrgyz Republic approximately 95% of the Boroo mine in Mongolia 73% of the Gatsuurt property in Mongolia near Boroo 62% of the REN joint venture in Nevada, U.S.

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Reserves and Resources

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Segment Performance

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Capital Expenditures

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Financial Highlights

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Income Statement

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Balance Sheet

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Cash Flow Statement

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Profitability versus Sector for CCJ/CCO

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Evaluation Metrics Price to book ratio: (P/BV) 7.316billion/(4.772-2.048) =2.685 x book EVA (Economic Value Added) EVA = Invested Capital( ROIC WACC)EVA = Invested Capital( ROIC WACC) Assuming WACC of 14.75% Computed ROIC of 16.05% for 2005 EVA based on 2005 figures with shares outstanding = 173 millionEVA based on 2005 figures with shares outstanding = 173 million Intrinsic Value= 45.48 per share

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Recommendations/Conclusions Pros: - Premium nuclear energy producer - Strong internal fundamentals - Good diversification across different elements of cycle - Strong positioning in Gold, Conversion, Electricity Cons: - Constant Regulatory/ Public sentiment danger - Instability risks in Kazakhstan property - Cyclicality risks to spot rates for uranium, possibly nearing cycle peak on U308 spot

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Recommendations/Conclusions Speculativ e Buy 2006 2006 Target Price: $45.00

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Newmont Mining Corporation Creating Value with Every Ounce

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Uses of Gold Fabrication Jewelry, electronics, dentistry, industrial, decorative uses, medals (Olympic gold medal is in fact made of silver), official coins Investment Gold bullion, official coins, and jewelry

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Corporate Profile Incorporated in 1921 Other than gold, also engages in the production of and exploration for silver, copper and zinc Has operations in North America, Australia Peru Indonesia, Ghana, Canada, Uzbekistan, Bolivia, New Zealand, and Mexico

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Sales composition (as year 2005)

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Executives Wayne W. Murdy, Chairman and CEO (61) Pierre Lassonde, President (58) Britt D. Banks, senior VP and general counsel (44) Thomas L. Enos, Senior VP, operations (54) Bruce D. Hansen, Senior VP, operation services and development (48) Richard D. O Brien, Senior VP and CFO (51)

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Executive Compensation

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Reserves and its Value As year 2004, Newmont reserved 92.4 million equity ounces of gold (93.2 million for year 2005) North America 35 million ounces South America 17 million ounces Africa 16 million ounces Australia/New Zealand 15.1 million ounces Indonesia 7.2 million ounces Central Asia 2.1 million ounces Probable copper reserve was 9.1 billion equity pounds.

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Newmont Properties

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Reserve Composition

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Nevada Operation Newmont owns or controls approximately 3,056 square miles (7,915 square kilometers) of land in Nevada Three Regions: Eastern Nevada Twin Creeks, Lone Tree and Phoenix Midas

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Nevada Map and Location

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Ore Flow Chart in Nevada

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Minera Yanacocha, Peru 51.35% Newmont, 43.65% Peruvian mining firm, Compania de Minas Buenaventura S.A.A, 5% International Finance Corporate

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Minerta Yanaocha, Peru

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Australia/New Zealand Re-entry in year 2001 After acquiring Normandy Mining, Newmont is now the largest gold producer in Australia Five mining operations in Western Australia, Queensland, the Northern Territory and New Zealand

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Australia/NZ Map and Location

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Indonesia Operation Minahasa, started operation in 1996 Batu Hijau, a large copper-gold deposit on the island of Sumbawa, started in 1999 Recent attack on workers residential camp may raise security issues

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Indonesia Map and Location

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Central Asia Zarafshan-Newmont Joint Venture The operation produces gold from low grade oxide ore.

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Commodity Price Risk Metal prices fluctuate Due to demand, forward selling by producers, central bank sales, purchases and lending, investor sentiment, and global mine production levels Forward sales contracts with fixed and floating gold lease rates

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Newmont stock and gold price

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Hedging Philosophy A non-hedger Viewing gold as an equivalent to money Creating paper gold is considered too risky

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Hedge Position

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Hedge Postion Average put option strike price = $348 Spot gold price = $552 Effective hedging strategy?

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Financial Statements Income Statement Blance Sheet Statement of Change in Shareholder Equity Statement of Cash Flow

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Income Statement

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Balance Sheet

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Balance Sheet Cont

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More In-depth Look into Goodwill Acquisition in 2002: Feb 16, 2002, Franco-Nevada Mining Co. Ltd. Feb 20, 2002, Normandy Mining Ltd.

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Slide 167

Cash flow part 1

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Cash flow part 2

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Growth Vs Industry Sales and EPS growth under industry and market index performance (Data from Reuters ProVestor Plus Company Report)

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Recommendation EXIT