Saskatchewan's uranium
                        industry weathering less than
                        glowing market conditions 

                        SASKATOON (CP) -- Saskatchewan's uranium
                        industry is in good shape despite some of the lowest
                        prices in 35 years, says a U.S.-based trade publication. 

                          Global production of uranium fell last year to its
                        lowest level since 1966, including a 25 per cent drop
                        in the province, home to all of Canada's active uranium
                        mines. 

                          Statistics released by TradeTech indicate production
                        in the province fell to about 22 million pounds from
                        nearly 28 million in 1998. 

                          Treva Klingbiel, president of TradeTech, said while
                        low prices have made for a very tough market the
                        overall production drop is a positive development for
                        Saskatchewan uranium miners Cameco Corp. (CCO-T)
                        and Cogema Resources Inc. 

                          "They're considered the low-cost producers," said
                        Klingbiel Thursday. "We have all of these higher-price
                        producers ... which have dropped out." 

                          Prices remain rock-bottom because few reactors are
                        coming on stream, said Klingbiel. 

                          Japan is scaling back its plans for nuclear energy, and
                        an anti-nuclear political debate in Germany may result
                        in the closure of some reactors. 

                          In addition, the U.S. Energy Commission has released
                        more material than anticipated onto the market. 

                          However, he said some U.S. reactors have boosted
                        capacity to 98 per cent to keep up with increasing
                        demands for electricity. 

                          "They really are burning up uranium faster than we
                        ever thought they would," said Klingbiel. "Utilities are
                        not sitting on huge inventories any more." 

                          He said global uranium production is presently about
                        half the rate of consumption, a situation that cannot
                        last forever. 

                          Cameco spokeswoman Elaine Kergoat said despite
                        soft prices the company is in good financial shape. 

                          "Here we sit as one of the biggest producers in the
                        world and we're not borrowing to develop our uranium
                        mines in the North," Kergoat said. "We're just basically
                        strong financially." 

                          Cogema president Arnaud de Bourayne said the
                        industry in Canada is in better position than anybody
                        else in the world because we have efficient
                        cost-effective production.