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Gold/Mining/Energy : Kensington Resources Ltd. (V.KRT) * Diamond in the rough! -- Ignore unavailable to you. Want to Upgrade?

To: Michael Mc Donough who wrote (1621)	4/17/1998 3:16:00 PM
From: Kidman	Read Replies (1) \| Respond to of 5206

Hi Michael, Here is the article from www.cameco.com under "latest news" Does this mean KRT and Monopros will own 50% of FALC. Does this mean we need a new operator. ------------------------------------------------------------------ Cameco Acquires Uranerz Exploration and Mining Limited & Uranerz U.S.A., Inc. Saskatoon, Saskatchewan, Canada, April 17, 1998 Cameco Corporation today announced that it has entered into an agreement in principle to purchase Uranerz Exploration and Mining Limited (UEM) Saskatoon, Saskatchewan and Uranerz U.S.A., Inc. (UUS), Denver, Colorado from their parent company, Uranerzbergbau GmbH (UEB) which is jointly owned by Preussag AG and Rheinbraun AG. Rheinbraun is a wholly owned subsidiary of RWE AG and is responsible for mining and raw materials development within the RWE group. Preussag is one of Germany's largest industrial concerns and RWE is Germany's largest electrical utility. The purchase price is $483 million (Cdn) in cash, subject to closing adjustments. The principal assets being acquired are 33.33% interests in the Key Lake and Rabbit Lake uranium mines and a 27.92% interest in the McArthur River uranium project. The transaction also includes a 57.69% interest in the Crow Butte uranium mine in Nebraska plus uranium and gold exploration properties in northern Saskatchewan, the United States and Kazakhstan. The acquisition of UEM and UUS will result in approximately a 30% increase in Cameco's uranium reserves and resources, and uranium production levels. The transaction also brings the benefit of a more diversified customer base as a result of the portfolio of contracts that Cameco will assume. The arrangement is subject to approval by the boards of Preussag, Rheinbraun and RWE. In addition, the transaction must receive all the required regulatory approvals plus the satisfactory completion of normal corporate due diligence and the negotiation of final agreements which will be effective as of January 1, 1998. Closing is expected to occur by mid to late summer, 1998. With this purchase Cameco will own 100% of both the Key Lake and Rabbit Lake uranium mines which were formerly joint venture properties in which UEM held a one-third interest and Cameco the remaining two-thirds. These mines, located in northern Saskatchewan and operated by Cameco, produced a total of 26.1 million pounds in 1997. The acquisition of the additional 27.92% interest in the McArthur River project brings Cameco's stake to 83.77%. This property currently under development in northern Saskatchewan is the world's largest high grade uranium deposit. Cameco is the operator. McArthur River has proven and probable reserves and resources of approximately 417 million pounds U3O8 at an average grade of about 15%. The project is expected to begin production in fall, 1999 and is currently on schedule. With the acquisition of UUS's 57.69% interest in the Crow Butte in-situ leach (ISL) production centre in Nebraska, Cameco's ownership increases to 90%. As a result of this purchase, Cameco also adds about 23 million pounds U3O8 to its US reserve and resource base. Cameco will also add to its ISL reserve base through the acquisition of an additional one-third interest in the Inkai uranium joint venture in Kazakhstan, a property currently ready for development. Cameco will emerge from this agreement as the majority owner (two-thirds) and will become the operator. The remaining share is held by KazAtomProm a company owned by the government of Kazakhstan. In addition, Cameco will acquire a 20% share of the Midwest uranium project located in northern Saskatchewan, which is scheduled for development within the next decade. Cameco has also agreed to buy from Rheinbraun its 6.45% interest in Energy Resources of Australia Ltd. (ERA) for approximately $61 million (Aus). ERA operates the Ranger mine in the Northern Territory of Australia. In 1997 Ranger produced about 10.6 million pounds U3O8. The purchase of the ERA shares is subject to certain consent rights and rights of first refusal held by other significant shareholders of ERA. The acquisition will also require negotiation of a binding agreement and approval by the Australian foreign investment regulatory authorities. Cameco's chair, president and chief executive office, Bernard Michel said that, "we are confident that this acquisition represents an excellent investment of Cameco's financial resources. Cameco emerges with increased ownership in three premier uranium deposits, other significant assets and added flexibilities, all of which will play a critical role in the future development of our core business, uranium production. Cameco is uniquely positioned to realize maximum benefits from this acquisition for our shareholders because the company is already the operator of the principal assets. The additional production and sales volumes can be realized without any significant increase in costs." He added that this acquisition has been considered by Cameco for some time but actual negotiations began in September, 1997 culminating in today's announcement. Cameco's August 1997 equity issue, which raised about $200 million, positioned the balance sheet for such an acquisition. Bridge financing has been arranged to provide the necessary balance of the purchase price. In the coming year, Cameco will investigate a variety of options including the replacement of bridge financing with longer term debt. Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest publicly traded uranium company and a growing gold producer. Its uranium products are used to generate electricity in nuclear power plants around the world, providing one of the cleanest sources of energy available today. - End - For further information, please contact: Alice Wong Director, Investor & Corporate Relations Cameco Corporation Phone: (306) 956-6337 Fax: (306) 956-6318 ---------------------------------------------------------------- Good Luck everyone....