Canada Revenue Agency Seeks Leave to Appeal Federal Court of Appeal Decision - Seite 2

“At a time when Canadian businesses are facing unprecedented economic upheaval, challenging global markets and a world-wide pandemic, CRA’s actions cast a chill over all Canadian companies trying to compete on the world stage.”

The Federal Court of Appeal’s decision and CRA’s request for leave to appeal to the Supreme Court pertain only to the 2003, 2005 and 2006 tax years. Any decisions regarding this case would not be legally binding on the remaining tax years in dispute (2007 through 2013), although we believe the principles in the Federal Court of Appeal’s ruling should apply to all subsequent years (2007 through 2019).

The Government of Canada continues to hold $303 million in cash and $482 million in letters of credit that Cameco has been required to pay as instalments on the reassessments issued by CRA for all tax years in dispute (2003 through 2013), tying up a significant amount of the company’s financial capacity. With both lower court decisions in our favour, Cameco continues to pursue the return of these instalments to the company despite the leave to appeal being requested by CRA.

Profile

Cameco is one of the largest global providers of the uranium fuel needed to energize a clean-air world. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations. Utilities around the world rely on our nuclear fuel products to generate power in safe, reliable, carbon-free nuclear reactors. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan.

Caution Regarding Forward-Looking Information and Statements

This news release includes statements and information about our expectations for the future, which we refer to as forward-looking information. Forward-looking information is based on our current views, which can change significantly, and actual results and events may be significantly different from what we currently expect. Examples of forward-looking information in this news release include our estimate regarding the time it would take to receive a decision of the Supreme Court if the Supreme Court agrees to hear the appeal; that we remain confident in our position; our expectation of receiving a refund of $5.5 million plus interest for instalments paid on previous reassessments, the costs awarded, and an amount for disbursements up to $17.9 million; our belief the Federal Court of Appeal’s ruling should apply in principle to other years; and our intention to continue to pursue the return of funds held by the Government of Canada as instalments on reassessments despite the CRA seeking leave to appeal. Material risks that could lead to different results include the risks that, if leave is granted, we are unsuccessful in appeal of the Federal Court of Appeal’s decision and this ultimately gives rise to material tax liabilities and payment obligations that would have a material adverse effect on us; the possibility that it will take longer to receive a decision if the Supreme Court agrees to hear an appeal; the risk that we will not receive the full amount, or any portion, of our expected refund of $5.5 million plus interest for instalments paid and prior courts’ costs awards; the possibility of a materially different outcome in disputes for other years; and the risk that we will be unable to recover funds held by the Government of Canada if CRA is granted leave to appeal. In presenting this forward-looking information, we have made assumptions which may prove incorrect about the time it would take to receive a decision if the Supreme Court agrees to hear an appeal; our ability to obtain refunds of past instalment payments and cost awards; the principles in the Federal Court of Appeal decision should apply to all subsequent tax years; and our ability to recover funds despite CRA seeking leave to appeal. Forward-looking information is designed to help you understand management’s current views of our near-term and longer-term prospects, and it may not be appropriate for other purposes. We will not necessarily update this information unless we are required to by securities laws.