The set back at Cigar Lake has done more damage to the Cameco stock price than we anticipated; hence we are vastly reducing our stake in this company.

Cameco (CCJ: NYSE) having had a major problem to deal with have not filled us with enough confidence to believe that they are competent enough to handle this situation. A somewhat lethargic approach to the water ingress at Cigar Lake has generated a lot negative sentiment. This is reflected in falling stock price and so we have decided to reduce our stake to a minimal stake only at this stage.

Cameco is now on the Watch List, as we believe that the uranium sector is the best place to invest our funds however, this is not the vehicle.

There are a few exciting possibilities that we will report on shortly, in the mean time we will sit on the cash.

18 November 2006