Ottawa, 2006 November 27 — The Honourable Gary Lunn, Minister of Natural Resources, announced today that AECL (Atomic Energy of Canada Ltd.) has signed an agreement with Nucleoeléctrica Argentina S.A. that will advance co-operation in Canadian-developed CANDU nuclear power. The agreement covers the refurbishment of Argentina’s first CANDU power station and includes a feasibility study for another 700-megawatt CANDU 6 power station.

“AECL’s CANDU 6 power reactor is a leading performer in five nations,” said Minister Lunn. “As an international leader in clean nuclear power, Canada is working with Argentina to strengthen our successful CANDU programs as the nuclear renaissance continues.”

“AECL’s agreement with Argentina sets out the framework for a program that will greatly enhance peaceful nuclear energy co-operation, with resulting commercial opportunities for both countries,” said AECL President and Chief Executive Officer Robert Van Adel. “This is a very positive development for AECL and the Canadian nuclear industry.”

The signing between representatives of AECL and Nucleoeléctrica S.A., an Argentinian government-owned company operating nuclear stations, was witnessed by the Minister of Planning and Federal Investment in Argentina, Julio De Vido. It reflects the importance both governments place on using world-leading CANDU power plants to meet increasing energy demands.

Argentina’s nuclear power program is centred on heavy water reactors, including the very successful Embalse, an AECL CANDU 6 power reactor that was connected to the grid in 1983.

The agreement specifies a number of nuclear-related projects for joint co-operation. These include the refurbishment of Embalse, a feasibility study for the next CANDU station to go into service around 2015 and assistance to Nucleoeléctrica Argentina S.A. to help complete a reactor originally supplied

by Germany. The agreement will also create commercial opportunities for Argentina to supply services and heavy water to international CANDU markets.

About AECL

AECL is a full-service nuclear-technology company providing services to nuclear utilities around the world. Established in 1952, AECL is the designer and builder of CANDU technology.

AECL specializes in a range of advanced nuclear-energy products and services that are an important component of clean-air energy programs on four continents. AECL’s 4,000 employees provide research and development, support, design and engineering, construction management, specialized technology, refurbishment, waste management and decommissioning in support of CANDU reactor products. More information on AECL and CANDU technology can be found at www.aecl.ca.

FOR BROADCAST USE:

Atomic Energy of Canada Ltd. has signed an agreement with Nucleoeléctrica Argentina S.A. to advance co-operation in Canadian-developed CANDU nuclear power. The agreement reflects the importance that the governments of Canada and Argentina place on using CANDU power plants to meet increasing energy demands.

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