AECL Signs Agreement with Argentina on Expanded CANDU Program

The Honourable Gary Lunn, Minister of Natural Resources, announced today that AECL has signed an agreement with Nucleoeléctrica Argentina S.A.

OTTAWA, Nov. 27 /CNW Telbec/ - 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.