Fission Energy Corp.
TSX VENTURE : FIS

Fission Energy Corp.

October 04, 2007 09:02 ET

Fission Energy Completes MOU with KEPCO on Waterbury Lake, Athabasca Basin

KELOWNA, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2007) - Fission Energy Corp. (TSX VENTURE:FIS) (the "Company") is pleased to announce that a Memorandum of Understanding ("MOU") has been signed with Korea Electric Power Corporation ("KEPCO") for the joint development of the Waterbury Lake property in Athabasca Basin, Saskatchewan.

The MOU will allow KEPCO to earn a 50% interest in the Waterbury Lake property under the following terms:

- KEPCO will complete a private placement in the Company for $C 1,000,000 at a price not less than $C 1.00 per share,

- KEPCO will spend a total of $C 14,000,000 in work expenditures over a 3 year period,

- Fission will be the operator of the project,

- Fission would retain an overriding royalty interest in the property of 2% of Net Smelter Returns in yellowcake.

The parties will negotiate in good faith to complete and execute a formal option agreement on terms normally included in such agreements.

The Waterbury Lake Property consists of 12 claims totalling 41,280 hectares (about 102,000 acres), located within the east-central part of the Athabasca Basin, Saskatchewan. The property appears to straddle the boundary between the Wollaston and Mudjatik basement domains.

Fission's Waterbury Lake Property, covers lands adjacent to the west, north and east of the Midwest Property, which includes the Midwest Deposit (41 million lbs U3O8 at an average grade of about 5.5% U3O8) and the recently discovered Mae Zone (results include 22.6% U3O8 across 14.6 m). Both occurrences are located within several hundred meters of the Waterbury Lake Property, and are spaced about 4 km apart along the Midwest Conductor. This structural trend continues onto the Waterbury Lake Property, as evidenced by a prominent, 8 km long electromagnetic conductor.

Several drill holes have been completed on the property, with the best intersection containing 300 ppm U3O8 across 1 m. The depth to the unconformity appears to vary from about 200 m to 350 m. In addition to the numerous conductive targets within the property, several high-grade deposits (including Cigar Lake, Waterbury Lake, Natona Bay) occur within close proximity to the property, indicating the area has an excellent potential for hosting unconformity and sub-unconformity style uranium deposits.

Fission and KEPCO intend to conduct an aggressive exploration program at the Waterbury Lake Property over the coming months, with a significant portion of the first years expenditures to be completed on drilling possible extensions of the Midwest Conductor. The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of the company by Jody Dahrouge, P.Geol., of Dahrouge Geological Consulting Ltd., Edmonton, Alta, a qualified person.

KEPCO is a Korean government invested diversified energy company with assets over $US 83 billion and revenues of over $US 29 billion. The company is involved in the generation, transmission and distribution of electrical power from nuclear, hydro, coal, oil and LNG sources worldwide. KEPCO provides electricity to almost all households in Korea and operates 20 nuclear power plants in the country with eight more under development. The company has over 30,000 employees and is listed on the Korean Stock Exchange and the New York Stock Exchange (www.kepco.co.kr).

FISSION ENERGY CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. FISSION ENERGY CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "FIS".

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

ON BEHALF OF THE BOARD

David Miller, President & COO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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