Fission Energy Corp.
TSX VENTURE : FIS

Fission Energy Corp.

January 31, 2008 10:22 ET

Fission Energy Closes Earn-In Agreement With Korean Consortium for Waterbury Lake, Athabasca Basin

KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2008) - Fission Energy Corp. ("Fission") (TSX VENTURE:FIS) is pleased to announce that further to its press release dated October 4, 2007, an earn-in agreement with a group led by Korea Electric Power Corporation (NYSE-KEP), under the newly created Korea Waterbury Uranium Limited Partnership (the "Waterbury Consortium"), has been completed for the joint development of the Waterbury Lake property in Athabasca Basin, Saskatchewan.

Pursuant to the earn-in agreement, Fission has granted the Waterbury Consortium the exclusive right to earn up to a 50% interest in the Waterbury Lake property by, among other things, incurring aggregate exploration costs in the amount of C $14,000,000 by the third anniversary of the execution date of the earn-in agreement (the "Execution Date"). Pursuant to the earn-in agreement, the Waterbury Consortium may:

- earn an initial 20% interest in the Waterbury Lake property by subscribing for, on a private placement basis, on or prior to the date that is 45 days from the Execution Date, 1,000,000 common shares of Fission at a price per share of $1.00 and by incurring, on or prior to the first anniversary of the Execution Date, exploration costs in the amount of $5,500,000;

- earn an additional 15% interest (for an aggregate 35% interest) by incurring, on or prior to the second anniversary of the Execution Date, additional exploration costs in the amount of $4,000,000; and

- earn an additional 15% interest (for an aggregate 50% interest) by incurring, on or prior to the third anniversary of the Execution Date, additional exploration costs in the amount of $4,500,000

In addition:

- Fission shall be the operator of the project,

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

During the earn-in period, Fission and the Waterbury Consortium will establish an Executive Committee to approve proposed exploration programs. Work will be carried out in conjunction with planned exploration that will drill test other targets previously identified within the Waterbury Lake property.

The Waterbury Lake property comprises 12 claims totaling 41,280 hectares (about 102,000 acres), located within the east-central part of the Athabasca Basin, Saskatchewan. It virtually surrounds the AREVA-Denison Midwest Uranium Deposit (41 million lbs U3O8 at an average grade of about 5.5% U3O8). Production is scheduled to begin in 2010-11. Exploration completed by Denison on the recently discovered Mae Zone returned several high grade intersections including 26.7% eU3O8 across 14.6 m. The Midwest Deposit and the Mae Zone are spaced about 4 km apart along the Midwest Conductor and both are located within several hundred meters of Fission's Waterbury Lake property boundary.

KOREA ELECTRIC POWER CORPORATION 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 six 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).

KOREA WATERBURY URANIUM LIMITED PARTNERSHIP (the "Waterbury Consortium"), is a consortium primarily comprised of Korean based companies. Led by Korea Electric Power Corporation, other participating companies include Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co., Hanwha Corporation and Gravis Capital Corporation, a private Canadian uranium investment company.

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 press release contains "forward-looking information" that is based on Fission's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Fission's development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Fission's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Fission disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

Dev Randhawa, Chairman & CEO

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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