Fission Energy Corp.
TSX VENTURE : FIS

Fission Energy Corp.

September 21, 2009 09:30 ET

Fission Extends Discovery Bay Zone at Waterbury Lake

KELOWNA, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2009) - FISSION ENERGY CORP. ("Fission" or the "Company") (TSX VENTURE:FIS) and its joint venture partner, the KEPCO Consortium announce the completion of their summer exploration program at Waterbury Lake.

The summer drill program achieved the following:

1. It extended the continuity of the Discovery Bay Zone further to the west.

2. Fission has learned considerably more about the geometry of the Discovery Bay Zone and Roughrider Zone mineralization.

3. A greater understanding of a 2nd "lower" zone identified by previous drilling (see news release Sept 23, 2008) is emerging. This zone has undergone limited drill testing, but exhibits a high potential for significant uranium mineralization within the Discovery Bay area.

4. The Waterbury Lake Property continues to exhibit significant characteristics for potentially hosting a high grade uranium discovery.

Subsequent to the completion of Fission's summer exploration program, Hathor Exploration, in their September 9th press release, announced the discovery of high grade uranium mineralization in hole MWNE-09-170, located approximately 200m to the east of the Roughrider Zone. This discovery hole appears to lie within an eastern extension of the east-west trending corridor that hosts Fission's Discovery Bay Zone. More importantly, it demonstrates the potential for multiple occurrences of high grade uranium concentrations along this corridor. Fission is planning its winter 2009-2010 program which is expected to continue to explore for high grade uranium mineralization along the western extension of this corridor, in addition to other high priority targets on the property.

2009 Summer Exploration Program Details

The summer, 2009 exploration program included a property wide 11,857 line-km combined high resolution airborne magnetic and radiometric survey and a 7-hole drill program focused on the Discovery Bay area located adjacent to Hathor's Roughrider Zone uranium discovery as well as a previously untested target area located 14 km to the SW of Discovery Bay. The drilling concluded on August 25th and a total of 2,726m in 7 holes, including 5 restarts, were completed.

Five holes (WAT09-055, 056, 059, 060B and 061A) were drilled within the Discovery Bay Zone targeting locations west and northwest along strike of Hathor Exploration's Roughrider Zone uranium discovery step-out holes MWNE-09-116 (70.34% U3O8 over 2.5m within 13m grading 18.12% U3O8) and MWNE-09-129 (intersected 5.0m grading 15.65% U3O8). The remaining two holes, WAT09-057 and 058, tested the "359 grid" target, located approximately 9 km southwest of the Denison-AREVA Midwest Deposit.

All holes were radiometrically surveyed with a Mount Sopris 2PGA-1000 Gamma/SP probe (See Table 1: Waterbury Lake 2009 Summer Drill Hole Summary). Drill core has been split and forwarded to the SRC Geoanalytical Laboratories in Saskatoon for analysis, which includes a 63 element ICP-OES, with uranium by fluorimetry (partial digestion) and boron. Assay results will be updated once they have been received. An updated map can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp.

Discovery Bay Zone

A total of 2,024.3m was drilled in 5 completed holes. Although no high grade uranium intervals were intersected, significant anomalous radioactivity intersected in holes WAT09-055, 056 and 061A in association with alteration and faulting appears to have confirmed the interpreted continuity approximately 110m to the west of MWNE-09-129. Furthermore, alteration, faulting and localized anomalous radioactivity encountered in holes WAT09-059 and WAT09-060B indicate the presence of a 2nd "lower" zone in the Discovery Bay area.

Holes WAT09-055 and WAT09-056 targeted the potential westward extension of the Roughrider zone. Hole 055, drilled 85m west of MWNE-09-129, intersected a 3.3m wide moderately radioactive interval with a maximum peak of 4,161 cps, in a strongly altered felsic gneiss from 224.55 to 228.75m. Hole 056 stepped-out further to the west and intersected a 3.4m wide interval of anomalous radioactivity in extremely altered and clay replaced rock, directly below the unconformity. The basement rock below the clay altered interval consisted of relatively fresh and unaltered granitic gneiss. It is interpreted that the clay altered section represents the southern boundary of the east-west trending Discovery Bay structural corridor. Hole 056, the furthest step-out to the west of the Discovery Bay drill holes, shows strong alteration with associated radioactivity. This anomalous corridor is open to the west, and may be connected with the strong alteration found in Disco Bay as observed in hole WAT08-025 a further 200 m to the west of hole 056.

In 2008, previous drilling in the Discovery Bay area identified an interpreted "lower" zone of intense alteration and anomalous radioactivity, which dips to the north. Holes WAT08-017 and WAT08-022C encountered several meters of anomalous radioactivity and elevated uranium within strongly altered gneiss (locally graphitic). This "lower" zone appeared somewhat detached and trending at a slightly oblique orientation and steeper dip from what was interpreted from Hathor's publically available results of the Roughrider zone. WAT09-059 targeted this interpreted "lower" zone approximately 30m east of hole 017 and intersected an interval of moderate to locally intensely altered and structurally disrupted garnet-biotite gneiss (locally graphitic) with several occurrences of a mafic intrusive dyke from 307m to 364m downhole. An interval of anomalous radioactivity was encountered from 342.55m to 345.35m (maximum peak of 1235 cps). WAT09-060B targeted this same lower zone between holes 017 and 059. An interval of similarly structurally disrupted and altered pegmatite-rich garnet gneiss (locally graphitic) rocks was intersected from 297 to 372m and a corresponding interval of anomalous radioactivity was encountered from 339.55 to 342.35m (maximum peak of 2114 cps).

To date, the "lower" zone has been intersected in 7 holes (WAT08-017, 021, 022C, 031 and 032 and most recently with WAT09-059 and 060B). It remains open on-strike and at depth. Delineation of this zone and identifying potential high grade mineralization will constitute an important part of future drill programs in Discovery Bay.

Hole WAT09-061A targeted the western extension of the "upper" zone as intersected in holes WAT09-055 and WAT08-016, approximately 15m to the east of hole 055. The hole targeted the interpreted location where the upper and lower zones may possibly merge. Localized zones of intense clay alteration within the basal 20m of sandstone above the unconformity were intersected from 183 to 208m. Basement rocks from 208 to 276m downhole consisted of moderately to locally strongly altered and structurally disrupted alternating intervals of granitic gneiss, garnet-biotite gneiss (locally graphitic) and occurrences of mafic intrusive dykes. A 6.4m wide interval of anomalous radioactivity from 219.25 to 225.65m was encountered (maximum peak of 3,001 cps). The location of this zone of radioactivity appears to correspond spatially with the upper zone and has characteristics of lithology and alteration with that of the lower zone.

To view Table 1 (Waterbury Lake 2009 Summer Drill Hole Summary) please click the following link: http://media3.marketwire.com/docs/WaterburyLake.pdf

359 Grid

The 359 grid drill targets are located approximately 9km to the southwest of the Denison-AREVA Midwest deposit, on the same interpreted prolific NE-SW structural trend which hosts several deposits including Midwest Lake, Midwest A and the Roughrider deposit. Holes WAT09-057 and WAT09-058 both tested a well defined north-east trending coincidental magnetic low and conductive area identified from the 2008 VTEM airborne survey and a resisitivity low identified during the winter 2009 3DIP survey. Neither hole intersected significant secondary alteration in the sandstone and basement rocks. The geophysics and surface geochemistry in the area are considered anomalous and the area will be re-evaluated with respect to identifying possible future drill targets.

While exploration at Fission's Waterbury Lake project remains focused on the ground adjacent to Hathor's Roughrider Zone uranium discovery, the Company continues to identify multiple new priority targets from ongoing exploration on this large, strategically located property. The Waterbury Lake Property is located in the northeast part of the Athabasca Basin, where several open-pit uranium deposits, including Midwest Lake, McClean Lake, and Rabbit Lake, are found. Fission is the operator of the Waterbury Lake Project.

The Waterbury Consortium has budgeted C$4.0 million for exploration in 2009.

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 Ross McElroy, P.Geol. President and COO for Fission Energy Corp., a qualified person.

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".

Korea Electric Power Corporation (KEPCO) is a Korean government-invested diversified energy company with over $83-billion (U.S.) in assets. The company is involved in the generation, transmission and distribution of electrical power from nuclear, hydro, coal, oil and LNG sources worldwide. Korea Electric Power 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 ("KEPCO Consortium") is a consortium primarily comprised of Korean-based companies. Led by Korea Electric Power, other participating companies include Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co., Hanwha Corp. and Gravis Capital Corp., a private Canadian uranium investment company.

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

Ross McElroy, President & COO

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

Contact Information