Fission Energy Corp.
TSX VENTURE : FIS
OTCQX : FSSIF

Fission Energy Corp.

August 08, 2012 07:30 ET

Fission Energy Corp.: Waterbury Lake Regional Target Assay Results; Mineralization at Summit, Murphy & Oban

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Fission Energy Corp. ("Fission or "the Company") (TSX VENTURE:FIS)(OTCQX:FSSIF) and its Limited Partner, the Korea Waterbury Uranium Limited Partnership ("the Waterbury Consortium"), announce final assay results for several high priority targeted exploration areas drilled during the 2012 winter program at the Waterbury Lake Property.

Ross McElroy, Fission's President, COO, and Chief Geologist commented, "While growing the J Zone remains the primary focus at Waterbury Lake, targeted regional exploration drilling has identified several mineralized areas of interest, with Summit, Oban and Murphy Lake being the most encouraging new areas tested during the winter program. Results have reinforced the potential for Waterbury Lake to host multiple mineral deposits similar to the J Zone discovery."

Exploration drilling targeted several high priority targets throughout the property. (See press release dated June 4, 2012). Results from the Summit Zone, located to the west of the J Zone deposit, Oban, to the north of the J Zone deposit, and Murphy Lake in the northwest part of the Waterbury Lake Property demonstrate the significant potential for hosting new high grade unconformity mineralization. Results are reported as follows:

Summit Zone

The Summit Zone is located 900m west of the J Zone deposit along strike from Hole WAT12-281 (L540W) to Hole WAT11-153A (L1440W). Of the twelve holes drilled to test for extensions of basement mineralization, four intersected uranium mineralization in the basement. Hole WAT12-243 intersected 7.00m (238.5m-245.5m) of 0.05% U3O8, including 1.5m grading 0.07% U3O8. In addition, two discrete intervals of massive nickel-arsenic-cobalt mineralization were encountered in the basement below the mineralized uranium interval: 6.5m grading 15.1% Ni, 20.3% As and 3.27% Co (258.5m - 265.0m) and 3.0m grading 1.16% Ni, 1.35% As and 0.57% Co (269.0m - 272.0m). These Nickel-rich mineralized zones provide further support for the potential of the area to host massive mineralization. Further work is needed to model this data.

Hole WAT12-251 intersected 1.0m (254.0m-255.0m) of basement mineralization grading 0.37% U3O8. Drilling is planned for this winter to further evaluate this area.

Table 1 Summit Zone Winter 2012 Assay Results

Zone Hole ID Grid Line From (m) To (m) Interval (m) U3O8
(wt%)
As % Co % Ni %
Summit WAT12-243 1445W 238.5 245.50 7.00 0.05 0.18 0.05 0.74
239.5 241.00 1.50 0.07 0.19 0.03 0.52
258.5 265.00 6.50 0 20.3 3.27 15.1
269.0 272.00 3.00 0 1.35 0.57 1.16
WAT12-246 1455W No Significant Mineralization
WAT12-248 1470W No Significant Mineralization
WAT12-251 1470W 254.0 255.00 1.00 0.37 0.56 0.3 0.22
WAT12-254A 1440W No Significant Mineralization
WAT12-256 1425W No Significant Mineralization
WAT12-260B 1440W No Significant Mineralization
WAT12-262 1440W 270.5 271.00 0.50 0.06 0.02 0 0.04
WAT12-266 1410W 254.5 256.50 2.00 0.02 0.16 0.17 0.34
WAT12-268 1485W No Significant Mineralization
WAT12-271 1485W No Significant Mineralization
WAT12-291 1410W No Significant Mineralization

Murphy Lake

Fourteen drill holes focused on testing the central and southern areas of the Murphy Lake Corridor as follow-up to limited drilling completed during the 2011 summer drill program. The southern extension of the Murphy Lake Corridor is characterized by faulting associated with the flexure of the conductor system around the southern edge of an interpreted granitic dome. Airborne and ground geophysics show that the strike of the conductive system changes direction from the northeast to east-west at the location of the flexure and that the associated host lithology wraps around an interpreted granitic dome. This area proved to be the most prospective part of the Murphy Lake Corridor tested in the winter program. The geological setting is analogous to the Midwest trend on the eastern part of the property where Rio Tinto's nearby Far East, Roughrider East and Roughrider West deposits are located.

Holes WAT12-258, 273, and 287A (Line 6150W) intersected narrow intervals of low grade basement mineralization associated with the M8 Conductor located at the south end of the Murphy Lake Corridor. Ground geophysical work is currently underway to identify targets for further drilling this winter (See press release dated June 25, 2012) as Murphy Lake continues to be a high priority prospective area for discovering new high grade mineralization.

Table 2: Murphy Lake Winter 2012 Assay Results

Zone Hole ID Grid Line From (m) To (m) Interval (m) U3O8(wt%)
Murphy Lake WAT12-217A M6 No Significant Mineralization
WAT12-223A M5 No Significant Mineralization
WAT12-227 M5 No Significant Mineralization
WAT12-233 M5 No Significant Mineralization
WAT12-239 M5 No Significant Mineralization
WAT12-241 M5 No Significant Mineralization
WAT12-245A M8 No Significant Mineralization
WAT12-250A M8 No Significant Mineralization
WAT12-258 M8 444.8 445.3 0.5 0.07
WAT12-263 M8 No Significant Mineralization
WAT12-270 M8 No Significant Mineralization
WAT12-273 M8 450.5 451.5 1.0 0.06
WAT12-279 M8 No Significant Mineralization
WAT12-287A M8 440.0 441.0 1.0 0.07
463.5 464.0 0.5 0.06

Oban & Oban North

The Oban Corridor parallels the Discovery Bay Corridor, which hosts the high grade J Zone uranium discovery, approximately 4 km to the south. Three holes targeted the O2 Conductor. All three holes at Oban intersected uranium mineralization in the sandstone above the unconformity and in the basement. Hole WAT12-296A intersected several discrete intervals of uranium mineralization over widths up to 3.0m wide in the sandstone, above the unconformity, representing the strongest mineralization seen to date at Oban. In addition, three holes were targeted along the O3 conductor further to the north (referred to as Oban North). The O3 Conductor has a more curvilinear northwest trend as compared to the east-west oriented O1 and O2 Conductors. Most significant, Hole WAT12-272A intersected 51.9m of pelitic basement rocks. Locally strong graphitic rocks were identified directly below the unconformity from 253.0m to 304.9m and quartz-feldspar was observed extending below the graphitic rocks to the termination depth of the hole (401.0m). Holes WAT12-276 and 282 both intersected mixed pelitic and quartz-feldspar gneissic rocks in the basement below the unconformity. Oban represents an exciting high-priority exploration target for the potential discovery of high grade uranium mineralization. Follow-up drilling is planned.

Table 3 Oban & Oban North Winter 2012 Assay Results

Zone Hole ID Grid Line From (m) To (m) Interval (m) U3O8(wt%)
Oban WAT12-285A O2 268.5 269.0 0.5 0.13
WAT12-292 O2 265.5 266.0 0.5 0.06
267.5 268.0 0.5 0.06
WAT12-296A O2 243.0 243.5 0.5 0.14
245.0 248.0 3.0 0.09
263.5 265.5 2.0 0.06
Oban North WAT12-272A O3 No Significant Mineralization
WAT12-276 O3 No Significant Mineralization
WAT12-282 O3 No Significant Mineralization

Chivas

The Chivas Corridor is an east-west oriented conductor system on strike with Oban, approximately 3km to the west. Three discrete EM Conductors (C1, C2 and C3) were tested by five exploration drill holes (WAT12-252, 255, 259, 264 and 267). No significant alteration or mineralization was intersected.

Table 4: Chivas Winter 2012 Assay Results

Zone Hole ID Grid Line From (m) To (m) Interval (m) U3O8(wt%)
Chivas WAT12-252 C1 No Significant Mineralization
WAT12-255 C1 No Significant Mineralization
WAT12-259 C1 No Significant Mineralization
WAT12-264 C2 No Significant Mineralization
WAT12-267 C3 No Significant Mineralization

Maps with drill hole locations and assay results showing zones of uranium mineralization for the Summit Zone, Murphy Lake, the Oban Corridor, and Chivas exploration areas have been posted to Fission's corporate website and can be referenced at http://www.fission-energy.com/s/WaterburyLake.asp.

Each drill hole is surveyed downhole for radioactivity with a Mount Sopris 2PGA-1000 Gamma/SP probe. Samples were submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for assay analysis, which included a 63 element ICP-OES, uranium by fluorimetry (partial digestion).

Fission Energy and the Waterbury Consortium have budgeted C$30 million for exploration at Waterbury Lake over a three year period from 2010-2012.

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. Common Shares are listed on the TSX Venture Exchange under the symbol "FIS" and on the OTCQX International electronic trading system in the United States under the symbol "FSSIF".

Korea Waterbury Uranium Limited Partnership ("Waterbury Consortium") is a consortium primarily comprised of Korean-based companies. The Consortium is led by Korea Electric Power (KEPCO). Other participating companies include: Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co., Hanwha Corp. and Gravis Capital Corp., a private Canadian uranium investment company.

Fission Energy owns 60% and the Korea Waterbury Uranium Limited Partnership owns 40% of the Waterbury Lake Uranium Limited Partnership.

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)

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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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