Fission Energy Corp.
TSX VENTURE : FIS

Fission Energy Corp.

February 01, 2011 08:30 ET

Fission Hits New Mineralization at the Unconformity 30m and 338m West of J-Zone

KELOWNA, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - FISSION ENERGY CORP. (TSX VENTURE:FIS) ("Fission" or the "Company") and its Limited Partner, the Korea Waterbury Uranium Limited Partnership ("the Waterbury Consortium"), announce that recently completed vertical step-out drilling at its Waterbury Lake project in the Athabasca Basin, has expanded the J-Zone uranium discovery at its western margin, in addition to identifying new unconformity related mineralization within the Discovery Bay Corridor, 338m to the west of the currently defined J-Zone boundary. Hole WAT11-119, collared 30m grid west of hole WAT10-103 (15.5m of 5.55% U3O8, including 2.5m grading 32.39% U3O8, see news release dated October 13, 2010), intersected 8m of well developed mineralization at the unconformity (196.0m-204.0m), including 0.60m of "off-scale" (cps >9,999) radioactivity. Three hundred and thirty-eight metres further to the west, vertical exploration Hole WAT11-122 encountered 6m of strongly anomalous radioactivity (194.5m-200.5m) in sandstone slightly above the unconformity (200.65m). While J-Zone Hole WAT11-119 further demonstrates the strength and continuity of unconformity mineralization trending to the west, the strong level of anomalous radioactivity identified in Hole WAT11-122 is the first indication supporting Fission's belief that the Discovery Bay Corridor, which extends for approximately 3 km to the west from the eastern limits of the J-Zone, may host multiple occurrences of high grade uranium mineralization. Drilling is continuing with three drills.

Since drilling resumed in mid-January, seven holes have been completed at the J-Zone, two at Highland, and one within the Discovery Bay Corridor to the west of the J-Zone. Given that the mineralization encountered appears to be almost flat-lying, drill intercepts from vertical collared holes reported herein are approximately true thickness.

J-Zone

To date, seven holes have been drilled to extend the J-Zone. Three intersected mineralization; two at the unconformity (WAT11-119 and 116) and one (WAT11-117A) in basement, successfully expanding the J-Zone boundary to the west and north. Hole WAT11-119 identified robust mineralization 30m to the west from WAT10-103, while, Hole WAT11-116 extended mineralization a further 10m north on Line 030M. Four holes did not encounter mineralization (WAT11-113, 114, 115A and 121A). Fission has now successfully defined the J-Zone over a ~140m x up to 50m area by intersecting high grade uranium mineralization at the unconformity in 30 closely spaced drill holes, most of which were vertically drilled.

Highland Summary

Highland is located ~70m to the west of the J Zone. Two holes (WAT11118 and 120) were completed to follow-up mineralization found in Hole WAT10-092A, drilled last winter. Hole WAT11-120 was drilled on Line 165W ~30m east of hole WAT10-092A and was weakly mineralized at the unconformity. Hole 118, 25 m to the north and east of hole 092A, was not mineralized. Drilling will continue at Highland, which is a high priority target for hosting high grade uranium mineralization.

Discovery Bay Corridor

Following the recent completion of a Time Domain EM geophysics survey along the east-west oriented Discovery Bay Corridor, a 3rd drill rig was mobilized to initiate exploration drilling on a regional basis. Based on the geophysical interpretation, Hole WAT11-122, collared ~338m west of the western extent of the J Zone, encountered 6.0m of strongly anomalous radioactivity in hematite clay altered sandstone just above the unconformity (200.65m) from 194.5 – 200.5m. Radioactivity as high as 4,000 cps was measured. This new discovery supports Fission's model that the potential exists for finding multiple occurrences of high grade uranium mineralization along the 3km Discovery Bay Corridor to the west of the J-Zone. Further drilling around this new discovery is being planned.

Hole Summary

J-Zone

        * Mineralization Clay Alteration Unconformity Total
Hole ID Grid Line Az Dip From - To CPS Max Peak From - To Depth Depth
WAT11-113 045W 0 -90 no significant
mineralization
  180m - 207m 197.05 290.0m
WAT10-114 045W 0 -90 no significant
mineralization
  190m - 202m 202.3m 290.0m
WAT10-115A 030W 82 -86 no significant
mineralization
  200m - 211m 204.6m 290.0m
WAT10-116 030W 0 -90 190.0m - 196.5m 340 - 2200 189m - 204m 197.5m 299.0m
        203.0m - 204.0m 360 - 470      
        224.0m - 224.5m 470      
WAT11-117A 105W 0 -90 213.5 - 216.0m 330 - 1000 192m - 200m 196.25m 320.0m
        227.5 - 231.0m 500 - 1200 211m - 227m    
WAT11-119 105W 0 -90 196.0 - 204.0m 400 - >9999 180m - 206m 196.6m 296.0m
        230.5m - 231.5m 308 - 420 216m - 237m    
        280.0m - 280.5m 340      
WAT11-121A 105W 0 -90 no significant
mineralization
  195m - 203m 199.3m 293.0m

Discovery Bay Corridor Hole

        * Mineralization Clay Alteration Unconformity Total
Hole ID Grid Line Az Dip From - To CPS Max Peak From - To Depth Depth
WAT11-122   0 -90 194.5 - 200.5m 320 - 4000 180m - 207m 200.65m 323.0m

Highland

        * Mineralization Clay Alteration Unconformity Total
Hole ID Grid Line Az Dip From - To CPS Max Peak From - To Depth Depth
WAT11-118 180W 0 -90 no significant
mineralization
  184m - 192m 189.7m 305.0m
WAT11-120 165W 0 -90 195.0m - 196.0m 340 - 370 182m - 206m 197.7m 290.0m
        215.5m - 216.0m 340      

*Refer to table (hand Scint for results of anomalous radioactivity)
All depths are down-hole measurements

An updated drill hole map and a table summarizing Drill Core Hand-Held Scintillometer Readings can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp.

All holes will be radiometrically surveyed with a Mount Sopris 2GHF Triple Gamma probe. The triple gamma probe uses both a Na-I scintillation crystal and a ZP1320 High-Flux Geiger-Mueller tube pair, which allows better resolution in strongly radiometric intervals.

Natural gamma radiation in drill core that is reported in this news release was measured in counts per second (cps) using a hand held Exploranium GR-110G total count gamma-ray scintillometer. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials. All intersections are down-hole, core interval measurements and true thickness is yet to be determined.

Split core samples from the mineralized section of core will be taken continuously through the mineralized intervals and submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis, which includes U3O8 (wt %) and fire assay for gold. All samples sent for analysis will include a 63 element ICP-OES, uranium by fluorimetry (partial digestion) and boron. Chemical results will be released when received. Further updates will be provided.

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 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 and the Korea Waterbury Uranium Limited Partnership are both 50% limited partners under 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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