Fission Energy Corp.
TSX VENTURE : FIS
OTCQX : FSSIF

Fission Energy Corp.

August 30, 2011 13:51 ET

Fission's Expands J Zone Strike Length to 578m

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2011) - 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 that their recently completed Waterbury Lake 2011 summer drill program has successfully expanded the J Zone east-west strike length to 578m from 370m, or by 56% since drilling resumed in July. New unconformity mineralization, identified to the north and west of the basement mineralization discovered between lines 225W and 315W during last winter's program, connects with the unconformity mineralization found in the PKB Zone 90m to the west. The J Zone unconformity mineralization now extends 75m west of the now merged PKB Zone, and remains open laterally in all directions. The steeper dipping basement mineralization, which branches to the south of the overlying unconformity mineralization, also remains open. In addition, Fission is highly encouraged by a 12m mineralized intersection encountered in Hole WAT11-199, a 30m step-out west of Hole WAT11-153A, which has been named the Summit Zone. The Summit Zone, which has received limited drilling to date, is farthest west of the J Zone. Mineralization is open on all sides.

Fission's $3.6 million 2011 summer exploration program totalled 7,731.4m in twenty-one drill holes. Twelve holes were completed in the high grade J Zone uranium deposit. Three holes were completed in the Discovery Bay Corridor in the vicinity of Hole WAT11-153A, farthest to the west of the J Zone. Three holes were drilled in the Oban Corridor, located 4 km north of the J Zone, and an additional three regional exploration holes were drilled at Murphy Lake in the northwest part of the Waterbury Lake Property.

Updated drill hole maps 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.

Key highlights of the program are as follows:

J Zone Summary

Eleven of the twelve holes drilled in the J Zone intersected uranium mineralization (a drill intersection success rate of >90%) at or near the unconformity, significantly expanding the J Zone's east west strike length to 578m X locally up to 50m wide. The best results included Hole WAT11-200, which intersected 12.0m (215.5m-227.5m) of variable radioactivity with a maximum of 6,500; Hole WAT11-198C, which intersected 11m (223.5m-234.5m) of variable radioactivity with a maximum of 8,900 cps; and Hole WAT11-204A, which intersected 6m (209.0-215.0m) with a maximum of 8,600 cps. Table 1 summarizes the latest completed drill holes at the J Zone (assays pending). The J Zone high grade uranium discovery now extends 75m to the west of the merged PKB zone and remains open laterally in all directions.

Table 1: J Zone Hole Summary

*Mineralization (>300 cps/0.5M minimum) Clay
Alteration
Unconformity Total
Hole ID Grid
Line
Az Dip From-To
(m)
Width
(m)
CPS Max
Peak
From-To
(m)
Depth
(m)
Depth
(m)
WAT11-196 270W 159 -63.7 231.5-233.5 2.0 400-1400 187-203 225.8 317.0
247.5-248.5 1.0 470-870 221-226
WAT11-198C 280W 158 -65.6 211.0-212.5 1.5 360-800 209-213 224.2 335.0
223.5-234.5 11.0 <300-8900 224-237
237.5-239.0 1.5 500-750
WAT11-200 300W 162 -65.5 215.5-227.5 12.0 <300-6500 215-229 224.0 326.0
WAT11-202 315W 159 -70.5 211.5-213.5 2.0 <300-400 194-203 214.5 311.0
221.0-222.5 1.5 350-860 210-224
WAT11-204A 345W 163 -72.9 209.0-215.0 6.0 330-8600 116-158 210.0 331.0
201-215
WAT11-206 360W 169 -62 229.5-233.0 3.5 850-5100 197-232 231.2 341.0
235.5-238.0 2.5 320-4000
243.0-244.0 1.0 340-900
WAT11-208 475W 178 -61.1 no significant
mineralization
227-230 231.4 350.0
WAT11-209 470W 176 -57 226.5-231.0 4.5 <300-670 221-246 242.1 350.0
240.5-248.0 7.5 <300-1700
WAT11-210A 510W 178 -55 254.0-255.0 1.0 420-1400 242-255 254.1 350.0
280.5-282.5 2.0 300-5700
WAT11-212 505W 167 -51 259.5-260.5 1.0 300-450 257-264 264.3 359.0
WAT11-214A 525W 179 -57 268.5-272.0 3.5 411-5800 236-250 248.0 350.0
WAT11-216A 235W 148 -59 247.0-248.5 1.5 300-650 206-230 236.5 320.0

Summit Zone (formerly Hole WAT11-153A)

Hole WAT11-153A, drilled during the winter 2011 season, intersected mineralization near the unconformity (1.50m grading 0.23% U308 from 267.50m-269.00m and 1.0m of 0.09% U308 from 271.50m-272.50m; see news release dated March 1, 2011). It is located approximately 1.5 km west of the J Zone along the same trend that hosts the J Zone. This new zone of mineralization is now referred to as the Summit Zone. During the summer 2011 program, 3 holes tested this area for further mineralization. Hole WAT11-199, a 30m west step-out to test the continuity of uranium mineralization encountered in Hole WAT11-153A, intersected a wide 12m (264.0m-276.0m) intersection of variable radioactivity, just below the unconformity, with a maximum cps of 7400. Hole WAT11-197 was drilled 30m to the east of 153A and intersected 13m of granofels directly below the unconformity (266.08m) and pelitic gneiss to 337m, with minimal hydrothermal alteration present. Hole WAT11-201 was drilled 30m west of WAT11-153A, and encountered well developed hematite and limonite clay alteration over a 21m interval, above the unconformity. No significant mineralization was encountered in these two holes. Overall, Fission is encouraged by the significant width of mineralization encountered by the limited drilling completed to date, in particular, the wide intersection of mineralization found in Hole WAT11-199, which remains open. The Summit Zone continues to be a high priority exploration target.

Table 2: Summit Zone Hole Summary

*Mineralization (>300 cps/0.5m minimum) Clay
Alteration
Unconformity Total
Hole ID Grid
Line
Az Dip From-To
(m)
Width
(m)
CPS Max
Peak
From-To
(m)
Depth
(m)
Depth
(m)
WAT11-197 1410W 180 -54 no significant
mineralization
266.1 377.0
WAT11-199 1480W 173 -58.5 264.0 - 276.0 12.0 <300-7400 260-271 260.8 371.0
WAT11-201 1470W 178 -57 no significant
mineralization
251-272 273.4 350.0

Oban

Oban is a highly prospective corridor that parallels the Discovery Bay Corridor located approximately 4 km to the south. Oban is characterized by a low magnetic signature with >4km of discrete electromagnetic (EM) conductors. Resistivity surveys have identified zones of resistivity lows along these conductive trends.

The summer program focused on drill evaluation of the extensive conductor system at Oban. Although no significant mineralization was intersected in the three holes completed, all holes are characterized by well developed hydrothermal alteration and favourable metasedimentary basement rock lithology. Based on these positive indicators, in addition to the anomalous uranium mineralization encountered in holes WAT11-172 (0.5m @ 0.1% U3O8 and 0.5m @ 0.07% U3O8) and WAT11-161B (0.5m @ 0.064% U3O8) as noted by drilling last winter, the Oban Corridor remains a very prospective target area. In particular, the O2 Conductor (see map) looks most prospective with well developed alteration and local uranium mineralization. These early findings are comparable to those found in the Discovery Bay Corridor prior to the J Zone discovery. Follow-up exploration is warranted.

Table 3: Oban Corridor Hole Summary

*Mineralization (>300 cps/0.5m minimum) Clay
Alteration
Unconformity Total
Hole ID Grid
Line
Az Dip From-To
(m)
Width
(m)
CPS Max
Peak
From-To
(m)
Depth
(m)
Depth
(m)
WAT11-203 1000W 199 -61 no significant
mineralization
282.0 376.4
WAT11-205 1000E 354 -63 no significant
mineralization
236-241 241.7 350.0
WAT11-207 1000E 68 -64.5 no significant
mineralization
252.0 353.0

Murphy Lake

The Murphy Lake corridor is located in the NW area of the property. Murphy Lake is characterized by a large, sinuous, >10m long, EM conductor system. Three holes targeted the extensive conductor system in the northwestern region of the corridor, where recently completed ground geophysics identified a 250m NW offset in the conductor axis with a corresponding resistivity low in the lower sandstone indicating possible faulting and associated hydrothermal alteration. Favourable basement rocks consisting of graphite and sulphide-rich pelitic gneiss with true thickness of 40m – 60m were intersected in the drill holes with moderate clay alteration present at the unconformity. No significant mineralization was intersected in the three holes drilled at Murphy Lake, however the favourable lithology and alteration seen in drill holes warrants further exploration.

Table 4: Murphy Lake Hole Summary

*Mineralization (>300 cps/0.5m minimum) Clay
Alteration
Unconformity Total
Hole ID Grid
Line
Az Dip From-To
(m)
Width
(m)
CPS Max
Peak
From-To
(m)
Depth
(m)
Depth
(m)
WAT11-211 0 -90 no significant
mineralization
317.2 434.0
WAT11-213 343 -65.4 no significant
mineralization
367.0 471.0
WAT11-215 353 -60 no significant
mineralization
379.0 462.2

Assay results from the 2011 summer drill program will be announced when available. Planning is underway for the winter 2012 drill program, which will focus on the continued expansion of the J Zone, delineating the Summit Zone, and additional drill testing at Oban, and other regional exploration targets. Fission Energy and the Waterbury Consortium have budgeted C$30 million for exploration at Waterbury Lake over a three year period from 2010-2012.

All holes were 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.

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" and on the OTCQX Exchange 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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