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Fission Uranium (TSX: FCU) President Ross McElroy on Kicking Off 2018 with One of the Strongest Holes to Date at PLS, Upcoming Resource Update, & the Remaining Blue Sky Potential of PLS

January 3, 2018

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President, COO, and Chief Geologist for Fission Uranium (TSX: FCU)(OTC: FCUUF), Mr. Ross McElroy. Ross, happy new year to you.

Ross McElroy: Happy new year, Gerardo.

Gerardo Del Real: Listen, I have to congratulate you, it's a heck of a way to start 2018. The headline reads, “Fission Hits One of the Strongest Holes to Date at PLS.” There were also some very important metallurgical highlights within the release that I'd like for you to kind of give me a primer on. But there's a gentleman by the name of John Quakes on Twitter who's really insightful and follows the company. I want to use his wording of how he described the continuous interval of U3O8. He said, "Just imagine a 108 meter column of continuous high-grade U3O8 taller than a 30 story office tower with an average grade of 8.5%, some floors at 28%." He said, "Incredible, and at just 56 meters below surface, another reminder why PLS is the best shallow high-grade uranium discovery in 40 years."

I wasn't going to be able to word it better than that, so shout out to Mr. John Quakes. Can we talk a bit about the interval and then I'd love to talk about some of the met work that was done.

Ross McElroy: You bet, and you know, John's right. It's a great way to paint an analogy here. It's a tremendous result that we saw in that hole. 108 meters of continuous mineralization is the widest mineralization that we've seen yet on the property. It is in an area that we knew was well-mineralized, in the R780E Zone. But it still was better than anything else we had around it and the grade at 8.46% overall is pretty huge. That gives us a great thickness number in GT, which mining engineers love to use these numbers, of over 913, which is pretty spectacular. I guess to put in some context, this ranks up with one of the best holes in the Athabasca Basin. For PLS it's a fact that it's shallow. The mineralization starts near surface, just at the top of the bedrock and it goes down for quite a way. We’re extremely happy with the assay results.

Gerardo Del Real: Excuse me, Ross, here, just a bit of context really quick. You reported on three holes and they all returned as expected substantial intervals of high-grade uranium, is that correct?

Ross McElroy: They did. All three were excellent, and really, the purpose that we drilled these for was to collect sufficient material for metallurgical samples. This is what you were talking about just a couple minutes ago. The metallurgical sample is something that will help in the overall design and the processing plant, just understanding the characteristics of the ore when we go into production at some point in the future. So the important thing that we saw out of the study was the fact that we had very high uranium recovery in these samples, and that's over a very short time in the leach pads. And I think what's key there is that we have almost no deleterious elements involved. You have very low arsenic, very low selenium. These are elements that work against you in your number of deposits and it becomes expensive to pull them out. So the fact that we don't have them in the first place makes this much better ore to deal with.

We're good on that front. The characteristics of the ore is that it grinds very nicely, uses low power requirements. Again, these are all cost saving measures when we go down the road. But I think what's important when I step back and look at the overall results of it, these have positive implications for the overall prefeasibility study that as we've told our investors that we expect to have studied by the end of 2018. This is just great information that feeds into this overall study, so very pleased with the results.

Gerardo Del Real: Excellent, and the prefeasibility study, the PFS, obviously is something that's going to be a major catalyst, but there's several other catalysts in the near term that I'd love for you to touch on. The last time we spoke, we were targeting a resource update. Hopefully sometime in Q1 of 2018, are we still on track for that, Ross?

Ross McElroy: We are and it was important for us to also have the holes that we just released now into the resource assessment as well. We needed those three holes. We now have the results from them, we can continue working on a resource estimate. I think you're right. We're looking at an early 2018 point in order to get a new resource estimate out. Now that resource estimate will have, obviously some updates on the R780 zone as per these holes that we've just drilled. But they'll also include the other zones that we've been working on over the last couple years. The new discoveries of the 1520 East over to the west on land, the 840 West and the newer discovery, the R1515. So those are zones that will make it into a new resource estimate and the fact that we're ready to embark on a winter program probably shortly, I suspect we will be back on the project doing a winter program by February, so another month or so away from that.

Gerardo Del Real: Well that's exciting news, Ross. I know that planning for the winter program has got to be exciting for you and the board. I know that one of the points that gets missed the most with Fission is because the current resource, and I'm sure here, by the end of the month, we'll be talking about a different number, but the current resource is so robust that the world class exploration potential that still exists throughout the property I think is often overlooked. Can you speak to that a bit?

Ross McElroy: Yeah, absolutely. You're right, it is a very robust resource that we've already outlined. Our PEA showed in 2015 that, just based on the 00 and the 780 zone, this is a standalone project that has great economic numbers, high IRR and quick payback. It hits all the marks in a project that you want for a mining venture but with the new discoveries that we've had since that PEA, these will be the on land zones to the west, I think they'll all continue to add not only numbers of pounds to the overall resource but down the line, we'll hopefully be able to bring them into the economic studies as well and see how they positively impact the project. It's still very, very early days at PLS. There's still a lot of great blue sky potential. I think we’ll continue to make new discoveries as we go forward, but key for us right at this moment, this juncture is making sure that the main part of the deposit that we know is able to advance forward towards prefeasibility, the next stage would be feasibility and then looking forward, hopefully positive production decisions.

Gerardo Del Real: Sounds like it's going to be an exciting and productive year. I can't wait to have you back on, Ross, once that resource estimate is announced and of course, once you get the details of the winter program. Looking forward to that as well. I want to thank you so much for your time. Is there anything that you'd like to add, Ross?

Ross McElroy: No, I think for us, it's a great way to start of 2018, the project's looking better than ever and we're looking forward to 2018 as well.

Gerardo Del Real: Excellent. Well, look forward to chatting. Thank you again, Ross. Talk soon.

Ross McElroy: Great. Thank you, Gerardo.

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