Fission Energy (FIS-TSXV / $0.42; Market Cap $52.3M) – Buy (Speculative): Target $1.05

August 8, 2012

Sniffs of possible additional mineralization at Waterbury

  • Impact: Neutral
  • Fission Energy has announced assay results for high priority targets at Waterbury Lake that are located away from its 1.73% U3O8, 8.9M lbs J Zone deposit.
  • Summit Zone: Four of 12 holes drilled in the Summit Zone, which is located 900m west along strike of J Zone, intersected uranium mineralization in the basement highlighted by hole WAT12-243 that returned 7m (238.5m-245.5m) of 0.05% U3O8, including 1.5m grading 0.07% U3O8.
  • Murphy Lake: Located in the northwest portion of the Waterbury Lake property, 14 drill holes tested the central and southern areas of the Murphy Lake Corridor as follow-up to limited drilling completed during the 2011 summer drill program. 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.
  • Oban and Oban North: The Oban corridor parallels the Discovery Bay Corridor, which hosts the J Zone and Roughrider deposits, and is located 4km to the north. All three holes drilled 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.
  • Deposits in the Athabasca basin are generally very high grade but typically have small dimensions. As such, it is common for uranium exploration in the area to encounter relatively low grades and indicator geology prior to hitting high grade mineralization. We note that Fission took a few years after Hathor discovered Roughrider to find the J Zone right next door.

Rob Chang

Equity Research Analyst, Metals & Mining

VERSANT PARTNERS INC.  |  20 Queen Street West, Suite 3110  |  Toronto, Ontario  |  M5H 3R3  |  Direct: 416.849.5008 | Fax: 416.849.5010 | 866.442.4485 |  |

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