High grade assays released for Patterson Lake South – new discovery?

Recommendation: BUY (Speculative) - Fission

Fission Energy and its 50-50 joint venture partner in Patterson Lake South, Alpha Minerals, have
released high grade, wide and shallow assay results for its Patterson Lake South property located 50km
south of UEX Corp’s 88M lbs U3O8 Shea Creek deposit.
The assays released for Patterson Lake South look and smell like possible discovery holes for a new
deposit in the Athabasca Basin. While still early stage for this project, it is difficult to ask for a better set of initial assays.
We reiterate our Buy (Speculative)
recommendation and $0.75 per share target price on Fission Energy, but note the strong upside
potential of PLS.

High grade: The four holes with mineralized intercepts produced a weighted-average grade
of 0.90% U3O8 with a highlight intercept producing 2.49% U3O8 (global median grade is
0.09% U3O8)

Wide intercepts: Outside of the major deposits, the Athabasca Basin is renowned for
high grade mineralization over very small intercepts. The average intercept reported from the four mineralized holes is 14.6m with the longest being 22.5m

Shallow: The intercepts at PLS are unique in
the basin in that mineralization was encountered between 60m and 85m downhole. This is significantly shallower than the depth of Athabasca deposits that are typically deeper than 400m.

This…could be big: These assays point to a potential new discovery of a significant deposit in the Athabasca Basin.

Fission Energy and its 50-50 joint venture partner in Patterson Lake South, Alpha Minerals (TSXV: AMW), have released assay results for the drill holes that produced off-scale radioactivity on November 15, 2012.
Highlights of the drill hole assays include:
• 18.0m @ 1.78% U3O8 (Hole PLS12-024)
o Including: 12.5m @ 2.49% U3O8
• 8.5m @ 1.07% U3O8 (Hole PLS12-022)
o Including: 2.5m @ 2.63% U3O8
• 22.5m @ 0.4% U3O8 (Hole PLS12-025)
o Including: 4.03m @ 0.85 U3O8
• 9.5m @ 0.27% U3O8 (Hole PLS-023)
Of note is the fact that the mineralization was intercepted between 60m and 83m downhole, which is shallow and potentially open pittable. Deposits in the Athabasca Basin tend to be very deep such as McArthur River (500m – 640m) and Shea Creek (700M) where underground mining methods are required.

The Patterson Lake South property is 31,039 hectares in size and is located 50km south of UEX Corp’s (TSX: UEX) and Areva’s (Fr: CEI) Shea Creek discovery, which contains 88M lbs of U3O8. These holes were drilled northeast of the high grade boulder trend on the PLS property that led to the discovery of
this mineralized zone. Management has indicated that an aggressive winter drill program will be conducted to follow-up on these fantastic results. Given the high grades and wide intercepts of these assays, we view these results as potential discovery holes for another major deposit in the Athabasca Basin.