High Grade Assays from New Discovery - 2.49% U3O8 over 12.5m

Conclusion: We continue to recommend Fission Energy with a BUY recommendation and no target. Assays from the initial four drill holes at PLS in the Athabasca were announced this morning.


• 2.49% U3O8 over 12.5m including 11.1% over 0.5m - this is within a broader 1.78% over 18m wide zone was intersected in hole PLS12-24.
• 1.07% over 8.5m including 2.63% over 2.5m from hole -22
• 0.4% over 22.5m including g 0.85% over 4.03m from hole -25
• 0.27% over 9.5m from hole -23. Several assays exceeded half a percent.
• 0.83% U3O8 over 16.2m was the average of all four drill holes using a 0.1% U3O8 cut-off. This improves slightly to 1.53% over 9.5m using a 1% cut-off, although hole -23 would fall out of our sample population


New basement hosted uranium discovery confirmed. We view today's results as very positive. All holes are well mineralized over significant widths with grades relatively consistent top to bottom. There is good correlation between scintillometer results and assays with off-scale readings measuring from over 1% to 11%. Assays also demonstrate grade variability typical of basement hosted Athabasca deposits (ranging from 0.25% to 11% plus). While consistent, there were higher grade cores within each of all four drill holes. Three of the holes hit multi-percent uranium and that fourth hole (-23) intersected over 0.5% in three places.
Hole 24 was impressive. Hole 24 demonstrated good thickness and high grades. From evaluation of core photographs we anticipate this mineralization is robust and a sign that significant mineralizing fluids passing through these rocks for some period. We also believe this 2.49% over 12.5m intercept is somewhat comparable to the initial Hathor discovery hole 5% over 12m. The intercept can be compared to hypothetical drill results of 1.37 opt (43 g/t) gold or 29% copper grades at current commodity prices - we would expect that should get investors attention, particularly given the ample interpreted strike extent of the host conductor.

We believe today's market reaction is unwarranted. Fission and Alpha Minerals traded down on the news. Perhaps some expected higher grades, or the stocks gained too much too quickly with all the attention over the last few weeks. We don't believe that a share price decline is warranted, and while the ultimate size of the zone is unknown at this early stage, we see this as a great start. There are many reasons to suggest we may be on to a significant uranium discovery. These include robust and consistent uranium mineralization; shallow mineralization, close to the largest anomalous boulder field in the Athabasca (Figure 2); fact that this boulder field can't explain the discovery (these intercepts are covered by sediments, so the source of the high grade boulders still remains somewhere to the east); multi-percent intercepts; host conductor strikes for over 2km and remains untested; multiple conductors are apparent; up to $2300/t in situ rock value; minimal drilling over short strike length; and mineralization is open in all directions. We believe further drilling would help build on current results.
Plans for 2013 underway. Fission would like an aggressive winter program, perhaps in the order of 8-10,000m of drilling (~60 holes), but the partners have yet to discuss plans. Cheaper and quicker paced drilling is expected as PLS mineralization is much shallower (65-80m deep versus over 200m at J Zone).