Fission Energy Corp. - Waterbury Lake, SK

Waterbury Lake, SK

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Waterbury Lake Uranium Limited Partnership: Fission Energy 60% /Korea Waterbury Uranium Limited Partnership 40%.

J Zone 3D model
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The 40,256 hectare (~ 98,000 acres) Waterbury Lake Property virtually surrounds the AREVA/Denison Midwest Uranium Deposit (41 million lbs U₃0₈ at an average grade of about 5.5% U₃0₈), and the nearby Midwest "A" discovery, in the eastern part of the Athabasca Basin, home of the richest uranium deposits in the world. In 2008, Hathor Exploration announced its Midwest NE uranium discovery (Hole MWNE-08-12 with 5.29% U₃0₈ over 11.9m), now known as the "Roughrider" uranium project. Hathor's property is "sandwiched" between two of Fission's claims, immediately northeast of the AREVA/Denison Midwest Property. This structural trend continues on to Fission's northeast claim area and exhibits excellent potential for unconformity style uranium mineralization.

"Fission Energy has an enviable mix of location, high-grade resource potential and opportunity. It is located in the prolific Athabasca Basin, which has a 35-year history of uranium production and excellent infrastructure."

Rob Chang, Versant Partners: The Energy Report: Interview,
June 21, 2011. www.theenergyreport.com

In January 2008, a consortium led by Korea Electric Power Corporation (KEPCO) (NYSE-KEP), entered into an agreement for the joint development of Fission's Waterbury Lake Property. In addition to an earn-in of up to 50% through phased exploration expenditures totaling $14 million over a three year period, KEPCO subscribed for 1 million common shares of Fission at $1.00 per share. Fission retained an exclusive and irrevocable "back-in option" to reacquire a 10% interest in the Property for $6 million, and holds a 2% NSR royalty.

Drilling History

In 2008, Fission completed a first phase 8,237m drill program, which tested the structural trend that straddles the Roughrider Zone and extends for another 3 km to the west and southwest on the Waterbury Lake property. The structural trend was later named the "Discovery Bay Corridor". The drill program was successful in identifying a significant basement hosted anomaly, within this structural trend, that warranted follow-up exploration. It was named the "Discovery Bay Zone".

In 2009 and 2010 Fission continued testing for high grade mineralization in the Discovery Bay Zone, in addition, to several new high priority targets along the Discovery Bay Corridor. On January 25, 2010, the Company announced significant radioactivity in drill hole WAT10-063A, located in the Discovery Bay Zone, approximately 140m west of the Roughrider uranium discovery. Hole WAT10-63A intersected 10.5m grading 1.91% U₃0₈ at the unconformity from 226.0m to 236.5m downhole. Included in this interval is a high grade intersection of 1.0m grading 13.87% U₃0₈. Fission subsequently completed three additional vertical step-out holes in close proximity to WAT-063A to further define the extent and geometric shape of this new high grade uranium discovery, which was named the "J Zone". By April 2010, 21 of 26 drill holes had intersected high grade uranium mineralization at or near the unconformity, trending laterally to the west.

In 2011, a Definitive Agreement outlining new terms to accelerate exploration and development expenditures to $30 Million during the three year period from 2010-2012 was signed, with Fission as the Operator. By April 2011, Fission had successfully expanded the J Zone high grade uranium discovery to an east-west strike length of 370m. The J Zone remains open laterally in all directions. To date, five areas of mineralization that warrant follow-up drilling have been identified.

"While the primary focus has been to expand the J Zone high grade uranium discovery, targeted regional exploration drilling at Waterbury Lake has resulted in the discovery of 5 new zones confirming the presence of a large mineralized system with the potential for discovering multiple mineral occurrences over a distance of approximately 1.5 kilometers trending west from the Fission/Hathor property boundary."

Ross McElroy, P. Geol, President & COO, Fission Energy Corp
April, 2011

UPDATE: August 30, 2011:

$3.6 million Summer Exploration program at Waterbury Lake Expands J Zone Strike Length to 578m

Fission's $3.6 million 2011 summer exploration program totalled 7,731.4m in twenty-one drill holes. The summer program successfully expanded the J Zone east-west strike length to 578m from 370m, or by 56% since drilling resumed in July. Mineralization is trending to the west and remains open along strike and to the north and south. 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. 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. Mineralization is open on all sides. 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.

Waterbury Lake Project Summary

The following summarizes the extensive work completed to date to advance the Waterbury Lake uranium exploration project:

January 2008: Fission closes $14 million earn-in agreement over 3 years with Korean Consortium for the exploration and development of the Waterbury Lake Property.
March 2008: Hathor Exploration announces "Roughrider" uranium discovery immediately adjacent to the Fission/Hathor property boundary.
April 2008: Fission commences exploration adjacent to Hathor's "Roughrider" discovery.
February 2010: Fission discovery hole assays 10.5m of 1.91% U₃0₈ including 1.0m grading 13.87% U₃0₈.
February 2010: Additional drilling suggests a significant new unconformity mineralization discovery. The discovery is named the "J Zone". Potential for multiple mineral occurrences over the prospective 3 km Discovery Bay Corridor, which hosts the J Zone, identified.
June 2010: J Zone defined over a 90m X 50m area; high grade uranium mineralization at the unconformity identified in 21 closely spaced drill holes. The J Zone remains open in all directions. New mineralization discovered at J East and Highland, 70m east and 130m west of the J Zone respectively.
June 2010: Fission and Korean Consortium agree to accelerate exploration at Waterbury Lake by doubling expenditures to $30 million over three years.
July 2010: $2.07 million 5,000m summer exploration program commences.
August 2010: Fission and the Korean Consortium enter into a definitive agreement by forming the Waterbury Lake Uranium Limited Partnership with each holding a 50% interest in the project.
September 2010: Summer drill program successfully expands the J Zone to ~120m X 50m area by intersecting high grade uranium mineralization in 28 closely spaced holes, most of which were vertically drilled.
January 2011: Fission commences largest winter exploration program to date budgeted at $7.9 million and includes 23,000+m of drilling with three drills. New drill targets to the west of the J Zone and Oban to the north to be drill tested.
February 2011: J Zone continues to demonstrate strength and continuity of mineralization trending to the west. New mineralization at the unconformity discovered 338m west of the current J Zone boundary and discovery west of Highland named "PKB"
March 20011: New mineralization near the unconformity in hole WAT11-153A discovered 1.3 km west of the J Zone.
March 2011: Fission intersects the strongest high grade uranium intersection to date in the western part of the J Zone: 14.5m grading 7.84% U₃0₈, including 2.0m of 46.15% U₃0₈.
April 2011: Fission exercises its back-in option to acquire an additional 10% limited partnership interest for $6 million and now holds a 60% interest in the Waterbury Lake project.
April 2011: Winter 2011 program results in the successful expansion of the J Zone uranium discovery to an east west strike length of 370m, expanding the strike length by more than 3x since drilling began in January. Newly discovered basement mineralization identified in seven drill holes in the western part of the J Zone below the overlapping unconformity mineralization. The J Zone remains open laterally in all directions. Five areas of uranium mineralization have now been identified at Waterbury Lake within the Discovery Bay Corridor over a distance of approximately 1.5 kilometers trending west from the Fission/Hathor property boundary. From east to west, these are: J East, J Zone, PKB, Talisker, and the new discovery made by Hole WAT11-153A in the Discovery Bay Corridor to the west of the J Zone.
June 2011: Fission commences $3.6 million summer exploration program with two drills.
August 2011: Summer 2011 program results in the successful expansion of the J Zone uranium discovery to an east west strike length of 578m, an increase of over 56% since drilling resumed in July. 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.