Fission Uranium Corp T.FCU

Rodman and Renshaw comments on Fission Uranium Corporation

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According to Rodman and Renshaw:

https://app.box.com/s/ckdrwxahe0v99dhbt69t012w1ux4khzq

Fission Uranium Corp. (FCUUF)

Rating: Buy

Price Target: $1.90

Drilling Results Continue to Impress; Reiterate Buy

On October 20, 2015 Fission Uranium announced assay results from its wholly-owned Patterson Lake South (PLS) Project. The firm released an additional 10 drill holes from its 2015 summer drilling program, which included two holes drilled at R600W, six on R780E, and two on 1620E. We note that the completed summer program consisted of 60 holes, which focused on continuing the expansion of the already large-scale PLS Project. Given the strong results from the summer program, we believe resource growth at PLS is probable. While the Triple R deposit remains robust on its own, we believe the R600W zone could ultimately contribute significant resources to the PLS Project as a whole, ultimately enhancing the robust economics set forth in the recently announced Preliminary Economic Assessment (PEA).

Strong results at R600W continue to roll in. The summer drilling program uncovered significant shallow high-grade mineralization at the R600W zone, which is not yet included in a resource estimate for PLS. Of particular note, holes PLS15-408 intersected 24.5m of mineralization grading 3.67% (from 124.5-149.0m) including a 5.0m section grading 11.1% from 136.5 to 141.5m. In our opinion, the presence of shallow high-grade mineralization such as that exhibited by hole PLS15-408, continues to confirm significant potential for resource expansion at R600W. We ultimately expect a resource estimate to be produced on the R600W zone, which we feel should provide additional pounds at the PLS Project further establishing it as a premier large-scale, high-grade uranium asset in one of the most prolific uranium districts worldwide.

Our thesis remains unaffected by the recent shareholder vote. Although Fission shareholders recently voted down the proposed merger between Fission and Denison (DNN; not rated), our thesis for Fission remains firmly intact. While we felt a merger between the two firms would have been a net positive for Fission shareholders, we believe the economics of the PLS Project are strong enough for it to remain a standalone entity while management continues to focus on increasing and advancing the project. Although the merger with Denison ultimately failed, we continue to view PLS as a strong takeout candidate and expect Fission to continue to move the project forward —particularly through the expansion of resources at the project.

We are reiterating our Buy rating and $1.90 per share price target on Fission Uranium. Our valuation is based on a DCF of operations at the Triple R deposit utilizing a 10% discount rate and long-term uranium prices of US$65 per pound. To this, we add net cash and account for future resource expansion at PLS (particularly R600W) with an additional 30 million pounds at our blended average of $6.75 per pound.

Risks. 1) Uranium price risk; 2) financing risk; 3) operating and technical risk; and 4) political risk.