Fission Uranium Corp T.FCU

Dundee Capital Markets comments on Fission Uranium Corp.

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According to Dundee Capital Markets:

https://personal.crocodoc.com/SypYUsV

Fission Uranium Corp.

(FCU-T: C$1.33) intraday

March 31, 2015

BUY, Speculative Risk, Top Pick

Dundee target: C$2.40

Expansions At Three Core PLS Zones - R600W Remains Key Focus

We recommend Fission Uranium as a Top Pick with a BUY and C$2.40/sh target. Scintillometer results from 15 angled holes on four zones, R600W, R00E, R780E and R1620E were reported. These strong results suggest high grade assay potential within three western zones. While R780E expansion was likely most significant, the R600W is likely more important to investors due to its early stage. Also, the 225m gap between R00E and R780E was targeted as it was previously undrilled.

It is difficult in the absence of assays to make a quantitative call; our initial instinct is that we're enjoying more of the same positive results we have become accustomed to having delivered to our inbox. This news is positive as it continues to show growth at R600W and high grade R780E core outside the current 105.5 MM lb U3O8 Triple R resource. We expect perhaps 20-25 holes left to drill this winter, plus further scint results and assays. The ongoing news flow should help further expand R600W, Triple R, de-risk the project, and if we are lucky, identify new zones. In the meantime, expect the market to realize that each of these updates, while seemingly similar to the last, have potential to greatly add to the value of the project. FCU trades at US$3.32/lb EV vs US$4/lb global precedent average and US$9-$10 for high grade Athabasca deposits.

• High grade expands R600W along strike. Two holes drilled at either end have expanded strike by 25% to 60m long, with lateral width confirmed to 30m on most lines. Today's highlight hole (PLS15-367) intersected 56m of continuous mineralization including 4m off-scale (>10,000cps) at 98m depth. Further east hole -372 hit 61.5m of mineralization within a 206m interval, including 1.15m off-scale (Figure 1). Still wide open, R600W will be a focus moving forward.

• High grade expands R780E on four lines. Seven holes were announced with variable thicknesses and radioactive intensity, including off-scale. Success on lines 315E, 435E, 480E, 870E each expanded the deposit beyond resource boundaries. Hole -369 hit 78m of composite mineralization including 5.24m off-scale. Strong growth within the high grade core of R780E continues.

• Potential to fill the R00E - R780E gap. Seeing as R600W was intersected south of the conductor, this 225m long gap was tested in similar fashion. Two holes returned weak mineralization when they bisected the gap on L150E. Each hit mineralization, but intercepts were thin (2-5m) and radioactivity measured up to 3,000 cps. Expect more drilling but these zones may never truly connect.

• R00E expanded slightly. Minor step outs had limited success suggesting the zone may be delineated. A 5m expansion west was very weakly mineralized (3.5m with up to 580cps). Nearly 550m remains untested out to R600W.

• R1620E weak, but there. Mineralized footprint increased to 45m strike with hole -357. Two discrete intercepts combined for 21m within a 23m interval, where scint results peaked up to a modest 4,800cps. R1620E is only defined by three holes including the 0.2% over 28.5m discovery intercept. We may see further drilling, but this zone is deep and we see greater potential at R600W.