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/h4KsQed

Fission Uranium Corp.

(FCU-T: C$1.17), intraday

May 4, 2015

BUY, Speculative Risk, Top Pick

Dundee target: C$2.40

R600W Discovery Validated By 28.3% over 12m - 5th Best Hole at PLS

We recommend Fission Uranium as a Top Pick with a BUY and C$2.40/sh target. Assay results from 10 angled holes at R600W, R00E and R780E at Patterson Lake South (PLS) were provided overnight. R600W was the clear highlight, intercepting 28.32% U3O8 over 12m within a larger interval of 11.09% over 31.5m (PLS15-352). A GT (grade x thickness) of 340 leads management to calling this a top five hole ever drilled at PLS. It's located adjacent to discovery hole -343 which assayed for 3.36% over 44m, providing a 60m strike to this zone. The hole not only validates this newly discovered zone announced on 1-Mar-15, but highlights that R600W could be a source of significant resource growth potential. The hole is on land and is wide open in all directions, including the 500m gap along strike towards R00E.

• R600W now strikes for roughly 60m. This represents 6% of ~1,200m of mineralization within four zones along 2,000m of strike at PLS. The 550m gap between R600W and R00E remains largely untested. The entire R600W-Triple R-Arrow-Bow-Spitfire Zone trend extends for over 14km - highlighting the incredible prospectivity of the entire South-western Athabasca Basin.

• Accretive to existing mineral inventory estimate. We surmise that hole -352 alone could potentially add ~4 MM lbs U3O8, in addition to the ~2 MM lbs added from discovery hole -343. Both R600W holes are accretive to the 105.5 MM lb Triple R resource estimate provided in January 2015.

• R00E to R780E gap mineralization remains elusive. A single hole (-356) targeted this gap but came up nil. The target was the down-dip projection of geology and structure at ~200m depth. It was drilled on the same line as -328 which did report weak mineralization (0.99% over 2m, 0.14% over 1.5m).

• Expanding R780E. Seven holes from R780E reported today were a little less than average, but corresponded to ten extensional holes drilled around the zone fringes and whose scintillometer results were announced on 23-Mar-15 (see note). The best hole returned 1.1% over 10.5m, including 4.47% over 2m.

Further robust R780E assays expected. An additional seven holes extended the high grade core of the R780E zone reported strong scint results on 23-Mar-15, but were not included today. We therefore still look forward to pending assay results from as many as nine holes at R780E. We expect some of the better assay results will belong to holes that fall just outside the initial resource estimate boundaries.

Cashed up. We believe Fission's well financed for the remainder of 2015 following a successful $20.1 MM flow-through equity raise. A PEA is now underway by RPA and expected in August. Summer drill plans are being formulated but would likely include focus on R600W and R780E zones, and regional targets. Fission remains our Top Pick and we expect it to rebound post deal. FCU trades at US$3.21/lb EV vs US$4/lb global precedent average, and ~$10/lb for the high grade Athabasca.