(FCU-TSX.V, $1.28) 12-Month Target: $2 · INVESTMENT RESEARCH Fission Uranium Corp. SPECULATIVE BUY (FCU-TSX.V, $1.28) 12-Month Target: $2.30 February 24, 2014 Mike Bandrowski (416)

INVESTMENT RESEARCH Fission Uranium Corp. SPECULATIVE BUY(FCU-TSX.V, $1.28) 12-Month Target: $2.30

February 24, 2014 Mike Bandrowski (416) 343-3352

THE Premier Uranium Exploration Play Fission Uranium Corp. presents an opportunity to gain exposure to high grade, near surface uranium in the Athabasca Basin, the highest grade uranium jurisdiction in the world. Fission recently commenced a $20 million winter & summer exploration program at its wholly owned Patterson Lake South (PLS) uranium project that will form the basis for an initial NI 43-101 complaint resource estimate in Q4 2014. We are initiating coverage with a SPECULATIVE BUY rating and a target price of $2.30 per share.

1. Near Surface Mineralization With roughly 50 metres of overburden, PLS is the most exciting, near-surface, basement hosted uranium deposit being delineated in the Athabasca Basin. The high grade and open pit potential present an opportunity to generate robust economics, positioning FCU as the premier uranium exploration story.

2. Large Scale Potential PLS lies along a 3km electromagnetic conductor (EM) where mineralization has been traced for 1.8km, suggesting the PLS footprint compares favourably to the Phoenix, Cigar and McArthur River deposits. The 2014 exploration program will focus on filling in the gaps along the conductor as well as testing additional targets, like the newly discovered Forrest Lake (just south of PLS).

3. Speculative Buy, $2.30 Target Based on exploration success to date, we estimate the Company could define over 75 million lbs. U3O8 at PLS. Our target price assumes FCU trades at roughly US$10.00/lb. in-situ value. Given the near-surface opportunity and footprint of PLS we believe this is a reasonable valuation that could garner dramatic upside on a take-out.

Stock Data

Previous Close $1.28

52-Week High-Low $1.41 / $0.46

Avg. Daily Volume (3 month)

Basic SO (millions) 323

Fully Diluted SO (millions) 366

Major Shareholders: Sprott 8.8%

Float (millions) 307

Market Cap. (millions) $414.0

Cash (millions) $24.0

Debt (millions) $0.0

Enterprise Value (millions) $390.0

Fiscal Year End 30-Dec

Company Information

Flagship Project PLS

Project Location Saskatchewan, Canada

NI 43-101 Resource

Source: FactSet

2,284,353

N/A

Fission Uranium Corp. is focused on exploration andresource development at its 100% owned Patterson

Lake South (PLS) property located in Saskatchewanwithin the Athabasca Basin. The Company is focused

on delineating it initial high grade reosurce by yearend 2014. Fission is based in Vancouver, Canada.

Mar

-13

May

-13

Jul-

13

Sep

-13

Nov

-13

Jan-

14

$.40

$.50

$.60

$.70

$.80

$.90

$1.00

$1.10

$1.20

$1.30

$1.40

Pri

ce

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

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Fission Uranium Corporation (FCU-TSX.V)

February 24, 2014/ p.1 Mike Bandrowski (416) 343-3352

TABLE OF CONTENTS

INVESTMENT THESIS ..................................................................................................................................... 2

HIGH GRADE, LARGE SCALE POTENTIAL ..................................................................................................... 3

ATHABASCA BASIN – AN ANOMALY ............................................................................................................ 4

NEAR SURFACE ADVANTAGE ....................................................................................................................... 5

LOCATION, LOCATION, LOCATION – THE WEST IS THE BEST ....................................................................... 7

2014 EXPLORATION PROGRAM ..................................................................................................................... 8

MANAGEMENT BOASTS A STRONG TRACK RECORD .................................................................................... 9

VALUATION ................................................................................................................................................... 9

PATTERSON LAKE SOUTH ........................................................................................................................... 12

EXPLORATION HISTORY .............................................................................................................................. 13

GEOLOGY .................................................................................................................................................... 14

MINERALIZATION ........................................................................................................................................ 16

DEPOSIT TYPE ............................................................................................................................................. 16

INVESTMENT RISKS ..................................................................................................................................... 17

APPENDIX A: OFFICERS & DIRECTORS ....................................................................................................... 18

APPENDIX B: TECHNICAL TEAM ................................................................................................................. 19

CLARUS SECURITIES EQUITY RESEARCH DISCLOSURES ............................................................................ 20


February 24, 2014 / p.2 Mike Bandrowski (416) 343-3352

INVESTMENT THESIS

Fission Uranium offers investors exposure to the world’s premier uranium mining jurisdiction and what is potentially an extremely economic high grade, near-surface uranium deposit. Given limited financing in the uranium space post Fukushima and continued pressure on the uranium spot price, there are very few uranium names that will be able advance their respective assets. Fission is an outlier. We expect the Company will continue to aggressively advance it’s PLS property, defining an initial NI 43-101 compliant resource by late this year, make additional discoveries and begin engineering robust economics around PLS.

Despite the early stage of Fission we believe the Company will be well supported to continue generating consistent news flow, building resources and ultimately prove itself as the premier uranium takeout story. These milestones will all play out as the uranium supply side continues to struggle to make a profit and demand from China and Japanese re-starts continues to build. We are initiating coverage of Fission Uranium Corporation with a SPECULATIVE BUY recommendation and a target price of $2.30 per share.

Exhibit 1: Patterson Lake South (PLS) 7 Zones of High Grade Mineralization

Source: Company Reports



HIGH GRADE, LARGE SCALE POTENTIAL Fission has identified a 3 kilometers long EM conductor at PLS. Drilling along this target has traced 1.8km of mineralization, suggesting large scale potential, in-line with several world class deposits including Phoenix, Cigar Lake & McArthur River. Fission currently has five diamond drill rigs and one reverse circulation (RC) drilling along trend to confirm the large scale potential at PLS. Fission’s winter drill program is off to a blazing start with the recently announced drill hole PLS14-129 which cut 10.5m grading 38.49% U3O8. Drill hole 129 has a grade thickness (GT) of 992.8, almost double the GT of hole PLS13-075 at 501.4, the second best drill hole to date. We expect the Company to continue generating strong drill results with roughly 45,000 metres of drilling planned for 2014. Exhibit 2: Major Deposits of the Athabasca Basin




ATHABASCA BASIN – AN ANOMALY The following table is a select list of global uranium assets and grades. The global mean grade comes in around 0.07% U3O8. We note the Athabasca basin averages closer to 2.0% U3O8, which is where we anticipate PLS will average once a resource is defined later this year, Exhibit 3.

Exhibit 3: Grades of Select Uranium Grades

0.03%

0.05%

0.05%

0.06%

0.07%

0.07%

0.08%

0.08%

0.09%

0.10%

0.11%

0.11%

0.52%

0.53%

0.56%

0.58%

0.70%

0.77%

1.30%

1.71%

2.00%

2.00%

2.51%

4.39%

4.73%

5.60%

13.21%

15.10%

16.60%

0.00% 5.00% 10.00% 15.00% 20.00%

Rossing

Wiluna

Langer Heinrich

Inkai

Global Mean

Falea

Imouraren

Ranger

Westmoreland

Moore Ranch

Berlin

Sheep Mountain

Lavoie

Jabiluka

Kintyre

Arizona Strip

Lac 50 Trend

Rabbit Lake

Shea Creek

McClean Lake

Waterbury Lake

PLS (anticipated grade)

Dawn Lake

Millennium

Midwest Northeast

Midwest

McArthur River

Cigar Lake

Wheeler River

U3O8 Grade (%)

Dep

osit

Grade (% U3O8) of Select Uranium Deposits

Source: Clarus Securities, MEG



NEAR SURFACE ADVANTAGE Drilling results suggest the PLS deposit is much closer to surface than the majority of discoveries in and around the Athabasca basin. Future work should determine that a significant portion of PLS is amenable to open pit mining, significantly reducing many of the risks associated with underground mining of higher grade uranium. Drilling to date suggests continuity of elevated grades within a lower grade (but still high grade by global standards) halo that tends to have blowouts along strike. Potential open pit scenarios would have higher strip ratios, however, we note the average uranium grade in the basin is roughly 2.0% U3O8, or roughly $1,600 per tonne (equivalent of an open pit gold mine with a plus 1oz. per tonne head grade) rock at US$35.75/lb. U3O8. Exhibit 4: PLS Cross Section R780E Zone




Most of the near surface discoveries of economic potential have been mined out, including Cluff Lake, a standalone operation located only 80 kilometers north of PLS, Exhibit 5. Based on drilling to date, we expect the grade at PLS will compare favourably to the three near-surface deposits previously mined. Exhibit 5: Depth of Major Discoveries in the Athabasca Basin




LOCATION, LOCATION, LOCATION – THE WEST IS THE BEST

Exploration success on the eastern side of the Athabasca basin over the last 50 years had led to large scale infrastructure build out, including the construction of the McClean Lake, Rabbit Lake and Key Lake Mills. While PLS benefits from road access, government/local support and what will likely be robust economics, the western side of the basin lacks an operating mill. Cluff Lake (produced 63 million lbs. U3O8 grading 0.93% from 1980 – 2002) is a one-off example of uranium production on the western portion of the basin. Due to capital cost escalation it is tough to use Cluff Lake as a proxy, however, we compare several projects from a capital intensity stand point and expect PLS would compare extremely well against this list, Exhibit 7.

Exhibit 6: PLS Location Map

Source: Company Reports Exhibit 7: Capital Intensity of Select Uranium Projects

Project Company Capex Report Date

Annual Production (MM lbs.)

Cash Costs per lb U3O8

Grade U3O8 (%)

Capital Intensity per lb U3O8

Berlin U3O8 Corp. $437 2012 1.2 $0.00 0.11% $364.17Madaouela Goviex $609 2011 2.7 $22.43 0.10% $225.56Etango Bannerman $870 2010 6.0 $42.41 0.02% $145.00Wiluna Toro Energy $269 2013 2.0 $31.10 0.08% $134.50Valencia Forsys $387 2010 3.5 $35.00 0.02% $110.57Mkuju River Uranium One $343 2010 3.7 $25.05 0.03% $92.78Kihitian Macusani Yellowcake $331 2013 4.3 $20.57 0.04% $76.98Lance Peninsula Energy $114 2013 2.3 $30.65 0.05% $49.57Average $420 3.2 $25.90 0.06% $149.89




2014 EXPLORATION PROGRAM

Fission has roughly $24 million in the treasury, which will cover the Company’s 2014 winter and summer exploration programs. The winter and summer programs will consist of roughly 45,000 metres of drilling to test the lateral extent at PLS, infill drilling and minor exploration work at Forrest Lake. Results from the 45,000 metres of drilling and 2013 drilling data will generate the initial resource estimate, which we expect late in 2014. We note that drilling is challenging and targeting the system on each hole becomes increasingly tough due to the 50m of overburden and narrow target. Drilling has been limited to vertical drilling but we do expect some shallow angled holes will be drilled this summer, given the geometry of PLS the Company believes 15m and 45m spacing is required for indicated and inferred resources respectively.

HOLE PLS14-129

Previous downhole gamma results have shown a very good conversion to assay results, Exhibit 8. While not a perfect science we highlight the following results as well as PLS14-129, the best drill hole to date at PLS, which cut 10.5m grading 38.49% U3O8.

Exhibit 8: Top Three Down hole Gamma Comparison




CREDITS

While FCU continues to generate stellar drill results and expand the resource footprint some things tend to go un-noticed. To date lab work continues to suggest PLS is a clean deposit with no deleterious materials, and second, anomalous grades of Au, Co & Mo are consistently encountered. Preliminary met-work is in the works and could suggest robust by-product credits could further enhance the project in the future.

MANAGEMENT BOASTS A STRONG TRACK RECORD

Fission is led by an experienced management team with extensive experience in both the Athabasca Basin and the uranium industry. Chairman & CEO, Dev Randhawa founded Strathmore Minerals Corp. in 1996, in 2007 and he spun Fission Energy Corp. out of Strathmore to focus on uranium exploration in Saskatchewan. He remained as CEO and Chairman until the company sold its Waterbury Lake discovery and a large selection of its assets to Denison Mines in 2013. Subsequently, Fission Uranium Corp. was spun out with the remaining Fission Energy assets as part of the agreement with Denison.

President, COO & Director, Ross McElroy is a professional geologist with nearly 30 years of experience in the mining industry. He has comprehensive experience working with and managing many types of mineral projects from grass roots exploration to feasibility and production. Ross has held positions with both major and junior mining companies, which include BHP Billiton, Cogema Canada (now AREVA), and Cameco. He was a member of the early stage discovery team of the MacArthur River uranium deposit. He also headed up the technical team that made the discovery at Waterbury Lake, SK and Fission Uranium Corp.´s PLS discovery.

VALUATION

We conservatively estimate Fission will define a resource of ~75 million lbs. U3O8. Based on this estimate the near-surface potential and the opportunity to define a resource grade over 20x greater than the average in our comp table (Exhibit 10) we believe FCU can easily justify trading at a valuation of US$10.00/lb. (in-line with Hathor which was taken-out post Fukushima at US$9.97/lb. U3O8). U3O8, which implies a 65-70% premium to current levels. We are initiating coverage of Fission Uranium Corp. with a SPECULATIVE BUY rating and $2.30 per share target.



TAKEOUT METRICS

Exhibit 9: Takeout Metrics (2007-2013) Target Acquirer Date Asset Location Payment lbs. Grade EV/lb.

(millions)

Strathmore Minerals Energy Fuels Resources 2013 USA Stock 17.3 0.11% $1.65Fission Energy Denison Mines 2013 Canada Stock 13.0 1.52% $7.78Yeelirrie Cameco 2012 Australia Cash 144.5 0.14% $3.06Denison Mines Energy Fuels Resources 2012 USA Stock 26.2 0.19% $4.05Extract Resources CGNPC 2012 Namibia Cash 513 0.03% $4.48Titan Uranium Energy Fuels Resources 2011 USA Stock 30.4 0.11% $0.83Hathor Exploration Rio Tinto 2011 Canada Cash 58 8.60% $9.97Aurora Energy Resources Paladin Energy 2010 Canada Stock 136.8 0.10% $1.91NGM Resources Paladin Energy 2010 Niger Stock 10.9 0.02% $2.84Mantra Resources Rosatom 2010 Tanzania Cash 101.4 0.02% $8.17Energy Metals CGNPC 2009 Australia Cash 24.7 0.10% $3.89Uranium One TEPKO 2009 Kazakhstan Cash 68.7 0.06% $15.94Fusion Resources Ltd. Paladin Energy 2008 Australia Stock 7.1 0.07% $2.62Kintyre Cameco 2008 Australia Cash 64.8 0.56% $7.65Uramin Areva 2007 Namibia Cash 154.9 0.01% $12.96Energy Metals Uranium One 2007 USA Stock 67.7 0.09% $20.71Summit Resources Paladin Energy 2007 Australia Stock 34 0.06% $20.70UrAsia Energy Uranium One 2007 Kazakhstan Stock 116.3 0.06% $23.40Average 88.3 0.66% $8.48




COMPS

Exhibit 10: Uranium Comps Uranium Comparables

Company Name Stage Ticker Price Shares Market Current Cash Long Enterprise Tonnage M&I Inferred U308 Grade MC/U308 EV/U308

C$ S/O Cap Assets Term Value (MM) (mm lbs) (mm lbs) (mm lbs) (% U308)MM (C$ MM) Debt (C$ MM)

Ur-Energy Inc. USA, Canada Exploration URE-CA 1.59 122.5 $195 $8 $6 $32 $220.7 21.6 20.6 4.8 25.3 0.053% $7.68 $8.71

Peninsula Energy Limited USA, South Africa Development PEN-ASX 0.02 2,904.2 $67 $12 $5 $1 $62.3 44.5 11.2 30.2 41.4 0.042% $1.61 $1.50

UEX Corporation Canada (Sask) Exploration UEX-CA 0.50 227.8 $114 $12 $12 $0 $102.0 12.8 66.2 14.7 80.9 0.286% $1.41 $1.26

Toro Energy Limited Australia Development toe-asx 0.07 1,042.4 $69 $12 $11 $8 $65.4 55.2 17.4 36.2 53.6 0.044% $1.28 $1.22

Mega Uranium Ltd. Australia Exploration MGA-CA 0.17 267.2 $44 $4 $4 $0 $40.5 26.2 29.3 4.6 33.9 0.059% $1.30 $1.19

Strateco Resources, Inc. Canada (Quebec) Exploration RSC-CA 0.05 176.7 $9 $5 $1 $16 $23.7 2.5 7.8 19.2 27.0 0.491% $0.33 $0.88

Kivalliq Energy Corporation Canada (Sask, NWT) Exploration KIV-CA 0.22 181.3 $40 $3 $3 $0 $36.9 1.8 - 43.3 43.3 0.690% $0.92 $0.85

Laramide Resources Ltd. USA Exploration LAM-CA 0.56 72.3 $41 $4 $4 $5 $41.3 27.7 36.0 15.9 51.9 0.085% $0.78 $0.80

U3O8 Corp. South America Exploration UWE-CA 0.14 160.6 $22 $1 $1 $0 $20.8 80.1 16.2 31.4 47.6 0.11% $0.46 $0.44

Forsys Metals Corp. Namibia Exploration FSY-CA 0.50 109.9 $54 $3 $3 $0 $51.2 466.2 132.2 28.5 160.7 0.016% $0.34 $0.32

Berkeley Resources Limited Spain Exploration BKY-ASX 0.29 181.2 $52 $29 $28 $0 $23.9 79.3 34.9 43.1 78.0 0.045% $0.66 $0.31

Energy and Minerals Australia Limited Australia Exploration EMA-ASX 0.04 394.5 $16 $2 $2 $0 $14.3 55.4 - 59.6 59.6 0.049% $0.27 $0.24

Deep Yellow Limited Namibia & Australia Exploration DYL-ASX 0.02 1,560.9 $30 $4 $3 $0 $26.7 196.0 40.2 73.4 113.6 0.026% $0.26 $0.23

Bannerman Resources Limited Namibia Exploration BMN-ASX 0.08 316.7 $25 $3 $3 $10 $32.0 500.8 148.7 63.9 212.6 0.019% $0.12 $0.15

Uracan Resources Ltd. Canada (Quebec) Exploration URC-CA 0.12 28.8 $3 $0 $0 $0 $3.1 162.1 6.9 37.1 44.0 0.012% $0.08 $0.07

A-Cap Resources Limited Botswana Exploration ACB-ASX 0.06 250.9 $14 $5 $5 $0 $9.6 780.0 74.6 186.5 261.1 0.015% $0.05 $0.04

Average $50 $48 157.0 40.1 43.3 83.4 0.128% $1.10 $1.14

Country/Region




PATTERSON LAKE SOUTH

The property is located on the western side of the Athabasca Basin in northern Saskatchewan, Canada. The property comprises 17 contiguous claims totaling 31,039 ha. The property is accessible year round via the Cluff lake mine road (highway 955) that runs north-south through the property.

Exhibit 11: Patterson Lake Location Map




The western side of the basin was initially explored in the 1960’s as exploration efforts expanded from the established Beaverlodge uranium district. Exploration lead to the discovery of sandstone hosted unconformity deposits and basement hoisted unconformity deposits including Cluff Lake which produced 64.2 million lbs. U3O8 from 1980-2002. Cluff Lake was viewed as an outlier and to date no other deposits have been out into production on the western portion of the basin despite several others being delineated.

PLS is entirely covered by 50 to 100 metres of Pleistocene overburden, which is underlain by rocks of the Phanerozoic Mannville Group consisting of shale, mudstone, sandstone and coal. Drilling suggests that the Athabasca Group is not present on the Property. This unique set of circumstances (western basin and outside the Athabasca Group rocks) make the PLS discovery even more significant.

What’s more, we believe the rush to stake this entire area will lead to several other discoveries. The rush of exploration on the western portion of the basin will lead to additional discoveries; FCU should continue to move higher on its own success as well as news of further discoveries in the area.

The PLS area is approximately 500 m above sea level and covered by thinly wooded boreal forest. Vegetation consists of jack pine, black spruce and tamarack with willows and alders in the lower wet areas. The Property is in a sub-arctic climate region with temperatures ranging from -30 in the winter to 30 in the summer. Lake freezing commonly occurs in early November and ice break-up generally occurs in mid to late April. The cold temperatures allow for a sufficient ice thickness to support a drill rig generally from mid-January to mid-April.

EXPLORATION HISTORY

From 2007 to 2013 exploration consisted of mapping, glacial direction studies, extensive geophysics surveys and diamond drilling. In October 2008 a preliminary radon in soil gas survey was completed along with a radiometric and a Self-Potential (SP) geophysical survey. The radon and radiometric surveys followed up on weak to moderate radon anomalies, and the SP survey was located over selected shifts in airborne magnetics. Radon and radiometric values were generally low.

In 2009, a high resolution airborne magnetic survey was completed across PLS. The survey successfully delineated different basement lithologies. structural interpretations identified the traces of surface and basement faults, shear zones and areas of structural complexity. Concurrent radiometric surveys outlined a radiometric anomaly 3.9 km long by 1.4 km wide area.

Follow-up work in June 2011 resulted in a radioactive boulder field that contained uraniferous hotspots. Radon anomalies were found to be coincident with historical EM conductors close to the west shore of Patterson Lake. A significant 4.9 by 0.9 km high grade uranium boulder field was discovered to within 1-2 km west of Highway 955, and were found to be basement-hosted. Further work suggested the possibility of an up-ice bedrock source. A trenching program and boulder survey was carried out in October 2011 to confirm the recent glacial direction. A total of 18 trenches were excavated, and 50 uraniferous boulders were recovered. Glacial direction was confirmed to be southwest at 245°, and boulders assayed up to 31.4% U3O8.



In late 2011, a diamond drill program that comprised 838 metres in 7 drill holes was carried out. This program did not locate the bedrock source of the high grade uranium boulders discovered in June 2011. However, highly favorable geology, alteration, structure, and geochemical results were encountered in drilling.

An extensive Winter-Spring exploration program from February to April 2012 comprised of further geophysics surveys and 16 holes (2,174m) of diamond drilling. Geophysics showed favourable resistivity low anomalies with offset EM conductors. Drill holes PLS12-013 to -016 encountered favourable geology, alteration, and weak to strong radioactivity associated with anomalous uranium geochemical results. Drill hole PLS-016 returned results that included a 0.6m interval assaying 0.085% U3O8 and narrow intercepts of 0.50m, 0.50m and 0.40m grading 0.06%, 0.102% and 0.058% U3O8, respectively

The Fall 2012 program at PLS consisted of airborne radiometric and magnetic geophysical surveys over the newly staked mineral claims, boulder prospecting, ground pole-dipole array DC resistivity and small moving loop surface transient electromagnetic (SMLTEM) geophysical surveys, dual rotary and diamond drilling. wide intersections of high-grade uranium were encountered in the final four holes of the program, including discovery hole PLS12-022 that cut 8.5m grading 1.07% U3O8.

GEOLOGY

The Athabasca basin covers approximately 85,000 km2 of northern Saskatchewan and a small portion of eastern Alberta. Dating constrains the basin to roughly 1.5 billion years and interpreted to have filled over a 200 million year period in four major depositional sequences. The sediments are typically flat lying throughout the basin except near significant fault zones. Faults are generally oriented north to northeast, roughly parallel to the underlying basement geology, suggesting reactivation from major basement structures. The Athabasca Basin unconformably overlies northeast trending Archean to Paleoproterozoic basement rocks

Basement rocks that underlie the Athabasca Basin are considered to be part of the Rae and Hearne Provinces of the Precambrian Churchill Structural Province of the Canadian Shield. The Basin is divided by the large-scale northeast-southwest Snowbird Tectonic Zone, with the Rae Province to the west and the Hearne Province to the east. It is a Helikian sequence of predominantly fluvial sandstones, with minor marine transgressions. They rest unconformably on the basement rocks, and their thickness exceeds 1400 metres towards the centre of the basin. PLS lies within the northeastern limits of the Cretaceous Mannville Group which covers a large portion of Western Saskatchewan. The Lexicon of Canadian Geologic Units describes the lithology of the Mannville Group as “interbedded non-marine sands and shales overlain by a thin, non-marine calcareous member which is overlain by marine shales, glauconitic sands and nonmarine salt-and-pepper sands. The marine sequence is overlain by a paralic and non-marine sequence having a diachronous contact with the marine sequence.”



Exhibit 12: Property Geology Map




MINERALIZATION

Mineralization on the PLS property was discovered during the 2012 Fall-Winter exploration program. At this stage, little is known about the geological controls or length, width, depth and continuity of mineralization. However, the mineralization occurs at shallow depths in basement rocks and is thought to be structurally controlled. High grade mineralization with massive visible pitchblende in veins, blebs and flecks has been intersected. Sulphide mineralization with visible chalcopyrite, cobalt and molybdenum has also been encountered and anomalous gold grades are also present.

DEPOSIT TYPE

Uranium mineralization at PLS is analogous with uranium dominated poly-metallic basement unconformity associated uranium deposits. Proterozoic unconformity-associated uranium deposits host over 33 % of the world’s known uranium resources. The Athabasca Basin of Saskatchewan, Canada, is renowned for its high-grade deposits and currently supplies approximately 20% of the world’s uranium. Other notable unconformity associated uranium districts occur in the Thelon Basin (Nunavut, Canada) and the Alligator River District (Northern Territory, Australia). These unconformity-associated deposits differ from the Athabasca Basin deposits in that they contain lower grade ore and are entirely basement hosted. The average grade of the top 30 deposits in the Athabasca Basin is 1.97 wt.% U3O8, four times the average grade of the Australian unconformity-associated uranium deposits (Jefferson et al., 2007).



INVESTMENT RISKS

Currency & Commodity Price Fluctuations – Fission Uranium Corp. is an exploration stage Company. There is a risk uranium prices could decline in the interim which could force the Company to delay or cancel further exploration and ultimately write-down assets to reflect a weaker price environment. Delays and or commodity price fluctuation could adversely impact the valuation of the Company.

Reserve/Resource – Resources and reserves are reported under National Instrument 43-101. The Company has yet to generate a 43-101 complaint resource estimate, at this time there is no associated risk.

Regulatory – Fission is required to obtain proper permits and licences to conduct exploration activities, develop its projects, and ultimately build a mine. It is our understanding that all of the company’s current land claims are in good standing at this time.

Country Risk - We believe Saskatchewan will continue to have a favourable view toward uranium exploration and mining, based on historic mining and exploration expenditures we believe Saskatchewan remain a favourable area to do business. We view this as a low risk. Water – after all we are in northern Saskatchewan. Despite that a substantial amount of the resource will eventually lie beneath Patterson Lake, we don’t feel this is a significant risk to development due to the shallow depth of water and proven technology (Diavik, Ekati) to deal with water in and around mining operations.



APPENDIX A: OFFICERS & DIRECTORS

Dev Randhawa, MBA, Chairman & CEO Dev Randhawa is an experienced senior manager with broad international experience in developing resource, mining exploration and energy companies. Mr. Randhawa founded Strathmore Minerals Corp. in 1996 and remained CEO until September 2008. In 2007, Dev Randhawa spun Fission Energy Corp. out of Strathmore to focus on uranium exploration in Saskatchewan. He remained as CEO and Chairman until the company sold its Waterbury Lake discovery and a large selection of its assets to Denison Mines in 2013. Fission Uranium Corp. was spun out with the remaining Fission Energy assets as part of the agreement with Denison. Dev Randhawa was also President and CEO of Pacific Energy Asia Inc., which he founded, until its sale to Green Dragon Gas wholly owned subsidiary, Greka China Ltd, for 35.18 million in 2008. Dev Randhawa received a Bachelor’s Degree in Business Administration with honours from Trinity Western College of Langley, British Columbia in 1983 and received his Master in Business Administration from the University of British Columbia in 1985.

Ross McElroy, P.Geol, President, COO & Director Ross McElroy is a professional geologist with nearly 30 years of experience in the mining industry. He has comprehensive experience with working and managing many types of mineral projects from grass roots exploration to feasibility and production. Mr. McElroy has held positions with both major and junior mining companies, which include BHP Billiton, Cogema Canada (now AREVA), and Cameco. He was a member of the early stage discovery team of the MacArthur River uranium deposit. Mr. McElroy was part of the hugely successful Fission Energy Corp. team as President, COO and Chief Geologist. He headed up the technical team that made the discovery at Waterbury Lake, SK and Fission Uranium Corp.´s PLS discovery. Mr. McElroy received a Bachelor´s Degree in Science, with a Specialization in Geology from the University of Alberta in 1987 and is a registered professional geologist in Alberta, Saskatchewan and Nunavut/Northwest Territories.

William V. Marsh, Director Mr. Marsh previously worked on domestic and international drilling programs for Chevron for 15 years both in Canada and Internationally. Mr. Marsh was a former director of Pacific Asia China Energy until its sale to Green Dragon Gas wholly owned subsidiary, Greka China Ltd, for 35.18 million in 2008. He was also a former director of Predator Capital Corp. and Wolf Capital Corp. and is currently on the Board of Ballyliffin Capital Corp. Mr. Marsh has also provided consulting services to a number of resource exploration and production companies, both public and private, operating in Canada and internationally.

Kurt Bordian, CPA, CGA, Director Mr. Bordian is a designated Certified General Accountant in Canada, and holds a Bachelor of Commerce (Honours) Degree from the University of Manitoba. He has worked primarily in the mineral and exploration and oil and gas industries over the past 12 years. Mr. Bordian provides accounting and consulting services to private and public companies and is also a director and officer on a number of other public companies.



Warren W. Stanyer, Director Mr. Stanyer has over 17 years of experience in the mineral exploration industry, primarily in the field of uranium exploration, and has served as an officer or director to a number of public companies including Pioneer Metals Corporation, UEX Corporation, Northern Continental Resources Inc., Nevada Sunrise Gold Corp., and Alpha Minerals Inc.

Frank Estergaard, Director Mr. Estergaard is a professional Chartered Accountant who retired as a Partner with KPMG in 2001. His career with KPMG spanned 38 years, providing audit, taxation and business advice to clients in Vancouver, Vernon, Ottawa and Kelowna. He served a wide variety of corporations in the forestry, mining, real estate and land development, high technology, manufacturing, wholesale and retail industries. These companies ranged from start-ups to mature enterprises with both domestic and world-wide operations. In addition, he served on the Management Committee and Partnership Board of KPMG. Following his retirement from KPMG, Mr. Estergaard has served as a Director and Chairman of the audit committee for QHR Technologies Inc. (TSX-V), CFO for Metalex Ventures Ltd. (TSX-V) and CFO and/or Director for several private entities, including Okanagan Capital Fund (VCC) Inc., Rackforce Networks Inc., Wear Air Oxygen Inc. and Wear Air Industrial Inc.

APPENDIX B: TECHNICAL TEAM

Ross McElroy, P.Geol, B.Sc. – Technical Team Leader;

Raymond Ashley, P.Geoph – VP Exploration;

Caroline Harke M.Sc. (Geol) - Consultant;

Janet Stritychuk, HBSc. (Geol) – Consulting Lang Manager;

Andrew Jeffrey, B.Sc. (Geol) - Consultant;

Victor Mitchel – Consultant;

Antonio Gonzales, B.Sc. (Spec) – Consultant;

David Bingham, B.Sc., P.Geo. – Consultant.



Clarus Securities Equity Research Disclosures

The analyst has visited the Company’s Patterson Lake South Property, partial payment was made by the issuer for associated site visit travel costs.

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The information and opinions in this report were prepared by Clarus Securities Inc. (“Clarus Securities”). Clarus Securities is a wholly-owned subsidiary of Clarus Securities Holdings Ltd. and is an affiliate of such. The reader should assume that Clarus Securities or its affiliate may have a conflict of interest and should not rely solely on this report in evaluating whether or not to buy or sell securities of issuers discussed herein. The opinions, estimates and projections contained in this report are those of Clarus Securities as of the date of this report and are subject to change without notice. Clarus Securities endeavours to ensure that the contents have been compiled or derived from sources that we believe are reliable and contain information and opinions that are accurate and complete. However, Clarus Securities makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this report or its contents. Information may be available to Clarus Securities or its affiliate that is not reflected in this report. This report is not to be construed as an offer or solicitation to buy or sell any security. No part of this report may be reproduced or re-distributed without the written consent of Clarus Securities.

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Equity Research Ratings

Buy: Attractively valued and expected to appreciate significantly from the current price over the next 12-18 months.

Speculative Buy: Expected to appreciate significantly from the current price over the next 12-18 months. Financial and/or operational risk is high in the analyst’s view.

Accumulate: Attractively valued, but given the current market price, is expected to appreciate moderately over the next 12 -18 months.

Hold: Fairly valued and expected to trade in line with the current price over the next 12-18 months.

Sell: Overvalued and expected to decline from the current price over the next 12-18 months.

Under review: Pending additional review and/or information. No rating presently assigned.

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Documents

(FCU-TSX.V, $1.28) 12-Month Target: $2 · INVESTMENT RESEARCH Fission Uranium Corp. SPECULATIVE BUY (FCU-TSX.V, $1.28) 12-Month Target: $2.30 February 24, 2014 Mike Bandrowski (416)