FCU Fission to raise $10-million in private placement

Fission Uranium Corp (TSX-V:FCU)

Shares Issued 151,502,270

Last Close 10/2/2013 $1.25

Thursday October 03 2013 - News Release

Mr. Ross McElroy reports

FISSION URANIUM ANNOUNCES $10.0 MILLION BOUGHT PRIVATE PLACEMENT

Fission Uranium Corp. has entered into a letter of engagement with Dundee Securities Ltd., on behalf of a syndicate of underwriters including Raymond James Ltd., Cantor Fitzgerald Canada Corp., Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd., under which the underwriters have agreed to purchase 6.67 million subscription receipts, exchangeable into flow-through common shares of the company, by way of a private placement on a bought-deal basis, subject to all required regulatory approvals, at a price per subscription receipt of $1.50, for total gross proceeds of $10,005,000.

The underwriters have been granted the option to purchase up to an additional 15 per cent of the offering, exercisable in whole or in part at any time up to 48 hours prior to the closing date.

On Sept. 17, 2013, the company and Alpha Minerals Inc. signed a definitive arrangement agreement to effect the previously announced transaction pursuant to which Fission will acquire Alpha and its primary asset, a 50-per-cent interest in the Patterson Lake South joint venture, the other 50 per cent of which is held by Fission. As per the terms and conditions of the definitive agreement, Alpha has provided its consent with respect to the offering.

The gross proceeds of the offering shall be deposited in escrow on the closing date and will be released from escrow to the company immediately following the closing of the Alpha transaction and after the spinout of the company's non-Patterson Lake South assets, and receipt of all required third party and regulatory approvals. Consequently, the subscribers will not receive shares in the spinout company.

In the event that the escrow release conditions are not satisfied on or before Dec. 10, 2013, the gross proceeds of the offering, together with accrued interest earned thereon, will be returned to the holders of the subscription receipts and the subscription receipts will be cancelled.

In connection with the offering, the underwriters will receive a cash commission equal to 6.0 per cent of the gross proceeds raised under the offering (inclusive of the option) and that number of non-transferable broker warrants equal to 6.0 per cent of the number of subscription receipts sold (inclusive of the option). Each broker warrant will be exercisable into one common share of the company for a period of 24 months from the closing date at a price of $1.50 per common share.

The closing date of the offering is scheduled on or about Oct. 24, 2013. All securities issued will be subject to a four-month hold period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

The gross proceeds of the offering will be used for the sole purpose of exploring the Patterson Lake South project.