Fission Energy Corp.: Western Vertical Step-Out Drilling at Fission's Waterbury Lake Project Expands & Widens J-Zone-Latest Results Include 2.24m of "Off-Scale" Radioactivity

Basement Mineralization Identified at J-East Zone

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) - FISSION ENERGY CORP. ("Fission" or the "Company") (TSX VENTURE:FIS) and its Joint Venture Partner, the KEPCO Consortium, announce that hole WAT10-103, a vertical step-out drill hole at its Waterbury Lake project in the Athabasca Basin, has expanded and widened the J-Zone uranium discovery at its western margin. Hole WAT10-103 was collared 10m south of hole WAT 10-093 (2m grading 1.12% U308; see news release dated June 21, 2010), and more importantly, intersected a much wider 17m (191m-208m) of variable radioactive mineralization at the unconformity, including 2.24m (193.26m-195.5m) of "off-scale" (cps greater than 9,999) radioactivity. To date, two vertical step-out holes targeting the J-Zone, WAT10-098A and WAT10-099 (see news release dated August 9th) have extended the mineralized boundary to the north of the previously known mineralization delineated during the winter 2010 drilling program, while hole WAT10-103 has now further extended mineralization on trend to the west. Drilling is continuing.

J-East Zone

The J-East Zone, located east of the main J-Zone discovery, near Fission's property boundary, continues to develop as a new area of interest. Two drill holes, WAT10-100 and WAT10-102 were recently completed. Hole WAT10-102, drilled 90m to the east of the J-Zone, identified a 17m wide intersection of moderately to locally strong radioactivity in strongly hematite/limonite altered pelitic basement rocks (220.0m to 237.0m). Hole WAT10-100 intersected a 10.5m zone of weak anomalous radioactivity in the basement rocks (292.5m-303m) within weak graphitic and moderately altered pelite. The mineralization found in the basement rocks at J-East Zone correlates with known mineralization found beyond Fission's property boundary. This finding suggests further potential for basement type mineralization at the J-Zone East, in contrast to the main J-Zone discovery, which continues to demonstrate mineralization focused at the unconformity.

Structural and Geologic Drilling

Finally, hole WAT10-101B, a follow-up angled hole to WAT10-097, was drilled for structural and geologic information purposes. Its primary purpose is to help define the geology and fault structures, to the north of the J-Zone and at the western extent of known mineralization within the prospective 3km long East-West Corridor.

Given that the mineralization at the J-Zone encountered appears to be almost flat-lying, drill intercepts from the vertically collared drill hole WAT10-103 reported herein are approximately true thickness. The geometry of the mineralization at J-East is not yet established and thus true thickness may differ from downhole thickness.

Hole WAT10-103 (J-Zone)

WAT10-103 encountered moderate to very strong clay alteration from 175m to 222m, with the most intense alteration associated with mineralization at and near the unconformity (197.0m). A broad interval of continuously anomalous and variable radioactivity was intersected from 191.0m – 208.0m, including a 2.24m wide interval (193.26-195.5m) of greater than 9,999 cps "off-scale" radioactivity. A lower zone of anomalous radioactivity was intersected from 228 to 229.5m with radioactivity up to 4,200 cps.

The sandstone has variable pervasive and fracture controlled limonitic alteration throughout and strong hematite and chlorite clay alteration is prevalent from 175.0m to the unconformity. Strong hematite clay alteration continued in the basement to 207.7m, transitional to chloritic clay from 207.7m to 222m. Less intense chloritic alteration persists to 262.4m. The basement rocks consist of pelitic rocks throughout.

WAT10-103 was drilled from a barge set-up collared 10m south of hole WAT10-093 and completed to a depth of 275m.

Hole WAT10-102 (J-East Zone)

WAT10-102 encountered a broad interval of continuously anomalous and variable radioactivity and mineralization in pelitic basement rocks below the unconformity (198.7m) from 220.0m – 237.0m, with readings up to 6,700 cps. This 17m wide interval is characterized by very strong hematite alteration from 220-224.5m, abruptly changing to strong chloritic alteration from 224.5-237.0m.

Moderate to locally strong limonite +/- hematite alteration is present in the sandstone from 168.8 – to the unconformity. A strong bleached zone is present from the unconformity to 211.7m, grading to chloritic alteration which persists to 247m. The basement rocks consist of pelitic rocks down to 287.8m. From 287.8m to EOH (323.0m) the basement rocks consist of mixed pelitic and semipelitic gneiss, with minor amounts of Quartz-Feldspar Gneiss.

WAT10-103 was drilled from a barge set-up collared 45m northeast of hole WAT10-094A and completed to a depth of 323m.

Hole WAT10-100 (J-East Zone)

WAT10-100 encountered a broad zone of weakly anomalous radioactivity from 292.0–302.5m within strongly chlorite clay altered and faulted graphitic pelitic basement rocks below the unconformity (200.0m).

Moderate to locally strong limonite clay alteration is present in the sandstone from 195.4 – to the unconformity. Moderate to strong clay alteration persists in the basement to 232m. A lower interval of moderate to locally strong chlorite alteration is present from 273.4m – 327.5m. The basement rocks consist of pelitic rocks from the unconformity to 350.0m (EOH).

WAT10-100 was drilled from a barge set-up collared 30m northeast of hole WAT10-094A and completed to a depth of 350m.

Hole WAT10-101B (Structural and Geologic Information) is an angle hole collared from shore and oriented to the southeast, primarily designed to intersect the northern hanging wall contact of the favourable pelitic basement lithology corridor and structures believed to be important controls of the J-Zone mineralization near the known western extent of the J-Zone. The unconformity was intersected approximately 50m to the north of WAT10-093 at a depth of 238.62m.

Moderate to very strong limonite +/- hematite clay alteration was encountered in the sandstone from 218.2m to the unconformity. Moderate to strong clay alteration continued in the basement rocks below the unconformity to 242m. Immediately below the unconformity, the basement rocks consisted of a Quartz-Feldspar Granofel. The pelitic rock hanging wall contact was intersected at 260.56m and this lithologic package continued to 349.1m, below which a Quartz-Feldspar gneiss encountered to the end of hole (365.0m). This places the hanging wall pelitic sequence further to the north than expected resulting in a wider prospective lithologic corridor than previously modeled (similar to the results of hole WAT10-097 as highlighted in news release dated August 9th). No mineralization was encountered.

The hole was collared at an azimuth of 150 degrees and a dip of -57 degrees.

An updated drill hole map and a table summarizing Drill Core Hand-Held Scintillometer Readings can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp.

All holes will be radiometrically surveyed with a Mount Sopris 2GHF Triple Gamma probe. The triple gamma probe uses both a Na-I scintillation crystal and a ZP1320 High-Flux Geiger-Mueller tube pair, which allows better resolution in strongly radiometric intervals.

Natural gamma radiation in drill core that is reported in this news release was measured in counts per second (cps) using a hand held Exploranium GR-110G total count gamma-ray scintillometer. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials. All intersections are down-hole, core interval measurements and true thickness is yet to be determined.

Split core samples from the mineralized section of core will be taken continuously through the mineralized intervals and submitted to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) of Saskatoon for analysis, which includes U3O8 (wt %) and fire assay for gold. All samples sent for analysis will include a 63 element ICP-OES, uranium by fluorimetry (partial digestion) and boron. Chemical results will be released when received. Further updates will be provided.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of the company by Ross McElroy, P.Geol. President and COO for Fission Energy Corp., a Qualified Person.

FISSION ENERGY CORP. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. FISSION ENERGY CORP. Common Shares are listed on the TSX Venture Exchange under the symbol "FIS".

Korea Electric Power Corporation (KEPCO) is a Korean government-invested diversified energy company with over $83-billion (U.S.) in assets. The company is involved in the generation, transmission and distribution of electrical power from nuclear, hydro, coal, oil and LNG sources worldwide. Korea Electric Power provides electricity to almost all households in Korea and operates 20 nuclear power plants in the country with six more under development. The company has over 30,000 employees and is listed on the Korean Stock Exchange and the New York Stock Exchange. (www.kepco.co.kr)

Korea Waterbury Uranium Limited Partnership ("KEPCO Consortium") is a consortium primarily comprised of Korean-based companies. Led by Korea Electric Power, other participating companies include Korea Hydro & Nuclear Power, Korea Nuclear Fuel Co., Hanwha Corp. and Gravis Capital Corp., a private Canadian uranium investment company.

This press release contains "forward-looking information" that is based on Fission's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Fission's development plans. The words "will", "anticipated", "plans" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Fission's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Fission disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

Ross McElroy, President & COO