Fission Energy Corp.: Waterbury Lake Winter 2011 Drill Assays Delineate J Zone Increase over 300% Strike Length from 2010

KELOWNA, BRITISH COLUMBIA -- (Marketwire) -- 07/26/11 -- FISSION ENERGY CORP. ('Fission' or the 'Company') (TSX VENTURE: FIS)(OTCQX: FSSIF) and its Limited Partner, the Korea Waterbury Uranium Limited Partnership ('the Waterbury Consortium'), announce the final assay results from their Waterbury Lake 2011 winter program. A total of 26,305m were completed in eighty-two holes, of which fifty-three holes were completed in the high grade J Zone uranium deposit. Ten holes were drilled at PKB, two at J East and nine regional exploration holes in the Discovery Bay Corridor. An additional eight exploration holes were drilled in the Oban Corridor, located 4 km north of the J Zone. Overall, three new mineralized uranium discoveries were made during last winter's program, including two in the east-west trending Discovery Bay corridor; PKB and Hole WAT11-153A, and also in the east-west oriented Oban corridor. Fission's $3.6 million 2011 summer exploration program (see press release dated June 13th), which includes 7,400m of follow-up drilling at the J Zone, PKB, Hole WAT11-153A and Oban, in addition to new exploration targets at Murphy Lake, is continuing and is expected to be completed before the end of July.

Complete uranium assays and updated drill location maps can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp.

Key highlights of the program are as follows:

J Zone Summary

Thirty of the fifty-three holes drilled in the J Zone intersected uranium mineralization for a 57% drilling success rate. Fourteen holes were reported earlier (see press release dated March 29th), which included the strongest high-grade uranium intersection at the J Zone to date: 14.5m grading 7.84% U3O8, including 2.0m of 46.15% U3O8. The J Zone is comprised primarily of high grade uranium mineralization. A separate zone of structurally controlled basement mineralization continues 90m beyond the western extent of the unconformity mineralization. Overall, drilling successfully expanded the J Zone to an east west strike length of 370m; more than triple the length from the previous summer 2010 program. The J Zone unconformity mineralization remains open laterally in all directions (see press release dated April 27th), as well the steeper dipping basement mineralization remains open.

Selected final results include:

Hole WAT11-137B (Line 135W), collared 27m grid west of hole WAT11-117A intersected 7.0m at the unconformity grading 2.27% U308 (193.00m-200.00m) including 1.5m of 5.66% U308 (194.00m-195.50m),

Hole WAT11-146 (Line 150W), a 75m vertical step-out from Hole WAT11-103 (15.5m of 5.55% U3O8, including 2.5m grading 32.39% U3O8) intersected 13.5m at the unconformity grading 0.79% U308 (193m-206.5m) including 2.50m of 2.24% U308 (198.00m-200.5m).

Hole WAT11-149 (Line 150W), a vertical step-out collared 10m west of Hole WAT11-131, intersected 11.5m at the unconformity grading 0.85%U308 (202.00m-213.50m), including 2.50m of 2.62% U308 (210.50m-213.00m).

Hole WAT11-154 (Line 150W), a vertical step-out collared 10m north of Hole WAT11-149, intersected 9.5m at the unconformity grading 0.52% U308 (194.5m-204.00m), including 1.50 of 1.59% U308 (201.00m-202.50m).

Of the seven holes which identified new basement mineralization on the western perimeter, below the overlapping unconformity mineralization from Line 225W to Line 315W, the best results were found in hole WAT11-188, which included 6.50m grading 0.30% U308 (234.75m-241.25m) and 3.50m of 0.45% U308 (259.50m-263.00m).

Regional Exploration Summary

PKB

PKB is located approx. 90m to the west of the J Zone. Of the 10 holes drilled this winter, eight intersected mineralization at or near the unconformity, for an 80% success ratio. Mineralization has been defined over an east-west strike length of 45m and up to 40m wide north-south. PKB remains open in all directions. The best results include:

Hole WAT11-122 intersected 5.0m at the unconformity grading 0.52% U308.

Hole WAT11-133 intersected variable, mineralization at the unconformity, including 1.0m grading 1.40% U308.

Hole WAT11-160 intersected 4.0m grading 0.25% U308.

Hole WAT11-153A

Hole WAT11-153A, which intersected mineralization near the unconformity approximately 1.5 km west of the J Zone (see news release dated March 1, 2011), is the farthest hole drilled west of the J Zone to date. It intersected 1.50m grading 0.23% U308 (267.50m-269.00m) and 1.0m of 0.09% U308 (271.50m-272.50m).

Oban

Oban is a highly prospective corridor that parallels the Discovery Bay Corridor located approximately 4 km to the south. Oban is characterized by a low magnetic signature with greater than 4km of discrete electromagnetic (EM) conductors. Resistivity surveys have identified zones of resistivity lows along these conductive trends. A total of eight exploration drill holes were drilled to test the extensive resistivity lows in proximity to the EM conductors.

Significantly, these drill holes are characterized by well developed hydrothermal alteration (bleaching, localized limonite and hematite clay alteration) and coincident radioactivity, associated with favourable graphite and sulphide bearing metapelitic basement rocks, comparable to the early findings in the Discovery Bay Corridor prior to the J Zone discovery. Hole WAT11-172 had the best results, intersecting 0.50m grading 0.10 U308 (263.00-263.50) and 0.50 of 0.07% U308 (265.50m-266m) Oban remains a high priority target.

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.

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' and on the OTCQX Exchange under the symbol 'FSSIF'.

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

Fission Energy owns 60% and the Korea Waterbury Uranium Limited Partnership owns 40% of the Waterbury Lake Uranium Limited Partnership.

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)

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

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Fission Energy Corp.

Bob Hemmerling

Investor Relations

TF: 877-868-8140
info@fission-energy.com
www.fission-energy.com