U.S. Markets open in 10 mins.

Fission to Commence Three Drill, $7.9 Million Winter Exploration Program at Waterbury Lake, Athabasca Basin

KELOWNA, BRITISH COLUMBIA--(Marketwire - Jan. 4, 2011) - FISSION ENERGY CORP. (TSX VENTURE:FIS - News; "Fission" or the "Company") and its Limited Partner Korea Waterbury Uranium Limited Partnership ("the Waterbury Consortium"), are pleased to announce their largest winter exploration program, including 22,000m of drilling with three drills, at the flagship 40,256 ha Waterbury Lake uranium project, located in the eastern part of the Athabasca Basin. Primary focus will be to build on the success of the J-Zone unconformity high grade uranium discovery made in 2010, in addition to continued drilling at the nearby J-East and Highland targets. The J-Zone high grade uranium discovery currently comprises an area 120m X 50m wide as defined by 28 closely spaced drill holes, most of which were vertically drilled, and is open laterally in all directions.In addition, exploration drilling is planned at newly identified high priority targets to the west of the J-Zone along the prospective 3 km long Discovery Bay East-West Corridor, and at Oban, which parallels the Discovery Bay Corridor 3 km to the north, and exhibits a similar east-west trending magnetic low region with strong electromagnetic conductors. Geophysical work will be initiated at the highly prospective Murphy Lake and Glen areas, located on the northwest part of the property. Previous drilling by Areva (formerly Cogema) and later by Strathmore Minerals (now Fission) identified anomalous uranium values at the unconformity (including hole H-34 with 246 ppm Uranium over 1.5m and hole WAT06-06 with 53 ppm Uranium over 5.0m) within a 10 km strike length characterized by low magnetic and high conductivity signatures, and discrete EM conductors. The planned geophysical work should provide enhanced resolution of this corridor and will lead to the selection of new drill targets.Crews and equipment are being mobilized and the program will be underway shortly. The following summary outlines the winter 2011 exploration program:




-- C$7.9 million budget approved by the Limited Partnership.

-- Utilizing three drill rigs, sixty-five (65) drill holes totalling an
estimated 22,000m are planned. Forty-Four (44) holes are planned at the
J-Zone high grade uranium discovery, in addition to four (4) holes at J-
East and three (3) holes at the Highland targets.

-- Fourteen (14) drill holes are planned on other targets along the East-
West Corridor and at Oban located 1.5 km north of Discovery Bay.

-- Time Domain Electromagnetic (TDEM) ground geophysics surveys will
continue at Discovery Bay and Oban to identify additional drill targets

-- Geophysical work including TDEM and Induced Polarization (IP) surveys
will commence at Murphy-Glen Lake located on the northwest part of the
property.

-- The Korean Institute of Geoscience and Mineral Resources (KIGAM),
respected for their expertise in IP and tomography imaging, will provide
downhole IP tomography support services.

Fission is the Operator of the program, which is expected to be completed by early mid- April. Results will be announced when available. An updated map highlighting the planned winter 2011 program can be found on the Company's website at http://www.fission-energy.com/s/WaterburyLake.asp.Fission Energy and the Waterbury Consortium have budgeted C$30 million for exploration at Waterbury Lake over a three year period from 2010-2012.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 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 and the Korea Waterbury Uranium Limited Partnership are both 50% limited partners under 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 BOARDRoss McElroy, President & COONeither 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.