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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (1028)	4/22/2013 9:14:10 PM
From: 22jt	Read Replies (1) \| Respond to of 203382

Dundee Securities comments on Fission News April 22, 2013 David A. Talbot / (416) 350-3082 dtalbot@dundeesecurities.com 29.26% U3O8 over 10.5m within 6.57% over 53m at PLS The assays say it all… It was a short press release today with the second hole, PLS13-51 from the R390E Zone at its 50% owned PLS project (Table 1). If it wasn’t clear before, we believe Fission is on to a massive discovery here at PLS. We currently believe it stands at around 25 MM lbs, but all three zones remain open and the likelihood of expansion is significant. We believe R390E is the most prospective zone at PLS given its potential for high grades in multiple thick stacked zones at shallow depths. Adding this hole to R390E not only increases strike and width, but also average grade and helps confirm thickness of the overall mineralized zone, with the presence of a high grade core. At 29% grade, the core of this zone represents US$26,000/t rock - already impressive, but considering it's only at 95m depth, within preferred basement rocks and potentially open pitable, we remain excited about the economic potential of this zone. Three significantly high grade holes have been identified at R390E, and we are still awaiting assays from hole -53, likely out later this week. While -51 hit the most significant continuous uranium, -53 isn't far off and did intersect the largest amount of off-scale radioactivity at 18.9m (Table 2). It should look more similar to this hole -51 than -38 (4.92% over 34m within 3.14% over 59m) on a grade perspective. Law of averages suggests to us that future drilling will potentially increase the footprint of the zone but likely at the expense of declining grades. Drilling on either side of hole -51 appears fairly good. Perhaps not the same magnitude as -51, -53, or even -38, but hole -66 drilled to the east hit even more intense alteration with an equally thick 64m mineralized intercept that included some off-scale (Figure 1 & 2). R390E remains wide open in all directions. • R00E Zone - The discovery zone measures 120m along strike x 50m width and averages 1% U3O8 over 19.8m from 11 holes and 23 intercepts based on our own estimates. This improves to 1.76% U3O8 over 19.3m at a 1% cut-off but the footprint would decline as we use only four drill holes and 11 intercepts. We currently estimate a mineral inventory for the R00E zone at ~6.8 MM lbs U3O8. • R390E Zone - This is the most impressive zone to date. The zone is 60m long and 20-30m wide. We adjust our thickness estimate to 56m and a 10-12m high grade core is evident. With today's assay of 29.26% over 10.5m within a 6.57% over 53m intercept, the zone now averages 4.76% over 56m but increasing to 1% cut-off we estimate grade rises to 5.93% over 43.5m. We estimate 18 MM lbs for R390E. • R780E Zone - The most recent discovery, three holes have been drilled on one section and all have hit, providing 30m width to mineralization. Assays pending. • FIS holds its vote tomorrow. The Denison (DML-T: BUY, C$2.00 target) portion of FIS's share price represents about $0.42/sh. While we do expect FIS to decline post-deal, we believe investors would have multiple paths of share price appreciation - having both 1 sh of Fission and 0.355 shares of DML. DML is one of the best situated developers in the Athabasca Basin with access to the only high grade mill, the world's third highest grade uranium deposit (Phoenix), 158 MM lbs of resources world wide and a strong and dynamic management team. • Undervalued. We see Fission as trading at a 12% discount to our implied value for total consideration based on current market situation. Assuming its share of a 25 MM lb mineral inventory at $5/lb (half the going rate of many recent Athabasca takeovers), we believe Fission is trading at a 16% discount.