CONICO LTD — Interim / Quarterly Report 2008

Jul 23, 2008

ACN 119 057 457

ASX QUARTERLY REPORT FOR PERIOD ENDED 30TH JUNE 2008

HIGHLIGHTS

Mt Thirsty Ni Co Mn Project (WA)

• Purchase of 100% of Meteore Metals Ltd completed

• Meteore holds a 50% interest in the Mt Thirsty Ni-Co deposit, 20km northnorthwest of Norseman in WA

• Indicated and Inferred Resource upgraded by 38% to 29 million tonnes grading 0.56% Nickel, 0.12% Cobalt and 0.88% Manganese through extensional drilling

• Gossans identified returning up to 4800ppm Ni

South Australia Uranium Projects

Wynbring

• Second drilling program completed

• Uranium assays up to 5m @ 850ppm (including 1m @ 0.32% U3O8) indicate higher grade central zone

Garford

• First reconnaissance drilling program completed

MT THIRSTY Ni-Co-Mn PROJECT (Fission 50%)

On 18[th] April 2008, Fission Energy Ltd signed a Sale and Purchase agreement to acquire 100% of the issued capital of Meteore Metals Limited which is the manager of a 50:50 Joint Venture with Barra Resources Limited (ASX:BAR) on the Mt Thirsty Nickel-Cobalt Project. Mt Thirsty is situated approximately 20km north northwest of Norseman in Western Australia (Figures 1& 2).

Fission has formally acquired a 100% interest in Meteore Metals Limited following approval given at a General Meeting of Fission Energy Ltd held on 1[st] July 2008.

Mt Thirsty Ni –Co -Mn Laterite Deposit

The Mt Thirsty deposit differs from typical nickel laterite occurrences in that it is completely oxidised and contains relatively high cobalt values. The particular mineralogy of the deposit, which is a product

Level 40, Exchange Plaza, 2 The Esplanade, Perth, Western Australia, 6000

Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Email: mailroom@fissionenergy.com.au

Report for June Quarter 2008

of a unique weathering history, allows for rapid high leaching recoveries (80% Co and 50% Ni), at moderate temperatures and normal atmospheric pressure utilising weak, acidic reagents.

Resource Update

Based on recent extensional drilling Independent mining and geological consulting firm Golder Associates Pty Ltd has estimated an updated JORC compliant Indicated and Inferred Resource of 29,030,000 tonnes grading 0.56% Nickel, 0.12% Cobalt and 0.88% Manganese (refer Table 1). The total Indicated and Inferred Resource contains approximately 162,000 tonnes of nickel, 35,000 tonnes of cobalt and 255,000 tonnes of manganese.

The Resource is confined to a single orebody at shallow depths extending over a strike length of 1,300 metres, between 6,447,600N and 6,446,300N sections, with an average width approaching 850 metres (Figure 3).

This updated resource estimate incorporates the Joint Venture’s recent southern and western extensional aircore drilling, including previously announced resource work and drilling programs undertaken over the past twelve months. The update also incorporates seven recently completed PQ diamond drill holes that were designed to further define the bulk density of the Mt Thirsty ore profile. The classification of this near surface resource is shown in Table 1 at varying cobalt cut-off grades. A summary of the estimation methodology utilised is described further below.

Table 1: Mt Thirsty Resource at varying cobalt cut-offs (calculated within mineralised envelope)

Resource at Varied cut-offs	Indicated Resource Category1	Indicated Resource Category1	Inferred Resource Category1	Inferred Resource Category1	Total Resource	Total Resource
Cobalt	Tonnage	Co%/Ni%/Mn%	Tonnage	Co%/Ni%/Mn%	Tonnage	Co%/Ni%/Mn%
0.06%	14,800,000	0.14/0.59/0.99	14,230,000	0.11/0.52/0.77	29,030,000	0.12/0.56/0.88
0.08%	12,510,000	0.15/0.60/1.08	11,100,000	0.12/0.53/0.84	23,610,000	0.14/0.57/0.97
0.10%	9,610,000	0.17/0.61/1.21	7,320,000	0.14/0.54/0.96	16,930,000	0.15/0.58/1.10
0.20%	1,950,000	0.27/0.67/1.98	570,000	0.27/0.59/1.96	2,520,000	0.27/0.65/1.97
0.30%	490,000	0.38/0.73/2.71	120,000	0.38/0.67/2.91	610,000	0.38/0.71/2.75

Note: The table above shows rounded tonnages. This may cause some apparent computational discrepancies.

1 The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, The Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia as at 9 March 2005.

Extensional and Infill Drilling Programs

Between February-April a total of 100 aircore holes were drilled for 3,605m (MTAC222 to 321). The holes were drilled to expand the existing indicated and inferred resource further south along strike beyond the 6,500N section and out approximately 800m to the west (see Figure 3). The program was highly successful identifying significant Ni-Co mineralisation west of the current resource. The newly discovered zones appear identical in nature to the existing Mt Thirsty deposit in terms of both mineralogy and overall thickness of the ore profile.

Concurrently 7 Diamond holes totalling 337.5m (MTDD1 to 7) were drilled to attain more accurate metallurgical and geological information (particularly specific gravity data) to better estimate the resources at Mt Thirsty. A preliminary comparison of the assays returned for the PQ diamond drill holes with that of aircore holes they twinned suggests good repeatability between drill holes. The bulk density

2

Report for June Quarter 2008

data extracted from the diamond drilling program has been incorporated into the new resource calculations. Further information on bulk density is included in the resource estimation summary.

Further Potential

There is very good potential to expand the Resource further south along strike to the tenement boundary, a distance of some 600m, as mineralisation remains open beyond the 6,300N section. The overall dimensions of the Mt Thirsty orebody, including this latest upgrade, is approaching 1,300 metres in strike, 850 metres in width and averaging approximately 12 metres in thickness.

Fast Tracked Development Program

The Company has been working closely with consultancy firms over the past 12 months to fast track the Project Management Plan and Mining Proposal for the Mt Thirsty deposit.

Both flora and fauna surveys have been carried out over the entire project area including areas covered by miscellaneous licence applications. No endangered species of flora or rare forms of fauna were identified within the survey area.

Native title heritage surveys have also been completed with no areas of tribal significance identified within the project area at this stage. The company is about to commence negotiations with the overlying claimant group.

Resource Estimation Methodology

The Mt Thirsty resource is based on aircore and PQ core drill hole data provided to Golder Associates Pty Ltd on the 14 May 2008.

Mineralisation and geological interpretations were carried out by the Joint Venture parties, in conjunction with Golder Associates Pty Ltd, on 50 metre spaced sections in the eastern half of the deposit and on 100 metre spaced sections in the newly drilled western half. The cut-off grades used to define the mineralised envelopes are slightly lower than those used for the previous model. These were digitized and wireframed in 3D using Vulcan software. The major domain is a sub-horizontal high NiCo-Mn domain. A less continuous domain of high Ni with low Co and Mn occurs around this main domain.

Internal waste was also interpreted and wireframed. Domain codes were assigned to each wireframe. The wireframes were used to capture the 1 metre drill hole assays within each domain code. The domain codes were also assigned to a geological block model built using the wireframes.

The block model utilized a block size of 25 metres wide by 25 metres long by 5 metres high. Sub-blocks with dimensions 5 metres wide by 5 metre long by 1 metre high were also used when required.

Domain statistics were generated and the influence of high Co and Mn grades was restrained during estimation. Variography was conducted on the main domain and the defined search orientations were also applied to the other less continuous domains

The Mt Thirsty resource was estimated using the ordinary kriging method. The elements estimated were Ni, Co, Mn, Fe and Mg.

Bulk densities were based on data collected from the PQ diamond core holes. Average densities were applied on a domain basis. This resulted in an average bulk density of about 1.89 for the mineralized domains which is a significant reduction on that used for the previous model.

The resource estimate has been classified based on data quality, data density, geological continuity and confidence in the estimation.

3

Report for June Quarter 2008

Regional Exploration - Nickel Sulphide Gossans Identified

Several nickel sulphide gossans have been identified within the joint venture tenements 6 kilometres north-west of the Mt Thirsty Cobalt-Nickel-Manganese laterite resource.

A surface reconnaissance rock-chip sampling program searching for nickel sulphide mineralisation was recently carried out within the Mt Thirsty area along a prospective basal ultramafic-basalt contact. Here seven gossanous rock-chip samples believed to be nickel sulphide bearing were collected (see Figure 4). These were analysed for a suite of elements that aid in identifying surface expressions of nickel sulphide mineralisation. One of the key indicator elements is copper as it occurs as chalcopyrite within nickel sulphide ores. Six of the seven gossans sampled at Woodcutters returned high levels of both copper and nickel. The results are tabled below.

Table 2: Gossan Rock-Chip Assay Results.

Sample	North	East	Nickel (ppm)	Copper (ppm)	Zinc (ppm)	Iron (%)
Gossan 1	6450970	367535	2,850	750	6,967	n/a*
Gossan 2	6451095	367425	3,414	2,383	1,396	49.9
Gossan 3	6451023	367493	4,808	1,368	666	52.1
Gossan 4	6450910	367692	3,639	2,412	1,045	46.1
Gossan 5	6450910	367692	2,544	918	1,878	40.7
Gossan 6	6450777	367495	4,074	1,328	2,274	49.9
Gossan 7	6450777	367499	413	861	1,284	39.7

* n/a denotes not available

These initial results are very encouraging and clearly indicate the presence of oxidised nickel sulphide mineralisation at the surface. The location of the gossans is also interesting in that the oxidised nickel sulphides are not only present on the basal ultramafic-basalt contact but also in potential hangingwall positions. This type of complexity is commonly associated with the nickel sulphide deposits of Kambalda.

Analogies can be drawn from the Kambalda Region

The area was targeted primarily due to its complex aeromagnetic signatures which appear similar to basal lava channel embayment type structures observed at Kambalda. Basal lava channel embayments located on ultramafic-basalt contacts are the most preferred location for nickel sulphide accumulation in the Kambalda region. Several of these basal embayment type structures have been identified and were recently field evaluated.

The Woodcutters Prospect hosts one of the largest and most complex basal embayment type structures within the Mt Thirsty tenement package.

Previous Exploration

During the nickel boom days of the early 1970’s, Mid-East Minerals NL and Carpentaria Exploration Company Pty Ltd were both actively exploring for nickel sulphides in the area. The Woodcutters Prospect was an area of interest to them with costeaning, gossan sampling and limited percussion

4

Report for June Quarter 2008

drilling conducted over a wide area during a three year period. A data review conducted recently has revealed the presence of other gossans within the Woodcutters prospect area that require follow-up.

Exploration to be Fast Tracked

Work to be carried in the near future by the Joint Venture will include the flying of detailed low level aeromagnetics and conducting ground EM surveys over areas of interest, including the Woodcutters prospect. Drill testing of the surface gossans at Woodcutters will be carried out once both the aeromagnetics and ground EM surveys have been completed and drill targets have been generated.

URANIUM EXPLORATION

Wynbring Project (Fission 100% uranium rights)

The Wynbring project is located within EL 3306 on the Gawler Craton approximately 100km west northwest of Tarcoola in South Australia (Figures 5 and 6). It covers a Tertiary palaeochannel 25km to the northwest of Toro Energy Ltd’s Warrior uranium deposit and has a similar catchment area to that hosting Warrior.

The Wynbring palaeochannel was initially identified by uranium explorer PNC in the 1980’s but no further exploration took place until Fission commenced drilling in late 2007.

Fission’s second drilling campaign, comprising a 41 hole 2220m air core drilling program was carried out during the quarter and was designed to follow up the strongly anomalous uranium results (up to 5m @ 215ppm) intersected in the first drilling program completed in December 2007. The latest drilling has in-filled around previous holes generally on a 200 by 100m grid spacing but down to 100 by 50m in several places (Figure 7).

The equivalent uranium estimates from down hole radiometric gamma logging (refer Table 3) indicated the presence of coherent uranium mineralisation at the Pundinya prospect within unconsolidated fluviatile sands near the base of the palaeochannel over a +1km length and up to 600m in width. A thicker higher grade core (up to 5.3m @ 405ppm eU3O8) is located in the central eastern portion of the prospect on a constricted bend in the palaeochannel (refer Figure 7). Lower grade (+100ppm eU3O8 over 1m) equivalent uranium values are open both up and down the channel.

The host sand unit is generally oxidised to a depth of 42 to 48m and the uranium mineralisation at the Pundinya prospect is mostly concentrated at or below the oxidised zone and below the water table. On the northern end of the Pundinya prospect and further to the north up the channel, the fluvial sands are totally oxidised to their base whereas to the south reduced sands are still present below the oxidised zone indicating that the uranium mineralisation is associated with a redox front. Uranium anomalism is generally persistent over a 3 to 6 metre thickness of the reduced sands at the base of the palaeochannel. Granitic basement clays are generally intersected at around 51m.

All potentially mineralised intervals based on the down hole gamma logging were sampled in 1m intervals and sent for uranium chemical analysis. Assay results (+100ppm U3O8)are listed in Table 4.

Best results were 5m at 854ppm U3O8 in hole W79 from 48 to 53m, including 1m at 3200ppm (0.32% U3O8) from 52 to 53m. Equivalent uranium (eU3O8) results previously estimated from down hole radiometric logging of this hole were 5m at 450ppm from 47 to 52m. All +100ppm U3O8 assay results are plotted over the eU3O8 contour plan in Figure 6.

In general, within the higher grade core of the prospect U3O8 chemical assays exceed the eU3O8 values estimated from down hole gamma logging whereas upstream, in the mostly oxidised channel sands north of the main redox front, U3O8 assays are lower than the eU3O8 estimates.

5

Report for June Quarter 2008

The chemical assay results imply that uranium within the Pundinya prospect is in disequilibrium with its decay products, a common feature in uranium deposits of such a young age. This has reduced the northern extent of the Pundinya prospect however the potential for a small but high grade core on its eastern margin within the existing drilling grid and related to the redox front, has been increased.

Future Program

Further infill drilling is planned for the forthcoming quarter and is designed to further test the higher grade portions of the Pundinya prospect followed by step out drilling to test the priority targets and the remainder of the palaeochannel downstream.

The interpreted Wynbring palaeochannel remains largely untested for approx. 9km downstream from the Pundinya prospect to the southern margin of the tenement boundary. Priority targets outside of the Pundinya prospect are an interpreted drainage confluence 4km to the south west and a possible abandoned channel meander to the east as shown in Figure 8.

Table 3: Equivalent Uranium (eU3O8*) Results, May 2008 Drilling

(based on 100ppm eU3O8 cut off and minimum downhole thickness of 0.5m)

Hole No.	East	North	Hole Depth	From	To	Thickness	eU3O8
			m	m	m	m	ppm
W067	379349	6635016	57	47.77	49.62	1.85	222
W068	379252	6635005	57	49.72	51.62	1.90	206
W069	379146	6634998	57	47.42	48.52	1.10	227
W070	379053	6634999	54	48.12	49.32	1.20	174
W071	379381	6634863	54	46.12	46.62	0.50	144
W071				50.47	50.97	0.50	189
W072	379183	6634869	54	49.02	49.77	0.75	154
W073	379402	6634607	54	39.97	40.47	0.50	127
W074	379296	6634614	54	45.92	50.07	4.15	204
W075	379202	6634595	54	48.12	49.02	0.90	146
W076	379107	6634604	51	45.67	47.92	2.25	172
W077	379000	6634617	48	38.97	39.52	0.55	124
W078	379402	6634404	54	30.32	31.12	0.80	144
W078				33.67	34.97	1.30	135
W078				39.22	39.72	0.50	119
W078				40.02	42.42	2.40	278
W078				44.97	45.57	0.60	123
W078				49.17	49.87	0.70	233
W079	379346	6634417	57	34.42	35.12	0.70	131
W079				46.72	52.07	5.35	405
W080	379301	6634404	54	45.07	51.12	6.05	254
W081	379197	6634420	57	46.07	51.07	5.00	169

6

Report for June Quarter 2008

Hole No.	East	North	Hole Depth	From	To	Thickness	eU3O8
W082	379158	6634385	57	46.62	49.97	3.35	162
W083	379097	6634389	54	46.37	49.97	3.60	165
W084	379005	6634405	54	46.62	47.72	1.10	114
W084				48.52	49.12	0.60	152
W085	378953	6634405	51	46.82	47.32	0.50	105
W086	379404	6634219	54	41.57	42.07	0.50	147
W086				43.22	43.72	0.50	148
W086				44.37	44.87	0.50	116
W086				45.17	45.67	0.50	102
W087	379295	6634187	54	43.62	44.12	0.50	128
W087				44.77	47.27	2.50	229
W087				47.82	48.87	1.05	175
W087				49.42	50.02	0.60	145
W088	379200	6634208	53	47.57	48.47	0.90	121
W089	379098	6634199	54	44.37	48.27	3.90	141
W090	378994	6634194	54	43.72	49.62	5.90	194
W091	378897	6634200	54	44.42	45.97	1.55	179
W091				47.37	48.52	1.15	170
W093	378795	6634008	51	42.37	44.22	1.85	147
W093				44.82	45.42	0.60	147
W095	379160	6634000	54	40.47	40.97	0.50	127
W095				43.57	44.17	0.60	126
W095				44.97	46.27	1.30	119
W096	379250	6634011	57	37.67	38.72	1.05	149
W096				38.92	41.67	2.75	186
W097	379446	6634302	54	38.22	38.72	0.50	121
W097				39.57	40.07	0.50	123
W097				40.52	41.02	0.50	134
W097				41.97	43.02	1.05	161
W098	379395	6634301	54	42.32	43.32	1.00	248
W098				46.77	51.67	4.90	202
W099+	379346	6634308	54
W100	379305	6634296	54	39.22	41.62	2.40	162
W100				45.67	50.67	5.00	215
W101	379240	6634300	54	45.37	48.37	3.00	126
W101				49.07	49.77	0.70	105
W102	379442	6634505	54	29.97	30.82	0.85	191
W102				39.47	40.02	0.55	114

7

Report for June Quarter 2008

Hole No.	East	North	Hole Depth	From	To	Thickness	eU3O8
W102				41.97	43.52	1.55	179
W102				44.52	45.52	1.00	259
W102				46.02	48.12	2.10	138
W103	379401	6634499	53	49.62	50.17	0.55	215
W104	379467	6634603	57	42.32	42.82	0.50	100
W104				44.32	45.97	1.65	147
W104				48.67	50.42	1.75	165
W104				51.07	52.02	0.95	111
W105	379454	6634699	57	42.42	44.27	1.85	169
W105				50.17	50.72	0.55	112
W106	379352	6634699	54	45.92	47.17	1.25	138
W106				50.62	51.12	0.50	172

Notes for Table 3

+Data for hole W99 not yet available

• Equivalent uranium values were estimated from down hole gamma logging assuming most of the gamma radiation measured is due to uranium and that uranium and its daughter products are in equilibrium. Chemical assays have confirmed that radiation from thorium bearing heavy minerals is not a significant factor in the basal fluviatile sands.

The preliminary eU3O8 estimates above have been carried out by 3D Exploration Pty Ltd and are based on calibration of Fission’s down hole logging equipment by PIRSA geophysicists at their test pits in Adelaide.

All holes were vertical and logged through the drill rods at a vertical speed of approx. 2m/min, with readings at 5cm intervals. Appropriate corrections have been applied for hole diameter and attenuation of the gamma count rate due to drill rods and ground water.

The latest chemical assays indicate that uranium in the palaeochannel sands may not be in equilibrium with its daughter products and hence the above eU3O8 values are not necessarily a reliable indicator of actual uranium grades.

8

Report for June Quarter 2008

Table 4: Uranium Chemical Assays May 2008 Drilling

(Based on 100 ppm U3O8 cut off over minimum width of 1m)

Hole No.	East	North	Hole Depth	From	To	U3O8	Interval	Av. Grade
			metres	metres	metres	ppm	metres	ppmU3O8
W074	379296	6634614	54	49	50	129	3	166
				50	51	251
				51	52	117
W075	379202	6634595	54	50	51	119	3	113
				51	52	107
W076	379107	6634604	51	47	48	153	3	135
				48	49	116
W078	379402	6634404	54	39	40	123	1	123
W079	379346	6634417	57	48	49	166	5	854
				49	50	190
				50	51	133
				51	52	541
				52	53	3240
W080	379301	6634404	54	47	48	125	5	443
				48	49	137
				49	50	77
				50	51	1527
				51	52	350
				50	51	131	2	186
				51	52	242
W082	379158	6634385	57	48	49	155	1	155
W083	379097	6634389	54	49	50	245	2	235
				50	51	224
W084	379005	6634405	54	49	50	138	1	138
W086	379404	6634219	54	42	43	189	4	169
				43	44	264
				44	45	78
				45	46	144
W087	379295	6634187	54	44	45	118	8	167
				45	46	140
				46	47	253
				47	48	244
				48	49	118
				49	50	190
				50	51	174
W088	379200	6634208	53	48	49	135	1	135
W089	379098	6634199	54	48	49	118	1	118
W091	378897	6634200	54	45	46	127	1	127
				48	49	144	1	144

9

Report for June Quarter 2008

Hole No.	East	North	Hole Depth	From	To	U3O8	Interval	Av. Grade
W093	378795	6634008	51	45	46	102	2	106
				46	47	110
				49	50	105	1	105
W095	379160	6634000	54	45	46	134	3	141
				46	47	179
				47	48	110
W096	379250	6634011	57	40	41	139	3	189
W096				41	42	267
W096				42	43	160
W097	379446	6634302	54	42	43	117	1	117
W097				45	46	111	1	111
W098	379395	6634301	54	44	45	107	1	107
W098				47	48	183	5	235
W098				48	49	298
W098				49	50	296
W098				50	51	272
W098				51	52	127
W099	379346	6634308	54	46	47	205	6	210
W099				47	48	306
W099				48	49	308
W099				49	50	108
W099				50	51	98
W099				51	52	233
W100	379305	6634296	54	47	48	134	5	460
W100				48	49	214
W100				49	50	214
W100				50	51	1098
W100				51	52	642
W101	379240	6634300	54	47	48	122	1	122
W102	379442	6634505	54	46	47	141	3	169
W102				47	48	190
W102				48	49	175
W104	379467	6634603	57	42	43	126	10	134
W104				43	44	102
W104				44	45	121
W104				45	46	121
W104				46	47	140
W104				47	48	102
W104				48	49	140
W104				49	50	229
W104				50	51	148
W104				51	52	109

10

Report for June Quarter 2008

Hole No.	East	North	Hole Depth	From	To	U3O8	Interval	Av. Grade
W105	379454	6634699	57	43	44	251	1	251
W105				49	50	100	1	100
W105				51	52	104	1	104

Garford Project (Fission 100% uranium rights)

The Garford, located on the Gawler Craton approx. 80km south east of Coober Pedy in South Australia (Figures 5 and 6), covers over 80km of Tertiary and older palaeochannels which have never been explored for uranium.

A 74 hole 3450m air core drilling program was completed on very wide spaced lines over the Garford project to test interpreted Tertiary and older Mesozoic palaeochannels. Thick sequences of basal reduced fluvial sands, ideal hosts for uranium mineralisation, were intersected in most of the drill holes, however no significant radiometric anomalies were detected in the initial wide spaced reconnaissance drilling on traverses spaced more than 20km apart.

Fission is considering further infill drilling at Garford, based on this initial program and the results from chemical analysis of ground water samples collected during the recent drilling which may provide vectors towards possible mineralisation.

Western Australian Projects (Fission 100%)

Field reconnaissance was carried out over exploration licences in the Lake Barlee and Lake Noondie areas during the quarter. None of the radiometric anomalies field checked were found to be associated with calcrete and their uranium potential has been downgraded. These projects are now regarded as low priority in view of the recent Mt Thirsty acquisition.

==> picture [184 x 33] intentionally omitted <==

Greg Solomon Executive Chairman

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on information compiled by Guy T LePage who is a member of the Australian Institute of Mining and Metallurgy and Michael J. Glasson, who is a member of the Australian Institute of Geoscientists, both of whom have more than five years experience in the field of activity being reported on. Mr LePage is a Director of the Company and Mr Glasson is a consultant. Mr LePage and Mr Glasson have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Le Page, and Mr Glasson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

The information in this report which relates to the Mt Thirsty Mineral Resource is based on information compiled by Alan Miller, a full time employee of Golder Associates Pty Ltd and who is a member of the Australasian Institute of Mining and Metallurgy. Alan Miller has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the January 2005 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia.” Alan Miller consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

11

Report for June Quarter 2008

==> picture [455 x 315] intentionally omitted <==

Figure 1: Mt Thirsty Project Location

==> picture [453 x 312] intentionally omitted <==

Figure 2: Mt Thirsty Tenement Locations

12

Report for June Quarter 2008

==> picture [490 x 10] intentionally omitted <==

==> picture [490 x 105] intentionally omitted <==

==> picture [490 x 104] intentionally omitted <==

==> picture [490 x 105] intentionally omitted <==

==> picture [490 x 104] intentionally omitted <==

==> picture [490 x 105] intentionally omitted <==

==> picture [490 x 105] intentionally omitted <==

Figure 3: Mt Thirsty Deposit Indicated and Inferred Resource Outline.

13

Report for June Quarter 2008

==> picture [471 x 20] intentionally omitted <==

==> picture [471 x 130] intentionally omitted <==

==> picture [471 x 129] intentionally omitted <==

==> picture [471 x 130] intentionally omitted <==

==> picture [471 x 129] intentionally omitted <==

==> picture [471 x 130] intentionally omitted <==

Figure 4: Woodcutters Prospect Interpretive Geology Showing Nickel Sulphide Gossan Locations.

14

Report for June Quarter 2008

==> picture [288 x 283] intentionally omitted <==

Figure 5: South Australian Uranium Project Locations

==> picture [223 x 263] intentionally omitted <==

----- Start of picture text -----

Garford
Project
Wynbring
Project
----- End of picture text -----

Figure 6: Location of Wynbring and Garford Palaeochannels

15

Report for June Quarter 2008

==> picture [428 x 603] intentionally omitted <==

Figure 7: Pundinya Prospect. Drill Hole Locations, Interpreted Fluvial Channel, eU3O8 Thickness * Grade Contours (m*ppm) and Thickness/ U3O8 Assay (m/ppm)

[16]

Report for June Quarter 2008

==> picture [445 x 613] intentionally omitted <==

Figure 8: Drill Holes and Interpreted Fluvial Sand Locations

17

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

FISSION ENERGY LTD

ABN 49 119 057 457

Quarter ended (“current quarter”) 30 JUNE 2008

Consolidated statement of cash flow

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid – GST Paid Income Taxes – GST Refunds Received 1.7 Other (provide details if material)- Net OperatingCash Flows	Current quarter $A’000	Year to June (12 months) $A’000
	(198) (156) 0 136 0 (41) 22	(432) (630) 0 436 0 (107) 109
	(237)	(624)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a) prospects (b)equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(430) (7) (50)	(430) (62) (50)
	(487)	(542)
	(724)	(1,166)

1.13 Total operating and investing cash flows (brought forward)	(724)	(1,166)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Share Issue Costs Share Application Monies Net financing cash flows	1,280 0 (94) 1,523	1,565 (2) (165) 1,523
	2,709	2,921
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	1,985 5,544 0	1,755 5,774 0
	7,529	7,529

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		201
		0
1.25	Explanation necessaryforanunderstanding ofthe transactions
	Management Fees, as per agreement, were paid during the quarter to a company of which Mr GH Solomon and Mr DH Solomon are directors. Bona-fide reimbursement of expenses for the period to 31 March 2008 Directors Fees and Superannuation paid during the period. Legal fees were paid during the quarter to firm of which Mr GH Solomon and Mr DH Solomon are partners. Feeswere paid during the quarterto a company of which MrGT LePageis a director

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Nil

2.2	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest
	Not applicable

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	400
Total	400

Subsequent to end of quarter additional capital has been raised to fund part of this expenditure.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	3,029	244
	4,500	5,300
	0	0
	0	0
Total: cash at end of quarter(item 1.22)	7,529	5,544

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL 77/1402	Licence Granted		100%

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	NOT APPLICABLE
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Increase release from Escrow (b) Decreases through returns of capital, buy-backs	65,000,000	39,100,008
		8,000,000 100,000	16 N/A	16 N/A
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	NOT APPLICABLE
7.7 Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	1,000,000 40,999,992 1,500,000	NIL 28,499,992 NIL	Exercise price 20 cents 20 cents 20 cents	Expiry date 18 June 2010 28 February 2011 31 March 2011
	NIL	NIL
	NIL	2
	NIL	NIL
7.11 Debentures (totals only)	NOT APPLICABLE
7.12 Unsecured notes (totals only)	NOT APPLICABLE

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

AARON PHILIP GATES CHIEF FINANCIAL OFFICER Date: 24th July 2008

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==