CONICO LTD — Interim / Quarterly Report 2008

Apr 27, 2008

ACN 119 057 457

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ASX QUARTERLY EXPLORATION REPORT FOR PERIOD ENDED 31ST MARCH 2008

HIGHLIGHTS

Corporate

• On 21[st] April Fission announced the conditional purchase of 100% of Meteore Metals Ltd for $8 million.

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

Indicated and Inferred Resource of 20,970,000 tonnes grading 0.62% Nickel, 0.14% Cobalt and 1.01% Manganese

South Australia Projects

Wynbring

• Uranium assays up to 5m @ 219ppm (including 1m @ 455 ppm) confirm

• palaeochannel uranium potential

• Second drilling program in progress

Garford

• First drilling program in progress

Western Australia Projects

• Three more ELs granted in WA

CORPORATE

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 (ACN 097 759 325) 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.

Total consideration for the acquisition of Meteore Metals is A$8.0 million in cash payable in installments subject to inter alia due diligence by Fission, raising a minimum of A$4.0 million and shareholder approval at a General Meeting of the Company to be convened in late May/early June 2008.

Level 40, Exchange Plaza 2 The Esplanade, Perth, Western Australia 6000 Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866

Website: www.fissionenergy.com.au Email: mailroom@fissionenergy.com.au

Quarterly Report March 2008

Golder Associates Pty Ltd has estimated an Indicated and Inferred Resource of 20,970,000 tonnes grading 0.62% Nickel, 0.14% Cobalt and 1.01% Manganese . The total Indicated and Inferred Resource contains approximately 130,000 tonnes of nickel , 29,000 tonnes of cobalt and 210,000 tonnes of manganese.

The Resource is confined to a single orebody at shallow depths extending over a strike length of 1,100 metres, between 6,447,600N and 6,446,500N sections, with an average width approaching 600 metres (Figures 6 and 7).

The 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 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. Additional metallurgical testwork has been ongoing and further results are imminent. Fission is optimistic that this further testwork will result in improved metal recoveries as the metallurgical process is optimised.

Drilling by Barra Resources during 2007 confirmed excellent geological and grade continuity between these new holes and previous exploration drilling. Barra Resource’s drilling also revealed the ore profile to be substantially thicker in various parts of the deposit due to the inability of previous drilling to penetrate deep enough into the ore profile (Figure 6).

In conjunction with Barra Resources, Fission intends to fast track a feasibility study which is anticipated for completion by 4Q 2008. It is anticipated that this study will focus on atmospheric leaching technology that is currently intended to be rolled out at a number of projects in Australia and overseas in the near term.

EXPLORATION

Wynbring Project (Fission 100% uranium rights)

The Wynbring project is located within EL 3306 on the Gawler Craton approximately 100km northwest of Tarcoola in South Australia (Figures 1 and 2). It covers a Tertiary palaeochannel 15km to the northwest of Toro Energy Ltd’s Warrior uranium deposit and has a similar catchment area to that hosting Warrior.

Uranium chemical assay results from the December 2007 air core drilling program at Wynbring project were received at the end of the quarter. Assay results up to 455ppm U3O8 over 1m from 57 to 58m in hole 58 together with low uranium/thorium ratios broadly support the equivalent U3O8 estimates (eU3O8) based on down hole gamma logging reported in the December quarterly report. The results also confirm that the anomalous radioactivity associated with the reduced palaeochannel sands is principally due to uranium radioactive decay products rather than thorium. U3O8 chemical assays above 100ppm are listed in Table 1 together with average eU3O8 estimates for the same interval. In general the U3O8 chemical assays are higher than the equivalent U3O8 estimates from down hole gamma logging.

Due to the relatively small sample size collected and difficult sample medium (ie. wet unconsolidated sands and clays) the chemical assays are unlikely to be truly representative of the in situ uranium grades. Chemical assaying of large diameter drill core and uranium equilibrium studies would be carried out on any potentially economic intersections encountered by future drilling as a check on the equivalent uranium assays.

As previously reported, the recent drilling has delineated a portion of a meandering sandy fluvial palaeochannel up to 1km in width within the Wynbring palaeovalley which trends in a broadly north –

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Quarterly Report March 2008

south direction through the project area (Figures 2 to 5). Reduced, Tertiary basal fluviatile sands with strongly anomalous uranium contents were intersected in the southern portion of the tenement overlying weathered granite basement. The anomalism is obviously redox related, occurring in reduced sands immediately below the oxidised zone and below the water table, overlying granite basement.

The attached drill cross section (Figure 5) with the latest chemical assays and eU3O8 down hole gamma logs clearly shows the strongly anomalous uranium contents over a 3 to 6 metre thickness in reduced sands at the base of the palaeochannel.

Follow up drilling has commenced and will target some of the 9 km of palaeochannel with potential reduced uranium enriched basal sands in the southern portion of the tenement, which remains essentially untested.

It is hoped that the latest drilling will enable Fission to locate even higher and potentially economic uranium grades and widths as its geological understanding of this environment is significantly improved by the next phase of drilling.

Garford Project (Fission 100% uranium rights)

Garford, located on the Gawler Craton approx. 80km south east of Coober Pedy in South Australia (Figures 1 and 2), covers over 80km of Tertiary and older palaeochannels which have never been explored for uranium.

Initial broad spaced reconnaissance drilling and down hole gamma logging of this very large uranium target is currently in progress.

Western Australian Projects (Fission 100%)

Exploration Licence applications 57/693 & 695 and 77/1393 were granted during the quarter. These tenements cover airborne radiometric uranium anomalies on Lake Barlee and Lake Noondie, Tertiary playa lakes located in Archaean granite terrain on the Yilgarn Craton approximately 500 km northeast of Perth.

Initial field reconnaissance on these tenements is planned for next quarter.

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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 Michael J. Glasson and Robert N. Smith and, who are members of the Australian Institute of Geoscientists, and who have more than five years experience in the field of activity being reported on. Mr Glasson and Mr Smith are full-time employees of the company. Mr Glasson and Mr Smith 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 Glasson and Mr Smith 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.

3

Table 1: Uranium Assay Results

(based on 100ppm U3O8 cut off and 1m sample interval)

Hole No	East	North	Depth	From	To	Th	U	U3O8	Interval	eU3O8	+
			metres	metres	metres	ppm	ppm	ppm	metres	ppm
W007	378842	6634004	63	46	47	2.5	101	118
W007				47	48	3.3	112	132
				46	48			125	2	92
W034	379545	6635010	66	26	27	25.4	144	170
W056	379067	6634395	60	48	49	3.1	120	141
W056				49	50	3.8	101	119
W056				50	51	4.8	111	131
				48	51			130	3	123
W057	379264	6634393	60	48	49	2.6	95	112
W057				49	50	2.3	304	358
W057				50	51	1.6	147	174
W057				51	52	3.1	300	354
				48	52			249	4	195
W058	379452	6634410	53	43	44	2.4	92	109
W058				44	45	3.4	220	260
W058				45	46	0.9	118	139
W058				46	47	4.0	384	452
W058				47	48	5.0	114	134
				43	48			219	5	100
W059	379482	6634871	54	43	44	5.8	86	101		164

• eU3O8 (equivalent U3O8) estimate from down hole gamma logging December 2007

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Quarterly Report March 2008

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Figure 1: South Australia Project Locations

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Figure 2: Location of Wynbring and Garford Palaeochannels

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Quarterly Report March 2008

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See enlargement
Figure 4
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Figure 3: Wynbring Project - Drill Hole Locations (previously completed drilling) and Interpreted

Fluvial Channel Location

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Quarterly Report March 2008

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Figure 4: Wynbring Project - Drill Hole Locations Enlargement (previously completed drilling)

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Quarterly Report March 2008

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A B
� ¹ 0
� ¹0 eU3O8 500 �¹0 eU3O8 500 � ¹0 eU3O8 500 �� eU3O8
� � � �
� � � �
� � � �
� � � �
� � � �
� � � �
� � � �
� � � �
� � � 18 �
� � 3926 �
� � 33 �
� 12 �
� 27 �
100 � 139 � 100
� 2430 �
� 25 �
19
� 33 �
1 Basal Sand Unit � 8933
13426 ´ � 1196
18 5
8 2 3 OX 1096 ´
25 6 260
2 1 139
139 Base of oxidised zone OX 17 28 ´ 45213438
OX 376 ´ 11256 5487
45m 141119 358174 10
131 354
65 72
19
Wynbring Downhole Stratigraphy�Q Quaternary Cover Granite Basement 53m
�Tp Tertiary Silcrete/Ferricrete
� T4 Sandy/Gritty claysT3 Siltstones/Silty fg Sandstones
� T2 Paludal ClaystonesT1 Coarse Pebbly SandstonesP Permian? Mudstones 60m 60m
BR Basement Regolith
B Basement Granite/Gneiss
Plotted with MICROMINEResources SoftwarePerth, AustraliaTel +61 8 9423 9000Fax +61 8 9423 9001www.micromine.com.au Notes:Datum GDA94 Zone 53 XSCALE1:2000YSCALE1:3500 8/01/08REF No.DATE1 66344001 of 1SHEETFILE 100m EL 3306 Wynbring ProjectCross Section 6634400N
378900 379000 379100 379200 379300 379400 379500
W058
W057
W055 W056
378900 379000 379100 379200 379300 379400 379500
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Figure 5: Cross Section A-B, 6634400N through palaeochannel (refer location Figure 4) showing U3O8 assays (ppm) on LH side of Fission drill holes and eU3O8 trace on RH side (full scale bar = 500ppm eU3O8). Purple = basement, solid brown = basal fluvial sand). OX marks base of oxidised zone.

[8]

Quarterly Report March 2008

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Figure 6: Mt Thirsty Cross Section at 6,447,400mN

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Figure 7: Mt Thirsty Resource outline

[9]

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 Quarter ended (“current quarter”) 49 119 057 457 31 MARCH 2008

Consolidated statement of cash flows

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Current quarter Year to date
Cash flows related to operating activities $A’000 (9 months)
$A’000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (136) (234)
(b) development
(c) production
(d) administration (143) (474)
1.3 Dividends received 0 0
1.4 Interest and other items of a similar nature received 96 300
1.5 Interest and other costs of finance paid 0 0
1.6 Income taxes paid – GST Paid (23) (66)
Income Taxes – GST Refunds Received 18 87
1.7 Other (provide details if material)-
Net Operating Cash Flows (188) (387)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c)other fixed assets (2) (55)
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 (2) (55)
1.13 Total operating and investing cash flows (carried
forward) (190) (442)
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1.13 Total operating and investing cash flows (brought forward)	(190)	(442)
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 Net financing cash flows	0 0 0	285 (2) (71)
	0	212
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	(190) 5,734 0	(230) 5,774 0
	5,544	5,544

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
		107
		0
1.25	Explanation necessaryforanunderstanding of thetransactions
	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 Superannuationpaid duringtheperiod.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities butdidnot involve cash flows
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which thereporting entityhas an interest
	Not applicable

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount available $A’000	Amount used $A’000
		Nil	Nil
		Nil	Nil
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development		$A’000
		150
Total		150

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

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. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter(item 1.22)	Current quarter $A’000	Previous quarter $A’000
	244	434
	5,300	5,300
	0	0
	0	0
	5,544	5,734

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 29/650 EL 57/693 EL 57/695 EL 77/1393	Licence Granted Licence Granted Licence Granted Licence Granted	100%	100% 100% 100% 100%
	Outstanding Applications: ELA 28/1744, ELA 29/651, ELA 45/3203 (replacement of ELA 45/3101), ELA 57/692,ELA 77/1402,ELA 77/1417

Fission Enegy Ltd has the right to explore for uranium within Tasman Resources NL’s tenements, except for basement rocks within the area subject to the WCP Joint Venture, and an excluded area at Parkinson Dam Project (approximately 15km[2] ) where Tasman is aggressively testing for high grade epithermal gold-silver.

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.

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	57,000,000	31,100,006
		100,000
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 40,999,994 1,500,000	NIL 28,499,994 NIL	Exercise price 20 cents 20 cents 20 cents	Expiry date 18 June 2010 28 February 2011 31 March 2011
	NIL	NIL
	NIL	6
	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.

RAYMOND FRANCIS BUSCALL COMPANY SECRETARY Date: 28th April 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.

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