CONICO LTD — Interim / Quarterly Report 2010

Mar 15, 2010

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Fission Energy Ltd ABN 85 009 253 187

and Controlled Entities

Interim Financial Report for the Half-Year Ended 31 December 2009

FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONTENTS

Highlights	3
Corporate Directory	4
Review of Operations	5
Directors’ Report	9
Auditors’ Independence Declaration	10
Consolidated Statement of Comprehensive Income	11
Consolidated Statement of Financial Position	12
Consolidated Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Financial Statements	15
Director’s Declaration	17
Independent Auditor’s Review Report	18

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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HIGHLIGHTS

MT THIRSTY PROJECT (WA)

Mt Thirsty Co-Ni-Mn Oxide Resource

• Metallurgical process development work continuing with encouraging results.

• Processing plant designed to produce mixed Co-Ni sulphide precipitate (MSP) and separate manganese carbonate product.

Nickel Sulphide Exploration

• Strongly anomalous nickel concentrations associated with disseminated and stringer sulphides in several zones above the interpreted basal footwall contact in hole MTDD008.

• Nickel sulphide exploration continues, footwall attitude determined, deepening of hole MTDD008 planned.

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Woodcutters
Prospect
E63/373
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Figure 1: Mt Thirsty Location Plan

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Executive Chairman) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page BA, BSc (Hons), MBA, FINSIA, MAusIMM (Non-Executive) James B Richardson (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates B.Com, CA

REGISTERED OFFICE:

Level 40, Exchange Plaza 2 The Esplanade Perth Western Australia 6000 Tel +61 8 9282 5889 Fax +61 8 9282 5866 Email: mailroom@fissionenergy.com.au Website: www.fissionenergy.com.au

SOLICITORS:

Solomon Brothers Level 40, Exchange Plaza 2 The Esplanade Perth WA 6000

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Grant Thornton Audit Pty Ltd Chartered Accountants Level 1 10 Kings Park Road West Perth WA 6005

SHARE REGISTRY:

Advance Share Registry Services 150 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: FIS (ordinary shares) FISO (options expiring 28 February 2011)

Quotation has been granted for all the ordinary shares and all issued options of the company on all Member Exchanges of the Australian Stock Exchange Limited.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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REVIEW OF OPERATIONS

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

The Mt Thirsty Cobalt –Nickel -Manganese oxide project covering an area of 45km[2] is located 20km north-northwest of Norseman (Figure 1). Fission through its wholly owned subsidiary Meteore Metals Pty Ltd owns 50% of the project in joint venture with Barra Resources Limited. The Mt Thirsty deposit has the potential to emerge as a significant world cobalt supplier. Metallurgical testwork indicates that high recoveries of cobalt, nickel and manganese can be achieved through low temperature atmospheric leaching.

Mt Thirsty has a current JORC Indicated Resource of 14.8 million tonnes at 0.14% Cobalt, 0.59% Nickel and 0.99% Manganese and a JORC Inferred Resource of 14.2 million tonnes at 0.11% Cobalt, 0.52% Nickel and 0.77% Manganese over an apparent strike of 1.3 kilometres and a width of around 800 metres.

As well as the Cobalt-Nickel–Manganese oxide resource, the Mt Thirsty joint venture tenements have potential for nickel sulphide mineralisation at greater depth within the same ultramafic sequence which hosts the near surface oxide deposit.

Work carried out on the Mt Thirsty project during the second half of 2009 has involved both nickel sulphide exploration and metallurgical process development work on the Mt Thirsty cobalt-nickel oxide deposit.

Nickel Sulphide Exploration

The nickel sulphide exploration strategy at Mt Thirsty is based on a geological model similar to basal lava channel embayment-type structures observed at Kambalda. Basal lava channel embayments located on ultramafic-basalt contacts are a preferred location for nickel sulphide accumulations in the Kambalda region.

Mt Thirsty E63/373

Primary nickel sulphide mineralisation was discovered in the first diamond hole (MTDD008) drilled by the joint venture partners in the June quarter of 2009. This hole was drilled to 1,070m (the depth capacity of the drill rig), due to the continuing presence of sulphides. The aim was to intersect the lower basal footwall contact where the best concentration of nickel might be expected. Drill hole collar details are shown in Table 1 and hole locations in E 63/373 Figure 2.

Table 1: Diamond Drill Hole Collar Details

Hole No.	East	North	Depth	Az.	Incl.	Prospect
	GDA 94 Zone 51		m
MTDD008			1,083.9	270	-75	Mt Thirsty (E63/373)
MTDD009	371600	6447700	524.4	270	-60	Mt Thirsty (E63/373)
MTDD010	371270	6447400	529.3	270	-65	Mt Thirsty (E63/373)
MTDD011	371200	6446980	588.0	270	-65	Mt Thirsty (E63/373)
WCDD001	367520	6451100	375.7	270	-70	Woodcutters
WCDD002	367556	6451232	429.6	290	-70	Woodcutters

A very thick sequence of originally olivine-rich, cumulate - textured ultramafics comprising at least three separate units was intersected in MTDD008. These rocks contain variable amounts of disseminated, vein and stringer-style sulphide mineralisation. The lowermost ultramafic unit is at least 770m thick, however the footwall contact was not reached in the drill hole due to likely thickening of the unit.

A number of zones of sulphide mineralisation were intersected down hole in MTDD008, however the more attractive were intersected from 280m and 351m. These two zones assayed 0.30% and 0.24% Ni respectively over 9.45m and 6m down hole, which are believed to be close to true widths. Included within the lower zone is thin stringer mineralisation which assayed 0.90% Ni over 0.14m from 356.56m.

It is interpreted that these two zones may represent hanging wall - style mineralisation above the main ultramafic unit, comparable to hanging wall zones in the Kambalda district. These sub-grade intersections could represent low-grade lateral extremities of significant higher-grade mineralisation, and are also positive indicators of the potential of the sequence to host high grade nickel sulphides at the lower (basal) footwall contact.

A thin massive sulphide stringer, which contained visible nickel sulphides near the lower contact of a Proterozoic–age dyke assayed 1.2% Ni, 0.6% Cu and 0.15% Co over 6cm from 759.25m. These sulphides may have been carried upwards from a more significant sulphide accumulation at depth on the basal footwall contact during later emplacement of the dyke.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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Figure 2: Mt Thirsty diamond drill hole locations over TMI magnetic image showing interpreted footwall contact in E63/373. Black dots are previous holes testing cobalt-nickel oxide resource.

Ultramafic xenoliths observed in the dyke also support the postulated origin of the sulphides. The higher associated Cu and Co values in this stringer imply a different nature to the other sulphide mineralisation intersected in the hole.

A down hole electromagnetic (EM) survey was completed in MTDD008. A conductor was detected near the bottom of the hole, however there was too much interference from sulphidic sediments intersected in the upper portion of the hole to determine an accurate location.

A second drill hole (MTDD009) was collared further up dip and to the north to test the basal footwall contact at shallower depth and also determine its attitude and hence the viability of deepening hole MTDD008. Unfortunately difficult ground conditions forced the abandonment of this hole at 524m prior to reaching the footwall contact. This hole intersected a thick sequence of thin flow - facies peridotites.

Hole MTDD010 was drilled on the same section as MTDD008 but much further up dip and encountered thick flows of olivine cumulate rocks. A narrow zone of stringer and disseminated sulphide mineralisation was intersected at 276m. The hole was terminated at 529.3m after entering a thick (+120m) pegmatite intrusion and also failed to intersect the footwall contact.

MTDD011 was collared 420m to the south of MTDD010 and passed through a thicker sequence of cumulate rocks and a narrow (0.45m) zone of heavily disseminated and stringer sulphides (pyrrhotite, pyrite and chalcopyrite) was intersected at the base of a cumulate flow at 312.5m. The footwall contact was intersected at 478m implying an overall dip of 50[o] . A 10m thick zone of 5-8% disseminated sulphides was intersected above the footwall contact however no significant Ni assays were obtained from this interval. The hole was terminated at 588m.

Both holes MTDD010 and 011 also intersected thin (<1m) zones of zinc mineralisation, up to 6.25% Zn over 0.6m from 312.0 to 312.6m in hole MTDD011.The elevated zinc assays are associated with the presence of a massive black Zn bearing oxide? mineral which is believed to be franklinite. The latter may have formed as a skarn mineral related to the intrusion of the nearby pegmatites. The economic significance of this unusual style of zinc mineralisation within the ultramafics is uncertain at this stage. Zinc assays for the mineralised intervals are displayed in Table 2.

Table 2: Zn Assays - Holes MTDD 010 &011

Hole No	From m	To m	Interval m	Zn Assay %	Total Depth m
MTDD010	275.91	276.67	0.76	1.20	529.3
MTDD011	312.00	312.60	0.60	6.25	588.0
	485.46	485.62	0.16	1.60

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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MTDD011
Mt Thirsty Joint Venture
Cross Section 6447250N
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Figure 3: Mt Thirsty Interpreted East-West Geological Cross Section through drill hole MTDD008 showing projected location of hole MTDD011, and spot Niton* readings of stringer sulphide veins and interpreted basal footwall target zone.

Woodcutters Prospect E63/1113

Diamond hole WCDD001 was completed at the Woodcutters prospect 6km to the north west to test an EM target, and 200m of cumulate - textured ultramafics were intersected. A downhole EM survey was conducted and an interesting off hole EM anomaly was detected at 255m depth which could have indicated the presence of primary nickel sulphides at depth along strike from WCDD001.

Several gossanous rock-chip samples representing possible massive to disseminated nickel sulphide mineralisation associated with a basalt-ultramafic contact have been identified at Woodcutters.

Hole WCDD002 was drilled to target the strong off hole conductor detected in hole WCDD001. This hole intersected a thick sequence of peridotite with minor pegmatite intrusions above the footwall contact at 241.9m. No sulphide mineralisation was observed however a 2m thick sulphidic black shale unit is present at the footwall contact and is most likely the cause of the off hole EM anomaly in WCDD001.

Ground EM Survey E 63/373

Surface EM also tested the 1.8km of interpreted footwall contact zone of interest in E63/373, however no near surface conductors were located. A further 3.8km of potential footwall contact has been identified in other Joint Venture tenements 2km to the north and this will be evaluated in due course.

Mt Thirsty Ni –Co- Mn Oxide Deposit

Process Development and Feasibility Study

Consultants from Independent Metallurgical Operations Pty Ltd (IMO) were engaged to review previous metallurgical test work and flow sheet development. IMO were specifically selected by the joint venturers for their particular experience and expertise in the processing of nickel – cobalt oxide deposits as well as broader commercial aspects of these businesses.

IMO recommended further process development testwork to refine the flowsheet design and this should be completed by February 2010. A pre-feasibility study is scheduled to commence in August 2010 following preparation of a process package and selection of the successful tenderer.

A simplified version of the base line flowsheet, developed by IMO, is shown in Figure 4. A processing plant designed on this flowsheet would produce a mixed sulphide precipitate (MSP) containing cobalt and nickel and a separate manganese carbonate product.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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Figure 4

CORPORATE

Placement

A placement to sophisticated investors raised $1,224,000 through the issue of 7.65 million shares at $0.16 each with a free attaching option (exercisable at 20 cents on or before 28th February 2011) for every two shares issued. The funds raised were for further nickel sulphide exploration at Mt Thirsty and ongoing metallurgical development work.

• Note: The nickel grade estimates for diamond hole MTDD008 shown in Figure 3 were estimated using a Niton XLT 592 portable XRF analyser. These spot estimates are indicative only and have been provided to demonstrate that some highly anomalous nickel values are present in the core. Niton XRF analysis is not considered a substitute for conventional analytical methods.

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 Michael J. Glasson and Robert N Smith, who are members of the Australian Institute of Geoscientists, both of whom have more than five years experience in the field of activity being reported on. Mr Glasson and Mr Smith are consultants. 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.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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DIRECTOR’S REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2009.

Directors

The names of directors who held office during or since the end of the half-year:

Mr Gregory H Solomon

Mr Douglas H Solomon Mr Guy T Le Page

Mr James B Richardson

Review of Operations

The net loss after income tax for the half year was $589,991 (2008: $447,638).

A review of the operations of the Group during the half-year ended 31 December 2009 is set out in the Review of Operations on Page 4.

Auditor’s Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 10 for the half-year ended 31 December 2009.

This report is signed in accordance with a resolution of the Board of Directors.

Director

Gregory H Solomon

Dated this 15[th] day of March 2010

ASX Code: FIS

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E admin@gtwa.com.au W www.grantthornton.com.au

Auditor’s Independence Declaration

To The Directors of Fission Energy Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Fission Energy Limited for the half-year ended 31 December 2009, I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b no contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD

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M J Hillgrove Director - Audit & Assurance Services

Perth, 15 March 2010.

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Liability limited by a scheme approved under Professional Standards Legislation. Page 10 of 19

FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

Notes Revenue Other income Accounting and audit expense Depreciation and amortisation expense Employee benefits expense Exploration expenditure written-off Finance costs Impairment expense Legal and other consultants expense Management Fees Other expenses Loss before income tax Income tax expense Loss for the period Other Comprehensive Income Revaluation Reserve Income tax relating to comprehensive income Other comprehensive income, after tax Total Comprehensive Income / (Loss) attributable to members of the parent Basic earnings per share (cents per share)	Consolidated Group 31 Dec 2009 31 Dec 2008 $ $ 76,235 173,387 (7,500) (10,400) (7,583) (8,020) (271,838) (172,326) - (43,557) - (2,515) (211,867) (171,463) (3,402) (16,410) (97,335) (113,085) (66,701) (83,249)
	(589,991) (447,638) - -
	(589,991) (447,638)
	(110,096) - - -
	(110,096) - (700,087) (447,638)
	(0.4768) (0.4049)

The accompanying notes form part of these financial statements.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2009

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Exploration and Evaluation expenditure Financial Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings/(accumulated) losses TOTAL EQUITY	Consolidated Group 31 Dec 2009 30 Jun 2009 $ $ 2,144,692 2,240,574 69,260 91,614
	2,213,952 2,332,188
	87,434 94,385 13,497,152 13,170,199 144,500 254,596
	13,729,086 13,519,180
	15,943,038 15,851,368
	124,699 198,528 - 405,915
	124,699 604,443
	250,000 250,000
	250,000 250,000
	374,699 854,443
	15,568,339 14,996,925
	16,618,474 15,467,874 403,851 393,047 (1,453,986) (863,996)
	15,568,339 14,996,925

The accompanying notes form part of these financial statements.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2009

	Share Capital
		Option	Revaluation	Accumulated
	Ordinary	Reserve	Reserve	Losses	Total
	$	$		$	$
Balance at 1 July 2008	7,048,046	285,000	-	(316,828)	7,016,218
Shares issued during the period	8,684,840	-	-	-	8,684,840
Share issue costs during the period	(265,012)	-	-	-	(265,012)
Options issued during the period	-	1,750	-	-	1,750
Total comprehensive income	-	-	-	(447,638)	(447,638)
Sub-total	15,467,874	286,750	-	(764,466)	14,990,158
Dividends paid or provided for	-	-	-	-
Balance at 31 December 2008	15,467,874	286,750	-	(764,466)	14,990,158
Balance at 1 July 2009	15,467,874	336,550	56,497	(863,995)	14,996,925
Shares issued during the period	1,224,000	-	-	-	1,224,000
Share issue costs during the period	(73,400)	-	-	-	(73,400)
Options issued during the period	-	120,900	-	-	120,900
Total comprehensive income	-	-	(110,096)	(589,991)	(700,087)
Sub-total	16,618,474	457,450	(53,599)	(1,453,986)	15,568,339
Dividends paid or provided for	-	-	-	-	-
Balance at 31 December 2009	16,618,474	457,450	(53,599)	(1,453,986)	15,568,339

The accompanying notes form part of these financial statements.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Purchase of property, plant and equipment Payment for subsidiary, net of cash acquired Loans to associates Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Repayment of loans Net cash provided by (used in) financing activities Net increase/(decrease) in cash held Cash at beginning of period Cash at end of period	Consolidated Group 31 Dec 2009 31 Dec 2008 $ $ 44,113 39,525 (382,749) (404,424) 37,520 168,045
	(301,116) (196,854)
	(538,819) (667,458) (632) (55,401) (405,915) (5,769,107) - (750,000)
	(945,366) (7,241,966)
	1,150,600 2,177,787 - (360,914)
	1,150,600 1,816,873
	(95,882) (5,621,947) 2,240,574 7,529,023
	2,144,692 1,907,076

The accompanying notes form part of these financial statements.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

NOTE 1: BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2009 and any public announcements made by Fission Energy Ltd and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 . The half-year report does not include full disclosures of the type normally included in an annual financial report.

The accounting policies have been consistently applied by the entities in the consolidated group and are consistent with those in the June 2009 financial report except for the adoption of the following new and revised Accounting Standards.

Accounting Standards not Previously Applied

The Group has adopted the following new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply in the current interim period. Disclosures required by these Standards that are deemed material have been included in this financial report on the basis they represent a significant change in information from that previously made available.

AASB 101 prescribes the contents and structure of the financial statements. Changes reflected in this report include:

• The replacement of the Income Statement with the Statement of Comprehensive Income. Items of income and expense not recognised in profit and loss are now disclosed as components of ‘other comprehensive income’. In this regard, such items are no longer reflected as equity movements in the Statement of Changes in Equity;

• The adoption of the seperate income statement approach to the presentation of the Statement of Comprehensive Income;

• Other financial statements are renamed in accordance with the standard.

From 1 January 2009, operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed by, the Group’s chief operating decision maker, which is the Board of Directors. In this regard, such information provided may use different measures to those used in preparing the Statement of Comprehensive Income and Statement of Financial Position.

NOTE 2: LOSS FOR THE PERIOD The following revenue and expense items are relevant in explaining the financial performance for the interim period Impairment of capitalised exploration expenditure Write-off of capitalised exploration expenditure on areas of interest abandoned during the year	2009 $ 2008 $ $ 211,867 171,463 - 43,557
	211,867 215,020

NOTE 3: SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of Directors (chief operating decision maker) in assessing performance and determining the allocation of resources.

The Group is managed on the basis on the basis it is a mineral exploration company operating in the geographical region of Australia. The mineral assets held via outright ownership or joint venture are considered one business segment and the minerals currently being targeted include cobalt, nickel, manganese and uranium in Western Australia and South Australia.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

NOTE 4: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The directors are not aware of any contingent liabilities or contingent assets as at 31 December 2009.

NOTE 5: RELATED PARTY TRANSACTIONS

		2009	2008
		$	$
Transactions between related parties are on normal commercial terms and conditions no
more	favourable than those available to other parties unless otherwise stated.
Transactions with related parties:
a.	Key Management Personnel
	Management fees and administration fees paid to Princebrook Pty Ltd, a
	company in which Mr GH Solomon and Mr DH Solomon have an interest.	97,335	113,085
	Legal and professional fees paid to Solomon Brothers, a firm of which Mr GH
	Solomon and Mr DH Solomon are partners.	2,100	65,687
	Replacement options issued to Mr GH Solomon, Mr DH Solomon and Mr GT
	LePage pursuant to the AGM.	120,900	-
b.	Associated Companies
	Reimbursement to Tasman Resources Ltd (which has a 28.1% fully diluted
	interest in the Company) for employee costs on a hourly basis, in relation to
	Tasman staff utilised by the Company	18,843	129,772
	Placement and capital raising fees paid to RM Corporate Finance Pty Ltd, a
	company in which Mr GT LePage and Mr JB Richardson have an interest.	73,400	-
	Placement and capital raising fees paid to RM Capital Pty Ltd, a company in
	which Mr GT LePage and Mr JB Richardson have an interest.	-	32,064

NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

ASX Code: FIS

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FISSION ENERGY LTD ABN 49 119 057 457 AND CONTROLLED ENTITIES

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 11 to 16:

2. a. comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations; and

3. b. give a true and fair view of the economic entity’s financial position as at 31 December 2009 and of its performance for the half-year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director Gregory H Solomon

Dated this 15[th] day of March 2010

ASX Code: FIS

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E admin@gtwa.com.au W www.grantthornton.com.au

Independent Auditor’s Review Report To the Members of Fission Energy Limited

We have reviewed the accompanying half-year financial report of Fission Energy Limited (“Company”), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2009, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410: Review of Interim and Other Financial Reports Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity’s financial position as at 31 December 2009 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

As the auditor of the Company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Grant Thornton Audit Pty Ltd ACN 130 913 594, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

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A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Fission Energy Limited is not in accordance with the Corporations Act 2001, including:

• 1 giving a true and fair view of the consolidated entity’s financial position as at 31 December 2009 and of its performance for the half-year ended on that date; and

• 2 complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON AUDIT PTY LTD

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M J Hillgrove Director – Audit and Assurance Services

Perth, 15 March 2010

Grant Thornton Audit Pty Ltd ABN 94 269 609 023, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

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