Fission Uranium : Condensed Interim Financial Statements and MD&A For the Nine Month Period Ended September 30, 2023

Condensed Interim Financial Statements

Fission Uranium Corp.

For the Three and Nine Month Periods Ended September 30, 2023

(expressed in thousands of Canadian Dollars, except as noted)

(Unaudited)

Fission Uranium Corp.

Condensed Interim Financial Statements

For the Three and Nine Month Periods Ended September 30, 2023

(expressed in thousands of Canadian Dollars, except as noted)
(Unaudited)
Table of contents
Condensed interim statements of financial position	1
Condensed interim statements of loss and comprehensive loss	2
Condensed interim statements of changes in equity	3
Condensed interim statements of cash flows	4
Notes to the condensed interim financial statements	5-14

Fission Uranium Corp.

Condensed interim statements of financial position (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

		September 30	December 31
	Note	2023	2022
		$	$
Assets
Current assets
Cash and cash equivalents		50,149	41,356
Amounts receivable		185	170
Prepaid expenses		564	802
		50,898	42,328
Non-current assets
Investment in F3 Uranium Corp.	4	4,857	3,400
Right-of-use assets		341	266
Property and equipment		107	79
Exploration and evaluation assets	5	373,270	357,311
		378,575	361,056
Total Assets		429,473	403,384
Liabilities
Current liabilities
Accounts payable and accrued liabilities		1,931	1,414
Lease obligations - current portion		88	54
		2,019	1,468
Non-current liabilities
Lease obligations		270	225
		270	225
Total Liabilities		2,289	1,693
Shareholders' Equity
Share capital	6	528,106	503,495
Other capital reserves	6	48,124	41,116
Deficit		(149,046)	(142,920)
		427,184	401,691
Total Liabilities and Shareholders' Equity		429,473	403,384

Subsequent events (Note 10)

Approved by the Board of Directors and authorized for issue on November 10, 2023

"Frank Estergaard"

Director

"William Marsh"

Director

The accompanying notes form an integral part of these financial statements

Page 1

Fission Uranium Corp.

Condensed interim statements of loss and comprehensive loss (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

		Three Months	Three Months	Nine Months	Nine Months
		Ended	Ended	Ended	Ended
		September 30	September 30	September 30	September 30
	Note	2023	2022	2023	2022
		$	$	$	$
Expenses
Wages, consulting and directors fees		482	378	1,484	1,150
Public relations and corporate development	408	413	1,183	789
Office and administration		188	175	691	656
Professional fees		112	10	325	172
Share-based compensation	6(d)	1,034	784	5,595	4,372
Depreciation		26	22	66	61
		2,250	1,782	9,344	7,200
Other items - income/(expense)
Foreign exchange gain (loss)		1	3	(1)	(1)
Interest and miscellaneous income		649	271	1,774	524
Interest - lease obligations		(4)	(5)	(12)	(14)
Gain (loss) on investment
in F3 Uranium Corp.	4	1,188	108	1,457	(1,401)
Financing costs - credit facility		-	-	-	(1,450)
Loss on short-term investments		-	-	-	(304)
Gain on warrant liability		-	-	-	411
		1,834	377	3,218	(2,235)
Net loss and comprehensive loss for the perio	(416)	(1,405)	(6,126)	(9,435)
Basic and diluted loss per common share	(0.00)	(0.00)	(0.01)	(0.01)
Weighted average number of common
shares outstanding		725,301,851	681,537,557	721,501,417	678,133,325

The accompanying notes form an integral part of these financial statements

Page 2

Fission Uranium Corp.

Condensed interim statements of changes in equity (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

						Total
		Share capital		Other capital		shareholders'
	Note	Shares	Amount	reserves	Deficit	equity
			$	$	$	$
Balance, January 1, 2022		674,699,631	484,821	36,404	(134,161)	387,064
Share issuance cost recovery	6(b)	-	(2)	-	-	(2)
Stock options exercised	6(c)	1,224,065	1,333	(853)	-	480
Warrants exercised	6(c)	4,671,070	3,575	(84)	-	3,491
Director remuneration shares issued	8	52,594	43	-	-	43
Share-based compensation	6(d)	-	-	5,820	-	5,820
Net loss and comprehensive loss		-	-	-	(9,435)	(9,435)
Balance, September 30, 2022		680,647,360	489,770	41,287	(143,596)	387,461
Common share units issued - ATM Financing	6(b)	10,899,300	7,999	-	-	7,999
Share issuance costs	6(b)	-	(346)	-	-	(346)
Stock options exercised	6(c)	15,398	11	(11)	-	-
Warrants exercised	6(c)	11,955,989	6,003	(925)	-	5,078
Director remuneration shares issued	8	69,198	58	-	-	58
Share-based compensation	6(d)	-	-	765	-	765
Net income and comprehensive income		-	-	-	676	676
Balance, December 31, 2022		703,587,245	503,495	41,116	(142,920)	401,691
Common shares issued - ATM financing	6(b)	32,678,000	24,591	-	-	24,591
Share issuance costs	6(b)	-	(1,118)	-	-	(1,118)
Stock options exercised	6(c)	2,399,400	1,055	(615)	-	440
Director remuneration shares issued	8	133,479	83	-	-	83
Share-based compensation	6(d)	-	-	7,623	-	7,623
Net loss and comprehensive loss		-	-	-	(6,126)	(6,126)
Balance, September 30, 2023		738,798,124	528,106	48,124	(149,046)	427,184

The accompanying notes form an integral part of these financial statements

Page 3

Fission Uranium Corp.

Condensed interim statements of cash flows

(Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

		Three Months	Three Months	Nine Months	Nine Months
		Ended	Ended	Ended	Ended
		September 30	September 30	September 30	September 30
	Note	2023	2022	2023	2022
		$	$	$	$
Operating activities
Net loss and comprehensive loss		(416)	(1,405)	(6,126)	(9,435)
Items not involving cash:
Depreciation		26	22	66	61
Share-based compensation	6(d)	1,034	784	5,595	4,372
Director remuneration shares issued	8	-	-	83	43
Interest income earned on cash
and cash equivalents		(649)	(271)	(1,770)	(523)
Financing costs - credit facility		-	-	-	1,212
Foreign exchange (gain) loss on credit facility	-	-	-	(66)
(Gain) loss on investment
in F3 Uranium Corp.	4	(1,188)	(108)	(1,457)	1,401
Loss on short-term investments		-	-	-	304
Gain on warrant liability		-	-	-	(411)
		(1,193)	(978)	(3,609)	(3,042)
Changes in non-cash working capital items:
(Increase) decrease in amounts receivable		61	(15)	(16)	13
(Increase) decrease in prepaid expenses		10	84	(171)	(84)
Increase (decrease) in accounts payable
and accrued liabilities		102	21	(215)	(352)
Cash flow used in operating activities		(1,020)	(888)	(4,011)	(3,465)
Investing activities
Interest income earned on cash
and cash equivalents		649	271	1,770	523
Net proceeds on disposal of
investment in F3 Uranium Corp.	4	-	-	-	56
Net equipment additions		(30)	(69)	(41)	(70)
Exploration and evaluation asset additions	5	(4,196)	(3,226)	(13,071)	(10,468)
Cash flow used in investing activities		(3,577)	(3,024)	(11,342)	(9,959)
Financing activities
Credit facility financing costs		-	-	-	(9)
Credit facility repayment		-	-	-	(8,773)
Gross proceeds from the issuance of
common shares	6(b)	7,832	-	24,591	-
Share issuance costs	6(b)	(242)	(24)	(840)	(373)
Stock option exercises	6(c)	-	-	440	480
Warrant exercises	6(c)	-	62	-	1,339
Lease obligation payments		(18)	(12)	(45)	(36)
Cash flow provided (used) by financing activities	7,572	26	24,146	(7,372)
Increase (decrease) in cash and
cash equivalents during the period		2,975	(3,886)	8,793	(20,796)
Cash and cash equivalents, beginning of period	47,174	36,691	41,356	53,601
Cash and cash equivalents, end of period		50,149	32,805	50,149	32,805

Supplemental disclosure with respect to cash flows (Note 7)

The accompanying notes form an integral part of these financial statements

Page 4

Fission Uranium Corp.

Notes to the condensed interim financial statements

For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

1. Nature of operations
   Fission Uranium Corp. (the "Company" or "Fission Uranium") was incorporated on February 13,
   2013 under the laws of the Canada Business Corporations Act in connection with a court approved plan of arrangement to reorganize Fission Energy Corp. which was completed on April
   26, 2013. The Company's principal business activity is the acquisition and development of exploration and evaluation assets. To date, the Company has not generated revenues from operations and is considered to be in the exploration stage. The Company's head office is located at 700 - 1620 Dickson Ave., Kelowna, BC, V1Y 9Y2 and the Company is listed on the Toronto Stock Exchange under the symbol FCU, on the U.S. OTCQX under the symbol FCUUF, and on the Frankfurt Stock Exchange under the symbol 2FU.
   The Company has not yet determined whether its exploration and evaluation assets contain ore reserves that have technical feasibility and commercial viability. The recoverability of the amounts shown for the exploration and evaluation assets, including the acquisition costs, is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary permitting, licensing and financing to complete the development of those reserves, and upon future profitable production.
2. Significant accounting policies
3. 1. Statement of compliance
      These condensed interim financial statements are unaudited and have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting ("IAS 34") and do not contain all of the information required for annual financial statements. These unaudited condensed interim financial statements should be read in conjunction with the Company's audited annual financial statements for the year ended December 31,
      2022 prepared in accordance with IFRS. These unaudited condensed interim financial statements were authorized for issue by the Board of Directors on November 10, 2023.
   2. Basis of presentation
      These unaudited condensed interim financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair value.
   3. Significant accounting policies
      The accounting policies followed in these condensed interim financial statements are consistent with those disclosed in note 2 of the Company's financial statements for the year ended December 31, 2022.
4. Key estimates and judgements
   The key assumptions concerning the future and other key sources of estimation uncertainty that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, as well as the key judgements made in the process of applying the Company's accounting policies, at the reporting date, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Page 5

Fission Uranium Corp.

Notes to the condensed interim financial statements

For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

1. Key estimates and judgements (continued)
2. 1. Impairment indicators of exploration and evaluation assets
      Determination of whether any impairment indicators exist at each reporting date giving consideration to factors such as mining title expiration dates, budgeted expenditures, discontinuation of activities in any area and evaluation of any data which would indicate that the carrying amount of exploration and evaluation assets is not recoverable.
      No impairment indicators were identified by management as at September 30, 2023.
   2. Determination of technical feasibility and commercial viability
      Assessing when the technical feasibility and commercial viability of the project has been determined, at which point the asset is reclassified to property and equipment.
      The determination of technical feasibility and commercial viability of a mineral property requires significant judgement and takes into account, among other factors, a combination of (i) the extent to which mineral reserves or mineral resources have been defined in a definitive feasibility study in accordance with National Instrument 43- 101, Standards of Disclosure for Mineral Projects; (ii) the results of any optimization studies and further technical evaluation carried out to mitigate project risks identified in the definitive feasibility study; (iii) the status of environmental permits; and (iv) the status of mining leases or permits.
      The Company has not yet determined whether its exploration and evaluation assets contain ore reserves that have technical feasibility and commercial viability.
3. Investment in F3 Uranium Corp.

F3 Uranium Corp. Shares
Balance at December 31, 2021		10,792,602
Additions		4,000,000
Disposals		(4,000,000)
Balance at December 31, 2022		10,792,602
Balance at September 30, 2023		10,792,602
Trading price at December 31, 2022	$	0.315
Trading price at September 30, 2023	$	0.450
Fair Value, December 31, 2022	$	3,400
Fair Value, September 30, 2023	$	4,857

F3 Uranium Corp. ("F3", formerly Fission 3.0 Corp.) is a public company incorporated in Canada, whose principal business activity is the acquisition, exploration and development of uranium resource properties. The Company's shareholdings in F3 are recorded at fair value, with the changes in fair value being recognized in the statement of loss and comprehensive loss.

During the year ended December 31, 2022, the Company acquired 4,000,000 shares through the exercise of warrants and disposed of 4,000,000 shares of F3 for a net gain of $56.

Page 6

Fission Uranium Corp.

Notes to the condensed interim financial statements

For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

5.	Exploration and evaluation assets
			Patterson Lake	West Cluff	La Rocque
		Period ended September 30, 2023	South Property	Property	Property	Total
			$	$	$	$
		Acquisition costs
		Balance, beginning	176,502	7	-	176,509
		Additions	-	-	1	1
		Balance, end	176,502	7	1	176,510
		Exploration & evaluation expenditures
		Balance, beginning	180,799	3	-	180,802
		Incurred during
		Exploration
		Geology mapping/sampling	23	1	1	25
		Geophysics	6	-	-	6
		Drilling	41	-	-	41
		Resource Advancement
		Mine Planning	2,899	-	-	2,899
		Geotechnical	6,866	-	-	6,866
		Metallurgical	176	-	-	176
		Hydrogeological	581	-	-	581
		Infrastructure studies	387	-	-	387
		Permitting				-
		Operational Permits & Other	799	-	-	799
		Environmental	1,032	-	-	1,032
		Community relations	1,039	-	-	1,039
		Other				-
		Land retention and permitting	3	-	1	4
		General	75	-	-	75
		Share-based compensation	2,028	-	-	2,028
		Additions	15,955	1	2	15,958
		Balance, end	196,754	4	2	196,760
		Total	373,256	11	3	373,270

Page 7

Fission Uranium Corp.

Notes to the condensed interim financial statements

For the Three and Nine Month periods ended September 30, 2023 (Expressed in thousands of Canadian dollars, except as noted) (Unaudited)

5. Exploration and evaluation assets (continued)

	Patterson Lake	West Cluff
Year ended December 31, 2022	South Property	Property	Total
	$	$	$
Acquisition costs
Balance, beginning	176,502	-	176,502
Additions	-	7	7
Balance, end	176,502	7	176,509
Exploration & evaluation expenditures
Balance, beginning	165,460	-	165,460
Incurred during
Exploration
Geology mapping/sampling	-	2	2
Drilling	24	-	24
Resource Advancement
Mine Planning	3,903	-	3,903
Geotechnical	5,284	-	5,284
Metallurgical	799	-	799
Resource Development	2	-	2
Hydrogeological	294	-	294
Infrastructure studies	1,689	-	1,689
Permitting
Operational Permits & Other	5	-	5
Environmental	737	-	737
Community relations	845	-	845
Other
Land retention and permitting	8	1	9
General	111	-	111
Share-based compensation	1,638	-	1,638
Additions	15,339	3	15,342
Balance, end	180,799	3	180,802
Total	357,301	10	357,311

Page 8