So if fusion releases energy... and fission releases energy, where is the conservation of energy?
It's still there. Conservation of energy simply states that you cannot reduce the energy of a 'system'. Let off an atom bomb in a box, and there will still be the same amount of energy in the box before as after. Less mass, more heat, but the same total amount of energy, as energy can be converted into matter (difficult), or matter into energy (quite easy). This is what E=Mc^2 means.
With fission, a neutron (one of the two types of particles that make up atomic nuclei) smacks into a Uranium atom, and is absorbed. The first atom splits apart, and two atoms (together lighter than the original atom) are created when. Two or three neutrons are also released, and if there's more Uranium nearby, the same thing can happen again and again. This is what makes a bomb or power plant work.
When the first atom splits, heast and gamma radiation are also released, and the two atoms created by the split also release gamma radiation as they 'settle down' ino their new states.
All this energy is from the TINY amount of weight difference between the original atom, and the neytrons and two atoms produced when it splits, according to E=Mc^2.
BUT, there's still the same amount of energy, as nothing's been detroyed, just moved around from matter to energy.
Fusion is similar, but rather than an atom dividing when hit by a neutron, it's two atoms being banged together at such a temperture and pressure that they fuse into a new atom, heavier than the two individual atoms that fused together, but lighter than them put together. Again, this missing weight is released as energy.
The released energy is not lost. It goes off and does things.