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NONDA And ANGUS - Frac Sand Projects Update


VANCOUVER, June 28, 2011 /PRNewswire/ - Stikine Energy Corp. (TSXV: SKY) ("Stikine" or the "Company") announces the following updates on work-in-progress for its two frac sand projects; Nonda and Angus.  These activities include substantial advancement of its pilot plant operations, exploration and geology, engineering and preliminary economic assessment, environmental baseline and community engagement activities.

NONDA Project Pilot Plant Sepro Services Corp. is currently installing the new attrition scrubbers at Stikine's frac sand pilot plant operation located in Abbotsford, BC.  The scrubbers are expected to provide greater efficiency than the original units and have produced excellent lab-scale results from this manufacturer, including; ISO/API crush fines contents of 7.8%, 7.2% and 7.6% for the Nonda -40+70 sand - consistently passing the suggested maximum value of 8% at 5,000 psi.

During the month of June 2011, the plant was readied to receive the new equipment in order to expedite commissioning of the entire process operation.  New pilot plant samples will be generated by the end of this week and sand testing will be completed by Stim-lab, as previously described.  After confirming initial results from the new plant and equipment, the remainder of the Nonda sample will be processed and tested.  Also, much of the sand already bagged at the site will be re-processed to generate as much API/ISO spec material as possible from the Nonda pilot plant operation.

Engineering and Preliminary Economic Assessment The Company's engineering consultants, including; Wardrop (a Tetra Tech company) of Vancouver, BC and Sepro Services Corp. of Langley, BC, are preparing a preliminary economic assessment for the Nonda frac sand project.  The team includes mining, process, access, infrastructure, financial analysis and cost estimating professionals. Independent market assessments are also being completed to provide input to the size and pricing of delivered frac sand to northeast British Columbia, and broader markets in North America.  The various components to the study will be completed and reported in July 2011.

Environmental Baseline Studies and Permitting Ecosystems North, a subsidiary of Wildlife Infometrics Inc. of Mackenzie, B.C., has commenced environmental assessment and baseline studies for the Nonda project. The fieldwork component to this has focused on aquatic, terrestrial, climate, noise, social and other aspects of the project environment.   Recent fieldwork includes; water quality and stream flow measurements, ongoing vegetation sampling, and the collection of climate data.  Because the Nonda site has had little prior assessment or review, Ecosystems North has also deployed 35 caribou collars to determine caribou range, conducted caribou calving surveys, established hair traps for grizzly/wolves/wolverines, and commenced a bird and butterfly inventory.

Stikine intends to file the Nonda Project Description and to begin the project permitting process shortly after receiving the engineering and design information from its engineers.  The Company has met with various government and regulatory staff to discuss the Nonda project prior to the submission of the Project Description to the BC Environmental Assessment Office.

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