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NONDA And ANGUS - Frac Sand Projects Update

Community Engagement Stikine is committed to seeking First Nation input and advice into the Nonda Project and is working with First Nations on designing and planning the environmental, socio-economic, and cultural aspects of the Project.  The engagement will also help to identify and secure economic opportunities at an early stage so that communities benefit directly from the economic activity generated by the Project.

The Company has recently announced an agreement with the Kaska Dena Council and is in project discussions with the Fort Nelson First Nation and the Acho Dene Koe First Nation.  Stikine has also made presentations to the Northern Rockies Regional District located in Fort Nelson.

ANGUS Project Pilot Plant A small quantity of the Angus pilot plant sample was processed in June using the original attrition scrubbers installed at the plant.  It was observed that the operations successfully produced -20+40, -40+70 and 100 mesh sizes, samples of which were sent for testing at Stim-lab.  The initial results from that work indicate that the samples were approaching the recommended specifications for crush tests. Management has elected to wait to continue process trials for the Angus material using the new scrubbers, currently planned for July, rather than spend additional time and energy to optimize the original process equipment.

Diamond Drilling and Geology Radius Drilling Corporation of Prince George has now completed 10 diamond drillholes (in excess of 1500m) of a planned 11-hole program.  The drill program is expected to be completed by June 30, 2011 and results will be used to generate a resource estimate for the Angus quartz-pure sandstone.

The drill program covers a strike length of approximately 2500 m by approximately 400 m wide with hole depths of up to 200m.  Core logging and sampling has been carried out concurrently with drilling and will also be completed shortly. Drilling has successfully intersected massive to thickly bedded quartz sandstone with occasional thin silty interbeds.  Surface mapping has also continued and will be used to update geological maps of rock types and structures in the project area.

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