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Frac Sand Pilot Plant Update

TSX-V: SKY

VANCOUVER, Sept. 7, 2011 /PRNewswire/ - Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces the following update of its pilot plant operations located in Abbotsford, British Columbia.

Sepro Mineral Systems Corp. has recently completed modifications to the new attrition scrubbers, motors and related electrical components at the pilot plant.  Maintenance repairs have also been made to other equipment.  Much of this work was not anticipated and has caused a significant delay to the plant's operation and opportunities to test sand products. The process flowsheet is a simple and innovative arrangement of equipment that is off-the-shelf and available from a variety of manufacturers at larger production sizes.  However, the assembly of the various components at a pilot-scale is new to the industry and presents unique fabrication and commissioning challenges.

As a result of the delays the new plant arrangement has only recently achieved steady-state and limited quantities of product samples.  Proppant testing of those initial samples shows that the operation has not yet been optimized to produce API/ISO sand specifications.  Changes have been made to equipment settings and new samples will be shipped to test.  This iterative approach to fine tuning the pilot plant is necessarily a time dependant exercise.  However, the Company expects to report on results from its process work on Nonda material through the month of September 2011.

The pilot plant has previously demonstrated steady-state production of Nonda 100 mesh sand that readily achieves API/ISO recommended specifications for proppants.  Bench-scale testing on a variety of Nonda samples has also reliably produced -40+70 sand samples that meet or exceed recommended specifications.  The Company looks forward to completing the current optimization and fine-tuning stage of its new plant equipment shortly.

Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.

STIKINE ENERGY CORP.

"Scott Broughton"

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