SHARED VISION FOR RESOURCE DEVELOPMENT TO DRIVE NEW GROWTH OPPORTUNITIES FOR BOTH GROUPSVANCOUVER, June 28, 2011 /PRNewswire/ - Stikine Energy Corp. (TSXV: SKY) ("Stikine" or the "Company") and the Kaska Dena Council ("Kaska") announced today that they have signed a strategic engagement agreement based on a mutual and beneficial interest in advancing Stikine's Nonda Project ("the Project"). Through early engagement, the Kaska and Stikine will work together on designing and planning the environmental, socio-economic, and cultural aspects of the Project. "This agreement allows our people to be engaged in a meaningful way so that we can work together to safeguard our territory and protect our Aboriginal rights, titles and interests," said Kaska Chair George Miller. "It also provides us with a vehicle for ensuring that the Kaska benefit from the significant economic opportunities associated with the Project. We are very pleased by this agreement and are committed to working in a spirit of collaboration and partnership with Stikine on the Project." Stikine has mineral rights to claims and leases 90 kilometres north of Muncho Lake in the BC portion of the Kaska Traditional Territory currently known as the Nonda Project. The Project is a frac sand mining and processing development project located approximately 200 km northwest of Fort Nelson. Frac sand is a key component to the development of the large shale gas plays in northeast BC's Horn River Basin, Liard Basin and Montney Basin. These are rapidly developing world-class plays that have attracted billions of investment dollars from many major producers. Currently, testing and development of shale-gas in northeast BC relies on the supply of frac sand from distant sources delivered at high transport costs and logistical challenges. The large volumes of frac sand required for planned well completions has resulted in a robust market valued in the hundreds of millions of dollars per year - still in its early stages, the market will likely grow and may be sustained over the lifecycle of the gas basins. Stikine is committed to seeking Kaska and other First Nation input and advice into the Project, and will work with First Nations to identify and secure economic opportunities so that communities benefit directly from the economic activity generated by the Project.