Stikine Energy Corp and Kaska Dena Council Enter Strategic Agreement to Advance NONDA PROJECT

SHARED VISION FOR RESOURCE DEVELOPMENT TO DRIVE NEW GROWTH OPPORTUNITIES FOR BOTH GROUPS

VANCOUVER, 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.

"We strongly believe that mine development projects like ours can only become truly successful when they have the support and participation of First Nations," said Stikine President and CEO Scott Broughton.  "With strong and respectful relationship-building as a primary objective, we will continue to work collaboratively with the Kaska and other First Nations in the area to advance and develop the Project in a way that delivers understanding and removes uncertainty for all.  We see that the opportunities for First Nations associated with the Project are tremendous, and as we move forward, we are eager to develop comprehensive socio-economic agreements and other forms of participation that will outline those benefits to the communities."

"The signing of this agreement is recognition of an existing and cooperative relationship between Stikine and the Kaska," Miller said.  "It is only by respecting each other that we will be able to achieve mutually successful outcomes."

About Kaska Dena Council

The Kaska Dena Council was formed as a Society in 1981 to advance interests of Kaska individuals who are potential beneficiaries of a treaty settlement with Canada and British Columbia.

The Council represents the Kaska Dena in British Columbia and its Board of Directors comprises representatives from Daylu Dena Council, Dease River First Nation, Kwadacha First Nation and traditional Kaska Dena communities of Muncho Dena and Fireside Dena.

Kaska Dena Traditional Territory extends from MacMillan Pass on the Yukon/Northwest Territories border in the north, to Kwadacha in the south, and from Little Salmon Lake, Yukon in the west to Fort Nelson in the East.

About Stikine Energy Corp.

Stikine Energy Corp (TSX.V: SKY), a Vancouver based company, is committed to becoming a dominant frac sand producer and supplier to British Columbia's shale gas industry. The company currently proposes two frac sand mines for northeastern BC.  The Nonda Project is located approximately 150 km west of the Horn River Basin and the Angus Project is approximately 200 km south of the Montney Basin, with major infrastructure nearby. Both projects are in the heart of major gas plays but opportunities to supply beyond BC into other markets may also exist.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Stikine Energy Corp.