Blacksteel announces grants of stock options

Trading Symbol: BEY -TSX: V

CALGARY, May 28 /CNW/ - Blacksteel Energy Inc. ("Blacksteel" or the "Corporation") announces that it has granted stock options to purchase up to 752,500 common shares of the Corporation to certain officers, directors and consultants of the Corporation. The stock options have an exercise price of $0.42 per common share. 1/3 of the stock options vest immediately and 1/3 vest on the one-year and two-year anniversaries of the grant. The options expire on May 27, 2015.

Blacksteel is a junior oil and gas company. Its principal business activity is the exploration, exploitation, development and production of petroleum and natural gas resources in Alberta. The Company has a 100% working interest in 22 sections of Crown oil sands leases in the Peace River area of northern Alberta, a working interest in a natural gas producing property in the Grassland area of Alberta, has farmed in on an oil exploration play in central Alberta and has a 100% working interest in a 4 section P&NG lease in the Del Bonita Area of Southern Alberta.

    
    ON BEHALF OF THE BOARD OF DIRECTORS OF

    BLACKSTEEL ENERGY INC.

    (signed) "Walter Wakula"
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    Walter Wakula, Chairman of the Board
    

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

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For further information: Jacques Soroka, President, CEO and Director, Blacksteel Energy Inc., Phone: [phone]