BLACKSTEEL ENERGY INC. PROVIDES FURTHER UPDATE ON COMPLETION OF WELL IN DEVON
AREA OF ALBERTA

Trading Symbol: BEY -TSX: V

CALGARY, Sept. 23 /CNW/ - Blacksteel Energy Inc. ("Blacksteel" or the "Company") (TSXV - "BEY") announces that, further to the Company's news release of August 26th, 2010, the completion operation on the Devon area well has tested positive for oil. Blacksteel and its partners are currently evaluating production alternatives for this well.

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"
    ------------------------
    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.

%SEDAR: 00024766E

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