BLACKSTEEL PROVIDES AGM UPDATE

Trading Symbol: BEY -TSX: V

CALGARY, Oct. 26 /CNW/ - Blacksteel Energy Inc. ("Blacksteel" or the "Company") announces the results of its Annual and Special General Meeting ("AGM") of shareholders held earlier this month.

Approximately eighteen per cent of the Company's shareholders were represented at the AGM and they approved all motions and resolutions put forward to them in the Management Information Circular dated September 10, 2010 ("Information Circular"). The following incumbent directors were re-elected to the Board for the coming year: Robert Leslie: Chris Scase; Jacques Soroka; Steve Strawson; and Walter Wakula.

Shareholders also approved the following resolutions:

1. Re-appointing Collins Barrow Calgary LLP as the auditors of the Company for the ensuing year and authorizing the directors to fix the remuneration to be paid to such auditors; and
2. Re-approving the rolling 10 percent stock option plan of the Company for the ensuing year including the changes described in the Information Circular. The Board had approved the revised stock option plan at its September 10, 2010 meeting and recommended it to shareholders for approval at the AGM.

President and CEO Jacques Soroka gave a presentation to the Company's shareholders with an overview of Blacksteel's performance and operations during the previous year, its achievements, and elaborating the Company's strategy of pursuing cash flow generating opportunities for the next and future years. He discussed Blacksteel's current focus on its Del Bonita area Alberta Bakken emerging tight oil resource play and the terms of the private placement offering of securities that the Company currently has in the market to help finance the drilling of a well on its lands in Del Bonita.

Immediately after the AGM the Board met to make appointments and consider its standing committees. Walter Wakula was appointed to continue in his role as non executive Chairman of the Board and Chris Scase was appointed to continue in his role as Chairman of the Audit Committee. Steve Strawson and Walter Wakula were appointed members of the Audit Committee. All three members of the Audit Committee are independent.

The Board of Directors would like to thank Blacksteel's shareholders for their continued support of the Company.

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 oil sands leases in the Peace River Area of northern Alberta, has working interests in a natural gas producing property in the Grassland Area of Alberta, is evaluating production alternatives for an oil play in the Devon Area of 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.

This news release may contain forward-looking statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation and, as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. 

The Company's forward-looking statements, if any, are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

%SEDAR: 00024766E

For further information:

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