Stikine - ANGUS Frac Sand Project

TSX-V: SKY

VANCOUVER, Sept. 1 /CNW/ - Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces that its recent geological field mapping and sampling program has demonstrated that the quartz-rich sandstone outcrop at its 100% owned Angus project is much larger than previously mapped. The Angus project is located approximately 200 km south of the Montney Basin and 90 km north of Prince George, BC in close proximity to road, rail, power and other infrastructure.

Recent mapping and sampling conducted on the central Angus claims has confirmed the presence of a large volume of coarse-grained sandstone containing mono-crystalline quartz-silica grains. The unit has an estimated true maximum thickness of in excess of 200 m and a strike length of approximately 5 km. The quartz grains are observed to occur in frac sand sizes typically used in BC's Montney Shale Gas Basin development. Additional mapping and sampling in September will determine optimal locations for a diamond drill program, already permitted.

The Angus project was targeted by Stikine as a potential source of frac sand because of its proximity to the Montney basin and its relatively coarse sand-size fractions. Whereas the Company's Nonda project is focused on the potential to deliver 40/70 and 100 mesh products to the Horn River Basin producers, frac sand sizes used in the Montney development are typically coarser, including; 20/40, 25/50 and 40/70 mesh sizes.

Initial sampling of the Angus sandstone includes approximately 400 kg of material that will be processed using lab-scale tests similar to those conducted for Nonda rock trials. Sand produced from this work will be tested using standard API/ISO methods and the results will be reported as they are completed. Management believes that a process flowsheet similar to that developed for Nonda will be appropriate for the production of this Montney-specific product, ultimately leading to new pilot-scale tests using the plant currently being prepared for its Nonda pilot plant trials.

Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.

    
                             STIKINE ENERGY CORP.
                              "Scott Broughton"

                --------------------------------------------
                 Scott Broughton, P.Eng. - Presidentand CEO
    

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.

For further information: Investor Relations, Tel: [phone], Fax: [phone], Email: [email protected], Web: www.stikineenergy.com