Stikine - API Tests Continue to Highlight Nonda Frac Sand Quality

TSX-V:SKY

VANCOUVER, May 3 /CNW/ - Stikine Gold Corporation (TSX-V:SKY) ("Stikine") has received additional test results for its frac sand processed from the Nonda - Ghost Ridge Project. The property is 100% owned by Stikine and is located 150 km west of the Horn River Basin ("HRB") shale gas field in northeast British Columbia.

New API/ISO Test Results

Nonda sand samples continue to demonstrate quality improvements with ongoing lab-scale testing and process refinements. Processed sand testing by Stim-Lab (a Core Laboratories Company specializing in proppant testing) has been focused on crush resistance and a recent sample of -40+70 sand produced 2.5% fines at 5,000psi (ISO 13503-2/API RP19c , Section 11 "Proppant Crush Test"), well below the suggested maximum of 8%. All other attributes of the finished sand are similar to the baseline sample result from Stim-lab (see Stikine news January 13, 2010).

This excellent result highlights Stikine's success at iteratively improving sand quality at a lab scale. Planning is underway for a larger sample to be obtained from the Nonda - Ghost Ridge project and to deliver that sample to a pilot plant-scale test in the summer of 2010. This work will help to define operating parameters, yield and capital/operating costs for the project. Permits are in place to obtain this sample in May and June of 2010.

Stim-Lab will now commence an extended conductive-permeability test on the -40+70 Nonda sample. These tests provide a benchmark for downhole conductivity at various stress levels and temperatures. Stikine will also submit a new 100 mesh sample shortly for the complete API test suite and report those results shortly.

Options Granted

Subject to regulatory approval, Stikine also announces that it has granted a total of 2.1 million share purchase options to various directors, officers and consultants at an exercise price of 30 cents for a period of five years.

Scott Broughton, P.Eng., is the qualified person responsible for the preparation of this news release under National Instrument 43-101.

    
                           STIKINE GOLD CORPORATION

                              "Scott Broughton"

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                 Scott Broughton, P.Eng. - President and CEO
    

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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