Stikine - Frac Sand Pilot Plant Agreement

TSX-V: SKY

VANCOUVER, Aug. 3 /CNW/ - Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces that it has engaged Sepro Mineral Systems Corp. of Langley, BC to provide a complete pilot-scale processing plant for the next stage of its Nonda frac sand trials.

The pilot plant will comprise various process components assembled to emulate the Company's successful lab-scale flow sheet optimization. That optimization work resulted in the production of high-quality frac sand produced from Nonda rock samples. Stikine's pilot plant is designed to operate at approximately two (2) tonnes per hour and will primarily produce 40/70 mesh and 100 mesh products, similar to those currently being imported great distances to the Horn River Basin shale gas fields. An independent qualified person will supervise operations of the plant and the results will help to define operating parameters and yields, as well as providing estimates of capital and operating costs for the process.

Sepro Mineral Systems specializes in process design and equipment for the mining, mineral and aggregate industries. Sepro manufactures large-scale ore scrubbers and agglomeration drums, smaller duty grinding mills, Sepro-Sizetec screens for coarse particle separation, Sepro-Atalay screens for fine particle separation, and the complete line of Falcon Centrifugal Gravity Concentrators for fine gold and mineral recovery. Through its full service metallurgical laboratory and engineering design group, Sepro also provides process design and complete modular plants for material washing, millings, screening and gravity mineral recovery.

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"

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                 Scott Broughton, P.Eng. - President and 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