Stikine Announces Closing of $3,100,000 Private Placement

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./

TSX-V: SKY

VANCOUVER, June 17 /CNW/ - Stikine Gold Corporation (TSX.V: SKY) (the "Company") announces that it has closed its private placement (the "Private Placement") of 13,775,000 flow-through common shares (the "FT Shares") and 1,725,000 units (the "Units") at a price of $0.20 per FT Share and Unit, raising gross proceeds of $3,100,000 through a syndicate led by Stonecap Securities Inc. and including Jennings Capital Inc. (the "Agents"). Each Unit consists of one common share (the "Common Share") and one-half of a transferable common share purchase warrant (the "Warrant").

Each whole Warrant is exercisable into one additional common share (the "Warrant Share") of the Company until December 17, 2011, at an exercise price of $0.25 per Warrant Share, provided however, that in the event that the closing sale price of the common shares of the Company on the TSX Venture Exchange is greater than $0.50 for a period of 20 consecutive trading days at any time after the closing, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof, and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

In consideration for their services, the Company paid to the Agents a cash commission of 7% of the gross proceeds and common share purchase warrants (the "Agents' Warrants") to purchase up to 7% of the number of FT Shares and Units issued. Each Agents' Warrant will entitle the Agents to purchase one common share (the "Agents' Warrant Share") of the Company until December 17, 2010 at an exercise price of $0.25 per Agent's Warrant Share.

All securities issued pursuant to the Private Placement have a hold period expiring on October 18, 2010.

The proceeds from the sale of the Units will be used for general working capital and corporate purposes. The proceeds from the sale of the FT Shares will be used for furthering exploration of the Company's silica projects in northeastern British Columbia.

    
                           STIKINE GOLD CORPORATION

                               "David Skerlec"

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                 David J. Skerlec - Chief Financial Officer
    

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.stikinegold.com