NONDA and ANGUS - Frac Sand Projects Update


VANCOUVER, May 17 /CNW/ - Stikine Energy Corp. (TSXV: SKY) ("Stikine" or the "Company") announces the following updates on pilot plant operations and exploration activities for the Company's two Frac Sand projects: Nonda and Angus.

Pilot Plant
NONDA Material
Sepro Services Corp. has continued equipment optimization trials at Stikine's frac sand pilot plant operation located in Abbotsford, BC.  The plant has successfully demonstrated steady-state operations and production of Nonda 100 mesh sand that readily achieves API suggested specifications.

Ongoing trials and testing of the Nonda -40+70 sand product has continued to improve the quality with small deviations from the recommended specification for that product size.  The work has highlighted that the pilot plant's existing attrition scrubbing units are limiting the plant's overall effectiveness and its ability to produce the desired -40+70 sand. As a result, more efficient scrubbers have recently been ordered from an alternative manufacturer.  This new equipment will be delivered in early June 2011 and the remaining Nonda material will be processed and tested once it is installed.  Also, much of the processed sand already bagged at the site will be re-processed to generate as much API/ISO spec material as possible from the Nonda pilot plant operation.

Changing the pilot plant's attrition scrubbing units is expected to result in better products across the range of sand sizes, including Nonda -40+70 sand.  Management is encouraged that recent lab-scale testing (off site) of the new scrubbers resulted in a crush fines contents of 7.8%, 7.2% and 7.6% for the Nonda -40+70 sand - consistently passing the suggested maximum value of 8% at 5,000 psi.

Pilot Plant
ANGUS Material
The Angus pilot plant sample (~500 tonnes) has now been crushed using the primary crushing circuit at the Abbotsford site. The pilot plant will continue to operate with the existing attrition scrubbers until the new units described above are delivered. Pilot process trials commenced on May 16, 2011 using the Angus material and sand is currently being produced in -20+40, -40+70 and 100 mesh sizes.  Once operating at steady-state, samples will be examined and sent for API/ISO testing. The Angus material has historically demonstrated lab trial results that show it is easier to liberate than the Nonda material.

Diamond Drilling
ANGUS Project
A planned drilling program at Angus will mobilize on Wednesday May 18, 2011 and drilling will commence soon after. Diamond drill pads have already been constructed at the initial Angus drill sites. A total of 9 to 12 holes will be drilled to test the quality, consistency and thickness of the Angus sandstone unit.  Some of the sites selected are road accessible while others require heli-support to provide access.  All sites are close to the community of Bear Lake, north of Prince George, BC.

Stikine is focused on becoming a dominant frac sand supplier to British Columbia's developing shale gas industry. The Horn River, Liard and Montney Basins are large-scale gas plays led by major producers who currently rely on frac sand transported over great distances. Stikine's Nonda project is located in close proximity to the Horn River and Liard Basins and the Angus project lies in close proximity to the Montney Basin. The projects were identified in 2009 through a systematic search for raw material sources possessing the different frac sand sizes used in each basin and the potential for large-scale resource development.  Stikine is currently completing resource estimates, engineering and baseline environmental work in addition to community consultation for both projects.

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


"Scott Broughton"
Scott Broughton, P.Eng. - President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Stikine Energy Corp.

For further information:

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Tel:   (604) 684-1900
Fax:  (604) 684-2902

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