STIKINE - Angus Frac Sand Project Update

TSX-V: SKY

VANCOUVER, Jan. 24 /CNW/ - Stikine Energy Corp. (TSX.V: SKY) (the "Company" or "Stikine") announces that it is in receipt of an exploration permit from the British Columbia Ministry of Natural Resource Operations to conduct a planned exploration program at its 100% owned Angus Project.  The Project is located approximately 200km south of the Montney shale-gas Basin and roughly 60km north of Prince George, B.C.

Similar to an exploration program already completed at the Company's Nonda Frac Sand Project, Stikine will commence a sampling program to obtain approximately 500 tonnes of quartz-pure arenite (sandstone) from the Angus property and transport it to the Company's pilot plant in Abbotsford, BC. The pilot plant will complete process testing of the Company's Nonda rocks prior to processing the new Angus sample.

Winter conditions are favourable for developing temporary access to specific sampling sites at Angus and this initial phase of the exploration work will all be coordinated from existing logging roads that connect the site to Highway 97, less than 20km away. Crews will prepare and blast the sample and it will then be loaded into highway trucks for transport to Abbotsford. This work will commence in early February, 2011 and will be completed before spring break-up. A diamond drilling program will be conducted at site after break-up, with details of that program to be provided prior to crews commencing the work.

The Angus Project was discovered by the Company's exploration team in 2009. The area was targeted because of its proximity to the Montney basin, its quartz-pure nature and grain-size range, and its large outcrop size.  Bench scale process trials to date indicate that the sand grains can be readily liberated and sorted to make various sized sand products. Montney basin gas producers generally use coarser frac sands in their well completions than is typical of Horn River basin producers.

STIKINE ENERGY CORP.

"Scott Broughton"

______________________________________

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.

SOURCE Stikine Energy Corp.

For further information:

Investor Relations
Tel:   (604) 684-1900
Fax:  (604) 684-2902
Email: info@stikineenergy.com
Web: www.stikineenergy.com 

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Stikine Energy Corp.

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