Stikine Gold Corporation

Stikine Gold Corporation

May 11, 2006 16:16 ET

Stikine Gold Corporation: Huskie Uranium Property Acquired

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 11, 2006) - Stikine Gold Corporation (the "Company", "Stikine") (TSX VENTURE:SKY) announces that it has agreed to acquire a 100% interest in the Huskie Uranium Property, consisting of four (4) mineral claims located on the southern boundary of the Athabasca Basin in northern Saskatchewan.

The claim block comprises a total area of 22,142 ha (54,713 acres) and is located approximately 100 km (60 miles) west of the Key Lake Mine and 22 km (13 miles) south of Cameco's Virgin River Project. The claims straddle the important Athabasca Basin Unconformity and have geological similarities to both the Key Lake and Virgin River settings. Exploration work in the area dates to the 1960's and has identified clastic sediments of the Athabasca Group north of the unconformity, and moraine material covers much of the unconformity. That cover of surficial material has limited any detailed exploration at the property to date. Importantly, two large-scale fault systems are recognized on the property, including a series of NE trending faults and a set of NW trending faults. Both structural domains are considered potential controls for uranium mineralization and proximity to the unconformity suggests relatively shallow target depths. Silt and lake sediments, float and boulders sampled to date on the property indicate anomalously radioactive, hematized, quartz-pebble conglomerate, believed to be from the moraine-covered unconformity on the claims.

In order to acquire a 100% interest in this property, Stikine will issue 1,225,000 shares to the vendor upon TSX Venture Exchange Approval. The property is subject to a 2.5% Net Smelter Return held by the vendor upon commencement of commercial production, that is reducible to 1% by paying C$3,000,000 at any time before or after the commencement of commercial production.

Stikine is preparing a preliminary prospecting, geochemical sampling and air-borne geophysical program for the coming months and details of that initial field program will be announced shortly.


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

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

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