Blacksteel Energy Inc. Announces Change in Management and Board of Directors and Reinstatement of Trading

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Blacksteel Energy Inc. (TSX VENTURE:BEY) (the "Corporation") is pleased to announce the following management and board appointments effective September 6, 2011:

Curtis Hartzler, President and Chief Executive Officer

Mr. Hartzler is a professional engineer with more than 35 years experience in the Canadian oil and gas industry. Mr. Hartzler's early industry experience was in the area of field operations, completion and facilities construction, with field time spent in Rainbow Lake, Rocky Mountain House and the Crossfield regions of west central Alberta. He has a background in the economic and reserve evaluations field of the industry and was employed by the firm which today is known as GLJ Petroleum Consultants. Mr. Hartzler has been involved in the senior management roles for a number of private and public companies, including Poco Petroleum Ltd., Penn West Petroleum Ltd., Birchill Resources Ltd., Goose River Resources Ltd. and G2 Resources Ltd.

Les Treitz, Director

Mr. Treitz is a professional geologist with 32 years experience in the oil and gas business. He started his career with Pan Canadian, Alberta Energy and the oil and gas division of Brenda Mines. Mr. Treitz was a founder, President and Chief Executive Officer of Draig Energy Ltd., TSE listed oil and gas company, which was acquired by NAL Oil & Gas Trust in 2000. He then founded Monroe Energy Inc. ("Monroe") with two partners and joint ventured with Markedon Energy Ltd. ("Markedon") to develop assets in the Richdale/Hanna area of Alberta. Espirit Energy Trust acquired both Markedon and Monroe in 2005.

Greg McLean, Director

Mr. McLean is an independent financial consultant. He was most recently Director of Investments for a family trust encompassing assets of $1.4 billion and Executive Vice-President, Investments for Cavendish Investing Ltd. Mr. McLean had previously founded a private investment boutique focused on financings, M&A, structured buy-outs and private equity transactions and has nine years of investment banking experience with Wolverton Securities, Octagon Capital, Canadian Western Capital and First Marathon Securities.

Eugene Chen, Director

Mr. Chen is a partner in the securities, corporate finance, and mergers and acquisitions group with Gowling LaFleur Henderson LLP. He has over 15 years of experience in advising emerging and growth-oriented companies on corporate finance, mergers and acquisitions, and securities matters. Mr. Chen has acted for numerous energy companies and provided advice on corporate and transactional structure, capital financing and corporate governance. He is a director and/or officer of numerous public and private companies.

Chris Scase, Director

Mr. Scase is an accountant with over 15 years of public accounting practice, He joined the firm of Scase & Lively Professional Accountants in 1995 and became a partner of the firm in 2001. Along with his duties as managing partner of the Calgary office, Mr. Scase has acted as a director and controller for a number of companies, including being the Chief Financial Officer for a group of private companies engaged in oil and gas exploration in the Western Canada sedimentary basin.

Mr. Scase has agreed to continue serving as a director of the Corporation and Mr. Jacques Soroka has resigned as President, Chief Executive Officer and a director of the Corporation to pursue other opportunities.

The Corporation's shares will be reinstated to trade at the open of trading on Wednesday September 21, 2011. The change in management and the board of directors remains subject to final TSXV approval.

Blacksteel is a junior oil and gas company involved in the exploration, exploitation, development and production of petroleum and natural gas resources in Alberta. The Corporation has a 100% working interest in 22 sections of Crown oil sands leases in the Peace River area of northern Alberta, a working interest in a natural gas producing property in the Grassland area of Alberta, a working interest in a producing oil well in the Devon area of central Alberta and a 100% working interest in a four section petroleum and natural gas lease in the Del Bonita Area of Southern Alberta.