Blacksteel Energy Inc. Announces Farm-In at Buck Lake, Alberta

CALGARY, ALBERTA--(Marketwired - May 23, 2013) -

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

Blacksteel Energy Inc. (TSX VENTURE:BEY) ("Blacksteel" or the "Corporation") is pleased to announce that it has entered into a farm-in agreement (the "Agreement") with an industry partner to participate in the drilling of horizontal wells in the Cardium oil formation in the Buck Lake area of Alberta.

The Agreement provides for the earning of a 25.0% working interest in 1280 acres of land by paying 37.5% of the cost to drill, complete and equip the first two wells. The first well will earn a 25% working interest in 320 acres of the land, and the second (Option Well) will earn the balance of the 1280 acres. All subsequent wells will be drilled with Blacksteel paying 25% of the costs for a 25% working interest in the land. Current well spacing provides for up to four wells per section in the Cardium zone in this field.

It is contemplated that subject to rig availability, surface access and regulatory approval, the first well will be drilled on or before August 30, 2013. The Corporation intends to fund its share of expenditures for the test well from its private placement, as announced in the press releases of April 18, 2013 and May 1, 2013.

Blacksteel is very encouraged with the potential of this opportunity given the off-setting well results and the multiple drilling locations which would form a platform of growth to build value in the Corporation. This transaction represents the focus of Blacksteel on the acquisition of low risk, oil weighted opportunities having early payback of capital and long life reserves.

Blacksteel is a junior oil and gas company involved in the exploration, exploitation, development and production of petroleum and natural gas resources. The Corporation has a 100% working interest in a four section petroleum and natural gas lease in the Del Bonita Area of Southern Alberta. It also has a 25% working interest in one section of land in the Crossfield area, which the Corporation believes is oil prospective in the Elkton formation, and varying working interests of 22% - 37.5% in 1840 acres of Crown land in the Devon area of Alberta.

Forward-Looking Information Cautionary Statement: This document contains forward-looking statements regarding the business and operations of Blacksteel. All statements other than statements of historical fact contained herein are forward-looking statements under applicable securities laws. In particular, statements as to the Corporation's anticipated transactions are forward-looking statements. These forward looking-statements are based upon various assumptions. The Corporation's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the plans, intentions or expectations anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefit the Corporation will derive there from. All subsequent forward-looking statements, whether written or oral, attributable to the Corporation or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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