Stikine Energy Corp.
TSX VENTURE : SKY

December 13, 2010 16:14 ET

Stikine Announces Private Placement of up to $5,100,000

(figures in Canadian dollars)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 13, 2010) -

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

Stikine Energy Corp. (TSX VENTURE:SKY) ("SKY" or the "Company") announces that it has entered into an agreement with a syndicate of agents (the "Agents") consisting of Stonecap Securities Inc. and Cormark Securities Inc. in connection with an overnight marketed, best-efforts private placement (the "Offering") of up to 17,000,000 units (the "Units") at a price (the "Issue Price") of $0.30 per Unit for gross proceeds of up to $5,100,000. Each Unit will consist of one common share (the "Common Shares") of the Company and one-half of one common share purchase warrant (the "Warrants"). Each whole Warrant shall entitle the holder thereof to acquire one common share of the Company for 24 months following closing of the Offering. Each Warrant shall be exercisable at $0.40 up to and including the first anniversary of closing and at $0.50 following the first anniversary of Closing and up to and including the second anniversary of closing.

The Company has granted the Agents an option to purchase up to an additional 15% of the Units at the Issue Price exercisable up to 48 hours prior to closing of the Offering for additional gross proceeds of up to $765,000.

The gross proceeds from the sale of the Units will be used for working capital and general corporate purposes.

The Offering will be made by way of private placement to accredited investors in all provinces of Canada. The Offering is expected to close on or about December 30, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. The Units will be subject to a four-month hold period.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

STIKINE ENERGY CORP.

"Scott Broughton"

Scott Broughton, P.Eng. - President and CEO

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

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