NONDA Frac Sand Pilot Plant Update

Vancouver, British Columbia: Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces that Sepro Mineral Systems Corp. of Langley, B.C. has recently completed commissioning of the frac sand pilot plant and that it is now fully-operational. As planned, work at the pilot plant is now focused on optimization of the processing equipment with material from Stikine's Nonda Project.

A primary objective of the 'optimization phase' is to evaluate each stage in the process such that incremental improvements can be made to achieve steady-state production. Minor modifications to date have led to significantly improved efficiency and handling of the material. Once optimization is completed, the bulk of the remaining Nonda sample (approximately 430 tonnes) of quartz-pure arenite rocks will be processed in the 'production phase'.

On November 4, 2010 a 'baseline' steady-state product sample was sent to Stim-Lab Inc. (a Core Laboratories Company) facility in Oklahoma. Initial testing focused on ISO 13503-2/API RP19C, Section 11 "Proppant Crush-Resistance Test", a parameter of primary interest for processed sands. These early results from Stim-Lab show that that the 40/70 baseline product produced approximately 20.1% fines, more than the recommended maximum specification of 8% under a 5,000psi crush test.

However, the 100-mesh baseline sand generated only 5.5% fines during the same initial test, already well within the recommended maximum specification of 6%. This exceptional early result highlights the potential of Stikine's process and the Nonda material, as it was achieved prior to any optimization of the pilot plant. Ongoing work will focus on refining the 40/70 and other sand fractions, while providing valuable operational data to scale up the process.

Stikine is focused on becoming a dominant frac sand supplier to British Columbia's developing shale gas industry. The Horn River, Liard and Montney Basins are dominated by major gas producers who currently rely on frac sand transported over great distances. Stikine's Nonda project is located in close proximity to the Horn River and Liard Basins and the Angus project lies in close proximity to the Montney Basin.

Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.