Stikine Energy : Announces Non-Brokered Private Placement

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

Vancouver, British Columbia: Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces that it intends to proceed with a non-brokered private placement (the "Private Placement") of up to 12.5 million units of the Company (the "Units") at an offering price of $0.02 per Unit for gross proceeds of up to $250,000. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share until one year following closing of the private placement, at an exercise price of $0.05. The Company has set no minimum number of Units to be distributed and no minimum dollar amount required to be raised in connection with the Private Placement.

The gross proceeds of the Private Placement will be used for working capital, general corporate expenses and to undertake further exploration at Stikine's Angus Frac-Sand Project in Northeastern British Columbia. Assuming the Private Placement is fully-subscribed, the Company intends to allocate the gross proceeds of the Private Placement as follows: $65,000 to undertake further exploration at the Angus Project in the summer of 2014, and $185,000 for the Company's working capital. In the event of an oversubscription to the Private Placement, the Units will be allocated on a pro-rata basis to subscribers.

Subject to TSX Venture Exchange approval, the Company may pay finders' fees of cash and/or securities on a portion of the Private Placement.

The Private Placement will be conducted in reliance upon British Columbia Instrument 45-534 (the "Instrument"), which permits an issuer to distribute securities to its existing shareholders, subject to the terms and conditions of the Instrument. The Company has set May 30, 2014, as the record date for the purpose of determining existing Stikine shareholders who are entitled to purchase Units under the private placement. This exemption is not available to shareholders resident in Ontario or Newfoundland, or certain jurisdictions outside of Canada. The Company may combine the offering under the Instrument with sales pursuant to other available prospectus exemptions, including sales to accredited investors.

The Company may accept qualifying subscriptions of up to $15,000 from existing shareholders under the Instrument and advises interested investors to contact the Company as soon as possible. In the event that subscriptions received exceed $250,000, Units will be allocated pro rata among all subscribers. The Company expects to close the offering of Units on or about June 20, 2014.

The Private Placement is subject to TSX Venture Exchange approval and the securities issued pursuant to the Private Placement will be subject to a four-month hold period.

About Stikine Energy and the Angus Frac Sand Project

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 large-scale gas plays led by major producers who currently rely on frac sand transported over great distances. The Angus project, which lies in close proximity to the Montney basin, was identified in 2009 through a systematic search for raw material sources possessing the different frac sand sizes used in the basin and the potential for large-scale resource development. Stikine has previously completing resource estimates, engineering and baseline environmental work in addition to community consultation for the Angus project and remains committed to further development when market conditions improve and financial resources permit.

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.

STIKINE ENERGY CORP.

"David Skerlec"

David J. Skerlec - Chief Financial Officer

For further information contact:

Tel: [phone]
Fax: [phone]
Email: [e-mail]
Web: www.stikineenergy.com

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