Blacksteel Energy Inc. Announces Cancellation of Escrowed Shares

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")
announces that 3,127,318 common shares of the Corporation (the "Escrowed
Shares") held under a surplus security escrow agreement dated December 23, 2009
have been cancelled. 


The Escrowed Shares had originally been issued to shareholders of Blacksteel Oil
Sands Inc. as part of the Corporation's qualifying transaction. 


The cancellation of the Escrowed Shares arises from a corporate disposition of
the assets for which the Escrowed Shares were issued and the TSX Venture
Exchange indicating that it would be unable to consent to any requests for
release of the Escrowed Shares. As a result, the Corporation proceeded to have
the Escrowed Shares cancelled. 


As of today's date and after cancellation of the Escrowed Shares, Blacksteel has
19,797,938 common shares issued and outstanding. 


Blacksteel is a junior oil and gas company involved in the exploration,
exploitation, development and production of petroleum and natural gas resources.
The focus of the company remains on establishing a low risk, high net back,
light oil weighted platform to build the company. The Corporation has a 100%
working interest in a four section petroleum and natural gas lease in the Del
Bonita Area of Southern Alberta, which it believes may have Bakken potential. 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.


Not for distribution to U.S. Newswire Services or for dissemination in the
United States of America. Any failure to comply with this restriction may
constitute a violation of U.S. Securities Laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Blacksteel Energy Inc.
Curtis Hartzler
President and Chief Executive Officer
[phone]
[e-mail]