Blacksteel Energy Inc. Announces Granting of Stock Options

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 it has granted an aggregate of 1,660,000 stock options to
directors of the Corporation.


The stock options are exercisable at a price $0.10 for a period of ten years
from the date of the grant. 


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 (55% after payout) in a natural gas
producing property in the Grassland area of Alberta and a 100% working interest
in a four section petroleum and natural gas lease in the Del Bonita Area of
Southern 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 Meeting 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.