Blacksteel Energy Inc. Announces Initial Closing of Private Placement

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") is
pleased to announce that it has completed an initial closing of its previously
announced non-brokered private placement for gross proceeds of $390,600 (the
"Initial Closing"). The Corporation anticipates a final closing to occur by
approximately May 31, 2013. 


The Initial Closing consisted of: (a) the issuance of 550,000 common shares (the
"Common Shares") of the Corporation on a "flow-through" basis pursuant to the
Income Tax Act (Canada) (the "Flow-Through Shares") at a subscription price of
$0.15 per Flow-Through Share for gross proceeds of $82,500; and (b) the issuance
of 2,370,000 units (the "Units") of the Corporation at a price of $0.13 per Unit
for gross proceeds of $308,100. Each Unit consists of one Common Share and one
warrant (the "Warrant"). Each Warrant will entitle the holder to acquire an
additional Common Share at an exercise price of $0.20 on or before April 30,
2014.  


Blacksteel paid a finder's fee to Canaccord Genuity Corp. under the Initial
Closing of a cash commission equal to $39,060, an option to purchase up to
55,000 Common Shares at an exercise price of $0.15 and an additional option
entitling it to acquire up to 237,000 Units at an exercise price of $0.13. The
options expire twelve months from the date of issuance. 


All of the securities issued in connection with the Initial Closing are subject
to a four-month hold period under applicable Canadian securities laws expiring
September 1, 2013. The net proceeds of the Financing will be used as previously
announced in the Corporation's press release dated April 18, 2013. 


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.


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]