Stikine Announces Private Placement of up to $5,100,000

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

Stikine Energy Corp. (TSX VENTURE:SKY) ("SKY" or the "Company") announces that
it has entered into an agreement with a syndicate of agents (the "Agents")
consisting of Stonecap Securities Inc. and Cormark Securities Inc. in connection
with an overnight marketed, best-efforts private placement (the "Offering") of
up to 17,000,000 units (the "Units") at a price (the "Issue Price") of $0.30 per
Unit for gross proceeds of up to $5,100,000. Each Unit will consist of one
common share (the "Common Shares") of the Company and one-half of one common
share purchase warrant (the "Warrants"). Each whole Warrant shall entitle the
holder thereof to acquire one common share of the Company for 24 months
following closing of the Offering. Each Warrant shall be exercisable at $0.40 up
to and including the first anniversary of closing and at $0.50 following the
first anniversary of Closing and up to and including the second anniversary of
closing.


The Company has granted the Agents an option to purchase up to an additional 15%
of the Units at the Issue Price exercisable up to 48 hours prior to closing of
the Offering for additional gross proceeds of up to $765,000.


The gross proceeds from the sale of the Units will be used for working capital
and general corporate purposes.


The Offering will be made by way of private placement to accredited investors in
all provinces of Canada. The Offering is expected to close on or about December
30, 2010, and is subject to certain conditions including, but not limited to,
the receipt of all necessary approvals including the approval of the TSX Venture
Exchange and the securities regulatory authorities. The Units will be subject to
a four-month hold period.


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.


Some of the statements contained in this release are forward-looking statements,
such as estimates and statements that describe the Company's future plans,
objectives or goals, including words to the effect that the Company or
management expects a stated condition or result to occur. Since forward-looking
statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties. Actual results in each case could
differ materially from those currently anticipated in such statements.


STIKINE ENERGY CORP.

"Scott Broughton"

Scott Broughton, P.Eng. - President and CEO