Blacksteel Energy Inc. Announces FarmIn Option Agreement

CALGARY, ALBERTA--(Marketwire - Nov. 23, 2011) -

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 signed an option agreement with an industry partner to farm-in and participate in the drilling of conventional oil and liquids rich gas opportunities in central Alberta.

The agreement provides the company with the opportunity to participate in multiple medium depth low risk wells which will target oil in the Elkton formation, liquid rich gas in the Mannville, as well as uphole potential in this multi-zone area.

Curtis Hartzler, President and Chief Executive Officer of the Corporation stated "This project will give the Corporation opportunity to conservatively add value and build an asset base but also gives us exposure to a very high yield project with exceptional upside. Blacksteel continues to pursue growth opportunities for both oil and liquids rich natural gas in the Western Canadian Sedimentary basin".

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 23.3% working interest (15.5% after payout) in a producing oil well in the Devon area of central Alberta.

The Corporation also holds a 100% working interest in a four section petroleum and natural gas lease in the Del Bonita Area of Southern Alberta where recent Bakken horizontal wells have been drilled on lands immediately offsetting its acreage. Results of these wells has been maintained confidential by the operators of the wells. Several 3D seismic programs have also recently been conducted in the area, one of which covered a portion of two sections of the Corporation's lands.

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 operational and drillings plans and acquisition opportunities are forward-looking statements. These forward looking-statements are based upon various assumptions as to future well productions rates, well drainage areas, success rates, timing and costs of future well drilling, the availability of capital and future costs and availability of labour and services, all of which involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond the Corporation's control. Such risk, uncertainties and assumptions include, without limitation, oil and gas exploration, development, exploitation, production, marketing, processing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. 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. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Corporation's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
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.