Blacksteel Energy Inc. Announces Private Placement

CALGARY, ALBERTA--(Marketwired - April 18, 2013) -

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 a non-brokered private placement to raise gross proceeds of up to $2,201,000 (the "Offering").

The Offering consists of: (a) the issuance of up to 8,000,000 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; and (b) the issuance of up to 7,700,000 units (the "Units") of the Corporation at a price of $0.13 per Unit. 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 within twelve months of the closing of the Offering.

All of the securities issued in connection with the Offering will be subject to a four-month hold period under applicable Canadian securities laws.

Blacksteel intends to use the proceeds of the Offering for a potential farm-in transaction located in the Minnehik Buck Lake area of Alberta, the acquisition of oil leases in Kansas, United States and general corporate purposes. Neither of the proposed transactions has been finalized and the Corporation is currently negotiating appropriate terms.

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 in a four section petroleum and natural gas lease in the Del Bonita Area of Southern Alberta. 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.