Stanley, who cut off his electronic monitoring bracelet in Lloydminster earlier in the week, has a long history of sex offences, including taking children from playgrounds.
RCMP are calling the situation a "hold and secure" mode, meaning school doors are locked and nobody can enter or leave. Children will only be released to their parents or caregivers.
Eight schools in the Kindersley area are on high alert after RCMP said there were two unconfirmed sightings of the vehicle. There have also been reports that Stanley may have been seen on foot in the area at about 1 p.m. CST.
RCMP Sgt. Craig Cleary said this is a credible threat.
"We're actively looking for Michael Stanley and it's not beyond the realm of possibility that he would be in the Kindersley area," Cleary said. "It's relatively close to the border, and not terribly far away from Lloydminster."
Stanley, 48, left Edmonton Tuesday morning for Lloydminster, where he managed to cut off his electronic ankle bracelet and toss it on the roof of a local business.
Sun West School Division spokesperson Roxan Foursha said children are locked inside schools.
"RCMP advise that parents must come to the school office and pick up their own children at the end of the school day today and pick up only their own children," Foursha said. "Parents of these children are continuing to be contacted at this time."
Rosetown school also locks doors
At about 1:15 p.m. this afternoon, Walter Aseltine Elementary School in Rosetown was also put under "hold and secure" mode.
Rosetown RCMP said they received a report of a possible sighting of Stanley in the town. Rosetown is about 85 kilometres east of Kindersley. RCMP said all students are being kept inside.
On Wednesday, 10 public schools and six Catholic schools in Lloydminster were on lockdown.
RCMP are asking anyone who sees Stanley to not approach him and to call 911.