Greg Owen fired the Blaze ahead on 7.39, assisted by Greg Chambers and Brian Lee. However, Sheffield hit back through Jason Howitt on 11.59.
The second period did not start well for the Blaze with Jeff Legue giving Sheffield the lead on 26.42 and fifty seconds later, Greg Chambers picked up a match ban for abusing an official.
Derek Campbell made it 2-2, assisted by Greg Owen on 32.15 but Doug Sheppard hit the winner for Sheffield on 45.07.
This means Saturday's home game against Cardiff Devils is a massive one for the Blaze. Tickets are still available for the 7pm face off.