Sterling Resources Clinches Financing

Sterling has announced the closing of its previously announced financing agreement (the "Agreement") with Canaccord Capital Corporation. Under the Agreement, a total of 112 Units were issued for gross proceeds of US $11,200,000.

Each Unit consists of: US$100,000 par value of one (1) year senior secured notes subject to a coupon interest rate of 15% per annum, payable quarterly in arrears (the "Notes") and one common share purchase warrant (the "Warrant"). The Notes are repayable in three equal installments after six, nine and twelve months respectively, from the closing date of the Offering.

Each whole Warrant entitles the holder to acquire 20,000 common shares of Sterling ("Common Shares") at a price of $0.84 per Common Share equal to 120% of the arithmetic average of the closing prices of the Common Shares as reported by the TSX Venture Exchange (the "Exchange") for the ten (10) trading days immediately preceding announcement of the Offering for a period of 36 months from the closing date of the Offering. Following repayment in full of the Notes, and in the event the closing price of the Common Shares as reported on the Exchange is equal to or greater than Canadian $2.00 per share for a period of ten (10) consecutive trading days, the Company shall have the right to force the exercise of all remaining outstanding warrants.

The net proceeds of this Offering of approximately US$10.4 million after fees and expenses will be used for exploration and appraisal drilling programs in the U.K. North Sea and Romania, and for general corporate purposes. Other than this issue and previously announced initiatives, the Company does not foresee any requirement for further funding in the short term.


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