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Press release from CNW Group

Sterling Resources announces closing of $44.5 million bought deal financing including over-allotment option

Thursday, August 12, 2010

Sterling Resources announces closing of $44.5 million bought deal financing including over-allotment option09:14 EDT Thursday, August 12, 2010/NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/CALGARY, Aug. 12 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce the closing of its previously announced offering (the "Offering") of 21,055,000 common shares (the "Shares") at a price of $1.90 per Share. The Underwriters also exercised in full their over-allotment option to acquire an additional 2,368,500 Shares at a price of $1.90 per Share. The total offering of 23,423,500 Shares resulted in Sterling receiving aggregate gross proceeds of $44,504,650.The Offering was made on a bought deal basis through a syndicate of underwriters led by Wellington West Capital Markets Inc., and including Canaccord Genuity Corp., RBC Dominion Securities Inc., Stifel Nicolaus Canada Inc. and Maison Placements Canada Inc. (the "Underwriters").The net proceeds of this Offering of approximately $42 million, after fees and expenses, are to be used towards the required equity component of the financing of the Breagh project in the United Kingdom North Sea.Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania and France. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The Shares will not and have not been registered under the United States Securities Act of 1933, and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirements.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.Filer Profile No. 00002072Forward-Looking StatementsAll statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. Specific forward-looking statements in this release include statements regarding the expected use of the net proceeds of the Offering. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, 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 commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the press release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this press release should not be used for purpose other than for which it is disclosed herein.%SEDAR: 00002072EFor further information: visit www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883, mike.azancot@sterling-resources.co.uk; David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, david.blewden@sterling-resources.co.uk; George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, george@sterling-resources.com