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Press release from CNW Group

STERLING RESOURCES LTD. - CLADHAN APPRAISAL WELL CONFIRMS EXCELLENT THICK OIL BEARING CHANNEL SAND RESERVOIR

Monday, August 30, 2010

STERLING RESOURCES LTD. - CLADHAN APPRAISAL WELL CONFIRMS EXCELLENT THICK OIL BEARING CHANNEL SAND RESERVOIR02:00 EDT Monday, August 30, 2010CALGARY, Aug. 30 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce the successful drilling of the Cladhan sidetrack well located on Block 210/29a in the United Kingdom North Sea, some 225 miles north east of Aberdeen, Scotland, in 536 feet water depth. Sterling holds a 39.9% interest and is the operator of the License P1064. Partners are Wintershall (UK North Sea) Ltd 33.5%, Encore Petroleum Ltd 16.6% and Dyas UK Ltd 10%. The original discovery well 210/29a-4 was drilled in November 2008 to a depth of 9,734 feet and discovered oil bearing sands in an Upper Jurassic stratigraphic trap.Reservoir delineation activities started earlier this month by re-entering the well and sidetracking to an updip location approximately 3,150 feet from the discovery well. The sidetrack was drilled to a total depth of 11,215 feet, encountering a gross hydrocarbon column of 159 feet with 102 feet of net hydrocarbon bearing sandstones compared to the discovery well, which had 31 feet of net pay with 36 degrees API oil."The reservoir quality is excellent with average porosities of 21% and average oil saturations of 86%. There are large sections in the well in which porosities exceed 25% and the net to gross has greatly exceeded expectations", stated David Findlater Vice President of Exploration UK. "MDT (modular formation dynamic tester) sampling for both formation pressures and oil samples indicate good correlation of both oil type and reservoir pressure with the discovery well. The two wells have confirmed a total hydrocarbon column in excess of 273 feet. Drill stem testing (DST) will now be performed." added Mr. Findlater."These results so far exceed our expectations of the quality and extent of the channel sand in this area of the Cladhan reservoir," stated Mike Azancot, Sterling's President and CEO. "We are confident that results from the imminent DST operations will confirm commerciality of the Cladhan field. The next phase of the appraisal program will be to confirm the additional extent of the reservoir by drilling down dip looking for the oil water contact", added Mr. Azancot.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".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. 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