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Press release from CNW Group

STERLING RESOURCES FILES NOTICE OF DEFAULT OVER LICENSE ASSIGNMENTS ON ITS OFFSHORE LICENSES IN ROMANIA

Monday, May 02, 2011

STERLING RESOURCES FILES NOTICE OF DEFAULT OVER LICENSE ASSIGNMENTS ON ITS OFFSHORE LICENSES IN ROMANIA01:51 EDT Monday, May 02, 2011CALGARY, May 2 /CNW/ - Sterling Resources Ltd. (TSXV: SLG) ("Sterling" or the "Company") has filed a Notice of Default with the National Agency of Mineral Resources ("NAMR") as a result of NAMR's failure to grant license assignments to Sterling's farm in partners Petro Ventures Europe BV and Gas Plus International BV (together the "Partners")  for a 20% and 15% license holding respectively on its Midia and Pelican Blocks in the Black Sea (the "Concession").On January 24, 2011 Sterling and its Partners, at the request of NAMR, submitted new applications, supported by required documentation, to request assignments for the Partners onto the Concession Agreement. These applications followed and superseded Sterling's previous attempts to obtain assignments for its Partners beginning from April 2009, when Sterling's initial assignment applications were submitted.Pursuant to the Concession Agreement NAMR has the sole authority to grant such assignment requests, and has the obligation to not unreasonably withhold or delay its consent to such applications and to treat such applications within a maximum of 90 days. NAMR, by failing to provide its decision on the re-submitted application with the 90 day period, has failed to comply with this obligation, despite having informed Sterling and the Partners that it has no objections to their form or content. It is Sterling's contention that NAMR's failure to approve the applications for assignment is political in nature.In the event that NAMR and Sterling are unable to resolve the situation then this would put the two parties into a dispute resolution procedure which could ultimately be decided in international arbitration.Mike Azancot, Sterling's Chief Executive Officer, said: "NAMR's failure to decide on the applications for assignments is extremely unfortunate and frustrating, and is in direct contravention to the Company's rights under the Concession Agreement. This failure, as well as other actions and inactions by the government of Romania leading to Sterling's earlier declaration of Force Majeure, are damaging the economic well-being of the country. Timely development of Romania's offshore natural resources could dramatically reduce the reliance on imported gas, bring substantial employment and investment benefits to the country and provide significant and stable tax receipts for the government. The actions that we are now taking are done with the expressed intent of seeking  formal  resolution to certain blockages that are impeding our proactive approach to the progress of our work and investments offshore Romania."Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward-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.For further information: Visit www.sterling-resources.com or contact: Mike Azancot, President and Chief Executive Officer, Phone 44-7740-432883, mike.azancot@sterling-resources.com David Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, david.blewden@sterling-resources.com George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, george.kesteven@sterling-resources.com