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Press release from CNW Group

Sterling Resources Announces Closing of Bought Deal Financing

Tuesday, August 16, 2011

Sterling Resources Announces Closing of Bought Deal Financing08:34 EDT Tuesday, August 16, 2011/NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/CALGARY, Aug. 16, 2011 /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 32,143,000 common shares ("Shares") at a price of $1.40 per Share. The total offering of 32,143,000 Shares resulted in Sterling receiving aggregate gross proceeds of approximately $45 million.The net proceeds of this Offering of approximately $42.6 million, after fees and expenses, are intended to be used towards: (1) meeting the liquidity threshold set under the recently signed £105 million senior secured loan facility to finance development of Phase 1 of the Breagh gas field; (2) an accelerated incremental appraisal/development well on the Crosgan discovery in the UK North Sea; and (3) a potential production test on the block F17 well offshore the Netherlands later this year.The Offering was made on a bought deal basis through a syndicate of underwriters led by RBC Capital Markets, and also included Canaccord Genuity Corp., FirstEnergy Capital Corp., Stifel Nicolaus Canada Inc., National Bank Financial Inc. and Union Securities Ltd. (collectively, the "Underwriters").Sterling has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following closing, pursuant to which the underwriters may purchase up to an additional 4,821,250 Shares at the offering price of $1.40.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".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.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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 press release include the use of proceeds from this 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.Although the Company intends to expend the net proceeds of the Offering as set forth above, the actual allocation of the net proceeds may vary materially depending on future developments relating to the Company's assets and unforeseen events.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: 44-1330-826764, Mobile: 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