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Press release from CNW Group

Sterling Resources Announces Settlement of Senior Secured Bond Issue and Repayment of Bank Facility

Friday, May 03, 2013

Sterling Resources Announces Settlement of Senior Secured Bond Issue and Repayment of Bank Facility

08:00 EDT Friday, May 03, 2013

CALGARY, May 3, 2013 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company"), is pleased to announce the settlement of the previously announced USD 225 million senior secured bond issue (the "Bond") issued by its UK subsidiary Sterling Resources (UK) Ltd. (the "Issuer") and full repayment of the £105 million senior secured credit facility held with a group of lending banks (the "Bank Facility"). Pareto Securities acted as Sole Manager and Bookrunner of the Bond issue.

The settlement date for the Bond was April 30, 2013 (the "Settlement Date") and it will mature on April 30, 2019 after its six year term.  The Bond carries an annual coupon rate of 9.0 percent payable semi-annually and it is callable at the option of the Issuer at any time with a roll-up of outstanding interest for the first two years and a call premium of 105 percent for the initial three years, with declining premiums thereafter. Commencing eighteen months following the Settlement Date, the Bond will amortize 10 percent of the issue amount every six months until maturity. The amortizations will be performed at a price of 105 percent of par value with the exception of the final installment which will be repaid at 100 percent of par value. Prior to the first interest payment date of October 30, 2013 the Bond will be listed on the Oslo Stock Exchange or the Nordic ABM (Oslo).

"With proceeds from the Bond issue now received and the Bank Facility repaid, Sterling is well positioned financially to complete the development of Breagh and to move forward with other strategic priorities internationally in a financially disciplined manner," stated Mike Azancot, Sterling's President and CEO.  "The Breagh commissioning process is proceeding well and we look forward to first gas in August 2013," added Mr. Azancot.

Sterling 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 common shares are listed and posted for trading on the TSX-V under the symbol "SLG".

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Filer Profile No. 00002072 

Forward-Looking Statements

All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements.

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, delays in production, third party performance failures, 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 news 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 news release should not be used for purpose other than for which it is disclosed herein.


SOURCE: Sterling Resources Ltd.

For further information:

visit www.sterling-resources.com or contact:

Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, mike.azancot@sterling-resources.com

David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, david.blewden@sterling-resources.com

George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, george.kesteven@sterling-resources.com

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