Sterling announces closing of private placement with Royal Bank Project Investment Limited and provides operations update



    CALGARY, Jan. 11 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)

    Sterling Resources Ltd. is pleased to announce that it has completed the
closing of its non-brokered private placement with Royal Bank Project
Investment Limited, a subsidiary of The Royal Bank of Scotland, of
7,109,900 common shares at a subscription price of CDN $2.00 per share for
proceeds of CDN $14,219,800. The proceeds from the issue are to be used
primarily towards financing the Company's 2008 appraisal well drilling
program.
    Offshore Romania, the Doina Sister well has been cased and test results
are still expected mid month. Since the previous release, results from the
full logging suite have been obtained, including formation pressures and
sampling. The new data confirms gas down to a depth of 1,185-metres with a
resulting 46-metre gross gas column which is significantly greater than that
noted in the neighbouring Doina discovery.
    Onshore France, the rig is on location and operations on the Grenade 3
well are expected to commence within the next few days. The Burton Agnes well,
onshore UK, came in low to prognosis and has been suspended with gas shows.
The operator is currently updating the mapping to look for a possible up-dip
sidetrack location.

    Forward-Looking Statements

    This disclosure contains certain forward-looking statements that involve
substantial known and unknown risks and uncertainties, 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, therefore Sterling's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these forward-looking statements. All 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. These statements include future production rates,
completion and production timetables and costs to complete wells, and
production facilities. These statements are based on 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.

    Sterling Resources Ltd. is an international oil and gas company
headquartered in Calgary, Alberta.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00002072E




For further information:

For further information: visit www.sterling-resources.com or contact
either: Ian Hornby-Smith, Chief Financial Officer, Phone: (403) 215-9264, Fax:
(403) 215-9279, ian@sterling-resources.com or Stewart G. Gibson, Chief
Executive Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219,
stewart@sterling-resources.co.uk


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