Sterling Resources announces accelerated warrant expiry date

CALGARY, May 5 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company") announces the acceleration of the exercise of warrants issued in conjunction with the senior secured notes issued April 20, 2009.

On April 20, 2009 the Company issued a total of 112 units ("Units") to the public, with each Unit consisting of:

    
    (a) one US$100,000 par value one year senior secured note (a "Note")
        subject to a coupon rate of 15% per annum, payable quarterly in
        arrears, and;

    (b) one common share purchase warrant (a"Warrant") entitling the holder
        to acquire 20,000 common shares of Sterling ("Common Shares") at a
        price of CDN$0.84 per Common Share on or before the earlier of
        5:00 PM Mountain Time on April 20, 2012, or the expiry date provided
        in an acceleration notice (which date was not to be less than 30 days
        following the delivery thereof) delivered to the holders of the
        Warrants if Sterling had repaid in full the principal, interest, and
        premium (if any) on the Notes, and if the closing price of the Common
        Shares on the TSX Venture Exchange were at least $2.00 for a period
        of not less than 10 trading days thereafter.
    

Sterling repaid the Notes in their entirety on April 20, 2010. From April 21, 2010 to May 4, 2010 inclusive, a period of ten consecutive trading days have passed during which the closing price of the Common Shares of Sterling on the TSX Venture Exchange have not declined below $2.00 per share. Therefore, the preconditions as set forth above to the exercise of the acceleration right by Sterling have been satisfied.

Sterling has determined to exercise its acceleration right and is today delivering to all Warrant holders a notice of its intention to do so. As a result, holders of the Warrants are advised that the expiry date for the exercise of all unexercised Warrants is June 10, 2010 being a date not less than 30 days following the delivery or deemed delivery of the acceleration notice. Following June 10, 2010, all unexercised Warrants will cease to entitle the holder to acquire Common Shares of Sterling. Therefore, Warrant holders who are interested in exercising their Warrants are encouraged to carefully follow the instructions set out in the exercise form attached to their Warrant certificates at the earliest possible convenience to ensure that the exercise is received and processed prior to June 10, 2010.

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.

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. 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: 00002072E

SOURCE Sterling Resources Ltd.

For further information: For further information: visit www.sterling-resources.com or contact: Stewart G. Gibson, Chief Executive Officer, Phone: 44-133082-6717, Mobile: 44-7768-042219, stewart@sterling-resources.co.uk; George Kesteven, Manager, Corporate & Investor Relations, Phone: (403) 215-9265, Cell: (403) 519-3912, Fax: (403) 215-9279, george@sterling-resources.com


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