Sterling Resources announces the successful closing of the Breagh sales process



    CALGARY, Aug. 26 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling"
or the "Company") is pleased to announce the closing of the previously
announced Breagh sales process under the terms of which Sterling received
consideration of approximately $103 million Canadian in exchange for a 15
percent working interest in the Breagh field and varying interests in the
surrounding exploration blocks.
    Sterling retains a 30 percent interest in the Breagh field and the
surrounding blocks of Quad 42 which comprise the greater Breagh area, located
in the Southern UK North Sea. The proceeds of the sale will be used for
repayment of short-term debt and other encumbrances related to the interest
sold, working capital replenishment, and the further development of assets in
the UK North Sea. Sterling and its partners were advised on the transaction by
Standard Chartered Bank.
    The buyer, RWE Dea UK SNS Limited ("RWE Dea"), a subsidiary of RWE Dea
AG, has an established operating presence in the UK Southern North Sea and as
a result of multiple related transactions will hold a 70% working interest in
the Breagh field and surrounding exploration blocks. RWE Dea will also become
operator of the Quad 42 area.
    "Closure of the Breagh sales process represents both the achievement of a
major milestone and the beginning of a new chapter for the Company, as we move
forward to achieving initial gas production," stated Stewart Gibson,
Sterling's Chief Executive Officer. "We are pleased to be working with a
partner of the stature of RWE Dea, as we pursue additional exploration and
development activities in the greater Breagh area with two exploration wells
already planned for 2010. We would also like to pass on our thanks to the team
at Standard Chartered Bank for their assistance in bringing a complex set of
transactions to conclusion," added Mr. Gibson.

    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".

    
    Neither 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. 00002072

    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




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,
Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,
george@sterling-resources.com


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