Sterling announces $25 million financing


    CALGARY, July 14 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSXV: SLG)
is pleased to announce that it has entered into a bought deal financing
agreement with a syndicate of underwriters led by Wellington West Capital
Markets Inc. (the "Underwriters") to issue 9,804,000 units (the "Units") at a
price of $2.55 per Unit (the "Offering Price") for gross proceeds of
$25,000,200 (the "Offering"). Each Unit will consist of one common share (a
"Share") of Sterling and one-half of one common share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant will be exercisable by the holder
for one additional Share (a "Warrant Share") for a period of twelve months
from the closing of the Offering at a price of $3.25 per Warrant Share. In the
event that Sterling's common shares trade at a closing price on the TSX
Venture Exchange of greater than $4.00 for a period of 15 consecutive trading
days at any time after four months and one day after the closing date,
Sterling may accelerate the expiry date of the Warrants by giving notice to
the holders and the Warrants will then expire on the 30th day after the date
on which notice is given by Sterling.
    The Underwriters will be entitled to an over-allotment option (the
"Over-allotment Option") to purchase up to a further 1,470,600 Units at the
Offering Price. The Over-allotment Option will be exercisable in whole or in
part, at the sole discretion of the Underwriters, for a period of 30 days from
the closing of the Offering. If the Over-allotment Option is exercised in
full, the gross proceeds raised pursuant to the offering will be $28,750,230.
    The Offering is subject to certain conditions including normal regulatory
approvals, including approval of the TSX Venture Exchange. The Units will be
offered by way of short form prospectus in each of the provinces of Ontario,
Manitoba, Saskatchewan, Alberta and British Columbia and on a private
placement basis elsewhere including the United Kingdom and Europe. Closing is
anticipated to occur on or about August 6th, 2008.
    Sterling will apply the net proceeds of this issue towards exploration
and appraisal drilling programs in the North Sea and Romania in order to
complete pre-development work, in anticipation of filing development plans
early in 2009. The procurement of these funds will ensure Sterling has
sufficient funds to complete the planned 2008 offshore drilling program in

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

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

    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.

For further information:

For further information: visit or contact
either: George Kesteven, Manager, Investor Relations, Phone: (403) 215-9265,
Fax: (403) 215-9279, or Ian Hornby-Smith, Chief
Financial Officer, Phone: (403) 215-9264, Fax: (403) 215-9279, or Stewart G. Gibson, Chief Executive Officer,
Phone: 44-133082-6717, Mobile: 44-7768-042219,

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