Sterling Resources announces closing of financing


    CALGARY, April 20 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling"
or the "Company") is pleased to announce the closing of its previously
announced financing agreement (the "Agreement") with Canaccord Capital
Corporation. Under the Agreement, a total of 112 Units were issued for gross
proceeds of US$11,200,000.
    Each Unit consists of: US$100,000 par value of one (1) year senior
secured notes subject to a coupon interest rate of 15% per annum, payable
quarterly in arrears (the "Notes") and one common share purchase warrant (the
"Warrant"). The Notes are repayable in three equal installments after six,
nine and twelve months respectively, from the closing date of the Offering.
    Each whole Warrant entitles the holder to acquire 20,000 common shares of
Sterling ("Common Shares") at a price of $0.84 per Common Share equal to 120%
of the arithmetic average of the closing prices of the Common Shares as
reported by the TSX Venture Exchange (the "Exchange") for the ten (10) trading
days immediately preceding announcement of the Offering for a period of 36
months from the closing date of the Offering. Following repayment in full of
the Notes, and in the event the closing price of the Common Shares as reported
on the Exchange is equal to or greater than Canadian $2.00 per share for a
period of ten (10) consecutive trading days, the Company shall have the right
to force the exercise of all remaining outstanding warrants.
    The net proceeds of this Offering of approximately US$10.4 million after
fees and expenses will be used for exploration and appraisal drilling programs
in the U.K. North Sea and Romania, and for general corporate purposes. Other
than this issue and previously announced initiatives, the Company does not
foresee any requirement for further funding in the short term.

    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".

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The Units 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 requirements.

    The TSX Venture Exchange has not reviewed and does not accept
    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
    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
    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 or contact:
Stewart G. Gibson, Chief Executive Officer, Phone: 44-133082-6717, Mobile:
44-7768-042219,; Ian Hornby-Smith, Chief
Financial Officer, Phone: (403) 215-9264, Fax (403) 215-9279,; George Kesteven, Manager, Corporate and Investor
Relations, Phone: (403) 215-9265, Fax: (403) 215-9279,

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