Sterling Resources Ltd. announces closing of $28.7 Million bought deal financing including over-allotment option


    CALGARY, Aug. 6 /CNW/ - Sterling Resources Ltd. ("Sterling") (TSX-V:SLG)
is pleased to announce the closing of its previously announced offering (the
"Offering") of 9,804,000 Units (the "Units") at a price of $2.55 per Unit. The
Underwriters also exercised in full their over-allotment option to acquire an
additional 1,470,600 Units at a price of $2.55 per Unit. The total offering of
11,274,600 Units resulted in Sterling receiving aggregate gross proceeds of
    Each Unit consists of one common share (a "Share") of Sterling and
one-half of one common share purchase warrant (each whole warrant, a
"Warrant"). The Offering was made on a bought deal basis through a syndicate
of underwriters led by Wellington West Capital Markets Inc., and also included
Canaccord Capital Corporation, Maison Placements Canada Inc. and RBC Dominion
Securities Inc (the "Underwriters").
    Each Warrant will be exercisable by the holder for one additional Share
(a "Warrant Share") until 4:30 p.m. (Toronto time) on August 6, 2009 at a
price of $3.25 per Warrant Share. In the event that Sterling's shares trade at
a closing price on the TSX Venture Exchange of greater than $4.00 for period
of 15 consecutive trading days at any time after December 7, 2008, 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 net proceeds of this Offering of approximately $27 million after fees
and expenses will be used towards exploration and appraisal drilling programs
in the U.K. North Sea and Romania in order to complete the pre-development
work in anticipation of filing development plans early in 2009.
    Sterling Resources Ltd. is a Canadian listed international oil and gas
company headquartered in Calgary, Alberta, Canada with assets located 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 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 requirements.

    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.

    %SEDAR: 00002072E

For further information:

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

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