Sterling Resources Ltd. has filed with and obtained a receipt for a preliminary prospectus from the securities regulatory authorities in all of the provinces of Canada (excluding Quebec)(the 'Qualifying Provinces'), in connection with a marketed offering (the 'Offering') of common shares in the capital of the Company (the 'Common Shares'). The Offering will be led by RBC Capital Markets as lead underwriter on behalf of a syndicate of underwriters (the 'Underwriters'). The Company and the Underwriters have not yet entered into an underwriting agreement in connection with the Offering. The number of Common Shares to be issued and the price at which they will be offered will be determined in the context of the market.

The Company is targeting to raise up to C$45 million in aggregate gross proceeds pursuant to the Offering. The Company intends to use the net proceeds from the Offering to ensure that it has sufficient funds for certain planned capital costs and key expenditures that it expects to make during the fourth quarter of 2012 and the first and second quarters of 2013, including, but not limited to, costs and expenditures related to exploration activities, seismic surveys, general and administrative expenses, minor license related costs, ongoing costs related to its operations at the Breagh gas field and transferring funds into a restricted account in connection with its credit facility or repaying sums already drawn thereunder (collectively, the 'Key Expenditures and Capital Costs').

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