Sterling Group Ventures Inc.

Sterling Group Ventures Inc.

March 07, 2005 08:02 ET

Sterling Group Ventures Inc.: Joint Venture Agreement Signed to Acquire Copper and Silver Project in Inner Mongolia, China


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STERLING GROUP VENTURES INC.

OTC Bulletin Board SYMBOL: SGGV
FRANKFURT SYMBOL: GD7

MARCH 7, 2005 - 08:02 ET

Sterling Group Ventures Inc.: Joint Venture Agreement
Signed to Acquire Copper and Silver Project in Inner
Mongolia, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Sterling
Group (OTCBB:SGGV)(FRANKFURT:GD7) is pleased to announce that the
Company has signed a joint venture agreement with a Chinese citizen who
holds two exploration permits for a copper and silver project ("the
Project") in Inner Mongolia, People's Republic of China.

The Project is comprised of two exploration permits (Donggou exploration
permit 1500000411738 and Xiaoxigou exploration permit 1500000411739)
covering about 52 square kilometers (km2). The Project is located at
Chifeng city of Inner Mongolia, which is about 300 km from Beijing - the
capital of China. The Project is easily accessible with paved road, and
30 km from Chifeng City. According to the agreement, the Company has
right to earn 52% of the cooperative company which the Company will set
up soon with the Chinese party by spending 5.2 million Chinese Yuan
(US$0.63 million) for the exploration in the permit areas over three
years. After the Company has earned 52% interest of the cooperative
company, contributions to fund the exploration and development of the
Project will be made pro rata. The interest of the Chinese party will be
diluted to not less than 10% if it elects not to make cash contributions.

The deposit is sub volcanic hydrothermal type copper deposit. The
exploration area is located at Huanggangliang - Mengentaolegai copper
mineralization belt of Inner Mongolia. The exploration area is west and
adjacent to Dajin and Xiachengzi copper mines which have been in
production for about 18 years. The closest distance to Dajin and
Xiachengzi copper mines is less than 1 km. These two existing Chinese
copper mine operations host about 497 million lbs of copper with 2%
grade and about 100 million ounces of silver with 150g/t. The Project
area has much stronger IP anomalies than Dajin and Xiachengzi copper
mines according to the available geophysical information.

The Company is also proceeding to develop the Jiajika lithium project
(the largest lithium mineral deposit in China). The copper and silver
project allows the Company to diversify its interests in China.

ON BEHALF OF THE BOARD OF DIRECTORS

(Signed)

Richard Shao, Ph.D. President

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical
fact contained herein, the information constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation
reform Act of 1995. Such forward looking statements, including but not
limited to those with respect to the price of lithium, niobium,
beryllium, and tantalum, the timing and amount of estimated production,
costs of production, reserve determination and reserve conversion rates,
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievement of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements.
Such factors include, among others, risks relating to the integration of
the acquisition, risks relating to international operations, risks
relating to joint venture operations, the actual results of current
exploration activities, the actual results of current reclamation
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of lithium,
beryllium, niobium, tantalum, and other metals, as well as those factors
affecting the mineral industry. Although the Company has attempted to
identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.

Cautionary Note to U. S. Investors Concerning Estimates of Measure,
Indicated, and Inferred Resources and Reserves. Statements regarding
reserves have been based on audits conducted under Chinese methods of
calculation.

Security Code: A0B9TQ

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sterling Group Ventures Inc.
    Richard Shao
    President
    (604) 893-8891
    (604) 408-8515 (FAX)
    or
    Sterling Group Ventures Inc.
    Christopher Tsakok, MBA
    (604) 893-8891
    (604) 408-8515 (FAX)
    www.sterlinggroupventures.com