Sterling Mining Company
OTC Bulletin Board : SRLM
FRANKFURT : SMX
TSX : SMQ

Sterling Mining Company

May 12, 2008 09:00 ET

Sterling Mining Company Announces Positive Drill Results

WALLACE, IDAHO--(Marketwire - May 12, 2008) - Sterling Mining (TSX:SMQ)(OTCBB:SRLM)(FRANKFURT:SMX) today announced results from its ongoing underground exploration activities accessed from the 2700 ft level at the Sunshine Mine. In three holes drilled in the West Chance vein system, Sterling has intersected significant silver grades of 32.37 opt (1109.85 g/tonne), 19.40 opt (665.06 g/tonne) and 5.38 opt (184.55 g/tonne).

"The West Chance Vein has produced over 20 million ounces" said Ray DeMotte, President, "To bring our inferred resources to a higher category is a priority with the Company in addition to our primary focus of ramping up quarterly production."

Testing of the West Chance Vein below the 2700 level has led to drill results from the most recent diamond drilling program. Three separate holes contained 32.37 opt (1109.85 g/tonne), 19.40 opt (665.06 g/tonne) and 5.38 opt (184.55 g/tonne). These are composite values over a diluted mining width of 7.0 ft (2.13 m). Our mining geologist believes that these results confirm the importance of continuing to test exploration targets outside the previously reported reserve blocks. Based on these drill results that are proximate to a known reserve block, planning for additional exploration is now being finalized to further evaluate and expand the inferred resources of the Sunshine Mine.

Mike McLean, General Manger of the Sunshine Mine stated "The results from these drill intercepts are significant in that any potential production from this area would be in addition to the planned production from proven reserves at the Sunshine Mine. It also highlights the potential for exploration and resource conversion in areas of the Mine that are now being actively developed for production from proven reserves."

The following results have been reviewed by Dr. K. Warren Geiger, P. Eng, P. Geol, and Sterling's independent Qualified Person for this news release.



Hole From To Width True Width Ag
Feet Feet Feet Feet oz/t (g/t)
(Meters) (Meters) (Meters) (Meters)
-------------------------------------------------------------------------
27-2548 173.2 183.0
(52.79) (55.78)

-------------------------------------------------------------------------
including 173.2 174.6 1.4 1.21 0.179
(52.79) (53.22) (0.43) (0.37) (6.14)
-------------------------------------------------------------------------
including 174.6 176.0 1.4 1.39 10.40
(53.22) (53.65) (0.43) (0.42) (356.57)
-------------------------------------------------------------------------
including 176.0 177.4 1.4 1.38 102.80
(53.65) (54.07) (0.42) (0.42) (3524.57)
-------------------------------------------------------------------------
including 177.4 181.0 3.6 3.38 20.60
(54.07) (55.17) (1.10) (1.03) (706.29)
-------------------------------------------------------------------------
including 181.0 183.0 2.0 1.93 0.76
(55.17) (55.78) (0.61) (0.59) (26.06)
-------------------------------------------------------------------------
27-2549 161.7 169.9
------- (49.29) (51.79)

-------------------------------------------------------------------------
including 161.7 162.7 1.0 0.87 0.098
(49.29) (49.59) (0.30) (0.26) (3.36)
-------------------------------------------------------------------------
including 162.7 165.0 2.3 2.08 0.44
(49.59) (50.29) (0.70) (0.64) (15.09)
-------------------------------------------------------------------------
including 165.0 166.0 1.0 0.91 113.00
(50.29) (50.60) (0.30) (0.28) (3874.28)
-------------------------------------------------------------------------
including 166.0 167.9 1.9 1.79 17.60
(50.60) (51.18) (0.58) (0.54) (603.43)
-------------------------------------------------------------------------
including 167.9 169.9 2.0 1.88 0.53
(51.18) (51.79) (0.61) (0.57) (18.21)
-------------------------------------------------------------------------
27-2550 154.0 167.0
------- (46.94) (50.90)

-------------------------------------------------------------------------
including 154.0 156.1 2.1 2.03 0.000
(46.94) (47.58) (0.64) (0.62) (0.00)
-------------------------------------------------------------------------
including 156.1 160.0 3.9 3.77 0.341
(47.58) (48.77) (1.19) (1.15) (11.69)
-------------------------------------------------------------------------
including 160.0 161.4 1.4 1.38 26.40
(48.77) (49.19) (0.43) (0.42) (905.14)
-------------------------------------------------------------------------
including 161.4 165.0 3.6 3.55 0.00
(49.19) (50.29) (1.10) (1.08) (0.00)
-------------------------------------------------------------------------
including 165.0 167.0 2.0 1.88 0.125
(50.29) (50.90) (0.61) (0.57) (4.29)
-------------------------------------------------------------------------


The drill hole intercept intervals were spaced at a distance of 50 to 80 feet. Samples of the cores were sent to American Analytical Services of Osburn, Idaho and assayed using standard sample preparation and fire assay methods. The Company follows strict quality assurance procedures as have been applied by the Sunshine Mine historically and which are described in detail in Sterling's NI 43-101 technical report of April 16, 2007, titled "Technical Report on the Sunshine Mine, Big Creek, Idaho, U.S.A."

To view a map of the Sunshine Mine, please visit the following link:

http://media3.marketwire.com/docs/PR_LONG_D_050908Final.jpg

About Sterling Mining Company

Sterling Mining controls the Sunshine Mine, which began initial production in December 2007, and related exploration lands in the prolific Silver Valley of northern Idaho. The Company also holds several silver properties in Mexico, including the Barones Tailings Project in the Zacatecas Silver District. Shares of Sterling Mining Company trade on the TSX under the symbol "SMQ", on the OTCBB under the symbol "SRLM", and on the Frankfurt Stock Exchange under the trading symbol "SMX".

To receive Sterling news via email, please email juliane@chfir.com and specify "SMQ news" in the subject line.

Dr. K. Warren Geiger, P. Eng, P. Geol, qualified person under NI-43-101, supervised the preparation of the technical information contained in this press release. Dr. Geiger is independent of the Company. For complete and additional information regarding the technical aspects discussed in this press release, including disclosure with respect to assumptions and parameters regarding the future production estimates discussed herein, the reader is referred to Sterling's technical report with respect to the Sunshine Mine, available at www.sedar.com.

Cautionary Language and Forward Looking Statements

This press release may contain "forward-looking statements", which are subject to various risks and uncertainties that could cause actual results and future events to differ materially from those expressed or implied by such statements. Investors are cautioned that such statements are not guarantees of future performance and results. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure documents filed from time to time with the Canadian securities authorities.

This press release does not constitute an offer to sell or a solicitation to buy securities, and contains forward-looking statements regarding the Company within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from expected results. Factors that could cause results to differ materially include economic and political events, the ability to raise capital in the financial markets, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2006 and subsequent 10-Q and 8-K filings.

Contact Information

  • Sterling Mining Company
    Raymond De Motte
    President
    (208) 699-6097
    or
    Sterling Mining Company
    Monique Hayes
    Marketing/Communications
    (208) 699-6097
    Website: www.SterlingMining.com
    or
    CHF Investor Relations
    Alison Tullis
    Account Manager
    (416) 868-1079 x233
    Email: alison@chfir.com
    Website: www.chfir.com