Mr. Mathew Wilson reports

STERLING METALS RESUMES DRILLING AT SAIL POND PROJECT, TESTING FOR ADDITIONAL HIGH-GRADE SILVER AND COPPER AT HEIMDALL NORTH DISCOVERY TARGET

Sterling Metals Corp. has commenced its 2023 drilling program at the Sail Pond project located in the Great Northern Peninsula of Newfoundland. The drill program will test for potential large accumulations of high-grade silver and copper mineralization in six new anomalies identified in the recently completed Orion 3-D geophysical survey, including a potential source to the Heimdall North zone discovered in 2022.

"Since the discovery at Heimdall North our team has looked forward to getting back to the area to find the source of the incredible high-grade mineralization we intersected. Completing the Orion survey and highlighting a new geophysical target just below our discovery hole SP-22-064 only fuelled our desire to return to the Heimdall North zone," stated Jeremy Niemi, senior vice-president, exploration and evaluation. "The mineralization in hole 64 was essentially solid vein of high-grade copper and silver mineralization interpreted to come from a nearby larger source. This is an amazing target to kick off our 2023 campaign and we can't wait to see the core."

"The plan executed by the Sterling team, which prompted investors to back our $6.5-million financing in April, 2023, remains on track," commented chief executive officer Mathew Wilson. "Despite the challenging macro venture environment, we are excited to see the results of our hard work as we embark on the next phase of drilling at Sail Pond."

2023 Sail Pond drilling campaign

The recently completed Orion 3-D geophysical survey (see press release dated May 8, 2023) encompassed both the Heimdall and Heimdall North zones with the goal of identifying potential sources of surface mineralization and larger accumulations of high-grade silver and copper mineralization. The survey included a chargeability component, used to identify sulphide mineralization, seeing to a depth of 500 metres below surface. Along with the chargeability, the Orion survey also included a magnetotelluric (MT) survey which mapped the resistivity down to two kilometres depth. The MT data show resistivity of the rocks and has been used to map the host dolostone units and important structures which the Sail Pond silver-copper mineralization follows. The 2023 targets for drilling include a combination of strong chargeability (increased sulphide potential) along trend from existing surface and drilling intercepts and within dolostone.

The first target of the campaign is located directly below and on trend from the mineralization intersected in hole SP-22-064, which intersected 3,499.1 grams per tonne silver equivalent (AgEq) over 0.35 metre (see press release dated Dec. 12, 2022). The Orion survey identified a wide chargeability zone, over 100 m, below hole SP-22-064 with a halo extending towards the mineralization in the hole. The chargeability response is interpreted to potentially be an accumulation of sulphide and sulphosalt minerals which are highly chargeable, especially in contrast to the dolostone rocks which host mineralization at Sail Pond.

The minimum 2,000 m drill program at Sail Pond commenced on June 5, 2023, and will include the six highest priority targets from the Orion survey. Contingency holes are ready for an expanded program based on successful results. Sterling Metals contracted Logan Drilling Group International out of Stewiacke, N.S. The Sterling Metals geology team will utilize a hand-held X-ray fluorescence at site to provide immediate readings of key elements such as copper, silver and zinc. Mineralized core will be sampled and sent to SGS Canada Inc. for sample preparation and assay.

The Heimdall North zone

Discovered during the 2023 drill program, the polymetallic vein with high-grade silver and copper intersected 3,499.1 g/t AgEq over 0.35 m (1,564 g/t Ag, 8.33 per cent Cu, 12.83 per cent lead, 2.74 per cent antimony and 3.93 per cent zinc) within a broader interval of 294 g/t AgEq over 4.67 m (129 g/t Ag, 0.66 per cent Cu, 1.19 per cent Pb, 0.22 per cent Sb and 0.45 per cent Zn in hole SP-22-064 beginning at 179.23 m downhole). The mineralization is a combination of sulphides such as chalcocite and chalcopyrite with sulphosalts. The lower contact of the vein is brecciated with fragments of the host dolostone being pulled into the mineralization. The contacts of the vein point downward and toward the new chargeability anomaly identified in the Orion 3-D survey.

Qualified person

Jeremy Niemi, PGeo, senior vice-president of exploration and evaluation to Sterling Metals, and a qualified person within the meaning of National Instrument 43-101 Standards of Disclosure for Minerals Projects, has reviewed and approved the technical information presented herein.

About Sterling Metals Corp.

Sterling Metals is a mineral exploration company focused on Canadian exploration opportunities. The company is currently advancing its 100-per-cent-owned Sail Pond project located in the Great Northern Peninsula of Newfoundland and recently acquired the Adeline project in Labrador. The 13,500-hectare Sail Pond project is a brand new discovery, first discovered in 2016 with no drilling prior and consists of high-grade, silver, copper, lead and zinc associated with quartz-carbonate veining, brecciated dolostone and 100 per cent sulphosalt veining. The 29,700 ha Adeline project covers an entire sediment-hosted copper belt, with demonstrated potential for important new copper discoveries with significant silver credits. Both projects are easily accessible by road with nearby services and a 30-minute flight from one another.

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