Mr. Mathew Wilson reports

STERLING METALS COMMENCES EXPLORATION ACTIVITIES AT ITS ADELINE PROJECT IN LABRADOR

Sterling Metals Corp. has commenced exploration activities at the Adeline copper project in Labrador, Canada. Located within the central mineral belt of Labrador, this wholly owned 44-kilometre-long sedimentary basin hosts over 250 surface copper-silver occurrences and has many similarities to other world-class, shale-hosted copper sulphide deposits. Sterling has compiled and layered 60 years of exploration data, including extensive showings, induced polarization (IP), magnetic survey, surface trenching and structural geology, to develop a number of priority targets that are expected to be drill tested later this summer.

Highlights:

• Permits received for drilling and camp with construction and field activities commencing immediately;
• Drill pads set up at the Ellis Main prospect, where recent trenching was completed, and initial drilling is expected to commence;
• • The Ellis Main prospect is exposed in a series of 11 trenches along the western end of Seal Lake and was the subject of historic work, including grab samples and drilling;
  • The strongest historical mineralization occurred in hole SL-11-10 from 90.6 metres where 7.9 m at 1.76 per cent Cu and 56.2 grams per tonne Ag was intercepted 50 m down dip from a surface trench of 4.5 m of 2.5 per cent Cu, 94.3 g/t Ag;
  • IP data collected by Noranda in the early 1990s show a large anomaly whereby SL-11-10 intercepted the edge of it. Drill pad preparation is beginning to test this anomaly as well as the others across the basin;
• Completed hyperspectral study with ALS Goldspot Discoveries Ltd., confirming Ellis as the primary target, providing support for numerous secondary targets and new priority areas of interest;
• Drilling contract with a minimum of 2,000 metres of diamond drilling with Logan Drilling Group International, which Sterling has worked with in the past.

Jeremy Niemi, senior vice-president, exploration and evaluation, comments: "We are thrilled to be working in Newfoundland and Labrador. In just a few months we have built our field team, permitted Adeline and are now beginning to build our camp. The stage has been set for us to enter discovery mode and we look forward to commencing our inaugural drill program at Adeline, on schedule, within the next six weeks. We are eager to drill and hit our targets which could reveal large high-grade copper mineralization and confirm the potential for a very substantial copper system."

Mathew Wilson, chief executive officer and director, states: "Sediment-hosted copper accounts for approximately 20 per cent of the world's copper production and reserves. The incredible lateral extent of these projects along with very high grades of copper create attractive mineral systems -- if you can find the correct conditions that result in near-surface deposits. Adeline holds many of the key characteristics needed to host a supergiant sediment-hosted copper system -- and the Ellis target -- with its already confirmed drill intercept -- is the first area where we will look for a near-surface deposit."

Comprising roughly 30,000 hectares and a 44 km strike of copper-silver-rich terrain, Adeline covers the youngest middle Mesoproterozoic volcano-sedimentary sequences, known as the Seal Lake group. The Seal Lake group consists of supracrustal argillaceous and arenaceous sedimentary rocks, intercalated with basalt flows and intruded by gabbro sills. The volcano-sedimentary rocks formed as a result of extensive continental sedimentation from the transition from subaerial to shallow-marine during a rift-related cycle of uplift and erosions.

While sediment-hosted stratiform copper deposits are widespread, economically significant occurrences are infrequent. These deposits contribute to roughly 20 per cent of global copper production and known reserves. Supergiant and giant deposits are formed in basins that experienced extended periods of fluid flow, where specific conditions facilitated the accumulation of substantial quantities of metal-rich fluid, ample reduced sulphur and significant amounts of reductants.

The host rocks of this potential copper basin primarily consist of reduced facies marine or lacustrine rocks, such as green, black or grey shale, siltstone, thinly laminated tidal facies, reefoid carbonate rocks, and dolomitic shales. These deposits are typically found in Middle and Late Proterozoic rocks worldwide. They are formed in continental clastic sedimentary basins that transition into epicontinental shallow-marine or lacustrine basins within 30 degrees of the paleo-equator. The tectonic setting for these deposits is typically an intracontinental rift or aulacogen. Deposits may exhibit zoning, with centres of chalcocite-bornite, outer zones of chalcopyrite-pyrite and peripheral galena-sphalerite. The exploration of this extensive copper basin through a targeted drill program promises to be an exciting opportunity to test these theories and initiate a systematic exploration program.

Qualified person

Mr. 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 large-scale and high-grade Canadian exploration opportunities. The company is advancing the Adeline project in Labrador, which covers an entire sediment-hosted copper belt, with demonstrated potential for important new copper discoveries with significant silver credits, and the Sail Pond project in Newfoundland.

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