Mr. Mathew Wilson reports

STERLING METALS ANNOUNCES EXPLORATION UPDATE

Sterling Metals Corp. has released assay results from its 2023 drilling on the Sail Pond silver and base metal project in the Great Northern Peninsula of Newfoundland. Despite drilling not being able to identify a potential economic trap of high-grade sulphides via the Orion 3-D survey, using structural interpretations the company intersected additional high-grade silver-copper mineralization, expanding the Heimdall trend by 200 metres.

Key 2023 exploration highlights at Sail Pond:

• A total of eight drill holes covering 2,058 m were completed, focusing on four distinct target areas defined by the Orion 3-D geophysical survey.
• Drilling extended high-grade silver-copper mineralization 200 m beyond previous intersections and the area remains open to the north.
• The new extension of the Heimdall North zone, discovered through structural interpretation of the project lidar, graded 932 grams per tonne silver, 4.51 per cent copper over 0.3 m starting at 209 m depth in hole SP-23-085 and 303 g/t Ag, 1.26 per cent Cu and 5.59 per cent lead over 0.3 m starting at 279.9 m.
• The company is currently undertaking physical property studies using the relevant core from Sail Pond and its new structural understanding to delineate areas of interest for higher permeability where economic quantities of high-grade sulphides are trapped.

Jeremy Niemi, senior vice-president, exploration and evaluation, stated: "Ahead of our 2023 drilling campaign at Sail Pond, we implemented a systematic approach targeting the source of the mineralization at Heimdall North by employing the deep-looking Orion survey. We were encouraged by strong geophysical targets in the right geological locations and these targets are where we started our 2023 drilling. Learning from the initial holes and with the mineralization source eluding us, our team rapidly pivoted to focus on structural data and on-the-ground observations for the final holes of the program. The final two holes yielded an additional high-grade copper-silver intersection and a broad mineralization zone spanning nearly 30 metres north of the Heimdall North zone. Notably, this zone remains open to the north. Moving forward, our efforts will continue to concentrate on locating large areas of interest with the potential for massive sulphide accumulations, aiming to uncover the origins of the numerous high-grade intersections at Sail Pond."

2023 exploration results

During the winter of 2023 Sterling initiated a comprehensive ground geophysical survey in the vicinity of the Heimdall and Heimdall North zones. The primary objective was to detect economic orebody-sized anomalies suggesting a potential trap (or pod) of the widespread high-grade silver-copper mineralization. With the deep-looking Orion survey and resistivity technology, multiple target zones were identified, out of which four were prioritized for drilling. The geophysical survey was centred on the Heimdall and Heimdall North zones, covering 39.2 line-kilometres of induced polarization to pinpoint mineralization targets, complemented by 19.6 km of Titan MT (magnetotelluric) to map crucial structures and lithologies hosting the mineralization. Of particular interest was the high-chargeable plume beneath the discovery intersection at Heimdall North, which is down dip from the mineralization and the interpreted location for the source of the mineralization.

During the drilling at Heimdall North, a significant fault was encountered over the last four metres of hole 79 which was the first hole drilled into this plume. The fault contained sand and loose fault gauge which prevented the completion of the hole. It is now thought that large fault, and especially the gauge in the wide fault which undercuts the mineralization at Heimdall North, is potentially contributing to the chargeability response beneath the zone and not an accumulation of sulfides.

The second target focused on an area to the south between Heimdall and the Heimdall North gap, to the site of another chargeability target in line with the trend from the Heimdall zone. Hole SP-23-83 intersected pyrite-bearing argillite in the vicinity of the target, suggesting the next anomaly was argillite and not a sulphide trap. The balance of the chargeability anomalies has been explained largely by pyrite in argillite horizons, which are typically adjacent to the common style of mineralization being sulphides and sulphosalts in dolostone.

The final two holes of the program were based on a structural interpretation of surface mapping and detailed lidar survey data. Holes SP-23-84/85 targeted structural convergence and what appeared to be a dilation zone which could host additional mineralization 200 m north of hole 64 and 600 m north of the Heimdall zone. Both holes intersected high-grade silver-copper mineralization. This structural corridor, in particular dilation zones along it, will be part of the focus of future work at Sail Pond as we continue to work toward identifying the source of the widespread near-surface mineralization.

Adeline project update

The company has completed its 2023 fieldwork program at its Adeline project in Labrador. A total of 1,930 m were drilled, and the company is currently waiting on assays from ALS. Due to the nature of some of the mineralization extra steps were taken to ensure full collection of copper, which has delayed the timeline for assays. The expectation is that all assays will be complete near the end of the month.

Mathew Wilson, chief executive officer of Sterling, states: "Although the outcome from our recent drilling at Sail Pond didn't align with our expectations following the Orion survey, we are encouraged by the broader structural targeting that led to additional high-grade yet narrow intercepts. We are actively evaluating the implications of this on our understanding of the property. Additionally, we hope to have Adeline assays out in the near future and thank our shareholders for their support and patience. With a strong treasury of over $4.5-million, and a dedicated exploration team with a track record of success, we remain excited and committed to diligent exploration in what we believe to be a Tier 1 jurisdiction."

Quality assurance/quality control -- sampling procedures

All drill holes are diamond core with NQ diameter. Drill core is delivered by truck to the Sterling Metals secure core logging and sampling facility in Roddickton, Nfld. All core is photographed, logged and sampled by the Sterling Metals exploration team. Drill core was halved by sawing with diamond saw blade at the Sterling core facility and half core samples were placed in prelabelled clear sample bags with a unique sample ID tag, sealed with a zip tie, and then placed into rice bags sealed with security tags and securely stored at the facility until being delivered to SGS Grand Falls site by commercial transport.

Analytical services were provided by SGS Canada Inc., which is an independent, CALA (Canadian Association For Laboratory Accreditation) accredited analytical services firm registered to ISO 17025 standard. Samples were crushed to 75 per cent passing two-millimetre mesh, split to 250 grams and pulverized to 85 per cent passing 75-micron mesh. Multielement analyses, including base metals, were conducted on pulverized material using the sodium-peroxide fusion inductively coupled plasma atomic emission spectroscopy finish method for 29 elements. Laboratory overlimits analysis methods were applied as required. In addition, an aqua regia digest with AES finish for one to 300 parts per million silver, overlimits analyzed with fire assay and gravimetric finish. A systematic QA/QC protocol was employed that includes systematic insertion in the sample stream of certified reference materials and blank samples, plus analysis of duplicate core and pulp splits.

Qualified person

Mr. Niemi, PGeo, senior vice-president, exploration and evaluation, for Sterling Metals, 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.

We seek Safe Harbor.