STERLING RESOURCES ANNOUNCES SALE OF ITS ROMANIAN BUSINESS

CIEP will pay a cash consideration of US$42.5 million to Sterling at completion (prior to any Romanian tax liabilities). Concurrent with the above sale Sterling has entered into an agreement ("Termination Agreement") with Gemini Oil & Gas Fund II, L.P. ("Gemini") to terminate an investment agreement signed with Gemini in 2007. Under the investment agreement, Gemini provided funding to Sterling towards its drilling costs of the successful Ana discovery well on the Midia block in return for an entitlement for Gemini to receive payments equivalent to a share of Sterling's gross revenue from any future production from a designated area within the block. Upon completion of the Romanian sale, Sterling will make a termination payment to Gemini comprising a cash consideration of US$10 million out of the proceeds received from CIEP and issuance to Gemini of 60,372,876 common shares of Sterling (the "Gemini Shares") having a market value of US$7.5 million (based on the ten day volume-weighted average price of the common shares on the TSX-V for the period ending March 24, 2015, being CAD $0.157 per share at an average exchange rate of US$1 = CAD$1.2664.) Following the issuance of the Gemini Shares, Sterling's issued capital will total 441,572,956 shares, an increase of approximately 15.8 percent, of which Gemini's shareholding will be 13.7 percent.

Net of the Gemini cash payment, Sterling will receive cash proceeds of US$32.5 million from the Romanian sale (prior to any Romanian tax liabilities). Pursuant to the Amended and Restated Bond Agreement dated December 14, 2014 (the "Bond Agreement") relating to Sterling Resources (UK) plc's senior secured bond (the "Bond") and the Romanian Sale Agreement, the net cash proceeds will be applied according to a defined procedure which (in summary form) will in order (i) fund advisory costs and any transaction-related taxes, (ii) pre-fund the next amortization and interest payment due to Bondholders to the extent not already pre-funded, (iii) in relation to half of any excess from (i) and (ii), fund the redemption of Bonds, and finally (iv) in relation to the other half of any excess from (i) and (ii), provide unrestricted cash to the Company. The next such amortization and interest payment is due on April 30, 2015, but as previously reported the Company does not expect to have sufficient funds to make the payment in full on that date. As completion of the Romanian sale is likely to be after this date, the Company is considering options to improve our short term liquidity position.

Sterling's entitlement to further contingent payments from the completed sale of its 65 percent interest in a portion of the Midia Block in the Romanian Black Sea (the "Carve-out Portion") to ExxonMobil Exploration and Production Romania and OMV Petrom S.A., which was announced on January 29, 2014, is unaffected by the Romanian Sale Agreement. These contingent payments relate to future exploration and development success occurring in the Carve-out Portion, and comprise US$29.25 million upon a commercial discovery being made and an additional US$19.5 million upon first production.

To address the Company's longer term financing needs, the Company is continuing discussions with a number of potential purchasers for a sale of a 10-15 percent interest in the UK Breagh gas field and progressing a potential refinancing of the Bond and/or incremental financings.

Commenting on the Romanian sale, Jake Ulrich, Sterling's Chief Executive Officer said: "Sterling has had a presence in the Romanian Black Sea since 1997. As operator, we discovered the Ana gas field in 2007 and built up further contingent and prospective resources through further drilling, seismic acquisition and interpretation, and gaining new licences. While we believe firmly in the significant future potential of these assets, we face material ongoing well commitments on our licences and potentially very material development costs which are inappropriate for a company of our size. We believe that the full value can only be realized by a company with much greater financial strength and with a longer term investment horizon. We have therefore decided to sell in order to focus our financial resources on the UK North Sea. Our team in Romania have served Sterling well and we wish them every success for the future under CIEP's ownership. The sale will leave Sterling as a predominantly UK business focused on the high quality Breagh field, plus contingent resources with very minor ongoing costs in the Netherlands. We expect that this refocusing and simplification of our portfolio will make the company a more attractive candidate for a merger or corporate sale, benefitting all stakeholders."

Sterling holds a 65 percent operated interest in blocks 13 Pelican and 15 Midia, a 50 percent operated interest in block 25 Luceafarul, and a 40 percent non-operated interest in block 27 Muridava, all in the Romanian Black Sea.

Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania and the Netherlands. The common shares are listed and posted for trading on the Toronto Stock Exchange Venture (TSX-V) under the symbol "SLG".

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In addition, statements relating to expected production, reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future.

These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.

Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.

For further information:

Jake Ulrich - Chief Executive Officer
Phone: +1 403 237 9256
[email protected]

David Blewden - Chief Financial Officer
Phone: +1 403 237 9256
[email protected]

George Kesteven - Manager, Corporate and Investor Relations
Phone: +1 403 237 9256, Cell: +1 403 519 3912
[email protected]