Tuesday, September 09, 2008
Sterling Mining Company Responds To Misleading Press Releases

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Wallace, ID -- September 9, 2008, - Sterling Mining Company (TSX:SMQ / OTCBB:SRLM / FSE:SMX) ("Sterling") Responds to Misleading Press Releases Issued by Sunshine Precious Metals, Inc. ("SPMI")

On August 18, 2008 and August 29, 2008 SPMI, through its attorney and consultant, Andrew Grundman, published and disseminated press releases about Sterling that Sterling believes to be false and misleading.

The press release has had an adverse affect on the public perception and has adversely effected the public market in Sterling stock. With the price of silver increasingly significantly since 2003 (when Sterling acquired the lease rights) and the Sunshine Mine back in production, it would seem SPMI is prepared to do anything to break the lease or force concessions on the lease terms from Sterling. SPMI is not a public company and has no duty to publish or disseminate press releases as it did on August 29 through PR Newswire.

The August 29 press release issued by SPMI implies Sterling has failed to pay the annual maintenance and claim holding fees to the Bureau of Land management (BLM) as required by federal regulations, because SPMI had not received evidence of payment on August 15. When the press release was issued, SPMI had already received notice that the BLM was paid in a timely manner, so SPMI knew there was no failure to comply with the applicable federal regulations and that implication of such a violation was false and misleading. Further, Sterling has not received notice from any regulatory authority with respect to any potential compliance issue, so SPMI's vague innuendo about other regulatory compliance issues is without any basis that Sterling is aware of.

In its press release of August 29, 2008, SPMI also claims that it has not been provided access to the mine site for inspection and Sterling has failed to procure adequate insurance coverage. Sterling, in response to a request for inspection has permitted SPMI's representatives to view and inspect the surface operations at the Sunshine Mine, including the Mill and to also conduct an underground inspection of the Mine. Sterling also allowed a SPMI representative to inspect business records maintained at Sterling's Big Creek Office. No access has been denied by Sterling. Finally, in SPMI's August 29, 2008 press release, SPMI accuses Sterling of failing to protect the leased property because a claim of lien has been filed by a vendor. Sterling provided notice to SPMI of the filing of a claim of lien and advised SPMI that it was contesting the amount and of the Lien in good faith, which is Sterling's right to do under the terms of the Sunshine Mine lease.

In its first press release dated August 18, 2008, SPMI announced the filing of a lawsuit against Sterling for "not paying rent" on certain buildings. The lawsuit was filed by Sunshine Property Group ("SPG"), apparently an affiliate or subsidiary of SPMI that holds title to the buildings. In the suit, SPG alleges Sterling has not paid rent and should be evicted under the Idaho Landlord/Tenant Law. Sterling has filed an answer to the complaint denying the allegations and asserted a counterclaim alleging Sterling has paid approximately $480,000 to SPG under a purchase option for the building and that SPG refuses to complete the sale. Sterling remains in the building and subleases space from a third party and is current on all lease payment. Sterling intends to vigorously protect its rights and pursue its legal claims. The business arrangement concerning the office building in Big Creek has no relation to the lease of the Sunshine Mine.

Sterling believes SPMI may continue to disseminate false and misleading information to advance its private agenda regarding the Sunshine Mine. Public investors are urged to rely only on information authorized for dissemination by Sterling.

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 "SLRM", and also on the Frankfurt Stock Exchange under the trading symbol "SMX".

FOR FURTHER INFORMATION, visit the Company's website at
www.SterlingMining.com or contact:

Sterling Mining Company
Ken Berscht, President
(403)830-7566

Monique Hayes, Marketing/Communications
Tel: (208) 666-4070 xt. 303

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

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.