Wednesday, June 04, 2008
Sterling Mining Issues Update

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Wallace, ID - June 4, 2008 - Sterling Mining Company (TSX:SMQ / OTCBB:SRLM / FSE:SMX) is pleased to issue an update regarding recent developments at the Company following on the recent appointment of Ken Berscht as interim President/CEO of the Company. The Board of Directors met on the weekend with senior management and Sterling's professional advisors to review current status and strategic issues.

Recent Highlights

Recent highlights from operations at the Sunshine Mine include
(units are in short tons and troy ounces):

• Re-establishment of 3100 level Sunshine ramp (SR1) infrastructure, power and diesel shop;
• Resumption of ore production from the Sunshine vein below 3100 level;
• Processing of 5,500 tons of ore in April and May 2008 resulting in 77,000 ounces of silver converted to concentrate; head grades have increased as higher grade material has been mined from the lower levels;
• Shipments of concentrate for the year totaled 132.38 tons, with 50 tons of concentrate in inventory scheduled to ship in June;
• Mining of higher ore grades such that the silver/copper concentrate grade has increased from approximately 500 to over 1000 oz silver per ton;
• Re-establishment of 2700 West Chance infrastructure and diesel repair shop.
• Commenced ore production from stopes both above and below 2700 level

In addition, Sterling commenced two development projects in the 3100 level Sunshine ramp area and completed a diamond drill program below the 2700 level in the West Chance vein system. (see press release dated May 12, 2008)

Goals for targeted completion or attainment during the second quarter are focused on increasing the number of ore producing stopes, adding mill capacity and increasing concentrate shipments. Specific goals include:

• Increasing mine production to 400 tons per day
• Increasing monthly concentrate production to approximately 100 tons by the end of June or early July;
• Completing development access to two new West Chance stopes;
• Completing installation of radio communication system to 2700 and 3100 levels
• Completing installation and renovation of the mine sandfill system;
• Commissioning Number 1 ball mill, increasing mill throughput from 32 to 42 tons per hour
• Dewatering the mine to 3550 level (-867 ft below sea level)

Shipment of Concentrates

The latest shipment of concentrates accounts for 63.4 of the 132.38 tons shipped for the year. This shipment was sent to an off shore smelter arranged through a concentrates off take agreement with Ocean Partners. Under the terms of the agreement, advance proceeds were paid upon presentation of a bill of lading, and as such, an advance of over $550,000 was received on the 2nd of June. Pursuant to the agreement, the smelter is committed to take up to 200 tons of concentrates and the Company is advancing discussions for further arrangements.

Financial

As a result of unforeseen and unavoidable delays in production due to extreme weather conditions, additional safety inspections, reinforcing ground support work, water pump failure, cancellation of expected financing from equipment suppliers that resulted in cash being used for purchases, and other usual start-up issues, cash flow of the Company has been affected. The directors are reviewing factors affecting the financial performance of the company, and the Company is updating cash flow forecasts. Particular focus is being made on advancement of revenues, and cost containment and reduction. All non-production related departments have been instructed to review costs, and the goal of the Company is to realize a significant reduction in overall costs in the short term. It is expected that further information will be available when the financial results for the period ending June 30, 2008 are disseminated.

Strategic Review

The Board, as part of its process, is performing a review of the Company's strategies in order to determine core and non-core assets, for possible disposition or re-positioning. This is being done in conjunction with possible financings and/or strategic alliances with other parties. In addition, the process has begun to search for a fulltime President/CEO of the Corporation, and COO.

Further Update

A further update is expected to be available at the time of dissemination of financial results for the period ending June 30, 2008.

Correction

The press release of May 28, 2008 regarding Mr. Berscht's appointment should have stated that he has been qualified as a General Principal with the NYSE and a Registered Representative with the Canadian Investment Dealers Association.



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/CEO
(403)830-7566 or 208-699-2503
Monique Hayes, Marketing/Communications
Tel: (208) 699-6097



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.