STERLING RESOURCES PROVIDES UPDATE ON THE UK BREAGH AND CLADHAN FIELDS

Breagh

Since the beginning of the year, Breagh production has averaged 126 million cubic feet of gas per day ("MMscf/d") sales gas (38 MMscf/d net to Sterling) with production uptime of 95 percent during this period. Key to this performance has been the continued excellent performance of the two hydraulically stimulated wells A07 and A08, contributing approximately 45 percent of the average daily performance of the Breagh field and already contributing 20 percent of the cumulative production from October 2013 to date, although only commencing production in the second half of 2014. Current production rates are remaining stable at around 125 MMscf/d sales gas for the field (38 MMscf/d net to Sterling).

The continuing high performance of wells A07 and A08 underlines the importance of hydraulic stimulations in plans for improving performance from existing and planned wells for Breagh Phase 1 and for new wells being considered during the potential Phase 2 development.

RWE Dea UK and Sterling are planning a further Breagh Phase 1 infill well campaign of 3 wells (2 new and 1 re-entry), which is expected to start in the fourth quarter of 2015. This campaign may be increased to 6 wells (4 new, 1 re-entry and 1 sidetrack). All wells are intended to be hydraulically stimulated.

Cladhan

The second oil production well (P2) is currently being completed with the drilling rig expected to demobilize within the next two weeks. The well encountered a reservoir section which was thinner than expected. Work to tie in the subsea infrastructure at both the Cladhan field and the Tern platform is scheduled to re-start in the second quarter of 2015 after being deferred from 2014. Associated topsides modification work on the Tern platform continues in parallel.

Following the results of the wells, proved plus probable reserves for 100 percent of the field have been estimated by Sterling's independent reserves evaluator RPS Energy to be 10.2 million barrels ("MMbbls") at the end of 2014. This is a reduction from 16.5 MMbbls at the end of 2013, attributable primarily to the results of the P2 well. Post the impact of the second (2013) TAQA development carry, which is repayable out of net field cash flow, proved plus probable reserves net to Sterling are now estimated by RPS Energy to be 0.45 MMbbls at the end of 2014, a reduction from 1.80 MMbbls at the end of 2013.The Net Present Value of the field to Sterling, post-tax at a 10 percent discount rate, is now estimated by RPS Energy to be US$13.4 million at year-end 2014(1), a reduction from US$76 million at the end of 2013. The value at the end of 2014 assumes pay-out of the second TAQA carry in the first quarter of 2018, when Sterling's equity increases from 2.0 percent to 13.8 percent. The reduction from previous valuation is a combination of reserves reduction and oil price effects. Sterling's full reserves report (Canadian National Instrument 51-101F1) is expected to be filed in late March 2015.

The revised Cladhan production profile net to Sterling estimated by RPS Energy in thousands of barrels per day ("Mbbls/d") is set out below.

First oil for the field is still expected during the third quarter of 2015. Development cost forecasts indicate Sterling remains exposed to a cost of approximately US$2 million during 2015 being the excess of the development cost for Sterling's 2.0 percent current interest over the available funding from the first (2012) TAQA development carry.

(1) RPS Energy's valuation assumes a price for Cladhan crude (which is expected to achieve a small premium to Brent crude) of US$71.2/bbl in 2015, US$75.5/bbl in 2016, US$80.4/bbl in 2017, US$85.4/bbl in 2018, US$90.5/bbl in 2019 and US$94.9/bbl in 2020 escalating at 2.0 percent per annum thereafter.

Conference Presentation

Sterling is presenting at the Pareto E&P Conference in London on March 12. A copy of the presentation is available on the Company's website here.

Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France 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]