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Sterling Mining Completes Private Placements And Receives
Conditional Approval For Toronto Stock Exchange Listing
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Wallace, Idaho -- August 2, 2007 -- (BUSINESS WIRE) -- Sterling Mining
Company (OTCBB: SRLM) (the "Company") announced today that it has
closed two private placement offerings, that in the aggregate raised a
total of US$24,734,755.50.
In addition, the Company has received conditional approval from the
Toronto Stock Exchange ("TSX") to list its common shares on the TSX,
subject to fulfilling all requirements of the TSX and filing of
customary documentation on or prior to October 30, 2007.
In a brokered offering, the offering consisted of 5,585,792 special
warrants ("Special Warrants") at a price of US$3.25 per Special Warrant
(the "Brokered Offering"). Each Special Warrant is convertible into
one common share of the Company ("Common Shares") and one-half of one
common share purchase warrant (the "Warrants"). Conversion shall occur
upon the issuance of a receipt for a final prospectus in Canada that
qualifies the Common Shares and Warrants. Each whole Warrant is
exercisable for one Common Share at an exercise price of US$4.10 for 24
months following the closing date of the Brokered Offering. The
Brokered Offering was completed on a best-efforts basis with TD
Securities Inc. and Blackmont Capital Inc. of Toronto, Canada, who were
engaged as co-agents.
In addition, in a second offering in the United States and elsewhere,
the offering consisted of 2,024,902 units ("Units") at the same price
of US$3.25 per Unit (the "Second Offering"). Each Unit is comprised of
one common share of the Company ("Common Shares") and one-half of one
common share purchase warrant (the "Warrants"). Each Warrant is
similarly exercisable for one Common Share at an exercise price of
US$4.10 for 24 months following the closing date of the Offering.
Proceeds from the private placements will be used to fund the ongoing
rehabilitation and upgrade of the Sunshine Mine as part of Sterling's
mine plan to resume silver production, currently forecasted to begin in
December 2007, and for general working capital purposes.
In connection with the Brokered Offering, the Company paid a cash
commission of 7% of the gross proceeds of the private placement, and
issued non-transferable compensation options to purchase 391,005
Special Warrants (equal to 7% of the Special Warrants sold under the
private placement), exercisable at US$3.25 per Special Warrant for a
period of 24 months after the closing date of the Offering.
In connection with the Second Offering, the Company paid cash
commissions, and issued similar non-transferable compensation options
to purchase Units, common shares and warrants not exceeding 7% of the
gross proceeds.
The private placement was made in a transaction exempt from the
registration requirements of the Securities Act of 1933. The shares of
common stock sold have not been registered under the Securities Act of
1933, or any state securities laws, and unless so registered, may not
be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act of 1933 and applicable state securities laws.
About Sterling Mining Company
Sterling Mining controls the Sunshine Mine, currently forecasted to
begin 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 OTC Bulletin Board under the symbol "SRLM" 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
www.SterlingMining.com
Raymond De Motte, President or
Monique Hayes, Marketing/Communications
Tel: (208) 699-6097
CHF Investor Relations
www.chfir.com
Cathy Hume, CEO
Tel: (416) 868-1079 x231
cathy@chfir.com
To receive Sterling news via email, please email julia@chfir.com and
specify "SRLM news" in the subject line.
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. Along with additional underground rehabilitation and
restoration of site facilities, the timetable for the continuing work
program anticipates production beginning in December 2007. If we are
able to stay on schedule with the mine work and obtain the funding,
equipment, and qualified operations personnel as needed for the work
program, we believe production by December is doable. 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.
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Copyright (c) 2007 STERLING MINING CO. (SRLM) All rights reserved.
For more information visit our website at
http://www.sterlingmining.com/ or send mailto:info@sterlingmining.com
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