San Lorenzo Gold Corp V.SLG.RT

Sterling signs project financing

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		Sterling Resources signs project financing mandate letter providing first step towards securing Breagh project financing (cnw)
	CALGARY, Aug. 6 /CNW/ - Sterling Resources (TSX-V: SLG) ("Sterling" or "the Company") is pleased to announce that it has signed a non-binding project financing mandate letter with The Royal Bank of Scotland plc ("RBS"). Following Sterling'sJ uly 22nd announced sale of one third of its working interest in the Breagh field and varying percentages of its surrounding exploration acreage for approximately CAD$103 million, the Company has been considering a number of options to finance the future development costs associated with the 30% working interest in Breagh it retains. Under the terms of the mandate letter, RBS will assume the role of debt structuring bank, leading a syndicate of lenders to arrange project financing for the Breagh field development. The selection of RBS, a domestic UK lender with global operations, as syndicate lead is consistent with recent UK government initiatives encouraging the financing of oil and gas projects designed to further expand domestic UK petroleum supplies. Stewart Gibson, Sterling's Chief Executive Officer stated, "We are very pleased to move forward with RBS towards achieving a final agreement to arrange adequate financing to take us to first gas production at Breagh. With this financing in place and in concert with our new Breagh partner RWE Dea UK SNS Limited, we will be able to focus upon the construction of pipeline and related infrastructure, which will further support additional drilling in this new developing sector of the UK Southern North Sea." Hurbinder Mudan, head of oil and gas project finance at RBS said, "We are delighted to be moving forward with Sterling on the exciting Breagh Project, being a new major source of gas supply for the UK. We have worked with Sterling on the project for some time now and are very familiar with the Breagh story. We see the new RWE Dea partnership as enhancing the project and look forward to working with the Sterling team." . Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania and France. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG". << The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. >> For further information: visit www.sterling-resources.com or contact: Stewart G. Gibson, Chief Executive Officer, Phone: 44-133082-6717, Mobile: [phone], [e-mail]; George Kesteven, Manager, Corporate & Investor Relations, Phone: [phone], Fax: [phone], [e-mail]