Sterling Resources Announces Updated Contingent and Prospective Resources for Cladhan

CALGARY, Alberta, October 19, 2010 - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is
pleased to announce updated Contingent and Prospective Resource numbers (100
percent) for the Cladhan discovery (UKCS Blocks 210/29a and 210/30a) as a
result of recently announced drilling success of two sidetracks from the
original discovery well 210/29a-4. These Contingent and Prospective Resource
figures (100 percent) have been evaluated by RPS Energy as at October 15,
2010.

P50 Contingent Resources have increased from 30 million barrels Oil in
Place (OIP) to 89 million barrels OIP.

Unrisked Contingent (1) Resources (100 percent)

    MMbbls OIP            P90 (1C) (3) P50 (2C) (3) P10 (3C) (3)
    At December. 31, 2009           12           30           76
    At October 15, 2010             43           89          155

P50 Prospective Resources have increased from 65 million barrels OIP to
93 million barrels OIP in the previously assessed terrace area. An additional
74 million barrels OIP of P50 Prospective Resources is attributable to an
area off the terrace and in a fan system to the east previously not assessed
by RPS Energy.

Unrisked Prospective (2) Resources (100 percent)

    MMbbls OIP         P90 (Low Estimate) (3)  P50 (Best Estimate) P10 (High
                                                                (3) Estimate)
                                                                          (3)
    At December 31, 2009              23                        65       158
    At October 15, 2010:
    In Channels                       44                        93       168
    In Fan                            32                        74       143

"These revised Contingent and Prospective Resources numbers independently
confirm the magnitude of our recent drilling successes at Cladhan," stated
Mike Azancot, Sterling's President and CEO. "The significant upward revisions
from just two new data points in high quality sands in which we have yet to
find an oil water contact indicate the large potential for Cladhan.
Additional drilling will be required to further delineate the size of this
discovery," added Mr. Azancot.

Subject to the completion of site survey work already in progress,
conclusion of the rig selection process and regulatory approval from the UK
Department of Energy and Climate Change (DECC), the Company anticipates
performing another drilling campaign at Cladhan during the first quarter of
2011. The Company is also initiating evaluation work for potential
development scenarios.

Sterling is the operator of Cladhan (License P1064) and holds a 39.9
percent working interest through wholly-owned Sterling Resources (UK) Ltd.
The other partners are Wintershall (UK North Sea) with a 33.5 percent working
interest, Encore Petroleum Ltd. with a 16.6 percent working interest and Dyas
UK Ltd. with a 10 percent working interest.

1. Contingent Resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from known accumulations using
established technology or technology under development, but which are not
currently considered to be commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic, legal,
environmental, political, and regulatory matters, or a lack of markets. It is
also appropriate to classify as Contingent Resources the estimated discovered
recoverable quantities associated with a project in the early evaluation
stage. Specific contingencies preventing the classification of the resources
as reserves are further definition of resource volumes through further
appraisal drilling, regulatory approvals and sanction, and selection of a
specific field development concept, including the most viable crude offtake
delivery routing and oil sales contracts.

2. Prospective Resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. Prospective
Resources have both an associated chance of discovery and a chance of
development.

3. The P50 or 2C is considered to be the best estimate of the quantity
that will actually be recovered. If probabilistic methods are used there
should be at least a 50 percent probability P50 that the quantities actually
recovered will equal or exceed the estimate. Similarly, the 1C or P90 and 3C
or P10 represent the low and high estimates respectively.

As with all oil and gas fields at this early stage of appraisal, there
are significant positive and negative factors which may impact the resource
volumes for Cladhan. There is a significant range of uncertainty associated
with the resource volumes due to variations in geological properties,
reservoir petrophysical properties and potential well flow rates in the
undrilled portions of the reservoir structure.

In the case of discovered resources or a subcategory of discovered
resources there is no certainty that it will be commercially viable to
produce any portion of the resources. In the case of undiscovered resources
or a subcategory of undiscovered resources, there is no certainty that any
portion of the resources will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any portion of the
resources.

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.

Forward-Looking Statements

All statements included in this press 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 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 press 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 press 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 press release should not be used for
purpose other than for which it is disclosed herein.

For further information:

visit www.sterling-resources.com or contact:

Mike Azancot, President and Chief Executive Officer, Phone:
+44-1330-826764, Mobile: +44-7740-432883,
mike.azancot@sterling-resources.co.uk

David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile:
+44-7771-740804, david.blewden@sterling-resources.co.uk

George Kesteven, Manager, Corporate and Investor Relations, Phone:
+1(403)215-9265, Fax: +1(403)215-9279, george@sterling-resources.com

For further information:Mike Azancot, President and Chief Executive Officer, Phone:
+44-1330-826764, Mobile: +44-7740-432883, mike.azancot at sterling-resources.co.uk; David Blewden, Chief Financial Officer, Phone: +44-1330-826766, Mobile: +44-7771-740804, david.blewden at sterling-resources.co.uk; George Kesteven, Manager, Corporate and Investor Relations, Phone:+1(403)215-9265, Fax: +1(403)215-9279, george at sterling-resources.com