2009-08-15-2009-01-01

To purchase 32.5% WI in two Black Sea blocks offshore Romania.

Melrose Resources Plc, Edinburgh, (London: MRS) has agreed purchase a 32.5% working interest in two Black Sea blocks offshore Romania from Sterling Resources Ltd., Calgary, (TSX: SLG) for $24 million. Melrose will make an initial $12 million payment to Sterling on closing of the Pelican XIII and Midia XV blocks, and pay the remaining $12 million at the time of the Doina area development project sanction or one year from the closing. Melrose will become operator of the developments, and Sterling will retain operatorship and a 32.5% working interest. Melrose will also carry Sterling for a proportion of future development costs, which are expected to be between $58- and $72.7 million. Sterling chief executive officer Stewart Gibson says, "We welcome Melrose to the Romanian offshore bringing their significant Black Sea development and production experience following their successful development of the Galata Field, offshore Bulgaria, situated south of the Doina area. The overall package fits well with our stated strategy of bringing in strategic partners as necessary to ensure development plans stay on track whilst at the same time retaining a healthy working interest. The agreement reflects the quality of the assets already discovered and we look forward to continued exploration success in the remainder of the blocks." RBC Capital Markets acted as financial advisor to Sterling. Sterling Resources has assets in the United Kingdom, Romania and France.