Company Information for Sterling Mining Co

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Company Statement

Sterling Mining Company has strengthened its status as one of the world's few primary silver producers by restoring the Sunshine Mine in North Idaho's "Silver Valley" to production. The Company acquired the rights to the mine and related assets in mid-2003, and officially commenced initial production in December of 2007.

Along with the Sunshine Mine and exploration properties encompassing over 25,000 acres in North Idaho's "Silver Valley" and neighboring Montana, the Company is exploring and developing properties totaling over 62,500 acres in the historic Zacatecas Silver District of Mexico.

Current Operations

United States

Sunshine Mine:
Sterling Mining Company acquired the rights to the dormant Sunshine Mine in 2003.  The Company subsequently developed a methodical plan to restore production at the Sunshine. The first phase involved exploration and drilling programs. Other components in 2007 included the construction of the 5,700 foot Sterling Tunnel, renovation of the concentrating mill and rehabilitation of the Silver Summit Shaft to the 3,000 foot level, and completing the mine’s secondary escapeway system. 

Sterling officially resumed production on December 20, 2007, with the first shipment of concentrate sent to Teck Cominco’s Trail British Columbia smelter.

As part of a filing to upgrade to the TSX Exchange, Sterling reported a total Resource of 262 million ounces of silver, of which 23.4 million ounces of silver are categorized as Reserves. (full text of the 43-101 Report may be found at www.sedar.com by following the link to the filings of the Company in Canada.)

Silver Valley:
Sterling has assembled a 19,200-acre land package in Idaho’s Silver Valley, in close proximity to and including the Sunshine Mine property.

Montana:
Sterling Mining Company has acquired rights to several projects within the Montana copper-sulphide belt, a 5,830-square-mile area that hosts several significant deposits developed by other companies, notably the Troy, Rock Creek, and Montanore stratiform silver-copper deposits.

The Company's projects are situated in Saunders County, including the JE Property, where stratabound silver-copper mineralization was previously discovered. In April of 2006, Sterling Mining entered into an option agreement allowing Red Lake Resources (TSX:RL Venture Exchange) to earn a 75%-interest in the JE Project for staged cash payments, share issuances and US$600,000 of exploration expenditures over the next three years. Once this interest is earned, Sterling Mining will retain a 25% interest and a 2.5% net smelter return royalty, and can increase its interest by another 25% by participating in future exploration and development programs.

The Company's East Bull prospect is located one mile east of the Troy copper-silver deposit, and was previously explored in the 1980s. Subsequent surface mapping identified mineralized showings that suggest potential for additional exploration. The Minton Creek Pass prospect situated about 15 miles south of the Montanore deposit was discovered in the 1960s, and has been intermittently explored since that time by other operators. Previous work on East Bull includes limited drilling and the driving of a short adit to help define the extent of mineralization. The Company is reviewing historical and geological data for all its Montana projects, including the Standard Creek and Trout Creek prospects.

Mexico
Baroness Tailings Project
Sterling acquired the Barones Silver Tailings project near Zacatecas, Mexico in January 2004. Construction of concrete vats, settling tanks, pipe work, recovery equipment and support buildings has been completed.  Silver production began in 2005. The Company is concentrating on an optimization program to increase recovery rates for 2007, which includes the recently completed crusher installation.

San Acacio
The San Acacio Project, situated in the Veta Grande mining district of Mexico, holds potential for the Company.  Current development work includes successfully processing surface material at the Barones plant, and additional drilling programs being planned for both surface and underground.

Geographical Spread

Board of Directors and Key Management

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