Sterling Resources Ltd. Files Notice Of Dispute Under Bilateral Treaty Between State Of Romania And Canada On Its Offshore Licenses In Romania

Sterling Resources Ltd. announced that it has filed a Notice of Dispute with the State of Romania under the Treaty for the Promotion and Reciprocal Protection of Investments between Romania and Canada (the Treaty). The Notice of Dispute was filed on June 20, 2011 as a result of deliberate and discriminatory actions taken against the Company's investments on its Midia and Pelican Blocks in the Black Sea. These actions include media attacks and various actions to block the progress of the Company's activities in its offshore license blocks. The actions that have been taken by the State of Romania date back to early 2009. Sterling had a highly successful exploration campaign in 2008, and in February 2009 a territorial dispute with Ukraine affecting portions of the Concession area was resolved in Romania's favour. The Company's next recourse is to initiate the procedures for international arbitration under the Treaty. In the Treaty, Romania undertook obligations with respect to the protection of investments of Canadian investors into Romania. The Notice of Dispute allows for a six month period of negotiations in which to resolve the issues amicably. If Sterling is unable to obtain satisfactory resolution on all the issues within this period, the Company can then submit the matter to arbitration, if it so desires. Under the arbitration process, Sterling would claim monetary damages that reflect the entire and significant ultimate value of its offshore assets.