STERLING MINING ADVANCES TUNNEL & COMMENCES UNDERGROUND DRILLING

Sterling Mining Company (OTC: SRLM, Frankfurt Stock Exchange: SMX) is pleased to report on the continued progress of its multi-phase program aimed at returning the Sunshine Mine in North Idaho’s Silver Valley to long-term sustainable production. The company has advanced the new Sterling Tunnel over 1,000 feet, and has also initiated underground exploration drilling to define and identify mineralization at the past-producing silver mine.

Sterling recently completed a four-month program to install utilities, upgrade ground support, and open access to the Polaris Mine 1000 Level from the Silver Summit Tunnel, thereby providing access to upper country areas last worked in the early 1940s that were never fully explored due to fragmented property ownership and limited equipment capabilities. This work has allowed the company to begin underground exploration drilling in the Silver Summit-Polaris area of the Sunshine Mine. The Polaris area is situated approximately halfway between the Jewell shaft and the Silver Summit shaft.

The Sterling Tunnel, located north of the Jewell shaft, has advanced over 1,000 feet. Once completed, it will connect to the Silver Summit Tunnel in the now-accessible Polaris 1000 Level drift, provide ventilation, and create a new upper-mine escapeway and utility-distribution corridor.

”Our underground exploration program is off and running,” said Mike McLean, Sterling’s Mine Manager. ”We have an abundance of good targets and a great crew to explore them and evaluate the results. With the Sterling Tunnel Project proceeding and work complete in the Silver Summit and Polaris areas, we can focus on our drilling programs as an integral part of our continuing activities.”

The initial drill program is testing unexplored portions of the Yankee Girl vein using shorter range (up to 500 feet) air-powered equipment. For the remainder of the year, drilling with this equipment will focus on the eastern Sunshine-Yankee Boy, Link, Hook and Chester targets, all accessible from the Polaris 1000 Level. As drill platforms become available in the new Sterling Tunnel, targets in the un-mined portions of the western Sunshine-Yankee Boy veins will also be drill-tested. This drilling will be performed by Sterling Mining crews.

Contract diamond drilling (up to 3,000-foot holes) is scheduled for late August to target up-dip projections of the historically productive Copper and Silver Syndicate vein structures that lie north of the Sunshine vein zone.

Exploration and development work within ”upper country” areas is being conducted concurrently with work to renovate the Silver Summit shaft and hoist. The objective of these complementary work programs is to meet the requirements necessary to develop and mine the deeper levels at the Sunshine Mine.

About Sterling Mining Company
Sterling Mining Company controls the historically significant Sunshine Mine, located in the Silver Valley of Idaho The Company also holds several advanced properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which is in production. Sterling stock trades on the OTC Market under the symbol “SRLM”.

FOR FURTHER INFORMATION, visit the Company’s website at www.sterlingmining.com or contact:

Sterling Mining Company www.SterlingMining.com Raymond De Motte, President

Tel: (208) 666-4070