Kurdistan - Sangaw North PSC

Sterling Energy Plc ("Sterling" or "Company"), the AIM listed independent oil & gas, exploration & production, company with interests in the Middle East and Africa, provides the following update on its activities:

Sangaw North Exploration Well

Further to the announcement dated 6 August 2010, the repairs to the Sakson drilling rig have now been completed and the rig has resumed operations. Sterling's plan is to continue testing the prospectivity of the Sangaw North #1 exploration well previously identified from the wire-line log data and drilling shows over the open-hole interval of 1,450m to 2,395m.

It is estimated that the testing will take approximately 10 days to complete, after which the plan is to drill ahead through the remaining Cretaceous section and then to the deeper potential reservoirs in the Jurassic. Due to the delays incurred whilst the rig was undergoing repairs, the well is now expected to reach its planned depth of 3,660m during the 4th quarter of 2010.