SAG.V · 2022-12-12 12:00:00

Sterling Metals Expands Heimdall and Announces Discovery of New High Grade Zone 500m North

Drill Results

December 12, 2022 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG) (“Sterling Metals” or the “Company”)

is pleased to report results from its 2022 drilling on the Sail Pond Silver and Base Metal Project in the Great

Northern Peninsula of Newfoundland. Drilling results are from the Heimdall Zone and new zone 500m north of

Heimdall. The company will be hosting a zoom webinar at 2PM EST on Monday December 12, 2022, to discuss

these findings in more detail. Registration for the event can be found at:

https://us02web.zoom.us/webinar/register/WN_oWaOO7foTjKgQk5lnTFjvQ.

Significant drill results are listed below:

• 3,499.1 g/t Ag Eq over 0.35 m (1,564 g/t Ag, 8.33% Cu, 12.83% Pb, 2.74% Sb, & 3.93% Zn) within a

broader interval of 294 g/t Ag Eq over 4.67m (129 g/t Ag, 0.66% Cu, 1.19% Pb, 0.22% Sb, & 0.45% Zn in

hole SP-22-064 beginning at 179.23 m downhole; and

• 1,914 g/t Ag Eq over 0.28m (848 g/t Ag, 3.24% Cu, 4.27% Pb, 1.02% Sb, & 9.62% Zn) within a broader

interval of 171.1 g/t Ag Eq over 6.74m (77.2 g/t Ag, 0.29% Cu, 0.69% Pb, 0.09% Sb, 0.61% Zn) in hole SP-

22-053 beginning at 219.0 m downhole; and

• 1,485.3 g/t Ag Eq over 0.63m (520 g/t Ag, 1.81% Cu, 6.93% Pb, 0.57% Sb and 10.86% Zn) within a broader

interval of 179.8 g/t Ag Eq over 5.58 m (63.3 g/t Ag, 0.22% Cu, 0.84% Pb, 0.07% Sb, & 1.29% Zn) in hole

SP-22-047 beginning at 125.47 m downhole; and

• 530.8 g/t Ag Eq over 0.93m (162.6g/t Ag, 0.79% Cu, 1.46% Pb, 0.22% Sb, 4.71% Zn) within a broader

interval of 115.4 g/t Ag Eq over 7.3m (35.9 g/t Ag, 0.17% Cu, 0.41% Pb, 0.05% Sb, & 0.95% Zn) in hole SP-

22-050 beginning at 194.7 m downhole.

Mathew Wilson, CEO of Sterling Metals, commented: “It is a pleasure to finally share with the market the terrific

work we have done in only our second drill campaign at Sail Pond. This drill campaign solidifies the Heimdall Zone

footprint, a 400m x 200m x 150m zone of mineralization. Through boots on the ground prospecting and

reinterpretation of old data, we were also able to discover a completely new zone, 500m to the north, where

previous drilling had not been able to identify a mineralized structure. This resulted in one of the highest-grade

intervals we have seen to date, and the highest-grade copper and antimony we have seen at the project. The

company is in an enviable position with a rapidly advancing high grade polymetallic mineral system, $4m in cash

and a very strong team fully focused on unlocking the potential of the Sail Pond Project.”

Sail Pond Drilling

Sterling’s 2022 drilling program successfully completed 34 new holes for over 7,500m of drilling at both new

targets and the Heimdall Zone. Highlights of the program are the expanded mineralization at Heimdall and newly

identified mineralized zone 500m to the north. The gap between Heimdall and the new zone to the north is

virtually wide open and considered very prospective. Two holes drilled in this gap in the 2021 campaign drilled

overtop of the mineralization. Targeting for the 2022 program incorporated a detailed structural interpretation by

SRK and a comprehensive study by Goldspot which utilized soil sampling, trenching, prospecting, and geophysics

along ~12 km of prospective strike length. Assays are pending on other target areas.

Figure 1: Longitudinal section looking west showing drilling with silver equivalent mineralization on drillholes

With the new discovery north of Heimdall, the footprint of precious and base metal mineralization now extends

over 1 kilometre and is open to the north as seen in a longitudinal section looking at the Zone from underground

(Figure 1, above). There are multiple high-grade mineralized veins within the mineral zones and these will be the

focus of future drill programs. An example of such veins is shown with core photos in Figure 2 and Figure 3

(below). Figure 4 (below) shows a plan map of the drilling completed to date.

Jeremy Niemi, Director of Exploration commented: “Since joining this company, my understanding of Sail Pond and

my excitement for this project has grown with each new drill hole. Each new data point is leading us to fine tuning

our exploration strategy making us very well positioned for our 2023 work campaign.”

Today’s results come from drillholes targeting the Heimdall Zone, a significant zone of mineralization, and an

adjacent target to the north. Both are within the South Zone of the Sail Pond project. The Heimdall Zone, which is

hosted by dolostone, occurs in a favorable structural corridor and metal accumulates in close proximity to a high

strain area. There are multiple styles of mineralization at Sail Pond; a broad zone of lower grade precious and base

metals associated with breccia-style or veinlet-style sulfide mineralization and a tighter vein system of high grade

precious and base metal mineralization.

The mineralization at Sail Pond, especially the high-grade veins, is structurally controlled and understanding the

orientation of the structures is vital to expanding zones and identifying potential new zones along preferred

structural trends. The Company has completed an extensive down hole optical televiewer study to measure the

orientation of high-grade veins and other structural features in important drill holes across the property.

Preliminary results from this study have been encouraging and have successfully mapped the orientation of high-

grade veins at Heimdall. This data and the enhanced geological model, will play a significant role in the targeting

for the next drill programs.

The primary host rock for mineralization identified to date is a thick sequence of highly altered and often

brecciated dolostone of the Cambro-Ordovician Saint George Group. Mineralization encountered to date typically

consists of tetrahedrite-tennantite, chalcocite, sphalerite, galena, pyrite, and potentially additional sulfosalt

minerals. Quartz veining and associated mineralization are ubiquitous throughout the dolostone unit, but included

metallic mineralization is best developed in areas of combined brecciation and veining. The structural evolution

and metallogenic sequencing are very complex, and mineralization has been identified in association with a

multitude of structural events.

Figure 2. High grade mineralization in hole SP-22-053 from 223m to 224m

Figure 3. Massive sulphide high grade mineralization in hole SP-22-064 at depth of 183.9m

Figure 4. Plan map showing drilling locations at Heimdall Zone and new zone to the north.

Table 1. Initial reported assay intervals from Sail Pond 2022 drilling.

Drillhole Zone From

(m) To (m) Length

(m)

AgEq

(g/t)

(g/t) Cu (%) Pb (%) Sb (%) Zn (%)

SP-22-045 South 56.71 57.5 0.79 209.6 113 0.48 0.58 0.062 0.34

and 81.75 86.1 4.35 30.5 16.6 0.067 0.036 0.016 0.063

inc 81.75 82 0.25 175.6 78 0.35 0.29 0.094 0.82

inc 85.55 86.1 0.55 146.1 88 0.35 0.041 0.067 0.090

SP-22-046 South 111.25 111.55 0.3 92 28 0.12 0.12 0.037 0.96

SP-22-047 South 112.63 112.88 0.25 100.6 51 0.20 0.44 0.051 0.13

and 125.47 131.05 5.58 179.8 63.3 0.22 0.84 0.071 1.29

inc 125.47 126.1 0.63 1485.3 520 1.81 6.93 0.57 10.86

and 154.9 155.15 0.25 99.8 53 0.26 0.017 0.075 0.11

SP-22-048 South 26.8 27.1 0.3 186 56 0.29 0.63 0.059 1.61

and 102.8 103.25 0.45 285.8 90 0.37 1.94 0.093 1.88

and 124.8 137.05 12.25 20.6 7.6 0.032 0.082 0.01 0.12

inc 125.2 125.6 0.4 130.2 57 0.25 0.83 0.072 0.18

inc 135.53 135.78 0.25 347.4 68 0.23 1.30 0.071 4.79

SP-22-049 South 168 170 2 392 187.7 1.01 0.64 0.28 0.62

inc 169 169.45 0.45 1703.8 821 4.41 2.74 1.21 2.49

and 193.24 193.64 0.4 127.6 42 0.089 1.47 0.028 0.64

SP-22-050 South 151.2 152 0.8 121.4 62 0.27 0.28 0.068 0.23

and 162.05 162.45 0.4 137.8 72 0.28 0.33 0.101 0.21

and 194.7 202 7.3 115.4 35.9 0.17 0.41 0.048 0.95

inc 197.37 198.3 0.93 530.8 162.6 0.79 1.46 0.22 4.71

SP-22-051 South 163.45 166 2.55 141.7 73 0.38 0.32 0.082 0.068

inc 163.45 163.7 0.25 421.8 224 1.06 0.93 0.26 0.18

inc 165.55 166 0.45 563.4 287 1.55 1.28 0.31 0.27

and 211.5 211.75 0.25 689.5 314 1.20 1.52 0.40 3.05

SP-22-052 South No Significant Results

SP-22-053 South 121 121.83 0.83 140.3 43 0.14 1.59 0.04 0.64

and 219 225.74 6.74 173.8 77.2 0.29 0.69 0.088 0.61

inc 222.47 225.74 3.27 339.6 153.9 0.59 1.27 0.18 1.23

inc 223.14 223.39 0.25 1072 523 2.14 4.46 0.56 1.93

inc 224 224.28 0.28 1914 848 3.24 4.27 1.02 9.62

SP-22-054 South 124.65 124.95 0.3 342 116 0.52 2.02 0.13 2.02

and 191.35 191.65 0.3 123.2 56 0.21 0.82 0.044 0.26

SP-22-055 South 106.75 107 0.25 116.5 32 0.16 0.11 0.04 1.34

and 128.45 128.7 0.25 413 123 0.55 0.61 0.18 4.27

and 131.25 132 0.75 101.3 42 0.15 0.56 0.05 0.44

and 140.85 141.2 0.35 193.1 89 0.45 0.30 0.12 0.59

and 175.85 180.85 5 121 38.9 0.15 0.57 0.045 0.96

inc 178.28 178.85 0.57 741.5 211 0.82 2.38 0.26 7.67

SP-22-056 South 12 12.25 0.25 443.4 94 0.47 0.046 0.104 6.56

and 167.85 168.1 0.25 471.5 196 0.64 5.12 0.205 0.36

and 174.77 175.05 0.28 134.4 69 0.32 0.38 0.092 0.069

and 180 185.7 5.7 43.1 18.5 0.072 0.27 0.02 0.102

inc 185.1 185.7 0.6 173.1 84 0.38 0.64 0.088 0.30

and 197.51 197.76 0.25 1535 635 1.97 0.84 0.98 11.73

SP-22-057 South 51.2 51.5 0.3 130 35 0.17 0.43 0.041 1.33

and 76.4 77.2 0.8 136.6 52.8 0.31 0.35 0.072 0.57

and 135.56 135.81 0.25 771.5 392 1.97 1.47 0.49 0.75

and 142.85 143.1 0.25 236 112 0.52 0.31 0.14 0.80

and 186.15 193.2 7.05 59 27.1 0.11 0.25 0.032 0.15

inc 191.35 191.65 0.3 1075.8 519 2.06 4.78 0.58 2.01

SP-22-058 South 223.5 223.75 0.25 90.7 39 0.19 0.045 0.052 0.48

SP-22-059A South No Significant Results

SP-22-060 South No Significant Results

SP-22-061 South 3.9 4.15 0.25 173.4 82 0.35 0.12 0.019 1.03

and 24.88 25.2 0.32 173.5 96 0.29 0.95 0.072 0.093

and 27.7 28 0.3 114.4 35 0.15 0.61 0.029 0.92

and 69.75 70 0.25 166 52 0.04 3.50 0.014 0.014

and 105.3 107.5 2.2 328.8 183.7 0.71 0.53 0.22 0.32

inc 105.79 106.51 0.72 975 545 2.11 1.51 0.65 0.97

SP-22-062 South 16.12 16.38 0.26 668 118 0.32 2.58 0.07 10.02

and 118.25 127 8.75 47.3 21.1 0.062 0.33 0.02 0.14

inc 122.42 122.67 0.25 341.8 158 0.44 2.14 0.14 1.12

SP-22-063 South 153 167 14 17.6 9.3 0.032 0.069 0.011 0.022

inc 153.5 154 0.5 149.3 95 0.33 0.033 0.083 0.064

and 193 193.25 0.25 266 134 0.60 0.048 0.13 0.95

SP-22-064 South 139 141 2 122.5 60 0.25 0.11 0.067 0.47

inc 139.77 140.08 0.31 784.4 386 1.60 0.71 0.42 3.03

and 179.23 183.9 4.67 294 129 0.66 1.19 0.22 0.45

inc 179.23 179.68 0.45 160.3 64 0.17 2.23 0.045 0.051

inc 182.9 183.15 0.25 273.3 96 0.42 0.027 0.11 2.62

inc 183.55 183.9 0.35 3499.1 1564 8.33 12.83 2.74 3.93

and 204.38 209.48 5.1 125.2 61.2 0.28 0.078 0.066 0.47

inc 208.92 209.48 0.56 1013.2 502 2.29 0.53 0.52 3.54

SP-22-065 South 207 215.2 8.2 70.6 33.2 0.12 0.32 0.034 0.205

inc 207 207.25 0.25 249.6 96 0.29 1.51 0.093 1.42

inc 208.55 208.8 0.25 1406 817 3.2 1.64 0.73 1.37

Table 2. Reported Sail Pond drillhole locations and orientations.

HoleID Easting Northing Elevation Azimuth Dip Final Depth

(m)

Target

SP-22-045 575,104 5,652,229 82.94 320 -45 119 Heimdall

SP-22-046 575,137 5,652,210 84.98 320 -45 167 Heimdall

SP-22-047 575,168 5,652,218 83.98 320 -45 182 Heimdall

SP-22-048 575,168 5,652,218 83.98 320 -55 176 Heimdall

SP-22-049 575,214 5,652,238 81.56 320 -45 221 Heimdall

SP-22-050 575,214 5,652,238 81.56 320 -55 209 Heimdall

SP-22-051 575,239 5,652,254 80.85 320 -45 227 Heimdall

SP-22-052 575,278 5,652,268 81.88 320 -45 245 Heimdall

SP-22-053 575,300 5,652,309 84.38 320 -45 254 Heimdall

SP-22-054 575,262 5,652,339 88.59 320 -45 224 Heimdall

SP-22-055 575,265 5,652,411 90.72 320 -45 197 Heimdall

SP-22-056 575,307 5,652,384 86.75 320 -45 245 Heimdall

SP-22-057 575,307 5,652,384 86.75 320 -55 293 Heimdall

SP-22-058 575,328 5,652,399 83.61 320 -45 254 Heimdall

SP-22-

059A

575,390 5,652,478 78.46 320 -45 284 Heimdall

SP-22-060 574,941 5,651,823 72 330 -45 59 Heimdall

SP-22-061 575,446 5,653,093 66.6 290 -45 301 Heimdall North

SP-22-062 575,410 5,653,043 68.37 290 -45 199 Heimdall North

SP-22-063 575,455 5,653,025 68.08 290 -45 250 Heimdall North

SP-22-064 575,502 5,653,079 66.18 290 -46 244 Heimdall North

SP-22-065 575,502 5,653,079 66.18 290 -55 250 Heimdall North

Silver Equivalent Calculation

Silver equivalent (Ag Eq) values were calculated using the following formula:

((Ag_oz*$USAg_price/oz)+(Cu_lb*$USCu_price/lb)+(Pb_lb*$USPb price/lb)+(Sb

lb*$USSb_price/lb)+(Zn_lb*$USZn_price/lb))/$USAg_price/oz.

Silver equivalent grade calculations are based on the current spot metal prices and are provided for comparative

purposes only. This approach reflects the polymetallic nature of the mineralization. Recovery factors of 100% have

been assumed for all metals. Metallurgical tests will be required to establish recovery levels for each element

reported. Metal spot prices as at the close of the London Metals Exchange December 7th, 2022 were applied and

include: Ag – $US 22.70/oz;, Cu – $US3.83/lb; Zn – $US1.40/lb; Pb – $US 1.00/lb. The Sb – $US 5.04/lb price applied

was sourced from Argus Media, a recognized provider of energy and commodity price benchmarks.

Qualified Person

Jeremy Niemi, P.Geo., Director of Exploration for Sterling Metals has reviewed and approved the technical

information presented herein.

Laboratory Technical Note

Analytical services were provided by SGS Canada Inc. , which is an independent, CALA-accredited analytical

services firm registered to ISO 17025 standard. Drill core was halved by sawing at the Sterling core facility and half-

core samples were securely stored at the facility until being delivered to SGS Grand Falls site by commercial

transport. Samples were crushed to 80% passing 10 mesh, split to 250g, and pulverized to 95% passing 150 mesh.

Multi-element analyses, including base metals, were conducted on pulverized material using the ICP method for 34

elements. Laboratory over-limits analysis methods were applied as required. A systematic QAQC protocol was

employed that includes systematic insertion in the sample stream of certified reference materials and blank

samples, plus analysis of duplicate pulp splits.

About Sterling Metals

Sterling Metals (TSXV: SAG) is a mineral exploration company focused on Canadian exploration opportunities. The

company is currently exploring for silver and base metals at the Sail Pond project in Northwestern Newfoundland.

Sterling has recently fulfilled its obligations to acquire 100% of the 13,500 Ha Project from Altius Resources, Inc.

For more information, please contact:

Sterling Metals Corp.

Mathew Wilson, President & CEO

Tel: (416) 643-3887

Email: [email protected]

Website: www.sterlingmetals.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains certain “forward-looking information” within the meaning of applicable securities laws.

Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”,

“believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or

statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-

looking information is based on the opinions and estimates of management at the date the information is provided,

and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to

differ materially from those projected in the forward-looking information. For a description of the risks and

uncertainties facing the Company and its business and affairs, readers should refer to the Company’s

Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking

information if circumstances or management’s estimates or opinions should change, unless required by law. The

reader is cautioned not to place undue reliance on forward-looking information.

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