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Sterling Metals Drills Newly Discovered Heimdall Zone at Sail Pond Silver and Base Metal Project

February 23, 2022

February 23, 2022 – Toronto, Ontario – Sterling Metals Corp. (TSXV: SAG) (“Sterling Metals” or the “Company”) is pleased to report results from its phase 2 drilling on the south zone of the Sail Pond Silver and Base Metal Project in the Great Northern Peninsula of Newfoundland. The company will be hosting a zoom webinar at 10am EST on Thursday February 24, 2022, to discuss these findings in more detail. Registration for the event can be found at: https://us02web.zoom.us/webinar/register/WN_VlXZp4TGSZmyrSkg_eIM2g. 

Significant drill results are listed below: 

  • 144.0 g/t Ag Eq over 12.2 m (52.6 g/t Ag, 0.019 g/t Au, 0.21% Cu, 0.93% Pb, 0.06% Sb, & 0.33% Zn) in hole SP-21-034 beginning at 148.8 m downhole; and 
  • 851.98 g/t Ag Eq over 1m (300.17g/t Ag, 0.077 g/t Au, 1.34% Cu, 1.21% Pb, 0.35% Sb, 4.80% Zn) within a broader interval of 78.8 g/t Ag Eq over 19.8m (28.51 g/t Ag, 0.01 g/t Au, 0.13% Cu, 0.15% Pb, 0.03% Sb, & 0.40% Zn) in hole SP-21-038 beginning at 75.5 m downhole; and 
  • 1202.1 g/t Ag Eq over 0.75m (485.3 g/t Ag, 0.18 g/t Au, 1.75% Cu, 3.77% Pb, 0.59% Sb, & 4.10% Zn) within a broader interval of 94.72 g/t Ag Eq over 13.75m (38.27 g/t Ag, 0.014 g/t Au, 0.14% Cu, 0.29% Pb, 0.046% Sb, 0.32% Zn) in hole SP-21-040 beginning at 173.77 m downhole; and 
  • 963.0 g/t Ag Eq over 1.0 m (378 g/t Ag, 0.133 g/t Au, 1.20% Cu, 6.29% Pb, 0.38% Sb, & 2.41% Zn) within a broader interval of 74.44 g/t Ag Eq over 16.09m (29.22 g/t Ag, 0.011 g/t Au, 0.092% Cu, 0.45% Pb, 0.029% Sb, & 0.21% Zn in hole SP-21-039 beginning at 99.47 m downhole. 

Mathew Wilson, CEO of Sterling Metals, commented: “With the high silver equivalent grades returned from the final holes of the 2021 drill program, we continue to take steps towards the discovery of a significant silver and base metal district. The Sail Pond project lends itself to a deposit model analogous to a string of pearls with several deposits situated along the 12km anomaly. We believe that in just our first program we have discovered the top of the first pearl. The next steps are to follow these structurally controlled higher-grade structures down plunge and along strike, and then to repeat this process along the entirety of the trend.” 

Sail Pond Drilling 

Sterling’s maiden drilling program on Sail Pond was designed to test several regional targets defined by soil sampling, trenching, prospecting, and geophysics along ~12 km of prospective strike length, subdivided into the North and South Zones. Today’s results come from drillholes targeting a significant zone of mineralization within the South Zone (see Sterling press releases dated September 27 & October 7, 2021). The zone, which is hosted by dolostone, occurs in close proximity to a structural kink or jog in the contact of the host dolostone and the footwall argillite. Today’s results show the correlation of mineralization within this flexure zone. A large mineralized system, now called the Heimdall Zone, is becoming apparent and characterized by a broad zone of low grade precious and base metals associated with breccia-style or veinlet-style sulfide mineralization. The current dimensions of the lower grade zone are approximately 400 metres of strike, 200 metres of depth, and 80 metres of width. The Heimdall Zone plunges shallowly to the northeast, starting from surface. Within this broad zone, high grade quartz-vein-hosted mineralization form veins and/or lenses which are currently correlated between drillholes over distances up to 100m. An example of such veins is shown with core photos in Figure 1. Figure 2 shows a plan map of the drilling completed to date, while Figure 3 shows the correlation of these intercepts on a longitudinal section looking at the Zone from underground. 

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, especially towards the western contact of the host dolostone unit and an underlying argillite sequence. The structural evolution and metallogenic sequencing are very complex, and mineralization has been identified in association with a multitude of structural events. 

Sterling hired SRK Consulting of Toronto, ON, to conduct a detailed structural study of outcrops and drill core. The results of this study have been incorporated in Sterling’s targeting model and will be utilized for the 2022 program. 

Sterling also continues to utilize the geological modelling and machine learning tools from Goldspot Discoveries Corp., who are also a significant shareholder of the Company. Using the IP and gravity surveys, along with the results from this last summer’s drill program, Goldspot has been able to highlight the exploration areas along the 12km trend line seen in Figure 4

Kelly Malcolm, Technical Advisor to Sterling, commented “We are very pleased to have identified a clear body of mineralization on the first ever drilling program at Sail Pond. The Heimdall Zone is showing substantial strike length & width, along with a strong background of silver and base metal mineralization. The higher-grade vein-hosted mineralization within the lower grade zones are starting to show correlation between holes and we are excited to continue to advance and grow the Zone. On the regional exploration front, the identified flexure at the contact of the host dolostone and the footwall argillite that has a control on the size of the mineralized system at Heimdall has generated a number of targets in both the north and south zones that have never seen any drilling. In addition to continued expansion and definition of the new Heimdall Zone announced today, Sterling will drill test each of the additional structural features that have been 

identified through geophysics, prospecting, and geochemical surveys. The Company is planning its 2022 exploration program and expects to be back on the ground towards the end of the Spring.” 

Table 1: Assay results from the Sail Pond Project, Newfoundland. Core lengths are presented, and true widths are unknown. The silver equivalency calculation used in this press release is described below under separate heading. Hole ID  From (m)  To (m)  Length (m)  AgEq (g/t)  Ag (g/t)  Au (g/t)  Cu (%)  Pb (%)  Sb (%)  Zn (%) 
SP-21-034  69.1  69.6  0.5  445.5  74.5  0.028  0.342  0.280  0.120  5.570 
and  148.8  161  12.2  144.0  52.6  0.019  0.211  0.931  0.063  0.334 
inc  152.8  153.2  0.4  644.0  227.6  0.094  0.982  2.370  0.280  2.640 
inc  155  155.6  0.6  361.6  132.4  0.063  0.480  2.690  0.160  0.730 
inc  159.9  161  1.1  392.7  123.8  0.034  0.393  4.000  0.140  1.060 
inc  195  195.5  0.5  398.7  172.4  0.003  0.743  0.810  0.200  1.030 
SP-21-038  75.5  95.3  19.8  78.8  28.5  0.010  0.126  0.149  0.030  0.398 
inc  85.5  95.3  9.8  145.9  51.0  0.017  0.222  0.300  0.054  0.796 
inc  90.25  91.25  852.0  300.2  0.077  1.314  1.212  0.350  4.795 
SP-21-040  173.77  187.52  13.75  94.7  38.3  0.014  0.142  0.287  0.046  0.320 
inc  179.25  187.52  8.27  150.4  62.0  0.021  0.229  0.455  0.074  0.470 
inc  179.25  179.5  0.25  915.1  402.0  0.52  1.640  2.560  0.460  1.910 
inc  186.77  187.52  0.75  1202.2  485.3  0.179  1.75  3.77  0.59  4.10 
SP-21-039  99.47  115.56  16.09  74.4  29.2  0.012  0.092  0.454  0.029  0.206 
inc  99.47  105.93  6.46  167.1  67.2  0.023  0.21  1.04  0.067  0.406 
inc  101.95  102.95  963.0  378.0  0.133  1.195  6.285  0.380  2.413 
inc  101.95  102.2  0.25  1923.8  715.0  0.356  2.480  9.700  0.760  6.970 
SP-21-032  145.75  154  8.25  75.7  29.0  0.010  0.120  0.328  0.033  0.228 
inc  145.75  146  0.25  587.2  211.0  0.080  0.896  3.820  0.210  1.490 
inc  148.62  148.87  0.25  1159.9  479.0  0.122  2.080  3.810  0.550  2.710 
and  113.39  113.64  0.25  555.6  106.6  0.085  0.720  1.250  0.260  4.850 
and  130.62  130.87  0.25  843.5  433.0  0.040  1.440  2.060  0.540  0.490 
SP-21-031  130.14  136.5  6.36  144.4  41.6  0.015  0.174  0.628  0.046  0.919 
inc  133.8  136.5  2.7  290.1  86.8  0.028  0.350  1.193  0.085  1.848 
inc  135.5  135.75  0.25  789.5  291.0  0.072  1.210  4.740  0.300  2.080 
inc  135.75  136  0.25  606.1  180.0  0.051  0.660  2.720  0.160  4.020 
inc  136.25  136.5  0.25  553.1  150.0  0.048  0.696  1.600  0.160  4.190 
SP-21-030  76.5  96.85  20.35  45.7  12.72  0.008  0.045  0.305  0.012  0.266 
Inc  81.35  81.6  0.25  417.1  170  0.036  0.748  0.47  0.23  1.47 
inc  94.15  96.85  2.7  251.5  68.2  0.041  0.236  1.881  0.057  1.444 
inc  94.4  94.65  0.25  1154.9  348.0  0.150  1.310  10.600  0.300  4.040 
inc  94.65  94.9  0.25  648.7  225.0  0.069  0.691  5.500  0.200  1.990 
SP-21-033  169.38  209.5  40.12  18.46  5.2  0.003  0.017  0.056  0.005  0.146 
inc  169.38  169.63  0.25  734.3  115.4  0.003  0.515  0.126  0.180  9.800