1346685--4/1/2008--Sterling_Mining

related topics

{cost, contract, operation}

{loss, insurance, financial}

{gas, price, oil}

{cost, regulation, environmental}

{stock, price, share}

{acquisition, growth, future}

{stock, price, operating}

{loan, real, estate}

{control, financial, internal}

{interest, director, officer}

{personnel, key, retain}

{operation, international, foreign}

Risks Related to our Common Stock If we complete additional equity financings, our existing shareholders will experience dilution. There is limited liquidity for our common stock. Risks Related to our Business We have a limited recent operating history on which to evaluate our potential for future success. We also have a history of net losses. The Company has limited capital and has minimal revenue to date and may thus need to obtain additional capital to continue operations. Our accounting and other estimates may be imprecise. We may lose rights to properties if we fail to meet payment requirements or development or production schedules. The Company s operations in Mexico are subject to risks associated with the conduct of business in foreign countries. The Company could face environmental liabilities with respect to its Sunshine Mine that could have a significant adverse effect on the Company s results of operations. Some of the Company s directors and officers may have conflicts of interest as a result of their involvement with other natural resource companies. Sterling s insurance coverage for its mine operations is limited, so the occurrence of a substantial uninsured loss would have significant adverse effect on Sterling s financial condition and results of operations. Risks Related to Our Industry Mineral exploration is by its nature highly speculative and capital intensive. The titles to some of our properties may be uncertain or defective, thus risking our investment in such properties. Our development of new orebodies and other capital costs may cost more and provide less return than we estimated. Our ore reserve estimates may be imprecise. Exploration programs may not result in a commercial mining operation, resulting in expensing our investment. We may be subject to risks and expenditures that may be financially burdensome in connection with the safety and regulation of operations at the Sunshine Mine. The Company may be significantly affected by fluctuations in the price of silver. A substantial or extended decline in metals prices would have a material adverse effect on us. We may be subject to environment risks and land reclamation requirements for mineral properties that may be financially burdensome. We face competition in the acquisition of mining properties and the recruitment and retention of qualified personnel.

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1346685--4/1/2008--Sterling_Mining_CO