Sterling Mining Begins Second-Stage Underground Rehabilitation at Sunshine Silver Mine.

WALLACE, Idaho -- Sterling Mining Company (OTC:SRLM) announced today that it is commencing the second stage of underground mine rehabilitation at its Sunshine Mine in Idaho. The first stage initiated in December and completed in February this year, focused on the Silver Summit Tunnel, that provides primary access to the eastern part of the Sunshine. New work will be directed at the Silver Dollar Tunnel and connecting raise to the Silver Summit Tunnel level. This work, to be performed by Atlas Fausett Contracting of Osburn, Idaho, will complete the eastern portion of the mine's primary and secondary escapeway system and allow new underground exploration activities and renovation of the Silver Summit hoist as part of the work plan designed to return the Sunshine Mine to sustained production.

Sterling's Sunshine Mine Manager Mike McLean stated: "Our renovation plan and timetable are right on track. In addition to the rehabilitation work we are in the process of re-establishing 13,000 volt power to the Silver Summit in preparation for hoist renovation and access to the 3,000 level of the mine. An internationally recognized expert on hoists, Mr. Peter Tiley, will be on site in the first week of May to review our progress. At the same time we have completed Phase II of our Mine Plan, and commencing Phase III."

On-going maintenance essential to keep the mine plan moving on schedule continues uninterrupted. Recently, site personnel completed a variety of tasks including electrical grounding checks and equipment repairs. The mine's compressed air receiver tanks have been inspected and certified. Federally required annual training of personnel was completed as was a successful mine inspection of all active work areas by the Mine Safety and Health Administration (MSHA).

Sterling President Ray De Motte said: "Completion of the Mine Plan Phase II and the beginning of the second stage of mine rehabilitation is a significant milestone in our progress at the Sunshine Mine and as a company. As we move towards our Phase III goals, we will continue to develop and, in fact, accelerate our strategic and organizational infrastructure necessary to build upon the progress to date."

Sterling initiated a three-phase mine planning process with Phase 1 completed in spring, 2004. Phase 2, completed in late March this year, projected that the Sunshine Mine would be profitable with silver prices above $5.75 per ounce. Phase 3 of the study including ongoing maintenance, development and exploration plans have already begun.

The primary goal of the Silver Dollar rehabilitation work is to re-establish Sunshine Mine's secondary ventilation and escapeway route in order to prepare for mining utilizing the Jewell shaft. Concurrently, Sterling is finalizing plans for the 2005 exploration program which will expand its geophysical database and double the diamond drilling footage of 2004 with the goal of increasing mineable silver-bearing zones while keeping projected cash costs at or under $4.50 per ounce. The mine plan projects full annualized production capability building towards the 5 to 6 million ounce range. The 2005 exploration program will include underground drilling, the first underground drilling since 2001.

Sterling Mining Company controls the legendary Sunshine Mine, the richest silver mine in American history with more than 360 million ounces of production over the past century. Sterling offers investors superior leverage to silver price increases through its extensive portfolio of "Silver Valley" landholdings in Idaho and through strategic alliances and equity stakes in neighboring companies. The Company also holds several advanced properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which is currently processing silver-bearing tailings material. Sterling stock trades on the OTC Market Exchange under the symbol "SRLM". Please visit the Sterling website at www.sterlingmining.com for more information.

Certain statements contained in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.

If you would like to receive press releases via email contact Heather Colpitts ([e-mail]) and specify "Sterling press releases" in the subject line.