Sterling Mining Company Leases the Sunshine Mine.

Business Editors

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--June 11, 2003

Sterling Mining Company (OTCBB:SRLM), is very pleased to announce that it has signed a lease, with option to purchase, on the world-famous Sunshine Mine, the richest silver mine in American history with more than 350 million ounces of production over the past century.

At the time of its closure in early 2001, the Sunshine was producing at a rate of over three million ounces of silver per year at an average grade of approximately twenty ounces per ton. The prior operator last estimated the mine reserves at 26.75 million ounces of silver, 10.36 million pounds of copper and 7.05 million pounds of lead (or approximately 28.85 million ounces of silver-equivalent), as well as an additional resource of 159.66 million ounces of silver.

The lease term extends for fifteen years with an annual payment of $120,000 and with an option to purchase the mine set between $3 million and $5 million, depending upon the prevailing silver price. Mine production is subject to various royalties related to past arrangements with federal, state and tribal entities.

Sterling President Ray De Motte stated, "Our corporate strategy has been to enhance shareholder value by increasing our silver assets, with our primary focus on the Coeur d'Alene Mining District. The lease-option agreement signed today gives Sterling effective control of the region's most historically productive silver mine, putting the Sunshine in local hands for the first time in decades. We firmly believe that this transaction, coupled with a plan to evaluate the feasibility of renewed production, serves not merely the interests of our shareholders but also of the entire local community."

Sterling Mining Company is an aggressive silver exploration company, focused upon the Coeur d'Alene Mining District, the richest primary silver-producing region on Earth. Sterling offers superior leverage to silver price increases through control of extensive and strategic "Silver Valley" landholdings, including the legendary Sunshine Mine, as well as through significant projects in other historic mining districts of the Western United States. Sterling was founded in 1903 and proudly celebrates a century of mining exploration this year.

Sterling Mining Company of Idaho is not affiliated with Sterling Mining Company of Montana.

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.