In response to the movement today in its share price, Sterling Energy plc ("Sterling") confirms that it has received approaches regarding possible offers for Sterling from third parties. Discussions are at a very early stage and there can be no certainty that these could lead to an offer for Sterling.

A further announcement will be made when appropriate.

In accordance with Rule 2.10 of The City Code on Takeovers and Mergers, Sterling announces, that as at the close of business on 3 November 2008 its issued share capital consisted of 2,325,510,585 ordinary shares of 1 pence each.

The International Securities Identification Number for Sterling’s ordinary shares is GB0005299929.

Dealing Disclosure Requirements

Under the provisions of Rule 8.3 of the Takeover Code (the “Code”), if any person is, or becomes, “interested” (directly or indirectly) in 1% or more of any class of “relevant securities” of Sterling, all “dealings” in any “relevant securities” of that company (including by means of an option in respect of, or a derivative referenced to, any such “relevant securities”) must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the “offer period” otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an “interest” in “relevant securities” of Sterling, they will be deemed to be a single person for the purpose of Rule 8.3.

Under the provisions of Rule 8.1 of the Code, all “dealings” in “relevant securities” of Sterling by Sterling, or by the potential offerors, or by any of their respective “associates”, must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.

A disclosure table, giving details of the companies in whose “relevant securities” “dealings” should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel’s website at http://www.thetakeoverpanel.org.uk/new/.

“Interests in securities” arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an “interest” by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Code, which can also be found on the Panel’s website. If you are in any doubt as to whether or not you are required to disclose a “dealing” under Rule 8, you should consult the Panel.

Enquiries:

Sterling Energy Plc       Telephone: +44 20 7405 4133
Graeme Thomson, CEO
Jon Cooper, CFO
 
N M Rothschild & Sons Limited     Telephone: +44 20 7280 5000
(Financial Adviser)
Neeve Billis
David Hemmings
 
Evolution Securities       Telephone: +44 20 7071 4300
(Nominated Adviser and Broker)
Rob Collins
Chris Sim