Sterling Group Ventures Inc. (fka SGGV)

[FlatEarthSoc]

10q out.. no word on the permit renewal

As a substantial decrease of phosphate rock and phosphate fertilizer market pricing has occurred, Hongyu has halted further exploration and development since August 2013 until the world market prices rebound and has kept the property in care and maintenance mode. Such an action preserves the phosphate rock in situ and saves operating capital while world prices for phosphate rock are in a depressed state. The Company's capital contributions to the project were held to a minimum by its contracting the mining and washing functions to Yichang Baolin Mining Engineering Co. Ltd. The mining permit has been temporarily extended to February 10, 2015.On January 30, 2015, Hongyu submitted its renewal application to the Bureau of Land Resources of Hunan Province which is the final approval authority. Hongyu is currently waiting for final approval from the Bureau of Land Resources of Hunan Province and the Company does not expect any problem with the renewal.

The Company has continued the services of several key employees in China to review other mining properties and opportunities. In pursuit of one such opportunity, Hongyu has obtained a registration code from Customs of People's Republic of China for the import and export business which may afford the Company the opportunity to act as an agent or distributor for the importation and exportation of fertilizer products. Hongyu is also continuously reviewing and looking other opportunities in mining.

As of February 28, 2015, the Gaoping mineral property is still an exploration stage property as it does not yet have proven reserves.