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Sterling Reports on 2002 Progress at the Kelly Silver Project.


Business Editors

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Dec. 30, 2002

Sterling Mining Company (OTC:SRLM) is pleased to announce results of 2002 fieldwork at its Kelly Silver Project in western Montana. The Kelly Project is centrally located in the Marysville Mining District, adjacent to the Empire Mine Complex. The Marysville District has a rich history, with recorded production of 277,000 ounces of gold, 1,379,000 ounces of silver, and 193,000 pounds of copper.

The main Kelly Vein has been previously explored by a 500-foot long drift and an infilled shaft. Accomplishments in 2002 include: mucking out of the main adit, reconstruction of the main portal, and a detailed surface and underground mapping program. A sampling program within the tunnel returned assays of up to 25 ounces per ton (oz/t) silver, 0.13 oz/t gold, and 3 percent copper. These efforts resulted in the definition of two mineralized zones as well as a modest preliminary inferred resource estimate of 52,314 ounces of silver. The majority of this resource comes from a "high-grade" zone, estimated to grade 7.33 oz/t of silver. Company geologists believe that there is excellent potential of the high-grade mineralized zone continuing to depth and that it may ultimately connect with the upper workings of the neighboring Empire Mine. As the Empire was primarily a gold producer, it is plausible that gold grades may increase in the Kelly Vein at depth.

The adjoining Kelly West claim has been explored by a shaft and prospect pits, although no direct evidence of veining has been detected. Sampling from within the prospect pits has yielded assays as high as 14.9 oz/t ton silver and 0.92 percent copper.

Objectives for the 2003 Kelly work season will include the continuation of rehabilitation, mapping, and sampling programs, as well as a preliminary drilling program, to further define and delineate mineralized zones and expand resource estimates. Furthermore, a trial shipment of Kelly ore is planned for milling and metallurgical testing.

"We are encouraged by the results of this past season's efforts and believe that the Kelly Project has excellent potential to become a profitable, small-scale producer of silver and gold," commented Sterling President, Ray DeMotte. "We are particularly excited about next season's planned trial shipment and its implications on production feasibility."

Please visit the Sterling website at www.sterlingmining.com for additional information.

Sterling Mining Company is an aggressive precious metal exploration company, focused upon the Coeur d'Alene Mining District, the richest primary silver-producing region on Earth. Sterling offers superior leverage to silver and gold price increases through control of extensive and strategic "Silver Valley" landholdings, as well as through several significant projects in historic mining districts of Idaho, Montana, and Arizona and along the prolific gold belts of northern Nevada. Sterling was founded in 1903 and proudly celebrates a century of mining exploration this coming year.

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.

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