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FFFO is defined as net income (loss) (a GAAP financial measure) less adjustments for non-cash items and is used to analyze operating performance (see "Consolidated Statement of Cash Flows" in the Company's financial statements for the years ended December 31, 2016 and 2015). Net working capital surplus (deficit) is defined as current assets less current liabilities excluding the Cladhan funding arrangements and is used to monitor the short term financial health of the Company. FORWARD-LOOKING STATEMENTS All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will, should or may occur in the future are forward-looking statements. In particular, this news release contains forward-looking statements with respect to the anticipated completion of the Transaction and Winding-up, the approval of Sterling's common shareholders regarding the Transaction and Winding-up, expectations with respect to the range of cumulative distributions to shareholders in connection with the Winding-up and expectations for delisting the common shares from the TSX Venture Exchange. In addition, statements relating to expected production, reserves, costs and valuation are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future. These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition, there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters listed under the heading "Risk Factors" in the Company's MD&A . Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.

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