Grant of Options

Sterling Energy PLC
03 July 2006


                      Sterling Energy PLC ('the Company')
                                        
                                Grant of Options
                                        

On 30 June 2006 the Board of the Company granted options over ordinary shares of
1p each ('Ordinary Shares') to the following directors of the Company, at an
option price of 24p per Ordinary Share:

Director                  Number of      No. of Ordinary         No of issued
                            Options          Shares over      Ordinary Shares
                            Granted        which options        already owned
                                          held following          or in which
                                                    this          there is an
                                            notification             interest

Richard O'Toole             250,000            7,000,000           22,543,818

Harry Wilson              1,500,000           11,150,000           27,970,092

Graeme Thomson            1,000,000            8,950,000           16,049,558

Paul Griggs               1,000,000            3,000,000              150,000

Andy Grosse               1,500,000            5,000,000            5,500,473

Christopher Callaway        200,000            1,200,000              100,000

Peter Wilde                 200,000            2,200,000              620,000

No consideration was paid for the grant of these options.

The period during which these most recently granted options are exercisable is
30 June 2008 to 29 June 2016.

A further 5,955,000 options were also issued to staff on the same conditions.

The total issued share options outstanding is now over 78,175,000 shares, being
5.58% of the current issued share capital. Of these options outstanding,
8,900,000 (0.64%) are held by former directors of the Company, with 69,275,000
(4.94%) being the total held by current staff and directors.

The directors also own or have an interest in 5.2% of the current issued share
capital of the Company as set out above.

3 July 2006




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