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The non-GAAP measures and their manner of reconciliation to GAAP financial measures are discussed below. These non-GAAP measures provide additional information that management believes is meaningful in describing the Company's operational performance, liquidity and capacity to fund capital expenditures and other activities. The specific rationale for, and incremental information associated with, each non-GAAP measure is discussed below. References to operating netback, funds flow from operations ("FFFO"), and net working capital surplus (deficit) throughout this press release have the meanings as set out in this section. Operating netback is defined as revenue less third party entitlement and operating expenses (each being a GAAP financial measure), and is used to analyze operating performance. 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.

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