Chesterfield Resources PLC / EPIC: CHF / Market: LSE / Sector: Mining

6 March 2023

CHESTERFIELD RESOURCES PLC

("Chesterfield" or the "Company")

Adeline Project is optioned to Canadian explorer Sterling Metals in exchange for cash and shares.

Chesterfield Resources plc is pleased to announce that it has signed an agreement with Sterling Metals (TSXV: SAG,, OTC:SAGGF), a TSX-V and OTCQB listed exploration company with regard to Chesterfield's Adeline project in Labrador. According to the agreement Sterling Metals will purchase an option to acquire full ownership and rights over the project in exchange for a series of payments of cash and shares.  As a result, Chesterfield will become a significant shareholder in Sterling, giving Chesterfield shareholders a stake both in the upside of the Adeline property and Sterling's 100% owned high grade, district scale, Sail Pond silver-polymetallic property located approximately 500km from Adeline.

The main elements of the agreement are as follows:

1)    Sterling will pay a total of CAD$800,000 (£490,000) in three separate payments: CAD$100,000 (£62,250) with immediate effect, and CAD$300,000 (£183,750) following receipt of permission from the TSX-V authorities to complete the deal, and a final CAD$400,000 (£230,000) to be paid on or before 30 November 2024.

2)    Sterling will issue a total of 9m shares to Chesterfield in two equal lots of 4.5m, the first following and subject to receipt of permission from the TSX-V authorities to complete the deal, and the second tranche to be issued on or before 30 November 2024. Chesterfield's ability to sell its shares in Sterling will be restricted according to certain terms detailed in the agreement.

3)    The final CAD$400,000 and the second tranche of 4.5m shares are payable should Sterling decide to exercise its option to acquire the Adeline licences at any time prior to 30 November 2024.

Sterling Metals is a listed exploration company with with a market capitalization of CAD17.35m (£10.65m), it is the holder of

the Sail Pond project a 135km2 set of licences in Newfoundland, eastern Canada. Discovered at the end of 2016, the Sail Pond project consists of a 12 km anomaly with strong surface showings of silver, copper, lead, antimony and zinc. Over the last two years Sterling has uncovered a 1km footprint at the south end of the anomaly which includes the 400m x 200m x 150m Heimdall zone as well as a new zone, 500m north of Heimdall where drilling intercepted a 100% sulfosalt vein grading 1,564g/t Ag, 8.33% Cu, 12.83% Pb, 2.74% Sb, and 3.93% Zn (A long section has been provided below in Figure 1). Sterling is currently running a deep Orion survey (a structural and mineralised mapping tool that reaches down to 2km depth) to locate the source of this large footprint and plans to drill the property in 2023. Sterling has a cash position at present of CAD$3.5m (£183,750).

Figure 1: Longitudinal section looking west showing drilling with silver equivalent mineralization on drillholes

Chesterfield Executive Chairman Paul Ensor said, "During the competitive process that we undertook in September 2022 we got to know Sterling well due to their great interest in Adeline and we are delighted to have reached this agreement with them. Through this new relationship, Chesterfield will have a stake in what in effect becomes a regional play for potentially two highly prospective licence areas in eastern Canada, in both cases originally sourced from the same renowned group, Altius Minerals. We look forward to working in partnership with Sterling to deliver the best possible value from Adeline to our shareholders."

Sterling Metals CEO Mathew Wilson said, "We are thrilled to partner with Chesterfield and begin work on the Adeline project. The synergy due to the Altius ownership, our advisor Dr. Neil O'Brien, and the close proximity to our Sail Pond asset makes this an ideal fit and we anticipate limited friction in beginning our exploration work. It is rare to find one, let alone two "company making" assets in a junior explorer.The exposure for investors to the significant potential for large scale critical metals projects in such a wonderful jurisdiction as Newfoundland and Labrador makes this partnership an immediate value add for both Sterling and Chesterfield shareholders. This will be an exciting year."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

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