Sterling Provides Default Status Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2012) - Sterling Shoes Inc. (the "Company") provides its first bi-weekly Default Status Report under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults. On May 2, 2012, the Company announced that the filings of its annual financial statements for the financial year ended December 31, 2011, management discussion and analysis and related CEO and CFO certifications would not be filed by the filing deadline.

The Company reports that since its original default announcement on May 2, 2012, there have not been any material changes to the information contained therein; nor any failure by the Company to fulfill its intentions as stated therein with respect to satisfying the provisions of the alternative information guidelines, and there are no additional defaults or anticipated defaults subsequent to such announcement. Further, there have been no additional material changes respecting the Company and its affairs. The Company intends to file, if required, its next Default Status Report by May 28, 2012.

Additional information about Sterling Shoes Inc. can be found in the disclosure documents filed by Sterling Shoes Inc. with the securities regulatory authorities, available at www.sedar.com.