Sutter Gold Mining Inc.
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June 20, 2012

Sutter Gold Finalizes Key Section 404 Permit And Provides Permitting Update For The Lincoln Mine Project

Vancouver, British Columbia (June 20, 2012) - Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") is pleased to announce that it will accept the terms of a permit proffered on June 15, 2012 by the US Army Corps of Engineers to fill wetlands under Section 404 of the Clean Water Act for the Lincoln Mine Project in California's Mother Lode Gold Belt. Having reviewed the permit terms and conditions, Sutter plans to sign and return the permit to the District Engineer for final authorization. In related news on June 1, 2012, the California Regional Water Quality Control Board issued a Water Quality Certification under Section 401 of the Clean Water Act. This was the last of the regulatory approvals the Company needed for the US Army Corps of Engineers to issue the permit to fill wetlands.

"The timing of the Water Quality Certification Order and the permit proffered by the US Army Corps of Engineers fits well with the Company's summer 2012 construction schedule," said Leanne Baker, President and CEO. "Sutter has worked very hard to minimize the environmental impacts of the Lincoln Mine Project and this permit allows us to move forward with construction of surface disposal facilities for waste rock and tailings, including a new access road to the tailings disposal unit." The permit allows the Company to fill approximately 0.75 acre of seasonal wetlands and other waters of the United States while fully mitigating these impacts with higher value seasonal wetlands. The final stages of earthwork and construction of mine waste management units are scheduled to begin by July 1, 2012, consistent with Sutter's plans to put the Lincoln Mine into production in the fourth quarter of 2012.

The Company also is pleased to announce two other important developments on the regulatory and permitting front: First, on June 4, 2012, the federal Mine Safety and Health Administration (MSHA) notified the Company that it approved Sutter's Alternative Mine Rescue Plan. This will allow for the start of pre-development underground work leading to gold production by the end of 2012. Second, on June 12, 2012 Amador County issued a building permit for the Lincoln Mine Project's Shop/Staff Services Building.

"MSHA's approval of our mine rescue plan is a critical milestone towards bringing the mine to production and vacating the temporarily closed status approved by MSHA in 1994," said Matthew Collins, COO. "With the mill building construction well underway, issuance of the latest county permit should allow for planned completion of the Shop/Staff Services Building in time for the commissioning of the mill."

The material in this news release has been reviewed by Matthew Collins, COO, a Qualified Person as defined in NI 43-101.

About Sutter

Sutter is a growth-oriented exploration and development company preparing to become a North American gold producer. The Company has two projects: the Lincoln Project located in Amador County, California and the Santa Theresa Project located in the Northern Baja region of Mexico. Currently, the Company's primary focus is the evaluation and development of the Lincoln Project, beginning with the shallow portion of the Lincoln-Comet ore zone of the Lincoln Project, located on the California Mother Lode Gold Belt. The Lincoln-Comet and Keystone zones have a NI 43-101 compliant Indicated Resource estimate (completed in February 2008) of 612,400 tonnes (673,600 tons) grading 11.3 g/t Au (0.33 oz/ton) containing 223,000 ounces of gold and Inferred Resources of 2,161,700 tonnes (2,377,900 tons) grading 6.6 g/t Au (0.19 oz/ton) containing 458,900 ounces of gold.

Sutter currently controls approximately 3.6 miles of the Mother Lode of Amador County, with 90% of the property still unexplored. Potential exists both at depth and along strike of the known mineralized zones on both the footwall and hanging wall. The 120-mile long Mother Lode Gold Belt produced over 13 million ounces of gold historically with 7.9 million ounces originating from the 10-mile long segment between Jackson and Plymouth where the Lincoln Project is strategically located. Properties under the Company's control include seven historic mines with significant historic gold production totaling over 3.5 million ounces or 27% of the historic gold production from the Mother Lode. Historic mines located north and south of the Lincoln Project in the Jackson to Plymouth segment of the Mother Lode success fully mined gold to depths of 4,500 and 6,300 feet, respectively.

In Mexico, Sutter holds the rights to the geologically similar, high-grade El Alamo district of northern Baja, where historic mining to the water table produced mined grades of 30 to 60 g/t gold. Initial exploration with its joint-venture partner, Premier Gold, has demonstrated the extension of high-grade veins.

ON BEHALF OF THE BOARD OF DIRECTORS:
Dr. Leanne M. Baker, President, CEO & Director
Sutter Gold Mining Inc.

For further information, please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
Email: bhutmacher@suttergoldmining.com
Website: www.suttergoldmining.com

Forward-Looking Statements
This news release contains "forward-looking information" under Canadian securities law. Any information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words such as "expect", "anticipate", "believe", "plans", "estimate", "scheduling", "projected" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information relates to, among other things: the price of silver and gold; the accuracy of mineral resource and mineral reserve estimates; the ability of the Company to finance its operations and capital expenditures; future financial and operating performance including estimates of the Company's revenues and capital expenditures and estimated production.

Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; title to properties; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; operations and political conditions; environmental risks; and risks and hazards of mining operations. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. Forward-looking information about the future is inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company's forward-looking information is based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 
 

You can view the Next News Releases item: Thu Jun 21, 2012, Sutter Gold Announces Major Addition to its Mineral Exploration Holdings in California's Mother Lode Gold Belt

You can view the Previous News Releases item: Tue May 1, 2012, Sutter Gold Mining Exploration Update; Drill Program Continues to Intersect Encouraging Drilling Results at Lincoln Mine Project, California

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