SGM Sutter Gold Mining Inc

Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter" or the
"Company") announces that, further to its news release dated July 3, 2013, it
has reached an agreement with Leanne M. Baker to settle the severance owing to
her with respect to her termination as Chief Executive Officer of the Company.
As disclosed in the executive compensation section of the Company's management
information circulars dated May 2, 2012 and May 7, 2013, Ms. Baker is entitled
to a one time severance payment in the amount of USD$500,000 (the "Severance").
The Company and Ms. Baker have agreed that the Severance will be payable in four
installments: (i) USD$83,333 payable in cash immediately; (ii) USD$138,889 to be
paid on each of January 15, 2014, January 15, 2015 and January 15, 2016, either
in cash or in common shares of the Company. The determination of whether any of
the future payments noted above will be made in cash or in shares will be at the
sole discretion of the Company. The deemed price of the common shares that may
be issued in connection with the above noted installments will be the average
closing share price of the Company during the 10 trading days up to and
including January 15 of each applicable year, but in any event, no more than
475,000 common shares will be issued (equating a deemed price of approximately
$0.30 per share) in each of the three installments. The payment of the Severance
is considered a related party transaction in accordance with the policies of the
TSX Venture Exchange, however is exempt from the requirements for formal
valuation or minority approval set out in sections 5.5(a) and (b) and 5.7(a) and
(b), respectively, of MI 61-101 Protection of Minority Security Holders in
Special Transactions. The payment of the Severance is subject to the approval of
the TSX Venture Exchange. 


Project Update

The development contract with local mining contractor Mining Construction Inc.
has been finalized. Mobilization of the contractor has been completed and
development mining recommenced July 22 with planned drilling, blasting and
mucking on the 900 and 1100 levels of the mine. Work at the mill has been
proceeding according to plan with a focus on completion of outstanding
mechanical construction and installation of instrumentation. New planning and
performance procedures have been developed and are being implemented to improve
cost and schedule accountability.


About Sutter

Sutter has two projects: the Lincoln Project located in Amador County, on the
California Mother Lode Gold Belt, and the Santa Theresa Project located in the
Northern Baja region of Mexico. Currently, the Company is completing the mill
construction and underground development of the Lincoln Mine Project, beginning
with the shallow portion of the Lincoln-Comet ore zone. The Lincoln-Comet and
Keystone zones have a NI 43-101 compliant Indicated Resource estimate (completed
in February 2008). Sutter currently controls approximately 3.6 miles of the
Mother Lode of Amador County, with 90% of the property still unexplored. 


In Mexico, Sutter holds the rights to the geologically similar, high-grade El
Alamo district of northern Baja.


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 settlement of
outstanding debt and the issuance of shares. 


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Sutter Gold Mining Inc.
Robert Hutmacher
Chief Financial Officer
303 238 1438 ext. 22
bhutmacher@suttergoldmining.com
www.suttergoldmining.com

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