SGM Sutter Gold Mining Inc

Sutter Gold Mining Inc. (TSX VENTURE:SGM) (OTCQX:SGMNF) ("Sutter or the
"Company") provides the following update on the completion of current work
programs announced December 23, 2013 with respect to development in the
underground and mill at the Lincoln Project in Sutter Creek, California.


Underground Development

All objectives of the previously announced underground development program have
been completed. Additional development completed allows for the initiation of
production mining from stope panels between the 900 and 1000 levels and between
the 1030 and 1100 levels. This included establishing new secondary egress raises
to allow for commencement of production from the initial stope panels, the
establishment of ore passes to service the initial stope panel on the 1030 level
and stope preparation for mining on the 1030 level. In addition, work was been
completed on a detailed mine plan for the initial 12 to 18 months of production
from the Comet deposit. The Company is now in the process of costing and
optimizing the detailed mine plane in relation to both selective underhand cut
and fill mining as well as mechanized cut and fill and/or long hole open stoping
methods. This work has put the mine in a position to be able to initiate
production mining as further development continues.


Mill

Approximately 1,000 tons of stockpiled material from development has been
processed through the mill. Several bottlenecks in the plant were identified and
corrected however weakness in the design and installation of the plant thickener
resulted in its failure and precluded achievement of the planned processing of
the full 3,500 tons of stockpiles. The inability to dewater tailings
necessitated the suspension of milling operations at the end of February.
Limited operation of the mill is planned for the purpose of collecting the
samples required for mass and metallurgical balances, fines management and
tailings characterization for backfill design. Following a review of the
processing operations by the Company the following items will be required to be
addressed in order for the mill to achieve sustained operations: 




--  Replacement of the thickener and determination of appropriate approach
    to dewatering whole tailings; 
--  Determination of appropriate process sampling equipment and
    instrumentation, purchase and installation; 
--  Relocation of the existing jaw crusher to allow for service and
    sustained operations and installation of a secondary cone crusher to
    provide a consistent and appropriate feed to the rod mill; 
--  Construction of a gold room capable of producing dore on-site,
    completion of the gravity circuit, new furnace and associated items; 
--  Improved ventilation system for the lab and new ventilation for the gold
    room; and 
--  Design and installation of a backfill plant.



It is estimated that in order to correct these issues that an additional
investment of $1.1 to $1.2 million will be required in order put the mill in a
position to operate on a sustained basis at planned production rates.
Positively, the ability to produce gold dore has been confirmed from the
processing of gravity concentrates at a local mill, which will be taken into
account in completing the gravity circuit. The processing of stockpiles and
production of both gravity and flotation concentrate has demonstrated total gold
recoveries in line with prior metallurgical test work.


Current Status and Planned Work

Given completion of the planned underground development and the inability to
continue processing stockpiles as planned, the decision has been made to place
the Project on care and maintenance to conserve resources. As a result, the
mining contractor has been demobilized and non-essential personnel, principally
mill labor, have been laid off. A work program is being finalized for
recommendation and will require approval by the Company's Lender, RMB Australia
Holdings Limited, for continued funding. This program anticipates continuing
work to complete an optimized mine plan for the initial 12 to 18 months of
production from the Comet deposit and update of the life of mine plan as
appropriate. It is planned that once completed the mine plan will be provided
for independent review and input by a third party engineer. Likewise with the
mill, it will be recommended that a third party review be undertaken of the
Company's assessment and costing of the remaining elements required to achieve
production ready status. Completion of this work will position the Project to
move to commercial production pending additional funding.


Rick Winters, interim President and CEO, commented, "It is unfortunate that
despite our best efforts we could not overcome the design and installation
issues that resulted in the failure to achieve our objective of processing all
our stockpiles and completing the mill commissioning. There is no sense
operating the mill and incurring additional costs until we have addressed the
issues we know preclude efficient commercial processing. This is even more
disappointing in respect of the positive work achieved underground, the well
behaved nature of the orebody with further development and the positioning of
the mine for initial production mining as development continues. The work
program we will propose to our Lender, we believe, will define to a high degree
of confidence what is needed to put the Project into production. We are all but
there and will continue to pursue all alternatives to obtain the funding that
will be needed to achieve that end."


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. The Company has been focused on 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: repayment schedule
of SSTFL; use of proceeds; benefits of restructuring; and; 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.


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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