Sutter Gold Provides Lincoln Mine Project Update

Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter" or "the
Company") is pleased to provide an update on progress at its new Lincoln Mine
Project in Amador County, California.


"We made significant progress on several key fronts in 2012, and we are working
toward becoming cash flow positive at our Lincoln Mine Project before the end of
2013," said Leanne Baker, President & CEO. "We have already started the process
of closing out our various building permits, with the intention of commissioning
the mill and moving into our new shop & staff services building in the near
future. Our underground development is progressing, but has fallen behind our
previous schedule. We are taking steps to complete the initial development
required for ore production to the mill in the second quarter of 2013, now
expecting ramp-up to full production in the fourth quarter of 2013."


Mine Development

Underground development at the 1300 and 1200 level declines has reached
completion for the first phase of work. Drifts are advancing on the 1100 and 900
level. A connection between portions of the 1030 sublevel is being driven to
establish secondary escape from the 900N production area. In addition, raise
development is progressing from the 1100 level to the 1200 level to establish
secondary escapeways and to provide primary ventilation from the planned main
fans at the 1300 level portal. Completion of secondary escape remains the
critical path for the underground mining.


To view "Timbering begins in the 1100-1200 raise (February 2013)," please visit
the following link: http://media3.marketwire.com/docs/222sgm1.jpg.


To view "Mucking from the 900LN at 8WXC (February 2013)," please visit the
following link: http://media3.marketwire.com/docs/222sgm2.jpg.


Some previously un-modeled mineralized vein material has been encountered on the
900N drive and stockpiled underground. Samples have been sent out for analysis
to determine if the material will be delivered to the new mill.


Mill Facility

Progress at the mill facility has been exciting to see. The crushing circuit has
been successfully tested, with approximately 400 tons crushed and delivered to
the fine ore bin. The rod mill has passed its empty run tests and received its
initial rod charge on February 20, 2013. Equipment specific guarding continues
and the key mill personnel are finalizing plumbing and electrical details. The
tailings thickener is nearing completion and remains the final critical path
item for testing of the flotation circuit. SGM expects to begin full mill
commissioning in March 2013, processing material stockpiled on the surface from
previous bulk sampling campaigns. 


To view "North end of the mill (February 2013)," please visit the following
link: http://media3.marketwire.com/docs/222sgm3.jpg.


To view "Sump room w/Knelson XD20 (February 2013)," please visit the following
link: http://media3.marketwire.com/docs/222sgm4.jpg.


Other Infrastructure

Testing of domestic water supply and sewer lines has commenced. The Company will
seek a Certificate of Occupancy for the Shop & Staff Services building in the
coming weeks. Final fire riser connection and Amador County Fire Protection
District inspection remain for both buildings. The mill must pass noise
monitoring conditions within the Amador County Conditional Use Permit prior to
receiving final Certificate of Occupancy. The Sand Bunker and Tailings Thickener
are complete and the building permits have been closed. 


To view "Interior of shop area (February 2013)," please visit the following
link: http://media3.marketwire.com/docs/222sgm5.jpg.


To view "Interior of mine rescue room (February 2013)," please visit the
following link: http://media3.marketwire.com/docs/222sgm6.jpg.


To view "Thickener and pump (February 2013)," please visit the following link:
http://media3.marketwire.com/docs/222sgm7.jpg.


To view "Sand Bunker building (February 2013)," please visit the following link:
http://media3.marketwire.com/docs/222sgm8.jpg.


Financial Advisor Engaged

Sutter Gold is also pleased to announce that it has entered into a letter
agreement with a US based investment banking firm (US Firm) pursuant to which
Sutter Gold has agreed to retain the US Firm as its financial advisor and
structuring agent. The US Firm is a full-service investment bank focused on the
natural resources sector and will assist the Company in raising additional
capital in order to complete the Lincoln Mine Project, repay short-term debt and
expand Sutter Gold's exploration program. Pursuant to the agreement, Sutter Gold
has agreed to pay the US Firm an aggregate work fee of US$125,000. In addition,
the US Firm can earn a success fee ranging between 1.5% and 9.5% of gross
proceeds raised pursuant to a transaction and to issue the US Firm common share
purchase warrants with an aggregate value of up to US$1,000,000, both of which
are dependent on the identity of the investors participating in the transaction,
the timing of the transaction and the aggregate capital raised pursuant to the
transaction. The success fee will be paid from the proceeds of the transaction
and the warrants will be issued on closing of the transaction. The agreement,
including the payment of the fees and issuance of the warrants, is subject to
TSX Venture Exchange approval.


About Sutter 

Sutter is a near-term gold producer, building Phase One of the new Lincoln Mine
Project in the historic California Mother Lode. Ramp-up to full production is
planned in the first half of 2013. 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 4.6 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.

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.


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
Sutter Gold Mining (TSXV:SGM)
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