Penny Gold Miners

[NYBob]

Sutter Gold Implements Cost Cutting Measures and Provides
Development Update
Vancouver, British Columbia (July 3, 2013) -



Sutter Gold Mining Inc.
(SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") announces
the implementation of several cost-cutting measures in response
to recent gold market volatility and uncertainty in financing
markets.

RMB Australia Holdings Limited ("RMB" or the "Lender"), which has
funded development and construction costs at
Sutter's Lincoln Mine Project in the California Mother Lode for
the past five years and continues to do so, requested cost
reductions as a condition of further funding under the extension
and increase of the bridge loan announced on May 23, 2013.

An affiliate of RMB is also a 48% shareholder of
Sutter Gold's common shares.

Sutter has implemented immediate changes to senior management,
reduction of mine-site workforce, and refined the
Lincoln Project development plan.

The immediate effect of these changes will be to reduce ongoing
costs and to focus the remaining workforce at the mine site on
completion of specific, well defined capital projects.

Management Changes (effective July 1, 2013):

Mr. Richard A. Winters, President of RMB Resources Inc. and a
Director of Sutter since July 2008, has been appointed Interim
President and CEO.

RMB Resources, the wholly-owned resource merchant banking
division of the FirstRand Group of South Africa, provides equity
and debt financing to small and mid-sized resource companies
globally outside South Africa.

The Board of Directors wishes to thank Dr. Leanne Baker,
who served as President and CEO since November 2011, for her
efforts as CEO during her tenure.
She will continue as a member of the Board.

The Board would also like to thank Mr. Matthew Collins for his
efforts as Chief Operating Officer since September 2009.

The Board of Directors was also recently re-appointed at the AGM
by the shareholders and is comprised of
Mr. Mark T. Brown (Chairman), Dr. Leanne Baker,
Mr. James Crombie, Mr. David Fennell, Mr. Allen Winters and
Mr. Richard Winters.

Mr. Robert Hutmacher has been re-appointed as Chief Financial Officer.

Workforce Reductions

Approximately one-third of the current staff positions have been
eliminated at the Lincoln Mine site.

The remaining personnel will continue with execution of the next
phase of planned development at the Project.

"These decisions were difficult but prudent in the current market
environment," said Chairman Mark Brown.
"Our Board of Directors and financial team are working with
Mr. Winters and RMB to ensure that the Lincoln Mine Project has
the best long-term chance of success.

We will continue to take actions that support the most cost-
effective ways of moving the project forward and to make
decisions that are in the best interests of all of our
shareholders."

Reduction in Interest Rate on Short Term Credit Facility

In concert with the Company's cost cutting efforts,
RMB has agreed to reduce the interest rate on the existing
Secured, Short Term Credit Facility (see press release of May
23, 2012). Beginning July 1, 2013, the interest rate on the
Facility will be reduced from Libor plus 15%p.a. to Libor plus
10%p.a. This measure will reduce interest burden and direct
increased funding for the next phase of development at the
Lincoln Project.

Development Update

As a result of these actions, RMB has agreed to continue funding
the next phase of development at the Lincoln Project.
This phase of work involves final close out of the outstanding
building permits on the surface facilities, including the
administration and shop building, mill, sand barn and tailings
thickener.

The mill, currently 95% complete, will be completed and
commissioned with the processing of approximately 1,500 tons of
mined material currently stockpiled at the mill and 1,500 tons
of new mined material forecast to be produced from continuing
underground development.

Revenues generated from the mill commissioning will be used to
partially offset ongoing development costs.

Underground development will resume in the near term.
The plan for this next phase of underground development will
involve approximately 1,850 feet of underground development.

The object of the plan is to develop the mine sufficiently in
order to:
Achieve regulatory compliance for production mining operations
with the completion of raise work required for the establishment
of secondary egress as well as ventilation; and
Allow access to and mining of the initial stope panels as well
as enhance the deposit model through the additional exposure of
the ore body.

Sutter personnel will execute the planned work on the surface
facilities while underground development will be executed by
Mining Construction Inc., the local mining contractor that has
performed all prior development and mining at the Lincoln
Project.

All work contemplated under this phase of development is
scheduled to be completed by the end of October 2013, following
which subsequent work plans will be assessed and decided upon.

Rick Winters, interim President and CEO, commented,
"These cost cutting measures and focused, objective driven
ongoing development reflect a required, higher level of
discipline in managing the Lincoln Project's advancement going
forward.
The core team of professionals at the Project are capable and
committed to the efficient execution of the next phase of work
and the success of the Lincoln Mine.
The actions and continued funding by RMB is a significant
indication of the strong support from our lender and major
shareholder in the current, extremely difficult junior mining
sector."

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.

For further information, please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 222
Email: [e-mail]
Website: www.suttergoldmining.com

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.

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Mining in the Historic California Mother Lode with Sutter Gold, CEO Clip Video
Vancouver, British Columbia--(Newsfile Corp. - April 9, 2013)

http://www.youtube.com/watch?feature=player_embedded&v=dhh6eXfaVdA

- Matt Collins, Chief Operating Officer of Sutter Gold Mining Inc.
(TSXV: SGM) describes the Lincoln Mine Project in
Sutter Creek, in the middle of the Historic California
Mother Lode.

If you cannot view the video above, please visit:

http://www.ceoclips.com/companies/Interview-with-Matt-Collins-Chief-Operating-Officer-of-Sutter-Gold-Mining.html

About Sutter Gold Mining Inc. (TSXV: SGM)

Sutter Gold Mining 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 company controls approximately 4.5 miles of strike
length in the most prolific portion of the Mother Lode
in Amador County.
The company's land holdings historically produced more than
3.5 million of the 7.7 million ounces gold produced from the
10 mile portion of the Mother Lode between the towns of
Jackson and Plymouth.
As Sutter Gold achieves positive cash flow, it plans to
expand the Lincoln Mine, develop the Keystone resource, and
explore for more gold,
along strike and at depth, on its extensive land holdings.

http://www.suttergoldmining.com

Pacific Opportunity has been involved with Sutter Gold Mining
for over 10 years.
POC has previously assisted Sutter with accounting services,
financial advisory and helped with various financings to
advance the Lincoln Project located in the historically
producing Mother Lode Gold Belt in California.

http://www.pacificopportunity.com/SGMstory.html

http://goldinvestingnews.com/23832/california-exploration-mother-lode-belt-sutter-gold-mining.html

http://www.suttergoldmining.com/s/Home.asp



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God Bless