Sutter Gold Announces Major Addition to Its Mineral Exploration Holdings in California's Mother Lode Gold Belt

Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter" or the
"Company") is pleased to announce that on June 14, 2012 it signed a Mineral
Exploration and Purchase Option Agreement (the Agreement) that upon exercise
will significantly expand the Company's holdings in the heart of California's
Mother Lode Gold Belt. The 230-acre property adds approximately a mile of strike
length contiguous to the Company's existing 3.6 miles of mineral holdings
including the Lincoln Mine Project and adjacent holdings. The property includes
several mines that historically produced approximately 350,000 ounces of gold.
Like the Lincoln Mine Project, it was the subject of modern exploration in the
1980's.


"This agreement is an important milestone in Sutter's on-going efforts to
further consolidate the district, expanding the Company's mineral holdings along
the Mother Lode while bringing the Lincoln Mine Project into production," said
Leanne Baker, President and CEO. "This agreement represents a significant
expansion of our potential exploration targets along the Mother Lode of Amador
County, which accounted for 7.8 million ounces of the 13 million ounces of
historic production from the 120-mile long Mother Lode Gold Belt." Sutter is in
the final phase of its 2012 exploration drilling program on the Lincoln Project.
The Lincoln Mine is scheduled to produce its first gold in the fourth quarter of
2012.


The Agreement allows the Company to conduct mineral exploration along an
additional one-mile of strike length contiguous with the Company's current
mineral holdings. The Company already has begun the process of compiling
historical mining records and modern mineral exploration data on the new
property. Sutter plans to use the mining and exploration records along with core
from the modern exploration program and other information to develop a
conceptual geologic model. The Company will use this model to focus and guide
further mineral exploration of the property necessary to develop a modern
resource estimate.


The material in this news release has been reviewed Stephen Zahony, Vice
President of Exploration, 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.

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.