Sutter Gold Mining Inc.

News Releases

July 19, 2011
Sutter Gold Enhances Senior Management and Begins Building Production and Development Team for the Lincoln Mine Project


Vancouver, British Columbia (July 19, 2011) - Sutter Gold Mining Inc. (SGM:TSX-V) ("Sutter" or the "Company") is pleased to announce that Mr. Stephen Zahony, has been appointed as Vice President - Exploration and Geology for the Company. In addition, staffing for the Lincoln Mine Project is well underway, with the addition of key Project personnel including General Manager, Mine Superintendent and Mine Engineering.

Vice President - Exploration and Geology

Mr. Zahony is a professional geologist with a geographically diversified and successful background, who brings an abundance of underground and surface mine geology, exploration and project management expertise to Sutter and the Lincoln Mine Project in Amador County, California, slated for production in 2012. 

Mr. Zahony has worked as a consulting mining geologist since 2009 on a number of gold and porphyry copper-molybdenum properties in Mexico, Alaska, British Columbia and Colorado. More recently, he served as Vice President of Exploration for Canyon Resources Corp., now Atna Resources Ltd, where the focus of his exploration work was at and surrounding the Briggs open pit gold mine in south eastern California, which is currently in production. 

Mr. Zahony previously held the position of Vice President -- Geology with Brazauro Resources Corp., and was directly involved with successfully defining a 2+ million ounce gold resource at the Tocantinzinho project located in the central Amazonian region of Brazil's Para State, a project that has since been purchased by Eldorado Gold Corp. As chief geologist for Ma'aden, the Saudi Arabian Mining Company, Mr. Zahony managed a productive gold exploration program of the Arabian Shield. This work was instrumental in the discovery and definition of several mineable gold deposits, including Ad Duwayhi, which is a multi-million ounce open-pit mineable gold resource. Previous to his experience with Ma'aden, Mr. Zahony was South American exploration manager for Orvana Resources based in Santiago, Chile. Mr. Zahony's original mine internship was with the Climax organization, specifically at the Henderson and the Climax Molybdenum mines of Colorado. He is a graduate of Ohio State University and has a Master of Arts degree in geology from Dartmouth College.

Mr. Zahony will be responsible for all geological aspects of the Company and the Lincoln Project, including the continued assessment of the Project area's existing gold resources, the exploration of the mineral lands held by Sutter Gold along a contiguous 3.6 mile-long trend of the Mother Lode gold system surrounding the Project and the evaluation of potential opportunities to enhance the Company's growth. 

Sutter's Board of Directors is pleased to welcome Mr. Zahony to the Company's senior management team and is looking forward to working with him in successfully advancing the Lincoln Project to production and growing the Company through exploration. 

Additional Appointments for the Lincoln Mine Project

General Manager

The Company is pleased to announce the appointment of Mr. Edward McGoldrick to the Lincoln Mine Project team in the role of General Manager. Mr. McGoldrick is a proven team project manager who brings a strong track record of leadership at successful California mining operations. A graduate of the Colorado School of Mines with a Bachelor of Science degree in Mining Engineering, Mr. McGoldrick is experienced in underground and surface mining for a range of commodities in both small and large operations. Mr. McGoldrick is the ideal professional to lead the Lincoln Mine Project operations, from construction and development, into mining and gold production having recent experience with active mining and reclamation projects under California environmental and safety regulations most recently in senior operational roles for Los Angeles based Vulcan Materials Company at operations in Sun Valley, California. 

Mine Superintendent

Sutter is pleased to announce the appointment of Mr. James Smith to the Lincoln Mine Project, in the role of Mine Superintendent. Mr. Smith brings over 25 years of underground mining experience in progressively responsible roles, from miner to Mine Superintendent at various mines in North and Central America. Mr. Smith is well versed in the proposed mining methods for the Lincoln-Comet deposit with direct experience in narrow vein deposits and selective mining and has a demonstrated record of successful construction, development and operation of underground gold mines.

Associate Mine Engineer

Sutter also welcomes Mr. John Gates, a local Amador County mining engineer and Mackay School of Mines graduate, who has recently joined Sutter in the role of Associate Mine Engineer. Mr. Gates brings his experience in California mining and regulatory compliance to join Sutter's engineering team at a critical time for the optimization and final scheduling of the Lincoln Mine Project's underground development.

The Company is actively recruiting candidates for the following key positions: Mill Superintendent, Maintenance Superintendent, Mine Clerk and Chief Geologist. Additional candidates are being identified for the following roles: Chief Engineer, Metallurgist/Lab Supervisor, and other supporting roles. 

"We are in the process of assembling a top-notch team of experienced, qualified and extremely motivated folks to build and operate the Lincoln Mine Project. Our success to date in attracting such talent is very encouraging and I am very excited to be working with these professionals as we bring a new gold mine into production over the next year", stated Matt Collins, Sutter's Chief Operating Officer. 

Stock Option Grants

Sutter also announces that pursuant to the Company's stock option plan, it has granted an aggregate of 1,500,000 stock options at a price of Cdn. $0.175 per option, exercisable for a period of five years to certain directors, officers and employees of the Company.

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 Company has obtained the major operating permits for its Lincoln Mine Project, recently completed a Preliminary Economic Assessment for the Lincoln-Comet portion of its existing mineral resources and has completed a US$20 million development financing to take the Project forward.. The Lincoln-Comet and Keystone zones host NI 43-101 compliant Indicated Resources (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 a further 458,900 ounces of gold. The technical information in this news release has been reviewed by Matt Collins, COO, a Qualified Person for the purposes of NI 43-101.

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.

James Crombie, President, CEO & Director
Sutter Gold Mining Inc.

For further information, please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22

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. 

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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