SUTTER GOLD CLOSES FIRST TRANCHE USD $1 MILLION NON-BROKERED PRIVATE PLACEMENT

Sutter Gold Mining Inc. (SGM:TSX-V) (SGMNF:OTCQX)  (?Sutter? or the ?Company?) announces that, further to its news release dated October 18, 2012, the Company has completed the first tranche of a non-brokered private placement (the ?Private Placement?) of an aggregate of 3,356,634 common shares at a price of US$0.30 per common share for gross proceeds of USD$1,006,990.  The Company may complete additional closings of the private placement up to an aggregate of US$5,000,000 as subscriptions are received.
 
In connection with the Private Placement, the Company paid an arm?s length finder an aggregate of $4,440 in finder?s fees on a portion of the Private Placement, representing 4% of the aggregate gross proceeds received from subscribers introduced to the Company by the finder.
 
All common shares issued pursuant to the Private Placement are subject to a four-month hold period expiring March 15, 2013. Completion of the Private Placement is subject to the approval of the TSX Venture Exchange. Sutter will apply the net proceeds from the Private Placement towards continued advancement of the Lincoln Mine project and general working capital purposes.

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 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 successfully 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.