SGM Sutter Gold Mining Inc

Sutter Gold Mining Inc. (TSX VENTURE:SGM)(OTCQX:SGMNF) ("Sutter or the
"Company") announces that it has entered into an agreement for a restructured
Senior Secured Term Loan Facility (the "SSTLF") with RMB Australia Holdings
Limited ("RMBAH"). The new SSTLF will replace the current Pre Paid Gold Facility
(the "PPGF") between SGM and RMBAH, dated July 14, 2011, and the Bridge Loan
Facility (the "BLF"), dated October 18, 2012, as amended and restated (together
as the "Facilities").


Key terms and conditions of the SSTLF include the following:



--  The existing forward positions associated with the PPGF have been closed
    out at market according to the close out protocol agreed between the
    Company and RMBAH with the resulting marked-to-market value of the PPGF
    obligations forming part of the principal amount to be restructured in
    the SSTLF. The PPGF refinancing amount is $17.05 million.

--  The BLF principal of $19.97million will be refinanced as additional
    principal under the SSTLF.

--  The total amount available under the SSTLF will be $40M for the purpose
    of repaying amounts owing under the PPGF close out and BLF and for
    continued development of the Lincoln Project and general corporate
    purposes.

--  The SSTLF will bear interest at Libor plus 5% per annum payable
    quarterly beginning March 31, 2014 and continuing until repayment of the
    SSTF.

--  Scheduled principal repayments of the SSTLF will commence December 31,
    2014 on a quarterly basis through March 31, 2018.

--  Mandatory pre-payments of the SSTLF will be made equal to 75% of the
    available free cash flow after all Project and corporate costs, interest
    and scheduled repayments on a quarterly basis.

--  The SSTF may also be pre-paid by the Company at any time without penalty
    in part or in whole.

--  Upon commencement of commercial production the Company may enter into
    gold hedging arrangements with RMBAH at its discretion over a maximum of
    60% of forecast production over the term of the SSTF.



The key benefits of restructuring the PPGF are to crystallize and reduce the
obligations of the Company in a transparent manner, with the marked-to-market
value at close $2.95 million less than the nominal $20 million borrowed at
inception under the PPGF. The close out of the PPGF allows for all future
production to be sold at spot rather than at a blend of the $941/oz delivery
price under the PPGF and the spot price. This improves expected cash flow for
debt service and allows for the consideration of new hedging at a higher price
point that would provide a greater degree of downside gold price protection
during debt repayment. In addition, the SSTLF reduces the interest rate on funds
borrowed under the BLF from Libor plus 10% to Libor plus 5%.


The SSTLF is subject to the approval of the TSX Venture Exchange.

Project Update

Underground development associated with the most recent work program (see press
release of July 3, 2013) was completed in November, ahead of schedule and on
budget. The development completed the lateral and vertical development required
to establish secondary egress from the mine to achieve regulatory compliance
allowing for production mining. Additional development on the 900, 1000 and 1100
levels exposed key mineralized veins improving the Project geological models and
reducing geologic risk as well as providing enhanced information for detailed
mine planning and additional development required for access and commencement of
production mining from initial mining panels.


Progress at the mill was hampered by poor design elements, inappropriate
equipment selection and improper installations made apparent from the processing
of approximately 400 tons of stockpiled mineralized material. Process and
metallurgical consultants were engaged to assess these issues and made several
recommendations that have been implemented with respect to changes in the
process flow sheet, select new equipment and improved operating protocol and
procedure. Mill operation has recommenced and the process of commissioning the
milling facilities for production is underway.


The Company is finalizing the budget and programs for the next phase of work at
the Lincoln Project. This work program will entail:




--  The additional underground development required to allow for the
    commencement of production from mining panels between 900 and 1000 level
    and between the 1030 sublevel and the 1100 level;
--  Processing of 3,000 to 3,500 tons of mineralized material stockpiles to
    identify and correct any remaining bottlenecks, optimize mill
    operations, complete commissioning of the processing facilities for
    production and generate revenue from the gravity and flotation circuits;
    and
--  Complete detailed mine planning for the first 12 months of mine
    production and revisit the life of mine plan as appropriate with the
    additional information generated from the recently completed mine
    development and the detailed mine plan for the first year of mine
    production.



The work plan is scheduled for completion by the end of March 2014 with an
overall objective of having the mine and mill in a position to commence mining
and milling operations.


Rick Winters, interim President and CEO, commented, "We are pleased with the
continued support of the Company and Project by RMB in refinancing our existing
obligation on favorable terms and providing continuing funding to move forward
with our next phase of work. We have been very pleased with the underground
development we have completed and have an improved understanding of our
principal veins and our approach to continued development and mining. The issues
we experienced as we began running the mill were more troublesome than we
expected, though we are confident we have identified the problems and
bottlenecks and addressed them to allow for sustained processing of our existing
stockpiles and commissioning of the processing facilities over the next three
months. Fortunately, a fundamental positive for the Project is excellent
metallurgy, as demonstrated from nearly 8 million ounces produced historically
and extensive test work that has been completed for the Project. We look forward
to generating initial revenue in the first quarter of 2014 as we execute our
next work program, and plan on having the Project in a position to be able to
commence production at its conclusion." 


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.


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: repayment schedule
of SSTFL; use of proceeds; benefits of restructuring; budget and work programs;
estimated completion date of work program; and 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Sutter Gold Mining Inc.
Robert Hutmacher
Chief Financial Officer
303-238-1438 ext. 222
303-238-1724 (FAX)
bhutmacher@suttergoldmining.com
www.suttergoldmining.com

Sutter Gold Mining (TSXV:SGM)
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Sutter Gold Mining (TSXV:SGM)
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から 6 2023 まで 6 2024