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Sutter Gold Clarifies Disclosures Made in Its August 2015 Corporate Presentation

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 11, 2015) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) (SGMNF) ("Sutter" or the "Company") announces that as a result of a recent review by the British Columbia Securities Commission (the "BCSC"), the Company is issuing the following news release to clarify certain technical disclosures made by the Company in an August 2015 presentation.

On August 14, 2015, Sutter posted a presentation (the "Corporate Presentation") to its website which contained disclosure that was subsequently identified by the BCSC as being non-compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Prior to this posting, on July 23, 2015 the Company had filed an updated technical report dated July 2, 2015 (the "2015 Report") for the Lincoln Project in Sutter Creek, California, which included an updated Preliminary Economic Assessment (the "PEA") on the Lincoln-Comet resource. The August 2015 Corporate Presentation contained certain errors and disclosure issues which did not reflect data from the 2015 Report.

Specifically, the Corporate Presentation contained the following errors and disclosure issues, contrary to the requirements of NI 43-101:

  1. The Corporate Presentation did not include information required by section 3.1 of NI 43-101 regarding the qualified person.

  2. The Keystone estimate as described on page 11 of the Corporate Presentation was erroneous. The 2015 Report states a Keystone Inferred Resource of 399,000 tons grading .243 oz Au/ton and a current project-wide Inferred Resource of 905,000 tons at an average grade of 0.249 oz Au/ton.

  3. The Corporate Presentation, page 20, erroneously reported a sum of the inferred and indicated resource classes contrary to section 2.2 (c) of NI 43-101.

  4. The Corporate Presentation, page 22, referred to a profitable cutoff grade of 0.19 oz Au/ton for the Keystone deposit which implies that a Keystone reserve estimate had been completed, which is not the case. This cut-off grade was not supported in the 2015 Technical Report. Keystone contains only inferred resources which have not yet been demonstrated to be economically viable.

  5. The Corporate Presentation, page 25, referred to a "defined mineable resource", which is not a defined term under NI 43-101, rather than a "mineral resource".

  6. On page 10 of the Corporate Presentation cautionary language stating that mineral resources that are not mineral reserves do not have demonstrated economic viability was not included as required by 43-101.

  7. Each instance of disclosure of the PEA results was not accompanied by the cautionary language required by section 2.3(3)(a) of NI 43-101. That disclosure is as follows, the preliminary economic assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

  8. The Corporate Presentation, Page 22, improperly implied that mining the Keystone deposit would give a positive economic outcome. The data presented was not based on a qualifying NI 43-101 preliminary economic assessment of the Keystone resource, nor did it include qualifications and assumptions made by a qualified person as defined by NI 43-101. The Company retracts the non-compliant or misleading information regarding the Keystone deposit.

  9. Throughout the Corporate Presentation, any discussion of a production decision for the Lincoln Project was not based on mineral reserves supported by a technical report and feasibility study. In addition, the Corporate Presentation did not provide adequate disclosure of the increased uncertainty and higher risk of economic or technical failure by deciding to put the Lincoln Project into production without first establishing mineral reserves.