U.S. Energy Corp. Completes Sale of Interest in Sutter Gold Mining Inc. to RMB Resources Ltd.

U.S. Energy Corp. , today announced that it has completed the sale of an aggregate of 39,062,720 common shares (the ``Purchased Shares'') of Sutter Gold Mining Inc. (CDNX:SGM.V - News) (``SGMI'') representing approximately 49.9% of the outstanding common shares of SGMI to RMB Resources Ltd. (``RMB''), as trustee for the Telluride Investment Trust, for an aggregate purchase price of approximately Cdn. $5.4 million, or Cdn. $0.138/share in accordance with the terms of a share purchase agreement (the ``Purchase Agreement'') previously announced on June 13, 2008. Under the terms of the agreement, USE retained an equity position of approximately 3,550,361 shares and a Net Profits Royalty on the project.

In conjunction with the closing of the sale of the shares by USE to RMB, USE also participated in a non-brokered private placement by SGMI with the purchase of approximately 4,545,455 units at Cdn. $0.11 per unit for total cash consideration of Cdn. $500,000. USE also received 24-month warrants to purchase an additional 2,272,728 common shares of SGMI at a price of $0.15 per share as part of the private placement. All securities issued under the private placement will be subject to a four-month hold period. read more

Source: U.S. Energy Corp.