Resource update for Sutter Gold project

Sutter Gold Mining Inc. announces an updated Mineral Resource estimate for the Sutter Gold Project, in the Mother Lode Gold Belt of California. The 2008 Mineral Resource estimate includes the results from 5,945 meters (19,502 feet) of core drilling completed in 2006-2007.

The Indicated Mineral Resource base for the Sutter Gold Project has increased 30 percent from the 2006 Resource estimate, resulting from the conversion of Inferred Resources to the Indicated category, and discovery of mineralization in new zones.

The 2008 Indicated Resource estimate represents a 29% increase in ounces and 37% increase in tonnage over the 2006 estimate, with Indicated Resources for the project reported as 612,364 tonnes (673,600 tons) grading 11.3 g/t (0.33 oz/ton) containing 223,044 ounces gold.

Several mineralized zones in both the Lincoln-Comet and Keystone areas remain open down plunge to the southeast and to depth.

Several new zones were encountered during the 2006-2007 drill programs, including the Lincoln 10, 20, 28, 31, and 34 veins, a new shoot at the south end of the Lincoln 61 vein, and the Keystone 23, and 25 veins.

Fourteen significant exploration drilling targets have been identified and described in the Technical Report, based upon continued refinement of the structural geologic and exploration models for the Sutter Gold Project during 2007. This finding suggests good potential for continued discoveries and resource replacement as the project matures.

The 2006-2007 drilling programs provided strong validation of the geologic model, exploration model, and ability to convert Inferred Resources to Indicated. Sampling of half cores from Meridian 1988 Keystone drilling continued to provide further verification of the historic drill hole assay data integrity.

The Technical Report included a six-part, $3,000,000 (US) program to (1) fund the purchase of 3-D computer modeling capability, (2) finish digitizing the remaining 25 percent of geologic maps and cross-sections to complete the wire-frame 3-D modeling of the vein structures and exploration targets, (3) modeling the detailed 1914-1919 assay data for the 327,000 tonne (360,000 tons) historic Inferred Resource in the Keystone 5 vein shoot, below the 300 meter Level of the Keystone mine, (4) core drilling 6,700 meters (22,000 ft) to convert additional Inferred Resources to the Indicated category in both Lincoln-Comet and Keystone areas, (5) core drilling 2,100 meters (7,000 ft) to identify new Inferred Resources in the Lincoln-Comet and Keystone areas, and (6) core drilling 600 meters (2,000 ft) to test one deep target directly beneath the Comet area.

Hal Herron, President and CEO, said that management has adopted a conservative approach to moving our Mother Lode project forward….and it has paid off. The increase in both indicated and inferred resources from our 2007 drill program confirms our geologic intuition of the grade and continuity of the resource and, as expected, confirms that our resource is consistent with other historic underground Mother Lode mines that ran for decades. Considering that only 10% of our property position has been explored, management and our consultants are extremely optimistic going forward….especially with gold at $+900/ounce.