Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

June 09, 2009 13:23 ET

Sutter Gold Letter to Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2009) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) -

Dear Shareholders:

We have had a very encouraging year which has given us an opportunity to continue to redefine the development of Sutter Gold Mining Inc. (SGM on the TSX-V) for our shareholders and investors.

We are pleased to report that major strides have been undertaken in order to advance the Lincoln Project in California. The addition of new staff to our existing team will assist in the improved understanding of our reserves, provide site engineering and design, and prepare cost projections, while maintaining and updating existing permits for the development of our mining operations. Our current motivation for 2009 will be to produce a National Instrument 43-101 compliant preliminary assessment study to provide the scope and economics of developing and bringing Lincoln Project into production during the first half of 2011.

All of SGM's mineral and land leases continue to be in good standing with lease payments and existing permits in place and maintained. The public mine tour at the Lincoln Project continues to generate positive community and public relations for our planned underground operation and site facilities. A record-breaking 43,000 people visited the mine tour in 2008. We expect to deliver more positive news related to our mineral property holdings in the near future.

The Santa Teresa Concession located in the El Alamo gold mining district southeast of Ensenada (Baja), Mexico had a successful year in 2008 with our Joint Venture partner, Premier Gold Mining, completing a 32-hole drill program and a land transaction to purchase the La Victoria concession, which is land-locked within the Santa Teresa Concession. Multiple intercepts in excess of 34 grams per tonne of gold between one and three meters were located within the historic Princessa structure with structures remaining open in all directions. While a very attractive project, our focus is on advancing development of the Lincoln Project in California and options to monetize our current position at the Santa Teresa Concession will be investigated.

Along with a renewed focus of bringing SGM's advanced property into production, several key accomplishments were achieved during late 2008 and early 2009. SGM established a new and more efficient corporate headquarters in Lakewood, Colorado, hired an experienced professional staff and initiated detailed technical studies and reviews to serve as the basis of defining the Lincoln Project's development.

Already in 2009 we are starting to reap the rewards and benefits of the initiatives that were begun during the 4th quarter of 2008. To date, SGM has completed the following tasks for our Lincoln Project:

- Metallurgical testing and definition of a process flowsheet;

- Conducted test work for paste backfill and dry stack tailings technology for disposal of the Project's tailings product;

- Prepared process plant layouts and preliminary construction and operating cost estimates;

- Identified and addressed deficiencies within our geologic database;

- Prepared pre-development and production mine plans;

- Conducted preliminary design of our surface fill and rock storage areas;

- Drafted general site arrangements; and

- Updated the existing permit modification schedule.

In August of 2008, SGM saw a change in its major shareholder with the acquisition of a 49.9% interest in the Company by RMB Resources Ltd. from U.S. Energy Corporation and led to the changes required for SGM to pursue development of the Lincoln Project on its own. RMB Resources is a well known and reputable arranger and provider of finance to the junior resource sector. Such involvement is a testament to the quality of our assets and provides SGM the support of a committed, major shareholder with demonstrated technical and commercial capability and financial strength, an element that would be envied by most junior developers.

Looking back on the accomplishments of the year, we have every reason to be confident in your Company's future. We have weathered one of the most severe economic storms and have kept our plans and projects not only intact but most importantly in development. Management firmly believes that SGM is poised to succeed and has all of the tools and programs as well as a fully qualified range of staff to ensure that we exceed our expectations. We will strive to improve our shareholder and investor communications effort, which will in turn assist us in beginning to identify and acquire project financing required to bring the Lincoln Project into production.

We look forward to bringing you more positive news in the future and invite you to attend our annual meeting of shareholders in Vancouver, BC at 1:00 pm, 325 Howe Street, Suite 410 on June 9, 2009.

Clayr Alexander, P.E.

President & Chief Executive Officer

Sutter Gold Mining Inc.

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