Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

May 12, 2005 12:57 ET

Sutter Gold to File Audited Financial Statements Shortly

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2005) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) advises that its December 31, 2004 audited financial statements, due May 2, 2005, will be filed within the next 1 to 2 business days. However, the Company has been advised by the B.C. Securities Commission that a Cease Trade Order will be issued imminently, preventing trading in the Company's shares until the statements have been filed.

The delay in filing was caused by requirement to coordinate the accounting for the RTO, which completed on December 29, 2004, and the implementation of new systems for the Sarbanes-Oxley rules which the Company follows for reporting with the US parent company, U.S. Energy Inc.

About Sutter Gold Mine

The Sutter Gold project is situated on a contiguous 535-acre block of mining claims 45 miles east-southeast of Sacramento, Calif., in the central part of the 121-mile-long Mother Lode gold belt. The Sutter Gold property itself has had recorded production of 1,324,000 ounces of gold, essentially all of this prior to 1920, and this recovery was from the Wildman, Mahoney, Lincoln, South Spring Hill, Keystone and Medean Mines.

The Sutter Gold project has been the subject of considerable modern exploration activity, most of it centering on the Lincoln and Comet zones, which are adjacent to each other and together referred to as the Lincoln project. A total of 85,085 feet of drilling have been accomplished in 190 diamond drill holes, and modern underground development consists of a 2,850-foot declined ramp with 2,400 feet of crosscuts plus four raises.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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