Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

December 17, 2007 13:45 ET

Sutter and Premier Begin Diamond Drilling at High Grade El Alamo District

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) announces that its joint venture partner Premier Gold Mines Ltd. (TSX:PG) has begun diamond drilling in the historic and high grade El Alamo District of Baja California Norte, Mexico.

Premier plans to test the extent, continuity and grade of known gold-bearing vein structures by preparing an initial 14-hole diamond drill program of 3,650 meters on the Santa Teresa Concession (STC).

Located adjacent to and on strike from the district's largest past-gold producer, the Princessa Mine orebody was known to extend close to the STC boundary. Data suggests that the rake extension of the high-grade Princessa Shoot projects into the STC along strike and at depth. Several near-surface shoots hosted in sub-parallel vein structures adjacent to the Princessa Mine appear to rake into the STC at depth. This potential has not been tested by modern exploration methods. During the early 20th century, the El Alamo District's gold production halted at its peak due to technological and political circumstances, resulting in a unique opportunity to the JV today.

The historical mining of high grades, combined with minimal recent exploration, is one of the unique features of the El Alamo District. The properties are geologically similar to gold deposits of the Mother Lode Gold Belt in California and are located in a past producing gold district. Historical reports indicate past mining occurred within 110 meters of the surface with average mined grades between 1.00 and 2.00 ounces per ton gold. Small-scale mining to depth was limited by the water table and historic reports describe high-grade mineralization at the lowest levels of development in many of the vein structures.

The initial phase of drilling at the STC should be completed in the second quarter of 2008. Major Drilling de Mexico, S.A. de C.V., of Hermosillo, Mexico has been contracted for HQ core drilling and has one drill on site. After a review of Phase I drilling results, Phase II drilling should commence to further define targets tested during Phase I, and test several excellent drill targets identified in the Santa Teresa and new Santa Teresa 2 Concessions.

Mark Payne, P.Geo., Calif. #7067, geological consultant for Sutter Gold Mining Inc., has reviewed the contents of this news release and is a Qualified Person as defined in NI 43-101, "Standards of Disclosure for Mineral Projects".

About Sutter Gold Mine

The Sutter Gold project contains a 3.2 mile segment of the Mother Lode belt from which 10 historic mines produced 2.3 million ounces of gold. The historic mines bracket a one-mile-long portion of the Mother Lode belt with no historic gold production and which contains the Lincoln and Comet zones. The Lincoln and Comet zones were blind discoveries that did not outcrop at surface and which represent the first significant new gold discoveries made along the Mother Lode belt in the last 50 years. 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 101,385 feet of drilling have been accomplished in 230 diamond drill holes, and modern underground development consists of a 2,850-foot declined ramp with 2,400 feet of crosscuts plus five raises. The historic gold production was documented in a detailed report completed by Mark Payne, the consulting geologist to Sutter Gold and a qualified person as defined by National Instrument 43-101. Further information is available at the Company's Lincoln Project and El Alamo, Mexico gold concession at

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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