Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

August 13, 2008 16:13 ET

Sutter Discovers Second High Grade Gold Zone at Santa Teresa Including 82.91 g/t Gold (2.42 Oz/Ton) Across 1.5 Meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2008) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) is pleased to announce new partial assay results at the Santa Teresa Project located in the historic and high grade El Alamo District of Baja California Norte, Mexico. These results are from the first hole drilled to test a second prospective horizon on the Property, resulting in the discovery of a second high-grade horizon that has the potential to host significant gold and is the first hole ever drilled to test this area. Historical mine workings (pre-1900's) located several hundred meters along strike on the newly acquired Victoria claim are potentially located on the same horizon, suggesting significant expansion potential. Sutter and its joint venture partner, Premier Gold Mines Limited (TSX:PG) expects to report the remainder of its recent drilling results in the near future.

Hole ST006 returned 82.91 g/t gold (2.42 oz/ton) from 173.80 meters to 175.30 meters. This interval is characterized by grey quartz veining, bands of pyrite, pyrrhotite and sphalerite mineralization as well as visible gold. Sutter regards the results from this intercept as significant for the following reasons:

- It represents a vein occurrence not previously identified in the historic record on the property.

- It supports the belief that high grade mineralization occurs in multiple vein systems within a much wider structural corridor.

- It increases the strike length of the mineralized system at Santa Teresa to approximately 400 meters and occurs nearly 500 meters from the past-producing Princessa Mine.

Hole ST006 was drilled approximately 200 meters southeast of the Princessa structure which to-date has been the focus of drilling and has returned numerous high-grade gold intercepts. Highlights from drilling the Princessa horizon include the following:

- Hole ST001 - 26.19 g/t Au (0.76 oz/ton) across 1.2 meters

- Hole ST005 - 479.31 g/t Au (13.98 oz/ton) across 2.0 meters

- Hole ST008 - 39.41 g/t Au (1.15 oz/ton) across 1.0 meters

- Hole ST013 - 125.91 g/t Au (3.68 oz/ton) across 1.0 meters

Mineralization remains open to the southeast on the Santa Teresa Concession in several veins as well as at depth. To date, a total of 5,230 meters have been drilled in 21 holes in the Phase One program and numerous assays remain pending. An additional nine holes (2,020 meters) will be drilled and two core holes extended which are expected to be completed by early October.

"The core drilling and assays to date suggests a very robust vein system across multiple horizons which is similar to the Mother Lode and the Red Lake District," stated Hal Herron, President of Sutter Gold. "This project has the potential to be very valuable asset for both Sutter and Premier's shareholders."

The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district's largest gold producer with an average production grade of more than one ounce per ton), which was mined to a maximum depth of only 110 meters, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property. Gold production at El Alamo, a 16-kilometer long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for Sutter and Premier.

Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, is the qualified person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram screen metallic methods.

About Premier

Premier Gold Mines Limited (TSX:PG) is a Canadian-based mineral exploration and development company with a strong treasury and has diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in Mexico.

About Sutter Gold

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 the El Alamo joint venture's 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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