Sutter Gold Mining Inc.
TSX VENTURE : SGM

Sutter Gold Mining Inc.

September 05, 2007 12:47 ET

Sutter Gold Adopts Strategy to Enhance Shareholder Value

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced that it has retained IBK Capital Corp. of Toronto to evaluate strategic alternatives to maximize shareholder value. These alternatives may include the sale of the Company or the merger of the Company with a strategic partner, or any number of other available options.

SGM management and the board of directors will work with its financial advisor, IBK Capital Corp., to ensure that all alternatives available to the Company are properly considered and evaluated.

To date, SGM has invested approximately $24 million in its Lincoln Gold Project in California's Mother Lode for: major exploration core drilling programs; acquisition of all the major operating permits and completion of the basic engineering design for a mill on the property. Behre Dolbear's NI 43-101 compliant pre-feasibility study on the Lincoln Project, which is anticipated to be completed in late September 2007, will incorporate an updated NI 43-101 compliant project resource estimate as a result of the recently completed Phase 1 (underground and surface) exploration drilling to develop the mine plan. A Phase 2 exploration program with a planned 2,300 meter surface drilling program is underway.

Hal Herron, president and CEO, said, "We've seen what IBK can do, and we're pleased to work with their professional staff to maximize value for our shareholders. IBK's reputation is first class and they have the worldwide network of contacts to help us evaluate the full range of alternatives available to us. Management and the board firmly believe that the Company is undervalued in light of the advanced stage of our gold project in the historic Mother Lode of northern California, our exploration program with Premier Gold Mines Limited in the historic gold district of El Alamo and a very strong gold market. With IBK Capital's expertise in handling mining transactions globally, I believe they will help unlock the true value of our assets for the substantial benefit of our shareholders."

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 www.suttergoldmining.com.

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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