Sutter Gold Mining Inc.
TSX VENTURE : SGM

Sutter Gold Mining Inc.

April 10, 2006 12:00 ET

Sutter Gold Completes $850,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 10, 2006) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced that it completed a non-brokered private placement to raise a total of $850,000.

The private placement consisted of 4,250,000 units at $0.20 per unit. Each unit comprises one common share and one 24-month non-transferable warrant. The warrants may be exercised to purchase one common share at a price of $0.30 per share. The offering is subject to TSX Venture Exchange approval and a four-month hold period from the date of issuance.

The funds will be used for further exploration and analysis of the Sutter Gold Mine in California and for general working capital.

In addition, the Company has filed a request to the TSX Venture Exchange to amend the exercise price of the 3,187,054 warrants expiring on December 24, 2006 from $0.50 to $0.35 per share. This request is subject to regulatory approval.

About the 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 that contains the Lincoln and Comet zones. The Lincoln and Comet zones were "blind" discoveries that did not outcrop at surface and 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 are referred to as the Lincoln project. A total of 85,085 feet of drilling has 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 and 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 website 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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