Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

June 28, 2005 12:58 ET

Sutter Gold Confirms Visible Gold with Assay Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - Sutter Gold Mining Inc. ("Sutter") (TSX VENTURE:SGM) announced that quartz containing visible gold was recently exposed in a new underground raise and confirmed by assays. As part of the work program for the Spring and Summer 2005, the mine has undergone maintenance and rehabilitation work including: upgrading underground electrical systems, installing new ventilation pipe, mine portal reconstruction and ground support maintenance.

The raise program concentrated in the 1000 Level of the Comet Zone. This work was undertaken in preparation for future development raising and exploratory core drilling in the 40 Vein structure later this year. A 30 foot long, 10 foot wide, by 6 foot raise round was taken at the 1000 Level to create adequate space in the back and square-up the back in preparation for development raising in the 40 Vein planned in the future. At the northern end of this block, a 6 X 8 foot raise is the planned continuation of the existing 1670 ore pass. All underground infrastructure is now ready for the development work program in the 40 Vein of the Comet Zone.

According to consulting geologist Mr. Mark Payne, the new work exposed a broad zone of complex quartz veining where the 43 Vein splays from the hanging wall of the 40 Vein. Visible gold was noted in both the 40 and 43 Veins. Free gold exposed in this location ranges from small specks to thick foils up to one-eighth inch in long dimension. Photographs of this location will be posted on the Company website in the near future. The 40 Vein shows a horizontal width of 5.4 feet at the north rib of the raise and 6.0 feet at the south side, 13 feet above the floor in the 1000 Level drift. Back, face, and muck grab samples were collected as part of the development sampling program for the Sutter Gold Project.

Assay results received to date (24 each) for the 40 Vein yielded a weighted average 0.404 ounces per ton gold across a 3.4 foot horizontal width for the footwall half of the vein in the 1670 Raise. The exposed horizontal width of quartz in the 6 X 8 foot raise averages 5.7 feet. Assay results for the 2.6 foot width of quartz in the hanging wall section of the 40 vein will be announced when received. Sampling results for the entire 30 foot long block will be announced when all assay results have been received. Mark Payne confirmed that these assays support the assays from drifting at this location in the 1990s and the geologic work provided by Pincock Allen & Holt's Prefeasibility Study.

The Sutter Gold Project development sampling program is planned and supervised by Mr. Mark Payne, California Registered Geologist 7067, and Qualified Person as defined in National Instrument 43-101, "Standards of Disclosure for Mineral Projects." The Company has implemented a quality assurance/quality control program to ensure sampling methods and analyses of all samples is conducted in accordance with the best possible industry practices, and conforms to National Instrument 43-101. The Company conducts a rigorous QA/QC program, which includes the routine insertion of blank samples, certified reference standards, and a thorough duplicate assaying protocol. Due to the coarse gold content of vein mineralization encountered routinely at the Sutter Gold Project, all samples are analyzed using screened metallics fire assay methods at American Assay Laboratory of Sparks, Nevada.

Sutter Gold Project

The Sutter gold project is situated on a contiguous 535-acre block of mining claims 45 miles east-southeast of Sacramento, California, in the central part of the 121-mile-long Mother Lode gold belt. SGMC's property lies within a 10-mile section of the Mother Lode belt, which is credited with production of 7.8 million ounces of gold.

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. SGMC currently holds a conditional mining/milling permit for the properties allowing 1,000-ton-per-day operations.

Mine Development Associates (MDA) prepared the NI43-101 Compliant Report for Sutter and it is available at Neil B. Prenn, P.Eng. and Peter A. Ronning, P.Eng. are both independent of the Company and the authors of the April 2004, NI43-101 report. At that time the Company was completing an RTO and the report was done under the company name Globemin Resources Inc., which has subsequently been changed to Sutter Gold Mining Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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