Sutter Gold Mining Inc.
TSX VENTURE : SGM

Sutter Gold Mining Inc.

October 26, 2006 16:05 ET

Sutter Gold Continues to Expand Comet Zone

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced the latest assay results from its underground diamond drilling program at the project site located in the historic Mother Lode District east of Sacramento, California. Holes 173 through 177 have continued to demonstrate excellent geological continuity in several veins and have extended gold mineralization in the 31 and 50 Vein structures southward. These holes include a three-hole fan array drilled from the 2265 West cross-cut to test southward extensions of a known shoot in the 50 Vein of the Comet Zone, and the first hole in a nine-hole fan array drilled from the 2710 East cross-cut to step-out northward, tracing known shoots in the Lincoln Zone toward the Comet Zone. The 6 Vein of the Lincoln Zone has been successfully linked with the 50 Vein of the Comet Zone.

To date, twenty-four underground core holes totaling 1,916 meters (6,286 ft) have been completed. The first hole of the surface drilling campaign has successfully intersected the mineralized Keystone 5 Vein target and has continued to intersect new mineralized branch vein structures in the footwall of the vein and is being extended to depth. The second surface drill has been delayed by mechanical repairs and is expected to begin drilling at the start of next week.

Assay results have been received for the first fifteen core holes in the underground program. The results of the next five holes will be released once the assay results are received and evaluated by the Company's consulting geologist.

Results and Analysis

Highlights from Holes 173 through 177 include:

Hole 173 disclosed sulfide replacement mineralization of meta-tuffs (1.5 meters @ 5.0 g/t or 5.0 ft @ 0.15 oz/t) in the footwall of the 31 Vein structure 90 meters (300 ft) south of an intercept of similar style mineralization in Hole 171 (5.5 m @ 5.7 g/t or 18.0 ft @ 0.17 oz/t). From the 1900N cross-section line, the strike of the 31 Vein structure turns more easterly, becoming a broad zone of lower-grade quartz stringers where gold mineralization becomes focused into a sulfide replacement in the footwall of the structure. A 120 meter (400 ft) strike length for this shoot is presently identified.

Hole 175 intersected 1.0 meter @ 18.6 g/t (3.3 ft @ 0.54 oz/t) in the 50 Vein structure of the Comet Zone, approximately 21 meters (70 ft) south of and 9 meters (30 ft) lower than old Hole 155 (1.7 m @ 27.0 g/t or 5.6 ft @ 0.79 oz/t). Hole 174 cut off the shoot 35 meters (120 ft) south of Hole 175 at the same elevation, intersecting 6 feet of barren vein quartz, which supports the close proximity of the shoot, as projected from several old holes to rake above Hole 174. This shoot is located between cross-sections 1800 to 2300N.



Results from SGM's most recent diamond drill holes are shown in Table 1
below.

Drill Holes 173 - 177 Assay Summary

Hole# Interval width Au Interval width Au Vein
(m) (i)(m) (g/tonne) (ft) (i)(ft) (oz/ton)
---------------------------------------------------------------------------
DDH-173 E 41,529.1; N 70,934.4; bear 131 deg, -23 deg, 134m (441 ft)
2.0 - 2.9m 0.9m 1.5 g/t 6.5 -
9.6 ft 3.1 ft 0.04 oz/t 49 Vn
81.9 - 82.9m 1.0m 1.6 g/t 268.5 -
271.8 ft 3.3 ft 0.05 oz/t 34 Vn
96.0 - 114.3m 18.3m 1.4 g/t 315.0 -
375.0 ft 60.0 ft 0.04 oz/t 42 & 31
Vns
including
96.0 - 96.9m 0.9m 1.2 g/t 315.0 -
318.0 ft 3.0 ft 0.03 oz/t 42 Vn
104.9 - 105.9m 1.0m 3.6 g/t 344.0 -
347.3 ft 3.3 ft 0.11 oz/t Sulf
Rplc
107.9 - 108.8m 0.9m 1.4 g/t 353.9 -
357.0 ft 3.1 ft 0.04 oz/t 31 Vn
112.8 - 114.3m 1.5m 5.0 g/t 370.0 -
375.0 ft 5.0 ft 0.15 oz/t Sulf
Rplc
120.4 - 125.0m 4.6m 2.2 g/t 395.0 -
410.0 ft 15.0 ft 0.06 oz/t 26 Vn
including,
124.1 - 125.0m 0.9m 3.9 g/t 407.0 -
410.0 ft 3.0 ft 0.11 oz/t
---------------------------------------------------------------------------
DDH-174 E 41,520.2; N 70,937.8; bear 68 deg, +77 deg, 59m (195 ft)
0.9 - 1.8m 0.9m 1.0 g/t 3.0 -
6.0 ft 3.0 ft 0.03 oz/t 49 Vn
---------------------------------------------------------------------------
DDH-175 E 41,521.2; N 70,939.5; bear 352 deg, +65 deg, 51m (166 ft)
0.0 - 0.9m 0.9m 2.5 g/t 0.0 -
3.0 ft 3.0 ft 0.07 oz/t 49 Vn
40.8 - 41.8m 1.0m 18.6 g/t 133.7 -
137.0 ft 3.3 ft 0.54 oz/t 50 Vn
---------------------------------------------------------------------------
DDH-176 E 41,518.8; N 70,936.3; bear 11 deg, +64 deg, 92m (301 ft)
No significant values, hole veered away from 50 Vein target
---------------------------------------------------------------------------
DDH-177 E 41,840.7; N 70,589.5; bear 234 deg, +63 deg, 104m (341 ft)
85.4 - 86.4m 1.0m 1.1 g/t 280.2 -
283.5 ft 3.3 ft 0.03 oz/t 61 Vn
---------------------------------------------------------------------------
(i) Mineralized intervals have not been corrected to true vein width.


Drilling to date continues to support the continuity of the veins structures from the Comet Zone into the Lincoln Zone. The 6 Vein of the Lincoln Zone has been connected with the 50 Vein of the Comet Zone. At least 3 separate shoots have been identified at present. The Company is currently extending known shoots in the Comet 26, 31, 42, and 50 Veins southward into the Lincoln Zone. Sulfide replacement mineralization in the footwall of the Comet 31 Vein will be tested southward to determine if it connects with sulfide replacement mineralization of the Lincoln 15 and 16 Veins 120 meters (400 ft) south of the current drill station.

The Sutter Gold 2006 core drilling program is planned and supervised by Mr. Mark Payne, P.Geo. Calif. 7067, the Qualified Person for the Sutter Gold Project, as defined by NI 43-101, and has reviewed this release.

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 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 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.

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