Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

February 21, 2007 14:25 ET

Sutter Gold Drilling Continues to Expand Gold Zones

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 21, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced the latest assay results from its surface and underground diamond drilling programs at the project site located in the historic Mother Lode District east of Sacramento, California. Holes 182 through 185, and Hole KDH-22 have continued to discover gold mineralization in both the Lincoln and Keystone areas of the project.

Surface Drilling Program

Hole KDH-22 encountered strong gold mineralization in the Keystone 5, 13, and 23 Veins. Hole KDH-22 intersected 1 meter (3.3 feet) of vein quartz grading 6.5 g/tonne (0.19 oz/ton) at the footwall side of a 4.4 meter wide zone of strong mineralization in the Keystone 23 Vein and 1 meter (3.2 feet) of sulfide replacement mineralization grading 5.5 g/t (0.16 opt) within a 2.6 meter wide zone of sulfide replacement in the Keystone 5 Vein. Both veins were intersected approximately 60 meters (200 feet) up dip from hole KDH-21 (see Jan 5, 2007 news release) and demonstrate the geological and grade continuity of the Keystone 5 Vein through the historic Inferred Mineral Resource within the K5 Vein (455,000 tonnes @ 7.2 g/t; 500,000 tons @ 0.21 oz/t). Drill results have demonstrated geological and grade continuity within the parallel Keystone 23 Vein structure which is a bonus for the project. KDH-22 intersected 2.7 meters (9 feet) of vein quartz grading 6.9 g/t (0.20 opt) in the Keystone 13 Vein. KDH-22 has extended mineralization up dip approximately 100 meters (350 feet) from the 2006 Indicated Mineral Resource in the K13 Vein (22,900 tonnes @ 8.6 g/t; 25,200 tons @ 0.25 opt). Hole KDH-22 is the second of nine planned surface core holes to further define a portion of the historic Inferred Mineral Resource within the K5 Vein, with the goal of upgrading it to the Indicated Mineral Resource category. Five of the nine proposed surface core holes have been completed to date. Approximately 1,625 meters (5,332 ft) of the planned 2,750 meter (9,000 ft) surface drill program has been completed. Assays for Hole KDH-23 are expected soon.

Underground Drilling Program

Results of the core drilling from underground drill stations continues to demonstrate continuity of the vein structures and mineralization between the Comet and Lincoln Zones. Holes 183 and 184 have encountered potentially-mineable widths and grades of gold mineralization. Holes 182 through 185 are part of a nine-hole fan array drilled from the 2710 East cross-cut, at the lowest level of the workings, to test southward extensions of a known shoot in the 50 Vein. Hole 183 has extended the mineralized shoot of the 50 Vein structure 60 meters (200 feet) up dip from Hole 182. Holes 184 and 185 failed to trace the continuity of the 50 Vein shoot to depth below the existing underground workings and Hole 182, but did disclose strong gold mineralization in two new vein structures. Assay results for Holes 186 through 189 will be released soon, once the assay results are received and evaluated by the Company's consulting geologist.

The underground drill program has been completed. Assays have now been received for twenty-four of the thirty-five underground holes representing 1,800 meters (6,000 ft) of the total 2,750 meters (9,000 ft). The drilling continues to validate Sutter Gold's structural and ore control models and to demonstrate continuity of the Comet veins southward into the Lincoln area.

Results and Analysis

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

Drill Holes 182 - 185, and KDH-22 Assay Summary

width width
Hole# Interval (i) Au Interval (i) Au Vein
(m) (m) (g/tonne) (ft) (ft) (oz/ton)
DDH-182 E 41,836.5; N 70,588.8; bear 210 deg, -18 deg, 101m (331 ft)

97.2-98.2m 1.0m 2.1 g/t 318.9-322.0 ft 3.1 ft 0.06 oz/t 50 Vn
100.1-102.1m 2.0m 1.7 g/t 328.2-335.0 ft 6.8 ft 0.05 oz/t
DDH-183 E 41,840.8; N 70,597.8; bear 207 deg, +69 deg, 93m (305 ft)

81.7-82.6m 0.9m 3.1 g/t 268.0-271.0 ft 3.0 ft 0.09 oz/t 50 Vn
DDH-184 E 41,836.9; N 70,591.8; bear 206 deg, -46 deg, 123m (405 ft)

31.5-34.4m 2.9m 4.8 g/t 103.4-113.0 ft 9.6 ft 0.14 oz/t new Vn
33.5-34.4m 0.9m 9.6 g/t 110.0-113.0 ft 3.0 ft 0.28 oz/t
113.6-114.5m 0.9m 2.1 g/t 372.7-375.7 ft 3.0 ft 0.06 oz/t new Vn
118.9-121.2m 2.3m 3.8 g/t 390.0-397.7 ft 7.7 ft 0.11 oz/t 10 Vn
DDH-185 E 41,824.4; N 70,601.0; bear 289 deg, -10 deg, 104m (341 ft)

81.9-83.8m 1.9m 1.0 g/t 268.5-274.8 ft 6.3 ft 0.03 oz/t 50 Vn
KDH-22 E 41,523.0; N 70,930.0; bear 248 deg, -62 deg, 252m (826 ft)

14.3-20.7m 6.4m 4.1 g/t 47.0-68.0 ft 21.0 ft 0.12 oz/t K13 Vn
14.3-17.1m 2.7m 6.9 g/t 47.0-56.0 ft 9.0 ft 0.20 oz/t
19.8-20.7m 0.9m 5.1 g/t 64.9-68.0 ft 3.1 ft 0.15 oz/t
192.5-193.3m 1.0m 1.0 g/t 630.6-634.0 ft 3.4 ft 0.03 oz/t K24 Vn
197.5-201.9m 4.4m 2.4 g/t 647.7-662.2 ft 14.5 ft 0.07 oz/t K23 Vn
197.5-198.5m 1.0m 6.5 g/t 647.7-651.0 ft 3.3 ft 0.19 oz/t
219.3-222.2m 2.9m 2.7 g/t 719.4-729.0 ft 9.6 ft 0.08 oz/t K5 Vn
220.3-221.3m 1.0m 5.5 g/t 722.6-725.8 ft 3.2 ft 0.16 oz/t
(i) True vein widths for KDH - 22 are approximately 85% of the reported
intervals, and approximately 70 to 100% for intercepts in Holes 182
through 185.

Hole KDH-22 was our second surface drill hole, and intersected the up dip periphery of the historic Inferred Resource in the K5 Vein and continues to demonstrate geological and grade continuity in the structure. Holes KDH-23 and 25 were both drilled 60 meters (200 feet) to the north, along strike from KDH-21, at the same elevation and 60 meters (200 feet) lower than hole KDH-21, and have intersected the strongest looking mineralization yet. The 2006 drill program is producing the desired results that support the expansion of the Indicated Mineral Resource base for the project as well as providing essential geologic data for mine plan development.

"The timely reporting of drill hole results has been severely hindered by the shortage of qualified analytical laboratories in the United States and their lack of capacity to handle the volume of samples being generated by the mining industry in general. Despite the long lead time in obtaining assay, the good news is that the 2006 - 2007 drill program is producing the results we had hoped for, providing geologic and grade continuity information to support expansion of the Indicated and Inferred Mineral Resources for the targeted veins. The successful identification of strong gold mineralization outside of the present Indicated Resources validates Sutter Gold's geologic models for continuity and lateral extensions of the gold bearing veins. Thus, we are confident that ounces can be moved from the Inferred Resources category (2,697,400 tons @ 0.193 oz/ton containing 521,000 ounces Inferred and 492,900 tons @ 0.352 oz/ton containing 173,000 ounces Indicated, March 2006 43-101 Resource Report) into the Indicated Resources category, which was the primary goal of the Company's $ 1.2 million (Cdn) diamond drill program." stated Mr. Hal Herron, President. "

All core samples from the drilling program are sawn in half, with one half of the core being prepared and analyzed using screened metallics fire assay methods by American Assay Laboratory in Reno, NV. The remaining half core is stored in a secured facility at the Sutter Gold site for future inspection and assay verification. Standards and blanks are inserted into all sample shipments and a minimum of 10 percent of samples are resubmitted for duplicate analysis.

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 Mining Inc.

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

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