Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

March 17, 2005 14:50 ET

Sutter Gold Hires Consulting Geologist


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SUTTER GOLD MINING INC.

TSX VENTURE SYMBOL: SGM

MARCH 17, 2005 - 14:50 ET

Sutter Gold Hires Consulting Geologist

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 17, 2005) - Sutter
Gold Mining Inc. (TSX VENTURE:SGM) announces the hiring of Mr. Mark
Payne, consulting geologist, to coordinate exploration work at the
Company's gold project.

Scope of Work

Mark Payne, leading exploration geologist based in Grass Valley, CA, has
been hired by the Company to oversee the geological aspects of an
ongoing underground exploration and development program. Mr. Payne is a
licensed professional geologist in the State of California and has 27
years of mineral exploration experience in the western United States,
and extensive experience exploring complex vein deposits. Recently, he
completed 11 years of service as Chief Geologist at a large gold-quartz
vein project in California, having calculated resources in 90 separate
zones. Mr. Payne is designated as a Qualified Person as defined by NI
43-101.

The scope of Mr. Payne's work will include reviewing core hole data,
geologic mapping of the Intermediate Drift and raises in the area of
proposed development, the identification of additional step-out core
drill locations, and developing a comprehensive mine sampling and QA/QC
program for the project. The work done on resource estimation in 1993 is
not in accordance with current 43-101 reporting standards. In addition,
a pre-feasibility study from 1993 is no longer current as the economic
assumptions used in it are more than 10 years out of date. Mr. Payne is
well versed in resource/reserve validation for gold-quartz vein deposits
and will work towards updating that Historical Resource in compliance
with the current NI 43-101 guidelines.

Mr. Hal Herron, Sutter's CEO said, "The Company is fortunate to have
Mark Payne on the project as he has a comprehensive knowledge of
exploration and development methodologies applicable to gold deposits in
the Mother Lode Belt. While management believes the resource estimates
from 1993 to be reasonable, it is our goal to quickly be in the position
to have a resource we can talk about in accordance with 43-101
standards. Mr. Payne will also coordinate mine development with the
mining engineers with a goal to updating the 1993 pre-feasibility study
to current standards."

About Sutter Gold Mine

The Sutter Gold project is situated on a contiguous 535-acre block of
mining claims 45 miles east-southeast of Sacramento, Calif., in the
central part of the 121-mile-long Mother Lode gold belt. The Sutter Gold
property itself has had recorded production of 1,324,000 ounces of gold,
essentially all of this prior to 1920, and this recovery was from the
Wildman, Mahoney, Lincoln, South Spring Hill, Keystone and Medean Mines.

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.

Mr. Payne is designated as the Qualified Person as defined by NI 43-101
and has reviewed this release.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    SmallCap Corporate Partners
    Mr. John Kuehne
    (250) 216-7299
    john@smallcap.ca
    or
    Sutter Gold Mining Inc.
    Hal Herron
    CEO
    (307) 856-9271
    hal@usnrg.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.