Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

April 07, 2006 14:47 ET

Sutter Gold Hires Investor Relations Firm

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 7, 2006) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced that it has contracted the services of Contact Financial Corporation ("CFC") of Vancouver, British Columbia, to implement a shareholder and investor relations program for the Company.

"We are very pleased to welcome Contact Financial Corporation to the Sutter Gold family of strategic partners and expect CFC to play an important role in assuring that the investment community is fully aware of corporate developments and management's efforts to enhance shareholder value through the exploitation of our gold properties in the Mother Lode District of California," noted Hal Herron, Chief Executive Officer of Sutter Gold Mining Inc. "With the price of gold having risen to 25-year highs, the prospective economics of the Sutter Gold Mine have improved significantly in recent months."

CFC, which was retained by the Company effective March 31, 2006, provides management consulting and investor relations services targeted at both existing shareholders and potential new investors. CFC will be paid $7,500 per month and Mr. Kirk Gamley, the President and director of CPC, will be granted an option to purchase up to 100,000 shares of SGM commons tock at an exercise price of $0.28 per share. The option will vest in stages over a 12-month period, with no more than one quarter of the options vesting in any three-month period.

CFC is a consulting firm based in Vancouver, B.C. CFC and Mr. Kirk Gamley are at arm's length with the Company. During the term of the agreement, CFC will provide customary services performed by an investor relations firm to a public company including, but not necessarily limited to, the following:

- Introductions to and continuing liaison with writers and/or publishers of various subscriber-based publications, including (but not limited to) newspapers, magazines, business publications and financial publications;

- The review and provision of advice regarding the presentation of the Company's investor and shareholder communications materials, including the Company's website and its presentations from time to time at various industry meetings, conferences and tradeshows;

- Advice pertaining to the overall corporate development of the Company; and

- Communication directly with funds, analysts, money managers, brokers, and accredited investors for the purposes of encouraging or promoting investment in the Company.

In co-operation with the Company's management group, CFC will be working to develop a consistent, positive identity that creates favorable responses to major corporate initiatives and strategies.

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

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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