Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

March 19, 2007 09:30 ET

Sutter Gold Settles Inter-Company Debt

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) today announced the conversion of US$2,025,702 in amounts due to U.S. Energy Corp. ("USE") and Crested Corp. ("Crested") into 7,621,867 common shares of the Company at $0.31 per share. These common shares will be subject to a four-month hold period. The conversion of the long outstanding amounts will help to prepare the Company for future financings as it advances its gold projects in the U.S. and Mexico. The settlement is subject to the approval of the TSX Venture Exchange.

In addition, the Company settled the US$4.6 million Contingent Stock Purchase Warrant with Crested and USE by way of issuing a Net Profits Interest royalty ("NPIR") of 5% on its Lincoln Project in the historic Mother Lode, until the total amount is repaid, and a 1% Net Profits Interest royalty thereafter.

Subject to the closing of USE and Crested's sxr Uranium One transaction, USE and Crested have agreed to provide a revolving US$1 million line of credit (US$500,000 each) to the Company at 12% annual interest. USE and Crested have the sole option to have the Company repay the debt in cash or common shares of the Company should the facility be utilized by the Company.

Hal Herron, President, commented that, "this is a one more step in moving the Sutter Gold Project ahead. Over the past 12 months we have raised funds which are being spent on our large drill program and, recently, the engagement of Behre Dolbear to complete a pre-feasibility study on the project. With this settlement, the Company has a debt free balance sheet which will give our shareholders and investors more confidence in the value of Sutter."

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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