Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

October 24, 2005 13:40 ET

Sutter Gold Water Discharge Permit Approved by Water Board

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2005) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) reports that the California Regional Water Quality Control Board (CRWQCB), Central Valley Region officially approved Sutter Gold's waste water discharge permit at their October 21, 2005 board meeting.

The water discharge permit is the final major permit required for the Sutter Gold project. The permit will allow the Company to store its dewatered tails at a dry-stacked surface fill unit as well as use mill tailings for mine backfill. This permit will save the project substantial cost in comparison to building a traditional tailings facility.

Sutter Gold CEO Hal Herron stated, "This is a major step forward for our Company. This has been a long process and we are excited to now be moving forward at a time when the price of gold is over $450 per ounce. Obtaining this important permit adds significant value to the Sutter Gold project. I want to take this opportunity to compliment the CRWQCB staff for their contributions and hard work in preparing our permit and demonstrating that California is indeed open for business."

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.

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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