Sutter Gold Mining Inc.

Sutter Gold Mining Inc.

July 08, 2005 13:35 ET

Sutter Gold Water Permit Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 8, 2005) - Sutter Gold Mining Inc. (TSX VENTURE:SGM) has submitted its waste water discharge permit request with the California Regional Water Quality Control Board (CRWQCB) to allow Sutter Gold to store its dewatered tails at a dry-stacked surface fill unit as well as use mill tailing for mine backfill. This permit change will save the project substantial cost in comparison to building a traditional tailings facility. In response to the permit filing, a two-page comment letter was received from the CRWQCB's staff. Sutter Gold has responded to or addressed all the comments of the CRWQCB's staff to date.

Management anticipates that the permit application will be heard by the board at its September meeting. Management was notified by CRWQCB's staff that they are working on the permit application and that it is a high priority. However, the Sutter permit request was unable to meet the public comment period filing deadline for the August board meeting; hence the anticipated inclusion in the September meeting The permit is the final major permit required for the project. Management's goal is to go into production at the Lincoln Project 16 months after receiving this permit.

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 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 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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