Premier and Sutter expand holdings at high grade El Alamo District

    Shares Issued: 68,189,742

SUTTER GOLD MINING INC. (SGMI; SGM.V) are pleased to announce that they have
expanded their holdings in the historic and high grade El Alamo District of
Baja California Norte, Mexico to include an additional 2,800 hectares (6,919
acres) of mineral concessions. The concessions are accessible by road, located
10 kilometres (kms) west of Highway 3, some 100 kms southeast of Ensenada and
about 250 kms from San Diego, California, USA.
    These new concessions, together known as Santa Teresa 2 (STC2), are
located north, east and southwest of the original Santa Teresa Concession
(STC) and will be explored for jointly under terms defined in the recently
signed joint venture agreement (JVA) between the companies. The ground is
considered to be strategic by the partners as it includes the poorly explored
surface prospect at San Gabriel to the east of the STC and also is located
proximal to the past-producing Avelina Mine located southwest of the STC.
    Premier is preparing an initial 14-hole diamond drill program of
3,650 metres (11,975 feet) on the STC in order to test the extent, continuity
and grade of known gold-bearing vein structures previously evaluated only
within 20 metres of the surface.
    The STC is located adjacent to and on strike from the past-producing
Princessa Mine (the district's largest gold producer), whose orebody was known
to extend close to the STC boundary. Data suggests that potential extensions
of the Princessa Mine along strike and at depth have not been tested. The El
Alamo District's gold production halted at its peak owing to technological and
political circumstances early in the 20th century, thus presenting a unique
opportunity to the JV today.
    Premier and Sutter management were attracted to the El Alamo District
initially because of a unique history of high mined grades, but little modern
exploration. Both the STC and STC2 are:

    -   Located within a proven (some 220,000 ounces of past production) gold
    -   Historical data indicates that mined grades within the district are
        between 1.00 and 2.00 ounces per ton (opt).
    -   The majority of district production occurred within 120 metres of
        surface, but remains open at depth.
    -   Has characteristics similar to the historic Mother Lode District of

    The upcoming initial phase of exploration on the STC will conclude late
in Q1 2008 and be followed up by a second phase that expands into the STC2
    Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating
Officer of Premier, is the qualified person for the information contained in
this press release and is a Qualified Person within the meaning of National
Instrument 43-101.

    About Premier Gold Mines Limited

    Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with diverse property holdings that include several
projects and deposits in Northwestern Ontario, a newly formed joint venture in
Geraldton Ontario, and a joint venture in Mexico. In the Red Lake gold mining
camp, two of these are operated in joint venture with Goldcorp Inc. (TSX:G). A
strategic project is also located on the main Musselwhite Gold Mine trend
(Goldcorp-Kinross). Additional information can be found on the Premier website

    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 on US and Mexico operations is available at the Company's website

    The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and

    %SEDAR: 00024152E

For further information:

For further information: on Sutter Gold, please contact: Sutter Gold
Mining Inc., Suite 410 - 325 Howe St., Vancouver, BC, Canada, V6C 1Z7, Tel:
(604) 687-3520, Fax: (604) 688-3392; Hal Herron, CEO, (307) 856-9271,; For additional information on Premier Gold Mines Limited,
please contact: Premier Gold Mines Limited, Address: 401-1113 Jade Court,
Thunder Bay, Ontario, Canada, P7B 6M7, Stephen McGibbon, COO,, Phone: (807) 346-1390, Fax: (807) 345-0284,
e-mail:, Web Site:

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