Sutter Gold Mining provides technical production update on Lincoln Project, California

    VANCOUVER, June 29 /CNW/ - Sutter Gold Mining Inc. ("Sutter" or "SGM" or
the "Company") (TSX Venture: SGM) is pleased to update the current status and
short term initiatives that are directed towards determining the Lincoln
Project development costs, schedule and future production decision.

    Technical Studies and Initiatives that have been Completed:

    -   A Metallurgical Process and Mill Design Report has been prepared and
        completed by H.C. Osborne, Independent Processing Consultant of
        Commerce City, Colorado and McClelland Laboratories of Reno Nevada.

    -   Phase I of the Preliminary Mill Installation Estimate has been
        completed by Vezér's Industrial Professionals of Suisun City,

    -   A conceptual Study for a Paste Backfill System has been completed by
        Golder Paste Technology of Sudbury, Ontario. The results from this
        test work will also be used in the design of the process dewatering
        and surface dry stack storage of whole tailings.

    Technical Studies and Initiatives in Process:

    -   Golder Associates of Sacramento, California are preparing the
        Material Waste Characterization Report and Water Quality Protection
        Standards Report and expects both documents to be complete third
        quarter 2009.

    -   Mine Development Associates of Reno, Nevada is performing a complete
        audit and review of the updated geologic database and 3D resource
        modeling for the Lincoln Project and expects a third quarter 2009

    -   Mark A. Suden Mining Construction of Jackson, California is
        conducting the mine excavations for The Underground Bulk Sampling and
        Testing Program and forecasts completion the third quarter 2009.

    -   McClelland Labs, American Assay, and BSI Labs, of Reno, Nevada along
        with Mark Payne, P.Geo., Grass Valley, California and Bill Mitchell,
        P.Geo., Placerville, California are preparing, assaying, documenting,
        compiling and analysing samples from the bulk sample, underground
        mapping, sampling and testing program currently underway and
        expecting completion third quarter 2009.

    -   Mine Development Associates, an Independent Engineer of Reno, Nevada
        is preparing a National Instrument 43-101 compliant technical report
        and preliminary assessment and expects this report to be complete the
        fourth quarter of 2009.

    -   Sutter Gold Mining's Technical Staff under the guidance of Golder
        Associates of Sacramento, California are undertaking the preliminary
        engineering and design for the Surface Fill Unit and Rock Storage
        Area and expects completion the fourth quarter of 2009.

    -   Sutter Gold Mining staff, independent consultants and contractors are
        also undertaking and addressing other related work activities,
        technical studies and initiatives that will assist and support the
        company's production decision, permitting, project financing,
        execution, construction, mine development, and production timeline.
        Updates as to our progress and status will continue to be
        communicated as these activities advance.

    Clayr Alexander, President and CEO stated, "With the completion of
initial test work and conceptual engineering we have now developed a base plan
from which we can begin to optimize our process and development costs.
Significant work has been completed thus far, yet continued diligence must be
focused on the remaining tasks in order to produce the information necessary
to make a production decision in the 4th quarter. We look forward to
continually updating our shareholders on the progress and development of the
Lincoln Project in the near future."

    Quality Assurance and Quality Control:

    This press release has been reviewed and approved for dissemination by
Sutter Gold Mining's senior management including Chief Executive Officer,
Clayr Alexander, P.Eng., Mark Payne, P.Geo., Consulting Geologist and David
Cochrane, P.Geo., C.E.G., Golder Associates, all being Qualified Persons under
Canadian Securities guidelines.

    About Sutter Gold Mining Inc.

    Sutter is a junior gold exploration and development company pursuing the
goal of becoming an emerging producer through the development of the
Lincoln-Comet zone at the Sutter Gold Project located on the California Mother
Lode in Amador County, California. Sutter currently controls over three miles
of the Mother Lode where 90% of the property has not been explored despite the
definition of nearly 700,000 ounces of indicated and inferred resource. The
current resource estimate for the Sutter Gold Project includes Indicated
Resources of 673,600 tons grading 0.33 oz/ton containing 223,000 ounces gold
and Inferred Resources of 2,377,900 tons grading 0.19 oz/ton containing
458,900 ounces. In Mexico, SGM hold the rights to the geologically similar,
high-grade El Alamo district located in northern Baja were historic mining to
the water table produced mined grades of 30 to 60 g/t of gold. Initial
exploration with its joint-venture partner, Premier Gold has demonstrated the
extension of these high-grade veins.


    This release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation, including predictions, projections
and forecasts. Forward-looking statements include, but are not limited to,
statements that address activities, events or developments that the Company
expects or anticipates will or may occur in the future, including such things
as future business strategy, competitive strengths, goals, expansion, growth
of the Company's businesses, operations, plans and with respect to exploration
results, the timing and success of exploration activities generally,
permitting time lines, government regulation of exploration and mining
operations, environmental risks, title disputes or claims, limitations on
insurance coverage, timing and possible outcome of any pending litigation and
timing and results of future resource estimates or future economic studies.
    Often, but not always, forward-looking statements can be identified by
the use of words such as "plans", "planning", "planned", "expects" or "looking
forward", "does not expect", "continues", "scheduled", "estimates",
"forecasts", "intends", "potential", "anticipates", "does not anticipate", or
"belief", or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved.
    Forward-looking statements are based on a number of material factors and
assumptions, including, the result of drilling and exploration activities,
that contracted parties provide goods and/or services on the agreed
timeframes, that equipment necessary for exploration is available as scheduled
and does not incur unforeseen break downs, that no labour shortages or delays
are incurred, that plant and equipment function as specified, that no unusual
geological or technical problems occur, and that laboratory and other related
services are available and perform as contracted. Forward-looking statements
involve known and unknown risks, future events, conditions, uncertainties and
other factors which may cause the actual results, performance or achievements
to be materially different from any future results, prediction, projection,
forecast, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, the
interpretation and actual results of current exploration activities; changes
in project parameters as plans continue to be refined; future prices of gold;
possible variations in grade or recovery rates; failure of equipment or
processes to operate as anticipated; the failure of contracted parties to
perform; labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion of
exploration, as well as those factors disclosed in the company's publicly
filed documents. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

                                        ON BEHALF OF THE BOARD OF DIRECTORS:
                                                             Clayr Alexander
                                                   President, CEO & Director
                                                     Sutter Gold Mining Inc.

    %SEDAR: 00009057E

For further information:

For further information: Robert Hutmacher, Chief Financial Officer at
(303) 238-1438 ext. 22 or or visit our website

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