News Release Date: January 20, 2005 Trading Symbol: TSX-V: SGM Ref: 1-2005 The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Page 1 of 2 Sutter Gold leases the Eureka Mines Vancouver B.C. (TSX-V: SGM) - Sutter Gold Mining Inc. (“Sutter”) has leased the three historic Eureka Mines, consisting of 105 acres of land immediately adjacent to Sutter’s 535 acre block of mining claims 45 miles east-southeast of Sacramento, California in the central part of the 121 mile long Mother Lode Gold Belt.   The Primary Lease Term is 30 years, broken down into 10 year segments and carries a minimum annual payment (US$2,400 for each of years 1-10, rising 10 year segment to US$6,000 each year in the 3^rd segment) and a 4% gross royalty. Sutter also has the right to a Renewal Term for an additional ten years following the Primary Term.    The Company has not done work to verify any historical or current resource estimates, although it has prepared a NR43-101 report for the Sutter Gold Project (see below).  Hal Herron, CEO of Sutter Gold commented, “We are excited about increasing our mineral holdings by some 40% and we look forward to integrating these historic workings into our Sutter Gold Mine development plans.”    A review of published literature on the Eureka mines suggests to Management that similar to Sutter's historic workings on the Sutter Gold Project, the Eureka properties contain mineralization because it historically produced some 2 million ounces of gold.  It should be noted that this comment is speculative, and is based on limited information of a historical nature. The Company has not done any exploration work or requested any NI 43-101 work being done on the Eureka property.   The lease includes the Eureka Mine at Sutter Creek (which has also been known as Old Eureka, Consolidated Amador, Hayward’s and Hetty Green), the South Eureka, which is one mile south of Sutter Creek, and the Central Eureka, which lies between the Eureka and the South Eureka.   Mr. Chris M. Healey, P. G. (Wyoming), Vice President – Exploration for U.S. Energy Corp., Sutter’s parent company, is the Qualified Person as defined by NI43-101, with respect to this property acquisition and responsible for preparing the technical disclosure contained in this news release. Sutter Gold Project The Sutter gold project is situated on a contiguous 535-acre block of mining claims 45 miles east- southeast  of  Sacramento,  California,  in  the  central  part  of  the  121-mile-long  Mother  Lode  gold belt. SGMC's property lies within a 10-mile section of the Mother Lode belt, which is credited with

  News Release Date: January 20, 2005 Trading Symbol: TSX-V: SGM Ref: 1-2005 The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Page 2 of 2 production of 7.8 million ounces of gold. SGMC's property has a recorded production of 1,324,000 ounces  of  gold,  essentially  all  recovered  prior  to  1920.  This  reported  gold  was  recovered  from several mines situated on what are now the SGMC claims. 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  four  raises. SGMC  currently holds  a  conditional  mining/milling permit for the properties allowing 1,000-ton-per-day operations. Mine  Development  Associates  (MDA)  prepared  the  NI43-101  for  Sutter  and  it  is  available  at www.sedar.com. Neil B. Prenn, P.Eng. and Peter A. Ronning, P.Eng. are both independent of the company and the authors of the April 2004, NI43-101 report.  At that time the Company was in the  process  of  a  RTO  and  the  report  was  done  under  the  company  name  Globemin  which  has subsequently been changed to Sutter. On behalf of the management “Hal Herron” President For additional information, please contact: Mark T. Brown  (604) 687-3520 mtbrown@pacificopportunity.com Hal Herron (307) 856-9271 hal@usnrg.com John Kuehne & Frank Quinby (250) 380-2274 john@smallcap.ca or Frank@smallcap.ca