SUTTER GOLD MINING INC. T S X-VX: S GM Suite 410 - 325 Howe St., Vancouver, BC Canada V6C 1Z7 • Tel: 604-687-3520 • Fax: 604-688-3392 March 7, 2005                  NR05-02 Sutter Gold Makes Water Discharge Permitting Progress   Vancouver  B.C.,  Sutter  Gold  Mining  Inc.  (TSX-VX:    SGM)  is  pleased  to  provide  an  update  on  its  efforts  to change its water discharge permit and its filing activities supporting the project's water discharge permit, before the California Regional Water Quality Control Board (CRWQCB). Permit Filing In January 2005 a permit was filed with the CRWQCB to allow Sutter Gold to store its de-watered tails at a dry stacked surface fill unit as well as utilize mill tailings 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  Board’s  staff.    Sutter  Gold  has  responded  to  or  addressed  all  the comments of the Board’s staff.  Management anticipates that the permit application will be heard by the Board on April 28, 2005.   This permit is the final major permit required for the project. During the time the permit filing is being reviewed by the   State   of   California,   management   will   be   evaluating   gravity   /   flotation   mills   for   acquisition,   performing additional geologic modeling and mine engineering at the mine site.     Mr. Hal Herron, Sutter's CEO said, "The Company's environmental consultants have been working diligently with the  CRWQCB  staff  to  answer  their  questions  prior  to  submitting  our  final  permit  application.    I  am  cautiously optimistic  that  we  will  obtain  the  permit  at  the  April  28^th  Board  meeting.  The  receipt  of  this  permit  will  help  to accelerate the project’s development."   About The 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  four  raises.  SGMC currently holds a conditional mining/milling permit for the properties allowing 1,000-ton-per-day operation. SGMC  plans  to  begin  further  exploration  work  and  the  construction  of  a  new  raise  to  comply  with  U.S.  Mine Safety  Health  Administration  regulations  and  improve  ventilation.  Mine  Development  Associates  (“MDA”)  or Reno,  Nevada,  prepared  the  NI  43-101  property  report  which  is  available  at  www.sedar.com.  The  Company plans to update its historical resource estimate to the NI 43-101 standards. The MDA NI 43-101 report of April, 2004 was prepared by Neil B. Prenn, P. Eng, and Peter A. Ronning, P. Eng. who are both independent of the Company. For additional information, please visit www.SutterGoldMining.com or contact: Frank Quinby or John Kuehne - Investor Relations at (250) 380-2274 or via email info@smallcap.ca Harold Herron, CEO, 307-856-9271 or via e-mail at hal@usnrg.com. 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.