May 26, 2009

Dear Shareholders:

We have had a very encouraging year which has given us an opportunity to continue to redefine the development of Sutter Gold Mining Inc. ("SGMI") for our shareholders and investors.

We are pleased to report that major strides have been undertaken in order to advance the Lincoln Project in California. The addition of new staff to our existing team will assist in the understanding of our reserves, provide site engineering and design, and prepare cost projections, while maintaining and updating existing permits for the development of our mining operations. Our current motivation for 2009 will be to update our statement of reserves with a new National Instrument 43-101 compliant document that includes a 3-D mine plan using recently purchased geologic modeling software. We are also moving forward to produce a Project Execution Plan and Schedule that will bring the Lincoln Project into production in 2011.

All of SGMI's California mineral and land leases continue to be in good standing with lease payments and existing permits in place and maintained. The public mine tour at the Lincoln Project continues to generate positive community and public relations for our planned underground operation and site facilities. A record-breaking 43,000 people visited the mine tour in 2008. SGMI is also looking to increase land position along the Amador County Mother Lode Trend and we expect to deliver more positive news related to our California properties in the near future.

The Santa Teresa Concession located in the El Alamo gold mining district southeast of Ensenada (Baja) Mexico had a successful year in 2008 with our Joint Venture partner, Premier Gold Mining, completing a 32-hole drill program and a land transaction to purchase the La Victoria concession, which is landlocked within the Santa Teresa Concession. Multiple intercepts in excess of 34 grams per tonne of gold between one and three meters were located within the historic Princessa structure with structures remaining open in all directions. Options to monetize our current position at the Santa Teresa Concession will be investigated during the next two years while Premier Gold earns their 50% buy in.

Along with a renewed focus of bringing Sutter Gold's properties into production, several key accomplishments were achieved during late 2008 and early 2009. SGMI established a new and more efficient corporate headquarters in Lakewood, Colorado, hired experienced professional staff, initiated detailed technical studies and reviews, and purchased state-of-the-art technical software.

Already in 2009 we are starting to reap the rewards and benefits of the initiatives that were begun during the 4th quarter of 2008. To date, SGMI has completed the following tasks for our Lincoln Project: metallurgical testing, produced and refined a process flowsheet, conducted test work on applying Paste Fill and dry stack technology to the disposal of tailings product, prepared process plant layouts and preliminary construction and operating cost estimates, identified deficiencies within our geologic database, prepared pre-development and production mine plans, conducted preliminary design off our surface fill and rock storage areas, drafted general site arrangements, and updated the existing permit modification schedule.

Our focus for the remainder of 2009 will be to complete a new National Instrument 43-101 compliant document for the Lincoln Project that includes a three dimensional resource representation and mine plan. We will continue to update and refine engineering, construction and operating cost estimates related to production, as well as execute a comprehensive mapping, sampling and bulk sampling program to demonstrate our resource continuity and predictability. We intend to increase our land position along the historic gold producing Mother Lode Trend in Amador County, California. We will also strive to improve our shareholder and investor communications which will in turn assist us in beginning to identify and acquire project financing required to bring the Lincoln Project into production in 2011.

Looking back on the accomplishments of the year, we have every reason to be confident in your company's future. We have weathered one of the most severe economic storms and have kept our plans and projects not only intact but most importantly in development. Management firmly believes that SGMI is poised to succeed and has all of the tools and programs as well as a fully qualified range off staff to ensure that we exceed our expectations.

We look forward to bringing you more positive news in the future and invite you to attend our annual meeting of shareholders in Vancouver, BC on June 9, 2009.

Clayr Alexander, P.E.
President & Chief Executive Officer
Sutter Gold Mining Inc.  

©2009 Sutter Gold Mining Inc.

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