SOSOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED

Registered Office New York Representative Office
SUITE 800, PURDY’S WHARF 420 MADISON AVENUE
1999 UPPER WATER STREET, TOWER 1 NEW YORK, NEW YORK 10017
HALIFAX, NOVA SCOTIA B3J 2X2
For further information, contact:
Stephen W. Houghton
President and CEO
Telephone: (212) 751-0083
Website: www.sagc.com

Not to be distributed or disseminated in the U.S.

FOR IMMEDIATE RELEASE – March 27, 2007

South American Gold and Copper Company Limited announces Insurance Settlement.

Toronto, Ontario, Canada – South American Gold and Copper Company Limited (the “Company”) is pleased to announce today that its wholly owned subsidiary, Compañía Minera Pimenton (CMP) has won its arbitration case and has been awarded a total of U.S. $826,767 under its claims against the insurance company which underwrote the insurance on CMP. Of this amount, US $237,600 was in payment of damages to the plant roof and the balance, less deductible of $67,637, was for business interruption and damages to equipment at the main portal entrance to the mine plus additional expenses.
While the business interruption claim for 4 months (the maximum allowable under the insurance policy) was upheld by the arbitrator, the amount awarded was less than CMP had hoped to receive. The material damage claim was in line with CMP’s expectation and the additional expenses award was an unexpected bonus for CMP

South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.