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Santiago Office Concepcion No. 266, Of. 701 PROVIDENCIA, SANTIAGO, CHILE Telephone: 56 2 232 5578 Fax: 56 2 233 1037	Registered Office: SUITE 800, PURDY'S WHARF 1959 UPPER WATER STREET, TOWER 1 HALIFAX, NOVA SCOTIA B3J 2X2
	New York Representative Office: 420 MADISON AVENUE, SUITE 901 NEW YORK, NEW YORK 10017-1107 Telephone: (212) 751-0083 Fax: (212) 751-0083 Website: http://www.sagc.com

Toronto,Ontario - April 7, 2000

FOR IMMEDIATE RELEASE -

South American Gold and Copper Company Limited Announces Further Debt Reduction

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) is pleased to announce today a further and significant strengthening of its balance sheet.

Stephen W. Houghton, President and CEO, announced today, "The Company’s indebtedness has been substantially reduced from Cdn $3,964,000 to Cdn. $1,100,000. The Cdn $2,864,000 reduction in the Company’s corporate indebtedness has resulted from the recent exercise of the conversion privileges held by the holders of an aggregate principal amount of Cdn $2,864,000 of its outstanding Cdn $3,364,000 of Convertible Debentures. This leaves a balance of Cdn $500,000 of the Convertible Debentures outstanding.

"The significant reduction in indebtedness and corresponding improvement in the Company’s balance sheet are very positive events for the Company. The Company’s plans for the development of the Cal Norte and the Catedral metallurgical grade lime processing facilities are progressing well and the decision of our Debenture holders to exercise their conversion privileges reinforces management’s confidence that these projects will contribute substantially to the Company’s future."

The Company’s other indebtedness consists of a Cdn $600,000 Promissory Note payable on December 31, 2002, and US $2,000,000 of Pimenton Notes. The Pimenton Notes are solely the obligation of its wholly owned subsidiary, Compañía Minera Pimenton and are due on December 31, 2005, and under certain conditions may be extended to December 31, 2007. The Company’s outstanding share capital now stands at 108,344,252 shares as a result of the debt conversion and recent exercise of a 400,000 share employee incentive stock option.

SAGC is a mineral exploration company with gold and industrial mineral properties in Chile. Its common shares are listed on the Toronto Stock Exchange under the symbol SAG.

For further information, Stephen W. Houghton, President and CEO; William C. O’Donnell, EVP and CFO. Telephone: (212) 751-0083; fax: (212) 751-0319; and visit our website at http://www.sagc.com.