Toronto,Ontario - August 13, 2001

South American Gold and Copper Company Limited Announces Start of Drill Program on its Lorito Copper Prospect

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) is pleased to announce that the drill program on its Lorito Copper Prospect commenced on Sunday, 12^th August, 2001. The Lorito Prospect is located 60 kilometers south of Copiapo, Chile, at an elevation of 2,700 meters.

The reverse circulation drill program as currently planned will consist of four to five drill holes drilled at 60º to 90º and will total approximately 1,000 meters of drilling. Provisions have been made for drilling up to an additional 1,000 meters above the currently planned drill program if required. The currently planned drill program is expected to take 30 to 45 days to complete.

Acme Laboratories, Santiago, Chile, with headquarters in Vancouver, Canada, will have full time personnel at the drill site during the drill program and be responsible for taking the drill cut samples, safekeeping and transport of the samples to its assay laboratory in Santiago. Acme will also be responsible for sample preparation and assaying.

Additional information on the Lorito Prospect is available on the Company’s website: http://www.sagc.com.

South American Gold and Copper Company Limited is a mineral exploration and development company with properties and activities currently focused in Chile. It is also developing industrial minerals projects and will utilize potential earnings from these projects to further advance its exploration and development activities. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG.

For further information, please contact Stephen W. Houghton, President and CEO at telephone (212) 751-0083, fax (212) 751-0319.