SOUTH 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
William C. O’Donnell, EVP
Telephone: (212) 751-0083
Fax: (212) 751 0319
Website: http://www.sagc.com

FOR IMMEDIATE RELEASE – August 16, 2006

South American Gold and Copper Company Limited Announces Results for its Third Quarter Ended June 30, 2006, Compared to the Third Quarter 2005:

Toronto, Ontario, Canada – South American Gold and Copper Company Limited (the “Company”) (TSX – SAG) reported its financial results for the three month period ended June 30, 2006, compared to the three month period ended June 30, 2005.

For the three month period ended June 30, 2006, income was nil. Temporary mine shutdown costs were $81,000, amortization was nil, general and administrative expenses were $129,000, interest expense was $185,000, stock based compensation was $241,000 and foreign exchange gain was a positive $58,000, amounting to a deficit of $578,000. For the three month period ended June 30, 2005, income was $714,000, operating costs were $1,328,000, amortization was $549,000, general and administrative costs were $347,000, stock based compensation was $568,000, foreign exchange gain was a positive $33,000 and interest expense was $102,000, for a net loss of $2,142,000. The Pimenton mine was closed on June 9, 2005, due to snow damage to the main mine portal entrance, but the mine continued to incur substantial operating expenses and general and administrative expenses during the remaining period of June 2005.

The Company also announced that it expects to receive a final decision from the arbitrator in mid-September on its claim for business interruption insurance.
Details of the Company’s nine month periods ending June 30, 2005 and 2006, are posted on SEDAR.

South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.

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