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Santiago Office La 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 - December 12, 2000

FOR IMMEDIATE RELEASE

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC") (Toronto Stock Exchange Symbol "SAG"), announced today that it has received regulatory approval for the issuance of 6,132,787 of its common shares in a private placement with certain of its Directors and Officers at an aggregate purchase price of Cdn. $490,622, or Cdn. $0.08 per share.

The Company also announced that it has received regulatory approval for the issuance of 1,824,815 of its common shares in connection with an amendment to a Purchase and Sale Agreement dated October 23, 1996, with the former owner of certain mineral claims relating to its Catedral limestone deposit which is held by Compañía Minera Catedral in which SAGC holds a 50.01% interest. Under the terms of the amendment, SAGC will be relieved of future minimum royalty payments of US $25,000 per year, aggregating US $125,000, and a US $375,000 payment due on January 23, 2005, which has been reduced to US $150,000 and extended to January 23, 2010. The US $150,000 payment may be prepaid by Compañía Minera Catedral at any time and at the option of the note holder exchangeable into common shares of SAGC at an exchange price of not less than Cdn. $0.20 per share.

Following the issuance of the private placement shares and shares issued in conjunction with the amendment to the Purchase and Sale Agreement SAGC will have 116,301,849 shares outstanding.

Stephen W. Houghton, President and CEO, stated, "We are pleased by the confidence placed in SAGC by the Company’s Directors, Officers and the former royalty holder on Catedral." Mr. Houghton also stated that the Company is progressing with its plans for the development of its Cal Norte Lime project on which is has received all environmental permits and approvals.

SAGC is a mineral exploration and development company with current focus on industrial mineral projects in Chile. The Company also holds significant interests in several gold projects in Chile. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG.