Toronto,Ontario - February 18, 2000

FOR IMMEDIATE RELEASE

South American Gold and Copper Company Limited Announces Project Finance Commitment for its Cal Norte Project

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) is pleased to announce that it has received a US $5,000,000 financing commitment for its Cal Norte lime project.

The Cal Norte lime manufacturing facility will produce 51,000 tons per year of high grade metallurgical lime which is used in minerals processing by gold and copper companies. The plant will be located near Illapel in Region IV of Chile, approximately 323 kilometers from Santiago and will be an important alternative supply source of metallurgical lime to the Chilean mining industry located in Regions IV and V of Chile which is now importing a part of its lime requirements at significant cost from Argentina.

Stephen W. Houghton, President and CEO of SAGC, stated, "We are extremely pleased that the Cal Norte financing commitment has been received from a highly regarded Chilean banking institution. The final terms and conditions of the loan facility are being addressed by SAGC and we are confident that we will be able to meet the conditions of the financing commitment. Preliminary site preparation at the Cal Norte plant site has been initiated and we remain committed to a plant start-up date early in the second quarter of 2001.

"The plant will be located at Cal Norte’s Hornito and Ceci Tres mine sites which have been in production for the last six years producing high grade limestone. The new lime manufacturing facility designed by Penta Engineering Corp., St. Louis, Missouri, will be a highly efficient vertical dual shaft reversary kiln which is environmentally friendly, fuel efficient and requires nominal annual maintenance."

Mr. Houghton stated further, "New mining projects and mine expansion plans in Regions IV, V, VI and the Metropolitan Region of Chile are supporting our market analysis that the demand for both metallurgical grade lime as well as high grade limestone will increase substantially in the near term and that our Cal Norte and Catedral projects are uniquely positioned to serve the increasing demand for these products.

"A part of the cash flow generated from these industrial mineral projects will be used for further development and exploration of our gold and copper projects.’

SAGC is a mineral exploration company with gold and industrial mineral projects and 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.