Toronto,Ontario - July 14, 1997

South American Gold and Copper Company Limited Announces Results of Drill Program on Catedral/Rino Limestone Deposit

Toronto, Ontario, - South American Gold and Copper Company Limited (TSE, symbol "SAG") announced today the results of diamond drill core analysis on drill holes R-1 and R-3 which were drilled on the Rino deposit of its Catedral/Rino limestone project. The results of drill hole R-2 on the Rino deposit and drill hole C-2 on the Catedral deposit were previously announced. SAGC holds a 50.10% interest in the project.

Preliminary calculations based on drill holes R-1, R-2 and R-3 indicate that the Rino deposit hosts at least 100 million tonnes of limestone suitable for manufacture of portland cement.

Drill hole R-1 was drilled to a depth of 516 metres and encountered 132 metres true thickness of excellent quality cement rock with an average grade of 74.7% calcium carbonate (CaCO3) beneath 32 metres of surface sandstone. Drill hole R-3 was drilled to a total depth of 500 metres and encountered two stratigraphic sections measuring 193 metres of good quality cement rock with an average grade of 75.1% calcium carbonate (CaCO3) which includes a 148.6 metre section containing an average grade of 75.9 calcium carbonate (CaCO3). Widths given are true thickness.

Drill hole R-2, previously reported, encountered two stratigraphic sections totaling 218.7 metres of good quality cement rock with an average grade of 74.2 calcium carbonate (CaCO3) which includes a 148.2 metre section containing an average grade of 78.0 calcium carbonate (CaCO3).

The Company and its independent consultants believe that the drill program results are sufficient to move the project to a full feasibility study, plans for which are in progress.

SAGC is a mineral exploration company with extensive gold properties in Chile and Peru. 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 (odonnell@sagc.com). Telephone: (212) 983-9300, fax: (212) 983-9314.