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Santiago Office Concepcion No. 266, Of. 701 PROVIDENCIA, SANTIAGO, CHILE Telephone: 56 2 264 2295 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 - July 31, 2003

FOR IMMEDIATE RELEASE

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC" or "the Company") (TSX Symbol SAG) announced today that it is not aware of any reason for the decline in its share price and the large trading volume of its shares on the Toronto Stock Exchange on July 30^th, 2003.

As previously announced, the Company is in discussions with an international financing agency in Washington, DC, for financing the re-start of operations at the Company’s Pimenton gold mine located in the 5^th Region of Chile.

Stephen W. Houghton stated that in connection with the financing discussions, a highly respected US-based mine consulting engineering firm has been contracted by the international financing agency to conduct a due diligence review and report on the Company’s operational plans and programs to restart operations at Pimenton.

The Company recently received and has reviewed in detail the draft report prepared by the consulting engineering firm. This report is currently being reviewed by the international financing agency.

Mr. Houghton stated further that the Company’s goal is to have the Pimenton mine back into operation during the first calendar quarter of 2004.

South American Gold and Copper Company is a mineral exploration and development company with properties and activities currently focused in Chile. Its common shares are listed on the Toronto Stock Exchange under the symbol SAG.