Toronto,Ontario - June 2, 1997

South American Gold and Copper Company Limited Announces Initial Results of its Drill Program on the Catedral/Rino Limestone Deposits

Toronto, Ontario, - South American Gold and Copper Company Limited (TSE, symbol "SAG") announced today that it has received very positive chemical analysis results on the drill cores from the first two diamond drill holes drilled on the Catedral/Rino limestone deposits located 100 kilometres southeast of Santiago, Chile. SAGC holds a 50.10% interest in the deposits.

In consultation with Behre Dolbear & Company, Inc., which has been engaged by SAGC on the project and has a long history of geological and engineering experience in the analysis of limestone deposits, SAGC is confident that the results obtained from the first two diamond drill holes will be indicative of the expected analytical results from two additional drill cores currently being analyzed. Analyses are by an independent laboratory in Australia. Blind duplicate samples are being run by the laboratory in Australia and a laboratory in the US. The results of the two diamond drill holes, Drill Hole R-2, drilled to a total depth of 573 metres on the Rino limestone deposit, and Drill Hole C-2, drilled to a total depth of 611 metres on the Catedral limestone deposit, are summarized below:

Rino Limestone Deposit
Drill Hole R-2

Sampled
Interval		 Sample Nos. From (m) to (m) Sampled
Length		 Appx. True
Thickness		 Average
%CaCO3
A 18751 to 18757 0.00 87.05 87.05 87.05 61.1%
B 18758 to 18762 87.05 131.05 44.00 44.00 56.4%
C 18763 to 18778 131.05 314.00 182.95 182.95 78.1%
D 18780 to 18796 318.80 573.00 207.00 207.00 43.0%

The Company's consultants have indicated that it is unusual to find quality cement rock of such average combined consistency as identified by Intervals "A" and "C," which total 270 metres or approximately 890 feet in Drill Hole R-2.

Catedral Limestone Deposit
Drill Hole C-2

Sampled
Interval		 Sample Nos. From (m) to (m) Sampled
Length		 Appx. True
Thickness		 Average
%CaCO3
A 18801 to 18802 11.20 26.35 45.20 22.60 74.8%
B 18803 to 18821 71.00 147.70 149.45 74.72 65.9%
C 18813 to 18816 247.70 305.40 58.00 29.00 74.0%
D 18817 to 18833 305.40 611.10 249.40 129.70 65.6%

The chemical analysis of the limestone material encountered in Drill Hole R-2 and C-2 are shown respectively in Figures I and II. In the judgment of Behre Dolbear & Company, Inc., sampled intervals "A" and "C" as defined by Drill Hole R-2 when combined are close to the ideal quality for the manufacture of Portland cement. Sampled interval "A" and "C," as defined by Drill Hole C-2, is of good quality for the manufacture of Portland cement.

A highly favorable aspect of the Rino and Catedral limestones is that their chemical compositions are suitable for the manufacture of Portland cement with little or no additives. Other limestone deposits often require considerable additional materials or special processing. Gypsum, a normal additive for Portland cement, occurs extensively on the Catedral Prospect and will be systematically evaluated in the near future.

Stephen W. Houghton, President and CEO of SAGC stated that "based on the geological structure of the limestone beds at Catedral and at Rino and discussions with Behre Dolbear & Company, Inc., we are very confident that the deposits contain adequate reserves to support a 1 to 2 million tonne per year cement manufacturing facility well into the 21st century. The Company also believes that the cost to mine and produce high quality cement from the Catedral/Rino deposits will be highly competitive for serving the Santiago cement market."

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 and copies of Figures I and II: Stephen W. Houghton, President and CEO; William C. O'Donnell, EVP and CFO. Telephone: (212) 983-9300, fax: (212) 983-9314.

You may also E-mail us or complete our request for information FORM

SOUTH AMERICAN GOLD
and COPPER COMPANY LIMITED

Figure I to News Release, June 2,1997
Rino - Chemical Analysis - Drill Hole R-2

R-2 drilled at 45 degrees to the horizontal at right angles to limestone dipping at 55 degrees.

Interval
Drill
Intercepts
Thickness
CaO
CaCO3
MgO
MgCO3
Al2O3
Fe2O3
SiO2
Na2O
K2O
P2O5
Mn2O3
L01
TiC2
SrO
S03
A 0 -
87.05		 87.50 37.00 66.10 2.08 2.46 4.87 1.98 19.77 1.03 0.96 0.12 0.06 29.83 0.23 0.04 1.31
B 85.5 -
131.05		 44.00 31.60 56.40 2.52 2.99 6.23 2.19 25.97 0.89 1.62 0.14 0.06 26.20 0.25 0.03 1.55
C 131.05-
314.00		 182.96 43.80 78.10 2.32 2.75 2.81 1.04 10.48 0.48 0.67 0.07 0.04 35.82 0.14 0.08 1.59
D 314.00-
573.00		 207.00 24.10 43.00 1.57 1.85 8.22 3.25 32.78 1.49 1.38 0.43 0.07 19.50 0.33 0.02 6.07

Notes to Figure I:

True thickness is very near to the actual drill intercepts. Sampled lengths in good limestone vary from 5.8 metres to 17.20 metres with an average of 14.09 metres. When blended, intervals "A" and "C", totaling 270 metres, are suitable for the manufacture of Portland Cement. These limestones could be mined from benches across the strike of the formation. Benches could eventually be over 380 metres in length facilitating blending and mining. The average of intervals "A" and "C" closely approximates typical Portland cement as shown below:

CaC03 Si02 Al203 Fe203 Mg0 S03 Na20 K20 T10 P205 Mn203
Average of Intercepts
Interval "A" and "C"
from Figure I		 74.2 13.46 3.48 1.35 2.23 1.50 0.66

<------

 0.76

------

 0.17

1.73

 0.09

------

 0.06

------>

Typical Portland
Type 1 Cement		 76.3 13.60 3.40 1.50 1.80 1.90 <------ ------ 1 to 1.5 ------ ------>

SOUTH AMERICAN GOLD
and COPPER COMPANY LIMITED

Figure II to News Release, June 2,1997
Catedral - Chemical Analysis - Drill Hole C-2
C-2 drilled at 45 degrees to the horizontal at right angles to near vertical limestone.

Interval
Drill
Intercepts
Length
Sampled
Approx.
True
Thickness
CaO
CaCO3
MgO
MgCO3
Al203
Fe2O3
SiO2
Na20
K20
P205
Mn203
LO1
TiC2
SrO
SO3
A 11.20-
26.35		 45.20 22.60 42.00 74.90 4.11 4.87 2.66 2.16 8.81 0.33 0.95 0.06 0.13 36.98 0.12 0.01 1.15
B 71.00-
247.40		 149.45 74.72 36.90 65.90 3.25 3.86 5.13 2.70 16.34 0.73 1.58 0.10 0.13 31.30 0.22 0.04 0.88
C 247.40-
305.40		 58.00 29.00 41.50 74.00 1.97 2.34 3.84 1.65 14.20 0.90 0.74 0.15 0.05 31.82 0.20 0.03 2.23
D 305.40-
611.1		 259.40 129.70 36.80 65.60 3.46 4.11 4.58 2.66 16.55 0.96 1.11 0.12 0.15 29.95 0.20 0.01 2.76
Notes to Figure 2:

True thickness is approximately fifty percent of the actual drill intercepts. Sampled lengths in good limestone vary from 7.0 metres to 26.35 metres with an average of 16 metres.

Average sampled intervals "A" and "C" have grades suitable for the manufacture of Portlant cement.

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.