SOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED

Registered Office New York Representative Office
SUITE 800, PURDY’S WHARF 420 MADISON AVENUE
1999 UPPER WATER STREET, TOWER 1 NEW YORK, NEW YORK 10017
HALIFAX, NOVA SCOTIA B3J 2X2
For further information, contact:
Stephen W. Houghton,
President and CEO
Telephone: (212) 751-0083
Thomas K. Sills,
Chief Operating Officer
Telephone: (416) 527-0475
Michael Churchill,
EVP
Telephone: (416) 678-0928
Website: www.sagc.com

Not to be distributed or disseminated in the U.S.

FOR IMMEDIATE RELEASE – March 6, 2007

South American Gold and Copper Company Limited Announces Closing of Private Placement

Toronto, Canada, South American Gold and Copper Company Limited (TSX: SAG) (the “Company”) is pleased to announce that it has completed the second closing of a previously announced private placement of 20,000,000 units at a price of CDN $0.04 per unit for aggregate gross proceeds to the Company of CDN $800,000. Each unit consists of one common share and one common share purchase warrant of the Company. Each common share purchase warrant entitles the holder to acquire one common share of the Company at a price of CDN $0.06 for a period of 24 months from the closing date. The common shares and common share purchase warrants (and the securities issuable upon the exercise thereof) are subject to resale restrictions under applicable securities legislation. Pursuant to the private placement, David Thomson and Mario Hernandez, insiders of the Company, each subscribed for 8,750,000 units.

The Company will use the gross proceeds from the sale of units for debt retirement and for general working capital purposes.

The securities referred to in this press release have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of such securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.