Toronto,Ontario - March 30, 2001Toronto, Ontario, Canada - South American Gold and Copper Company Limited (SAGC)(TSE Symbol SAG) announced today that its 60% owned subsidiary, Compania Cal Norte, has received a pre-contract commitment letter of intent from a major copper mining company with operations in Chile. The pre-contract commitment letter of intent outlines the proposed terms and conditions of a long term lime purchase contract for the purchase of a substantial part of the planned annual production capacity of 52,000 tonnes of lime from the Cal Norte lime processing facility on which a feasibility study has been completed and all required environmental approvals have been received. Stephen W. Houghton, President and Chief Executive Officer of the Company stated, "The pre-contract letter of intent establishes annual contractual tonnes of lime to be delivered at approximately 43,000 tonnes per year, length of contract of ten years, definition of pricing and certain other provisions including price escalation provision and quality standards of lime to be delivered by Cal Norte. Prior to finalizing the lime purchase agreement, Cal Norte is required to increase approximately 800,000 tonnes of limestone reserves now classified as "probable" to the "proven" category and to conduct certain industrial tests on limestone mined from Cal Norte's limestone deposit. The industrial tests are normal and customarily required under lime purchase contract agreements. Increasing the proven limestone reserves to approximately 1,200,000 tonnes was anticipated by the Company. The planned drill program to increase proven limestone reserves and industrial tests are expected to be completed in ninety days. During this period the Company will initiate final detailed engineering plans on the 150 tonnes per day capacity lime kiln and initiate financing discussions for the plant. Project plant start-up is planned for late 2002." Mr. Houghton also announced that the feasibility study for a planned 600 tonnes per day lime processing facility and related mining projects for the Company's Catedral/Rino lime, limestone and gypsum project has been initiated. South American Gold and Copper Company Limited is a mineral exploration and development company with properties in Chile. Its strategy is to develop its industrial minerals projects and to utilize potential earnings from these projects to further advance its exploration activities. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG. For further information, please contact Stephen W. Houghton President and CEO at telephone (212) 751-0083, fax (212) 751-0319 and visit our website at http://www.sagc.com
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