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
William C. O’Donnell, EVP
Telephone: (212) 751-0083
Fax: (212) 751 0319
Website: http://www.sagc.com

FOR IMMEDIATE RELEASE – March 31, 2006

South American Gold and Copper Company Limited Announces First Drill Hole results of this Season’s Drilling at Pimenton.

Toronto, Ontario, Canada - South American Gold and Copper Company Limited (the “Company”)(TSX – SAG) is pleased to report the results of the first of five diamond drill holes which totaled 2,064.2 meters of drilling during the season’s drill program on the porphyry copper system at Pimenton. The drill program was operated by Rio Tinto Mining and Exploration Ltd. a wholly-owned subsidiary of Rio Tinto plc.
The first drill hole, PMDD004, of the season’s drill program is located 2000 meters northwest of the Pimenton camp site at an altitude of 3,491 meters and drilled at minus 70 degrees at an azimuth of 60 degrees to a depth of 681.2 meters of which the first 83.7 meters was in glacial overburden.
Highlights of PMDD004 are as follows:
The entire drill hole below the first 83.7 meters of over burden was mineralized with the best intercept totaling 330.8 meters that assayed 0.374% copper and 0.404 g/t gold, or a copper equivalency of 0.570% copper. The copper equivalencies listed in this report are based on taking copper at US $1.50 per pound and gold at US $500 per ounce.
Drill results of PMDD004 are summarized as follows:

Hole No. PMDD004
From 0 To 83.7 Length 83.7 (Overburden)
(1)From 83.7 To 150.5 Length 66.8 - %Cu 0.121 Au g/t 0.310 %Cu Equiv 0.272
(2)From 150.3 To 294.0 Length 143.5 - %Cu 0.213 Au g/t 0.210 %Cu Equiv 0.315
(3)From 294.0 To 624.0 Length 330.8 - %Cu 0.374 Au g/t 0.404 %Cu Equiv 0.570
(4)From 624.0 To 681.2 Length 57.2 - %Cu 0.192 Au g/t 0.134 %Cu Equiv 0.257

The entire 597.5 meters sampled averaged 0.285% copper and 0.321 grams of gold or a copper equivalency of 0.460% copper.

Notes:
Comments:
(1) Intermineral porphyry with weak to moderate quartz.
(2) Early porphyry with potassic alteration.
(3) Early mineral porphyry with potassic alteration.
(4) Intermineral porphyry with potassic alteration.

Due to very substantial drilling activity in Chile the assay laboratories are overburdened with work and have been delayed in providing assay results. Drill hole assays on PMDD005, PMDD006, PMDD007 and PMDD008 are still pending.
ALS Chemex Laboratory of Santiago, Chile, is conducting the analytical work for this drill program, using internal standards and Gannet certified standards. The analytical method used is geochemical analysis for the copper and fire assay with an atomic absorption finish for gold values. ALS Chemex is certified by ISO 9001:2000 standards. Rio Tinto maintains a rigorous and ongoing quality control program. Rio Tinto Mining and Exploration Ltd was responsible for the design and conduct of the work performed on this drill program using standard duplicates and blank standards.
South American Gold and Copper Company Limited is a minerals producing, exploration and development company with properties and activities currently focused in Chile.