Toronto,Ontario - May 9, 2001

South American Gold and Copper Company Limited Announces Status of Completing Prerequisites under Terms of the Pre-Contract Commitment Letter of Intent with a Major Copper Mining Company on the Cal Norte Lime Project and the Status of its Lorito Copper Prospect

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC")(TSE Symbol SAG) announced today that an industrial crushing test has been successfully been completed on limestone mined from the Cal Norte lime project’s Hornito limestone deposit which indicates a 17% fines loss on limestone crushed to minus 1" (one inch) compared to a fines loss of 22% which was projected in the feasibility study on the Cal Norte lime processing facilityh. The reduction in fines loss will reduce mining costs and crushing costs per ton of lime produced and extend the life of the limestone reserves available for lime production by nearly 10%.

A 1,000 meter drill program consisting of four diamond drill holes has also been initiated on the Hornito limestone deposit and is progressing on schedule for completion within thirty days. The objective of this drill program is to increase "proven" categorized limestone reserves to approximately 1,200,000 tons by converting approximately 800,000 tons now classified as "probable" into the "proven" category.

Stephen W. Houghton, President and CEO, stated that, "We are pleased by the favorable crushing test results and are confident in achieving a successful drill program on the Hornito limestone deposit. Plans are in progress for initiating an industrial calcining test on limestone mined from the Hornito deposit. As previously announced, the successful completion of the crushing test, the drill program and the calcining test are the three prerequisites for formalizing terms of the pre-contract commitment letter of intent for entering into a ten year lime purchase contract between Cal Norte and a major copper mining company with operations in Chile."

Mr. Houghton also stated that the Company expects to be in a position to announce the signing of an "Option Agreement" on the previously announced Lorito Copper Prospect within the next several days.

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.