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Santiago Office La Concepcion No. 266, Of. 701 PROVIDENCIA, SANTIAGO, CHILE Telephone: 56 2 232 5578 Fax: 56 2 233 1037	Registered Office: SUITE 800, PURDY'S WHARF 1959 UPPER WATER STREET, TOWER 1 HALIFAX, NOVA SCOTIA B3J 2X2
	New York Representative Office: 420 MADISON AVENUE, SUITE 901 NEW YORK, NEW YORK 10017-1107 Telephone: (212) 751-0083 Fax: (212) 751-0083 Website: http://www.sagc.com

Toronto,Ontario - May 23, 2000

FOR IMMEDIATE RELEASE -

South American Gold and Copper Company Limited Announces Joint Venture with Leading Independent Lime Producer in Argentina

Toronto, Ontario, Canada - South American Gold and Copper Company Limited ("SAGC"), Toronto Stock Exchange Symbol "SAG," is pleased to announce that it has entered into an agreement with a leading independent lime producer in Argentina, to supply metallurgical grade lime and related lime products to the Chilean market.

Under the terms of the agreement SAGC and the Argentinean lime producer will form a joint venture company which will be 50% owned by SAGC and 50% by the Argentinean producer.

Stephen W. Houghton, President and CEO of SAGC, stated, "the formation of this joint venture will have significant strategic benefits to both SAGC and the Argentinean producer. It will enable SAGC to initiate sales of metallurgical grade lime to its customers in Chile prior to the start-up of its Cal Norte and Catedral projects and provide the Argentinean lime producer with additional sales of its lime products during the current period of uncertain economic conditions in Argentina. In addition, the joint venture will enable SAGC to be in a position to serve and supply those Chilean markets which require a higher free lime content of CaO than can be produced in Chile. The joint venture will also provide SAGC with a secure supply of lime for customers which may require its suppliers to have multiple sources of supply in the event of disruption in plant production.

"The Argentinean lime producer brings to SAGC many years of lime manufacturing experience which will be of significant importance to us in the development and operation of SAGC’s Cal Norte and Catedral metallurgical grade lime projects. Both SAGC and the Argentinean lime producer look to this joint venture as a first step in the development of further alliances between the two companies which are expected to have significant long term strategic market benefits to both companies."

Mr. Houghton concluded his remarks by stating, "The joint venture will have an immediate and positive impact on SAGC’s operating results commencing with first sales which we expect will be in early September 2000. For competitive market reasons we have chosen at this time not to disclose the name of our joint venture partner but will do so when sales of the joint venture are initiated."

SAGC is a mineral exploration and development company with current focus on industrial mineral projects in Chile. The Company also holds significant interests in several high potential gold projects in Chile. Its common shares are listed on the Toronto Stock Exchange under the symbol SAG.

For further information, contact Stephen W. Houghton, President and CEO, or William C. O’Donnell, EVP and CFO. Telephone: (212) 751-0083. Fax (212) 751-0319, and visit our website at http://www.sagc.com.