Toronto,Ontario - May 23, 1997

South American Gold and Copper Company Limited Updates Progress on its Antena Project

Toronto, Ontario, - South American Gold and Copper Company Limited reported today that geological, geochemical and geophysical work at its Antena Project appears to have located the approximate source area for the historically famous Marga Marga gold placers. These gold placers were exploited prior to the Spanish Conquest, during Spanish colonial times and continue to be exploited on a small scale. Research by the Geological Department of the University of Chile has confirmed official production exceeded 1,100,000 ounces since the Spanish Colonization. It is believed that actual production of gold has been greater than this figure.

Ongoing ground geophysical work at Antena has so far located two parallel structures extending over a strike length of twelve kilometers. Soil geochemical gold anomalies over granitic rocks exhibiting quartz sericitic alternation show a correlation with the geophysical anomalies for distances of several hundred meters.

Dr. David Thomson, EVP and Director of Exploration, stated, "Road trenching followed by geological mapping and sampling will commence shortly. When results from this work have been compiled, exploratory percussion drilling is expected to be initiated to further evaluate the indicated gold mineralization.

"While we are still in a very preliminary phase of our exploration of Antena, we believe the potential for the discovery of significant economic gold mineralization at Antena is good, based on the widespread geochemical and geophysical indications obtained to date and in view of the extent of past production of the Marga Marga placers."

The Antena Project is one of eleven identified prospects in the Company's Halcon Program which covers an area of approximately 125,000 hectares consisting of 469 concessions all located within 200 kilometers of Santiago, Chile. Antena is located in the coastal area of Chile not effected by snow during the current Chilean winter season, thereby enabling exploration to continue unimpeded.

SAGC is a mineral exploration company with extensive gold properties in Chile and Peru. Its common shares are listed on The Toronto Stock Exchange under the symbol SAG.

For further information: Stephen W. Houghton, President and CEO; William C. O'Donnell, EVP and CFO (odonnell@sagc.com). Telephone: (212) 983-9300, fax: (212) 983-9314.