FOR IMMEDIATE RELEASE - May 26, 2004

South American Gold and Copper Company Limited Announces Start-Up of Operations at its Pimenton Gold Mine

Toronto, Ontario, Canada – South American Gold and Copper Company Limited (“the Company”) (TSX Symbol SAG) is pleased to announce that Pincock Allen & Holt, Denver, Colorado (“PAH”), has, following a mine and plant site visit, issued its certification to the Overseas Private Investment Corporation, Washington, DC (“OPIC”), that the Pimenton mine and plant are in operation and are being operated in compliance with certain other provisions contained in the loan agreement between Compañía Minera Pimenton (“CMP”) and OPIC.

On receipt of this certification and satisfaction of other required documentation, OPIC has funded the second and final draw down amounting to US $1,600,000 under the terms of the OPIC financing which in total has amounted to US $2,800,000 as a part of the funding required to restart operations at the Pimenton gold mine.

Stephen W. Houghton, President and Chief Executive Officer, stated that restarting operations at Pimenton and completing the financing with OPIC is the result of a total team effort by the management and employees of both the Company and Compañía Minera Pimenton and firmly places the Company in the ranks as a gold producer.

South American Gold and Copper Company Limited is a mineral exploration and development company with properties and activities currently focused in Chile.  Its common shares are listed on the Toronto Stock Exchange under the symbol “SAG.