Toronto,Ontario - May 27, 1998

South American Gold and Copper Company Limited Announces Exploration Update on Recent Results at Antena

Toronto, Ontario - South American Gold and Copper Company Limited ('SAGC") (TSE symbol "SAG"). SAGC's basic exploration concept at Antena has been to find the source of the famous Chilean Marga Marga gold placers which have been worked for well over 500 years. Recorded production exceeds 1,100,000 ounces of gold, based on the royal tax paid to the Spanish crown.

SAGC has explored an 80 square kilometer area at Antena, using photo images, geochemistry, panning and geophysics. Exploration has been complicated by heavy soil and vegetation cover and a previous period of very strong tropical leaching which penetrated down to a depth of at least thirty meters. The presence of gold grains in the existing drainage, which the University of Paris has shown to have traveled minor distances, has provided an ongoing incentive for SAGC to find the source of the gold.

A 2000 meter eighteen hole percussion drill program by SAGC established by inference that the source mineralization is not widely distributed and has come from vein structures. The chances these structures will be economic is good.

Exploration has been hampered by the lack of known economic mineralization on which to optimize geophysical and geochemical methods by means of orientation studies. Recently work with 2.5 kilo Bleg soil samples taken from just above the bed rock contact has shown that well defined persistent anomalies can be located.

David R.S. Thomson, EVP Exploration, stated "we have now identified four strongly leached structures, carrying strong silicification, sericite, disseminated fine tourmaline, and tourmaline in quartz veinlets, together with residual gold in minor amounts. In several places breccias can be just discerned in the leached surface outcrops which have a matrix similar to float fragments which have given up to 34 g/t gold. Widths of the breccias so far recognized vary from two to five meters. One structure indicated by geochemistry and magnetics can be followed between old workings and road cuts for over 400 meters. Field work is daily improving our understanding of the mineralization. We hope to outline ore shoots using a combination of panning, selective geochemistry and magnetics to spot drill holes in the near future.

Given the size of the downstream gold placers, their past production, the short transport distance demonstrated by gold particles, and the latest field results, we believe our continued persistence will, in time, discover the sources of the Marga Marga gold placers. These are likely to have a gold potential at least matching the recorded 1,100,000 ounces mined at Marga Marga."

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

For further information in Canada and the US, Stephen W. Houghton, President and CEO; William C. O'Donnell, EVP and CFO. Telephone: (212) 983-9300, Fax: (212) 983-9314; and visit our website at http://www.sagc.com. For further information in Santiago, Chile, David R.S. Thomson, EVP or Mario Hernandez, EVP, Telephone (56) 2 232-5578.