Toronto,Ontario - Nov 6, 1998

South American Gold and Copper Company Limited Announces Expiration of Letter of Intent on Choquelimpie Gold-Silver-Copper Prospect

TORONTO, Nov. 5 /CNW/ - South American Gold and Copper Company Limited (TSE symbol ``SAG'') announced today that its Letter of Intent with Sociedad Contractual Minera Vilacollo for the joint development of the Choquelimpie Gold-Silver-Copper prospect has expired and that Vilacollo is free to pusue other potential partners for the development of the prospect.

Stephen W. Houghton, President and CEO of SAGC, stated that ``Current conditions in mining finance markets have further deteriorated from the time we began discussions with Vilacollo. We are very disappointed that we have not been able to raise the necessary funding to fully support SAGC's required capital contributions to the project within the time frame allowed under the terms of the Letter of Intent.''

Dr. David R. S. Thomson, EVP Exploration of SAGC, stated that ``I believe the Choquelimpie prospect has great potential for development into a significant Gold-Silver-Copper mine and we are disappointed that we will not have the opportunity to work with the fine team which Vilacollo assembled to work with us on this project.''

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.