Toronto, Ontario, Canada – South American Gold and Copper Company Limited (the “Company”) (Toronto Stock Exchange symbol SAG) made the following announcements today:

1.- The Company and Río Tinto Exploration Ltda., a wholly owned subsidiary of Río Tinto Plc, London, England (“Río Tinto”) expect to sign the Joint Venture Option Agreement between Compañía Minera Pimentón (“CMP”), a wholly owned subsidiary of the Company, and Río Tinto in early December, 2005 under the terms of the Letter of Understanding between CMP and Río Tinto which was announced on March 29, 2005.

2.- Dr. David R.S. Thomson, EVP and Director of Exploration and a “Qualified Person” under National Instrument 43-101, reported that further analysis of re-mapping for porphyry copper related mineralization and alteration characteristics of near 10,000 meters of diamond drill core, together with surface mapping during last season, and recently available satellite images, have brought into focus at least one new exploration target area in the Pimenton valley.

A major Northwest trending fault can be demonstrated following the Pimenton valley beneath glacial and other debris some 800 meters wide. The known mineralization in the rocks of the high ground on either side of the valley appear to be peripheral to the masked valley bottom. At one point in the Northeast side of the valley, a strong 1,000 meter long induced polarization anomaly extending up the valley coincides with a Northeast trending 500 meter wide surface geochemical anomaly for copper and molybdenum. This is confirmed by a coinciding Mobile Metal Ion traverse, which also gave a copper molybdenum anomaly over 500 meters. These indications are within a defined potassic alteration center. This and other aspects will be discussed with Rio Tinto geologists in the near future together with plans for further drill testing in the coming season.

Pimentón is located within the Central Porphyry’s Copper Belt of Chile which hosts Codelco’s Andina and El Teniente copper mines, Anglo American’s Disputada de Las Condes copper mining complex, and Antofagasta Plc’s Los Pelambres copper/molybdenum mine. Pimentón is located in an area of intense exploration activity by Anglo American and Noranda Mining Company, now a wholly owned subsidiary of Falconbridge Mining.

3.- Compañía Minera Pimentón and its insurance carrier, Cruz del Sur, have agreed to enter into arbitration. An arbitrator has been selected to determine the ultimate outcome of Pimentón’s claim for business interruption and physical damage claims, which are for in excess of US$3,000,000. The business interruption was caused by avalanches that damaged equipment at Pimentón’s principal mine portal entrance and resulted in a cessation of mine operations in early June 2005.

In order to mitigate future risk of mine closure due to avalanches, the 600 meter Esperanza cross cut, which has been driven 280 meters to date, when completed will be the Pimentón mine’s principal portal entrance and is located in an area not exposed to avalanche conditions. The Esperanza cross cut is being driven 50 meters below the mine’s 3430 level. When completed, it will be connected to the 3430 level by a series of raises, which will also provide new areas for stope development and increased mining operations.

4.- The Company has completed substantial planning for restarting operations at Pimentón, which are expected to result in reduced operating costs and improved gold and copper production when operations are restarted.

South American Gold and Copper Company Limited is a mineral producing, exploration and development company with properties and activities currently focused in Chile.

Certain information contained in this press release constitutes “forward looking statements” within the meaning of securities laws. Forward-looking statements may relate to the future outlook of the Company and anticipated events or results In particular, statements regarding the Company’s future operating results and economic performance are forward-looking statements. Forward-looking statements are made on management’s belief as well as assumptions made and information currently available to, management of the Company. While such beliefs and assumptions are considered reasonable by the Company, they are inherently subject to significant business, economic and competitive uncertainties and contingencies or they may prove to be incorrect. These issues can affect the Company’s actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance, and should not place undue reliance on them. The Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any changes in events, conditions or circumstances on which any statement is based.