SOUTH AMERICAN GOLD AND COPPER COMPANY LIMITED

Registered Office: New York Representative Office:
100 WELLINGTON STREET WEST, SUITE 500 420 MADISON AVENUE
TORONTO, ONTARIO M5K 1H1 NEW YORK, NEW YORK 10017
CANADA

For further information, contact:
Patrick Esnouf, President
Dr. David R.S. Thomson, EVP
Telephone: (562) 264-2295
Website: www.sagc.com

NOT TO BE DISTRIBUTED OR DISSEMINATED IN THE U.S.

FOR IMMEDIATE RELEASE – October 18, 2007

South American Gold and Copper Company Limited Announces Continued Drilling on the Pimenton Porphyry Copper Deposit

Toronto, Ontario, Canada - South American Gold and Copper Company Limited (“SAGC” or the ”Company”) (TSX-SAG) is pleased to announce that Empresa Minera de Mantos Blancos S.A. (Mantos), a wholly owned subsidiary of Anglo American plc, has informed the Company that it expects to commence drilling on the Porphyry Copper Gold deposit at Pimenton in the early part of December 2007.

Under the terms of the Letter of Understanding between Mantos and the Company, Mantos must drill a further 1,000 meters before electing to enter into a Joint Venture Agreement with the Company. This second Mantos diamond drill hole of 1,000 meters will be placed midway between Rio Tinto’s holes 4 and 6, and will have the same northeasterly azimuth and an inclination of 70 degrees. Rio Tinto’s diamond drill hole 4 cut 279 meters of 0.40 per cent copper and 0.43 grams per ton gold. This hole showed a tendency for the grade of copper to increase with depth. Rio Tinto´s diamond drill hole 6 cut 70 meters of 0.46 per cent copper and 0.49 grams per ton of gold. Mantos drill hole will check for higher grades at depth. Mantos also plans to carry out further surface work on other target zones at Pimenton during the coming summer season.

The Rio Tinto drilling results of drill holes 4 and 6 are contained on the Company’s website www.sagc.com under “Tech Reports” and the report is entitled “Rio Tinto Executive Summary Presentation.”

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


FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.