South American Gold and Copper Company Limited Announces Letter of Understanding with Empresa Minera de Mantos Blancos S.A. a Chilean subsidiary of Anglo American on the Pimenton Porphyry Copper Gold Deposit



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

    TORONTO, March 13 /CNW/ - South American Gold and Copper Company Limited
("the Company") (Toronto Stock Exchange Symbol SAG) is pleased to announce
today that it has entered into a Letter of Understanding ("LOU") with Empresa
Minera de Mantos Blancos S.A. ("Mantos") a Chilean subsidiary of Anglo
American, which will serve as the basis for entering into a formal joint
venture agreement for the exploration and development of the porphyry copper
gold system at Pimenton.
    Pimenton is located within the Central Porphyry copper belt of Chile in
an area of current and intense exploration activities.
    Stephen W. Houghton, President and Chief Executive Officer, stated that
the normal time frame for completing a joint venture agreement under the
Chilean legal system can take 90 to 180 days. Therefore, Mantos and the
Company have agreed to operate under the terms of the LOU in order to commence
an immediate drill program on the Pimenton porphyry deposit before the
upcoming winter season in Chile.
    Mr. Houghton commented further that the LOU is a binding agreement on
both Mantos and the Company (the "Parties"). Under the terms of the LOU,
Mantos is committed to drill an initial mutually agreed upon drill program on
the Pimenton porphyry copper gold deposit consisting of a minimum of
2,000 meters of diamond drilling. Following the successful completion of this
drill program, as determined by Mantos, it has been agreed that Mantos will
have the option to enter into a formal joint venture agreement with the
Company under the terms of the LOU, excluding the current gold mining
operations at Pimenton.
    Under the terms of the LOU, the joint venture agreement would contain a
minimum budgeted schedule of drilling by Mantos over a four year time frame,
and the completion of a feasibility study on the project within seven years of
the date of the LOU, at which time Mantos would earn a 60% interest in the
project. More details of the joint venture agreement between the Parties will
be announced at such time as and if the joint venture agreement is finalized.
    Mantos is scheduled to move a diamond drill rig to the Pimenton property
in mid-March 2007 for the commencement of initial drilling on the Pimenton
Central area, one of several drill targets areas that have been identified at
Pimenton. Winter weather conditions will determine if this initial drill
program can be completed during the remainder of this exploration season in
Chile.
    Mr. Houghton stated that the Company is very pleased to be working with a
company of Anglo American's stature in the global mining industry as its
partner in conducting the exploration and possible future development of the
Pimenton porphyry.

    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: 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 by 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. Important factors which could cause actual
results to differ materially from those projected in the forward-looking
statements include fluctuations in the market price of gold, changes in
government legislation in the countries in which the Company operates,
business opportunities which may be presented to or pursued by the Company,
contests over title to properties, general and environmental risks and hazards
associated with mining. Many of 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.
    This news release was approved by Anglo American.




For further information:

For further information: Stephen W. Houghton, President and CEO,
Telephone: (212) 751-0083, Website: www.sagc.com


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