Sur American Gold Corporation

Sur American Gold Corporation

March 27, 2006 12:33 ET

Sur Commences Review of Colombian Gold Exploration Portfolio

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) - Sur American Gold Corporation (TSX VENTURE:SUR) is very pleased to advise that as a result of a markedly increased investment climate in Colombia during the last year which has resulted in a large increase in foreign investment in mineral exploration, the Company has commenced an in-depth strategic review of its Colombian exploration portfolio which it acquired and explored with success during the period 1995-1998.

The Company has appointed an Exploration Manager-Colombia Mr. Pedro Marin Msc who will assume responsibility for the Colombian program and will recommend a future exploration program to assist the Company in its strategic planning.

Mr. Marin, a highly qualified geologist with more than 40 years experience in mineral exploration in Colombia and who previously worked for the Company during 1995-1999 will be establishing a new technical team.

Previous exploration undertaken by the Company was very successful particularly at its Mina Rica (Spanish for "rich mine") gold project where a 3000 metre drilling program in 1997-1998 resulted in long intervals of potentially economic gold mineralization e.g.:

- Mina Rica #4 drill hole which intersected 451 metres (from the surface) grading 0.7g/t gold including multiple wide intervals totaling 150 metres grading 1.9g/t gold. The drill hole finished in strong gold mineralization with the last 39 metres grading 1.36g/t gold.

- Mina Rica #7 drill hole was drilled 200 metres to the north of Mina Rica#4 and intersected 157 metres (from the surface) grading 0.95g/t gold including multiple wide intervals totaling 69 metres grading 1.7g/t gold and

- Mina Rica #2 drill hole drilled 200 metres to the east of Mina Rica #4 which intersected 80 metres (also from the surface) grading 2.1g/t gold which also included several wide higher grade intervals (e.g. 0-22.5 metres which graded 4.5g/t gold)

- Most of the other holes in the intial 14 hole program also intersected potentially economic widths and gold grades.

SUR's other gold projects e.g. Gavia, Loma Guerrero and the copper-gold porphyry of El Tambo also yielded highly encouraging initial results which in the opinion of the Company warrant follow-up exploration.

According to Company President and CEO Mr. Rennie Blair, "the review, which is expected to take at least four months, is to assist the Sur American Gold Board in determining the most appropriate strategy for the rapid advancement of its Colombian portfolio. All options are being considered including the establishment of a new company to be managed independent of SUR, joint ventures or outright sale."

"Today there are many mineral exploration companies active in Colombia, including the second largest gold miner in the world AngloGold Ashanti which has properties in the vicinity of most of Sur's properties. AngloGold Ashanti also recently announced that it will pay $US 3 million for a 2% stake in Mineros de Antioquia, Colombia's largest gold miner."

Mr. Blair added that, "this strategy will enable SUR to maintain its management and financial resources 100% focused on it's potentially world class Philippine projects where recent highly encouraging drilling (multiple strong gold zones) and geophysical results (large and intense co-incident IP and magnetic anomaly) suggest a major potential bulk mineable gold and copper-gold system."

The Company is conducting a 12,000 metre, 50 hole drilling program at its Batoto project and further drilling results are in the pipeline.

All sampling and drilling programs that were conducted by the Company in Colombia were under the direct supervision of Company President Mr. Rennie Blair Msc, F.Aus.IMM and all assaying was undertaken by IPL Laboratories in Vancouver, BC, Canada who used the 30g fire assay method with an AA finish. IPL is a 9002 certified laboratory.

This news release was prepared by Mr. Blair who is the qualified person as required by National Policy 43-101 and who is the technical person responsible for this news release.

Sur American Gold Corporation is a well financed junior exploration Company and trades on the TSX Venture Exchange (Canada) with trading symbol SUR-V.

On behalf of the board of directors

Alicia Nicholson, Director

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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