Sur Initiates Major Exploration Program to Follow Up Discovery of Multiple Wide High Grade Copper-Gold Zones Grading Up To 5.5% Copper and 2.5g/t Gold -Copper Eq. of 7.12%.

VANCOUVER, British Columbia -- SUR AMERICAN GOLD CORPORATION (TSX VENTURE:SUR) is very pleased to announce the creation of a new geological team dedicated to undertake an aggressive exploration program including geophysics and drilling of the 7km long Tagpura copper-gold belt within its highly mineralized Comval Project in the Compostela Valley Province, Philippines.

The major exploration initiative is the result of the discovery of multiple high grade copper-gold zones at its Tagpura copper-gold deposit which to date have returned wide intervals of high grade copper-gold mineralization in massive sulphides as shown below:

Salvacion Zone:

A 60 metre wide channel sample returned 1.45% copper and 0.9g/t gold (a copper equivalent of 2.03%) This included a 25 metre interval which returned 2.77% copper and 1.39g/t gold (a copper equivalent of 3.67%).

Felina Zone:

A 13.5 metre channel sample returned 3.9% copper (reassayed at 4.4% copper) and 2g/t gold and 10.3g/t silver (a copper equivalent of 5.1%) This included a higher grade 8 metre interval which assayed 5.5% copper, 2.5g/t gold and 14.3g/t silver (a copper equivalent of 7.12%).

These zones are open along strike and at depth.

SUR already has active exploration programs within the Philippines at the adjacent Comval Gold project (Batoto gold porphyry system) and at its high grade T'boli gold-silver epithermal project in South Cotabato Province.

BRIEF HISTORY & POTENTIAL OF THE TAGPURA COPPER-GOLD SYSTEM

The Tagpura copper-gold deposit comprises both gold-rich copper porphyry mineralization and multiple high grade copper-gold lenses located within a highly mineralized but significantly under explored 7km long belt of copper and gold deposits associated with diorite porphyry intrusions into limestones and volcanic rocks.

Tagpura occurs in the southern part of the belt and was, briefly a former major open cut copper operation which processed approximately 10 million tonnes of mineralization before being forced to close in 1980 because of a variety of factors believed to be unrelated to the quality of the deposit.

Historically little or no assaying was undertaken for gold and recent work by SUR indicates that substantial amounts of gold mineralization grading in excess of 1g/t gold were mined and dumped as waste during the mining operation. With today's modern treatment methods this material in and around the known copper deposits is now a large potentially economic resource.

Whilst the porphyry copper potential of the belt has been known for more than 30 years little or no serious work was directed towards delineating the high-grade copper gold lenses which the Company believes may constitute a major potentially economic resource in their own right.

There is a photo available on CCNMatthews' website at: http://www2.ccnmatthews.com/database/fax/2000/323sur.pdf

Recent independent sampling by Independent Consulting Geologist Dr Peter Christopher PhD, P.Eng over a 4.6 metre interval within this zone returned 4.46% copper, 2.06g/t gold and 19.2g/t silver (a copper equivalent grade of 5.8% copper).

Based on assays received to date the mineralization is "clean" and contains no known significant concentrations of toxic metals that are sometimes associated with copper deposits. All widths quoted are believed to be true widths of the zones.

Salvacion and Felina are sub parallel zones of massive sulphides and are separated by approx. 40 metres of low grade skarn and copper-gold porphyry style mineralization. The zones trend NNE-SSW and several further zones are also known to exist which represent a large upside to the size of the deposit.

SUR, following a programmed extensive geophysical program scheduled to be completed this year plans to aggressively delineate the extent of these high grade copper-gold massive sulphide lenses by drilling to be followed by an independent resource calculation and scoping study to evaluate the potential for a high grade open/cut-underground mining/conventional flotation operation. The new technology of bacterial leaching of gold- copper concentrates will also be assessed at this time.

Based on a prior geophysical program and recent modern reprocessing of that data as well as extensive geological mapping over the 7km long strike length of the zone SUR feels that the potential for large extensions of the known bodies both at depth and along strike and for additional undiscovered high grade copper-gold zones and further low-medium grade copper-gold porphyry mineralization is excellent.

SUMMARY

As a result of the successful exploration programs completed since exploration commenced at its projects in June 2003 SUR now has significant exposure to substantial gold, copper and silver mineralization.

The Company recently announced a 12,000 metre two stage drilling program at its "flagship" Batoto gold porphyry project and is in the process of drill rig selection and dealing with contractual and site selection aspects of the program.

Assaying of the copper values was undertaken at both IPL Laboratories in Vancouver Canada using both wet chemical and ICP analytical methods and at the JBMM Laboratory at Monkayo, Compostela Valley using wet chemical methods. In addition Dr Christopher used ACME Laboratories in Vancouver. Both ACME and IPL are 9002 accredited laboratories. The laboratories gave comparable results. The gold assaying was undertaken by all the laboratories using the standard 30g fire assay method.

This news release was prepared by Mr. Rennie Blair MSc; F.Aus.IMM, Company President 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 very 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

J. Rennie Blair, M Sc, F.AusIMM

President

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

Sur American Gold Corporation (TSX VENTURE:SUR)