SGA Samco Gold Ltd

Samco Gold Limited (TSX VENTURE:SGA) ("Samco", "Samco Gold" or the "Company")
today announces a binding letter of intent has been signed with Pan American
Silver Corp. ("PAS") to grant PAS the exclusive option (the "Option") to acquire
a 60% interest in the El Dorado- Monserrat project in Santa Cruz, Argentina
("EDM"). The parties intend to participate in the exploration and development of
EDM leading to the commencement of mining activities at the project. 


As preconditions to PAS exercising its Option PAS is to conduct further work,
including drilling at EDM equivalent to at least US$2 million, followed by the
preparation of a technical report. Upon exercising the Option PAS is to make a
one-time payment to the Company of US$5 million. Funding for the development of
the project may be provided by PAS up to certain limits and pursuant to certain
lending criteria which could have the effect of reducing the Company's interest
in the project to 30%. The intention is for the formation of a jointly owned
company (the "Operating Company") through which to commence mining operations at
EDM. Additional dilution may occur after commercial production if a party does
not provide its share of ongoing costs. If either party is diluted to less than
a 10% interest in the Operating Company that party's interest will automatically
convert to a 2% NSR. PAS will have day-to-day management control of the
Operating Company. The letter of intent terminates if a definitive agreement
between the parties' Argentinean subsidiaries has not been entered into by
October 1, 2014.


Commenting on the transaction, Charles Koppel, Executive Chairman and CEO of
Samco Gold said: 


"This is an extremely attractive partnership for Samco and confirmation of the
significant potential of the El Dorado-Monserrat property. We are looking
forward to working with Pan American's high quality team with the joint
intention of bringing the project through to production. In addition, we will
not only benefit from their exploration and operational expertise, but also from
the synergies with their nearby Manantial Espejo mine." 


About the El Dorado-Monserrat Property

The El Dorado-Monserrat project covers an area of approximately 8,000 hectares
and is situated adjacent to AngloGold Ashanti's major Cerro Vanguardia gold mine
and approximately 150 kilometres from Pan American's Manantial Espejo mine.


Prior to its acquisition by Samco, the El Dorado and Monserrat properties had
been the subject of a number of exploration campaigns conducted by different
operators in joint venture. Prior to the 2012 drill program by Samco of
approximately 18,000 meters (see www.samcogold.com/News for historic press
releases and presentations detailing results), Aur Resources' gold division
conducted an extensive surface and shallow drilling campaign over certain of the
principal targets on the properties.


About Samco Gold Limited 

Samco Gold's principal business is the acquisition, exploration and development
of precious metals resource properties in Argentina. The Company's principal
mineral property is the El Dorado-Monserrat epithermal gold project, located in
the Deseado Massif region of Santa Cruz Province, Argentina. With an experienced
board and management team including a strong Argentinean compliment, the
Company's goal is to become an Argentinean producer of gold and silver through
the exploration and development of EDM. Samco Gold also owns a portfolio of
other mineral exploration properties in the Deseado Massif.


Additional details on the Company are available on SEDAR (www.sedar.com). 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange), accepts
responsibility for the adequacy or accuracy of this release. 


FORWARD LOOKING STATEMENTS 

This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, assumptions, future events,
conditions, uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any future results,
prediction, projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among others,
concluding the definitive agreement with PAS and the exercise by it of the
Option, ability to obtain or delays in securing project financing; changes in
EDM project parameters as plans continue to be refined; future prices of gold
and silver; possible variations in grade or recovery rates; failure of equipment
or processes to operate as anticipated; labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or in the completion
of exploration, as well as those factors disclosed in Samco Gold's disclosure
documents publicly available under the Company's profile on the SEDAR website at
www.sedar.com. Although Samco Gold has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. The Company does not intend, and
does not assume any obligations, to update forward-looking statements, whether
as a result of new information, future events or otherwise, unless otherwise
required by applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Samco Gold Limited
Charles Koppel
Executive Chairman and Chief Executive Officer
Phone: +44 (0) 20 7647 2532
Email: ck@samcogold.com
Website: www.samcogold.com


Bell Pottinger
Daniel Thole
Marianna Bowes
Financial Communications
Phone: +44 (0) 20 7861 3232

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