South American Minerals, Inc. Commences Operations of its Mobile Land Based Gold Gravel Sluicing Plant

NEW YORK and GEORGETOWN, Guyana, May 21  /PRNewswire-FirstCall/ -- South American Minerals, Inc. (Pink Sheets: SAMM.PK) announces that North American Resources, Ltd.  (NARIL) its wholly owned subsidiary, has commenced pilot operations of its mobile land based gold gravel sluicing plant in the Republic of Guyana, South America.

The plant, located in the St. Magdalene Creek area of Guyana, produced 50 ounces of gold during a total of 35 hours of start up operations, intending to eventually operate on a 20 hour per day basis.  The mobile plant is located on a concession of approximately 25 square miles containing gold bearing gravels and controlled by NARIL. There is no assurance that future production will in fact achieve similar results or that the plant will operate on a full time basis.

Funding for the plant was provided by the Company and several private investors including the Company's President who will receive 48% of the profits of the operation for their investment of $480,000.

In addition to the new plant, NARIL continues to operate 3 hydraulic suction dredges in the Konawaruk River area of Guyana.  Two of these dredges are owned by the joint venture in which NARIL owns a 65% interest.  The third dredge is wholly owned by NARIL.

Production from the dredging operation totaled 1,636 ounces of gold during the period January 1, 2007 through April 30, 2007.  This compared with 920 ounces of gold produced during the same 4 month period in 2006.  Proceeds from the sale of this gold totaled $934,000 in the period January 1 through April 30, 2007, compared with $454,000 during the same 4 month period in 2006.

The company will provide additional information on its operations as warranted.

Except for the historical information herein, certain matters discussed in this release include forward looking statements that may involve a number of risks and uncertainties, which projections and statements are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995.  Actual risks may vary significantly based on a number of factors, including but not limited to: risks in production relating to weather and the prices of fuel and gold on the world market. 

DATASOURCE: South American Minerals



CONTACT:  Saul Horing, President, South American Minerals,

[phone]



Web site:  http://www.southamericanminerals.com/ 

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