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To: ogi who wrote (45518)	3/14/2006 1:05:58 PM
From: Rocket Red	Read Replies (1) \| Respond to of 312606

Sur American Gold Corp (C-SUR) - News Release Sur American finds near-surface IP anomaly at Batoto 2006-03-14 12:59 ET - News Release Shares issued 81,256,851 SUR Close 2006-03-13 C$ 1.10 Mr. Rennie Blair reports MAJOR GEOPHYSICAL ANOMALY DISCOVERED AT BATOTO PROJECT Sur American Gold Corp. has confirmed the discovery of a near-surface major and intense induced polarization (IP) geophysical anomaly at its Batoto gold project in eastern Mindanao, Philippines. Importantly the anomaly is also coincident with a very strong magnetic anomaly. Strong IP anomalies in the Philippines and elsewhere invariably indicate a high sulphide content either as pyrite (iron sulphide) and/or chalcopyrite/bornite (copper iron sulphides), while a high magnetite content usually indicates hydrothermal magnetite which is often associated with elevated gold values, with perhaps one of the best example being Freeport's Grasberg copper-gold porphyry deposit in Irian Jaya, Indonesia. This IP/magnetite association also exists at the company's Tagpura and Ma-angob copper-gold deposits four kilometres to the southeast of Batoto both of which have many similarities to Phelps Dodge's Candelaria copper-gold project in Chile. The new discovery is located about 2,400 metres to the southwest of where the company is undertaking an initial 12,000-metre, 50-hole core drilling program at East Batoto from which it recently reported strong gold grades in its initial drilling campaign. The anomaly extends at least 700 metres in an east-west direction and 800 metres in a north-south direction and is open to the west, southwest, south and perhaps southeast. The survey also indicates that it extends to at least 500 metres in depth, which is the limit of penetration by the survey and is therefore likely to extend deeper. The current geophysical survey, which is very large by world standards, commenced in August, 2005, and followed another similar sized geophysical program undertaken by the company in 2004 to the north of Batoto. The 2004 survey was also successful and was highlighted by the discovery of one large induced polarization anomaly and several smaller anomalies. These have yet to be drill tested. The continuing IP and magnetic surveys, which are particularly detailed, are being undertaken on a line spacing of only 100 metres which will greatly assist in the accurate selection of drill targets. As a result of the discovery of the anomaly, the geophysical team under the supervision of Dr. Peter Elliot (MSc, PhD, MAusIMM), principal of Elliot Geophysics International Pty. Ltd., is now concentrating on defining the full extent of the anomaly so that planning can proceed for further evaluation by geological mapping, trenching, sampling and initial drilling. East Batoto gold zone (Clark area) By contrast to the new anomaly in the West Batoto zone the gold mineralization at East Batoto is defined by much lower IP response, low magnetic readings and higher resistivity. The company believes that the higher resistivity readings may indicate an increase in silica (quartz) concentrations in this area. This is consistent with what has been observed to date in the numerous tunnels, trenches and drill cores at East Batoto where the gold mineralization is associated with a later intense alteration event which appears to have deposited silica and gold and minor sulphides. In addition the gold mineralizing event appears to have destroyed much of the original magnetite which is preserved in some of the less mineralized and altered zones. Summary President and chief executive officer of Sur, Rennie Blair, MSc, FAusIMM, said "that based on geological mapping, sampling, geophysics and now drilling over the past two years the geology and extent of mineralization of Batoto is being systematically defined. A great deal of additional geological mapping and considerable drilling is still required to more accurately outline the ultimate mineral potential of this porphyry related gold-copper system. "We are obviously very excited about this new development as we have always felt that the gold mineralization at Batoto was associated with a copper-gold porphyry system somewhere in the near vicinity." This news release was prepared by Rennie Blair, 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.