SOUTH AMERICAN MINERALS, INC. has been advised that its wholly owned subsidiary North American Resources Ltd. Inc. (NARIL), has formed a Limited Partnership for the purpose of purchasing a Cutter-head dredge and associated equipment to be placed in operation on the 25 square mile concession on which NARIL currently operates four hydraulic suction dredges in and adjacent to the Konawaruk River located in the Republic of Guyana, South America. Two of these dredges are owned by NARIL and 2 are owned by a Joint Venture in which NARIL holds a 65% interest.

The Limited Partnership has been funded with $600,000 provided by investors who will receive 50% of any profits of the partnership until they receive distributions equal to their investment and 36% of any profits thereafter.