Andean American Gold Corp.
TSX VENTURE : AAG
FRANKFURT : AQN

Andean American Gold Corp.

December 28, 2007 14:55 ET

Andean American Closes Second Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 28, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S.A.

The Board of Directors of Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) is pleased to announce that the Company has completed the second tranche of 6,030,000 units of its previously announced non-brokered private placement of 9,107,000 units at a price of C$0.65 per unit. Each unit consists of one common share in the Company and one half of a non-transferable share purchase warrant. One whole share purchase warrant will entitle the holder to acquire one common share of the Company for C$0.85 expiring two years after closing. The units and underlying securities are subject to a mandatory four-month hold period, expiring on April 22, 2008.

The warrants carry a forced conversion feature such that should the common shares of the Company trade at or above C$1.50 for twenty consecutive trading days then the warrants must be exercised within 30 days or expire thereafter.

626,990 units with the same terms as the units and 716,560 warrants at an exercise price of C$0.90 were granted as a finder's fee. The warrants expire two years after closing. The Private Placement is subject to final approval from the TSX Venture Exchange.

The proceeds of this financing will be used to advance the Invicta Project including milling equipment purchases, mine development and further exploration, and for general corporate purposes.

On behalf of Andean American Mining Corp.,

John Huguet, Chairman & CEO

Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) is an international mining and exploration company focused on growth both organically and through acquisitions. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has three key assets: the 22,200 hectare Invicta gold-silver-copper advanced exploration stage project; 67% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead mineralization project; and the 9,000 hectare Santa Rosa property, which is a small producing open-pit mine.

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

SEDAR Profile # 00003879

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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