AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

July 23, 2009 09:00 ET

AndeanGold Announces Closing of $1.14 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 23, 2009) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that the Company has closed the final tranche of its previously announced non-brokered private placement ("Placement") (news releases of June 10, 2009 and July 2 and 8, 2009). Under the Placement, the Company issued a total of 22,841,980 units ("Units") at a price of $0.05 per Unit to raise an aggregate of approximately $1,142,099. Each Unit is comprised of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for one year from the respective closing date of each tranche at a price of $0.10.

Pursuant to the second tranche of the Placement, which closed on July 22, 2009, the Company issued an aggregate of 9,191,980 Units to raise aggregate gross proceeds of approximately $459,599. The first tranche of the Placement closed on June 30, 2009 and involved the issuance of an aggregate of 13,650,000 Units to raise aggregate gross proceeds of approximately $682,500.

In accordance with applicable securities laws and the policies of the TSX Venture Exchange, the Company paid finders' fees with respect to portions of the Placement, amounting to $54,222 in cash commissions and the issuance of 1,077,439 warrants, each warrant entitling the holder to purchase one additional common share for one year from the respective closing date of each tranche at a price of $0.10.

All securities issued in the Placement will be subject to a four-month hold period from the Closing of the Placement.

The Placement remains subject to the receipt of final acceptance from the TSX Venture Exchange.

The proceeds of the Placement will be used principally to fund a Phase I drill program on the Company's Rio Seco Project in Peru and for general working capital purposes.

Mr. Anthony F. Ciali, President & CEO stated, "Given the difficult financial market conditions that have persisted during 2009, especially for junior mining companies, we are extremely pleased to have been able to finalize this Placement. The Company is aggressively pursuing the requisite permits to initiate the Phase I drill program on the Rio Seco Project in Peru, which is expected to commence in August 2009. This Placement will ensure that the Company will be able to timely commence the drill program, as well as to continue with its efforts to regularize the Company's key projects in Ecuador pursuant to Ecuador's new Mines Law and in coordination with the Ministry of Mines and Petroleum."

About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Rio Seco Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. Ecuador recently passed a new Mines Law, which replaces the Mining Mandate, and is working on developing regulations and finalizing terms and conditions of future mining operations. The Company looks forward to working with government officials to this end, and is actively pursuing authorization to reinitiate work programs on its key Ecuadorian projects.

Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director

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.

Contact Information