AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

September 16, 2009 09:00 ET

AndeanGold Update on Rio Seco Project, Peru

VANCOUVER, BRITISH COLUMBIA—(Marketwire – Sept. 16, 2009) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that the Company's wholly owned Peruvian subsidiary, PeruGold Resources S.A.C. ("PGR"), has received approval from the Ministry of Energy and Mines of Peru for the Environmental Impact Declaration submitted in connection with PGR's proposed Phase I drilling program (the "Program") on the Company's Rio Seco Project (the "Project"). In addition, PGR has signed an agreement with A. K. Drilling International S.A., based in Lima, Peru, for a 1,400 metre reverse circulation drilling program. PGR is presently in the final stages of signing an agreement with the surface owner of the Rio Seco Project area, a government unit of the Department of Libertad, which also owns the water channel that runs through the Project. This agreement is the final prerequisite in order to commence the Program. Presently, PGR anticipates that drilling should commence during the week of September 23, 2009.

The Rio Seco Project is a gold property (approximately 3,325 hectares) with associated silver and copper, located in the Department of Libertad, Peru. To date, four mineralized zones and ten main vein systems have been identified. The West Zone has been identified as the principal mineralized trend. It lies within a shear system created by two major N-S faults and exhibits both potential open pit stockwork targets and potential underground multiple vein targets. The Phase I drilling program will be focused on the West Zone's stockwork target (600m long x 100m wide), where previous structural and geological mapping and trenching programs have identified a target comprising quartz vein stockworks, ladder vein networks and discrete veins. Several sizeable mineralized lenses are found within the stockwork target containing higher concentrations of veining and better gold values. The access road that runs through the Project along the eastern side of the stockwork target exposed in outcrops four better-defined lenses, over a width of 25m. Based on the results of the work done to date and the Company's present geological model, there are also indications of additional mineralized lenses within the remaining 75m width of the stockwork target to the west which is poorly exposed and deeply weathered and, therefore, less amenable to detailed evaluation by surface work. Based on the assay results from the 2008 and 2009 trenching programs, the four exposed lenses have an average indicative grade of 1.02 g/t AUE (0.96 g/t Au and 4.82 g/t Ag, based on a 75:1 gold/silver price ratio and in-situ values), based on averaging all channel and outcrop samples within each lens. (See new releases of April 20, 2009 and May 12, 2009 and Map of Rio Seco Project, below, outlining the mineralized targets within the West Zone and the Company's concession blocks)

While there are several exploration targets of interest on the Rio Seco Project, the Company's principal interest is the timely testing and advancement of the open pit potential of the stockwork target area, with the objective of establishing a bulk mineable, heap leach mineral resource, if economic grades are present. The results of the 2008 and 2009 trenching programs were encouraging and supported the Company's decision to initiate the Phase I drilling program to test the depth, strike extent and grade of the 600x100m stockwork target area to a depth of 100m.

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

To view the map of the Rio Seco Project accompanying this release, please click on the following link: http://media3.marketwire.com/docs/AAUU0916.pdf.

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.

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