Andean Resources Ltd.
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Andean Resources Ltd.

November 27, 2009 08:25 ET

Cerro Negro Within the Area of Special Interest for Mining in the Province of Santa Cruz

FREMANTLE, WESTERN AUSTRALIA--(Marketwire - Nov. 27, 2009) - Andean Resources (TSX:AND)(ASX:AND) announces that new legislation was passed yesterday in the Province of Santa Cruz, Argentina, providing for the creation of an Area of Special Interest for Mining, in which mining activity may occur. The Cerro Negro project is within the defined Area of Special Interest for Mining.

The new Area of Special Interest for Mining permits mining from 4 kilometers of the shores of lakes and the axis of major rivers, and from 10 kilometers of the city limits of towns. In addition, the new legislation also permits the processing of ores from 20 kilometers of these major water features.

Wayne Hubert, Andean's President and Chief Executive Officer commented, "I consider this new legislation as positive in defining the areas within the province where mining activities will be encouraged; government officials have been very supportive of the current responsible development of the Cerro Negro project. I believe the results from our exploration and development activities over the next several months will continue to provide support that Cerro Negro is one of the best undeveloped projects in the world. Our exploration continues to deliver exciting results, we will mobilize the underground development prior to year-end, and the bankable feasibility study work is on schedule for completion next June."

Andean Resources Ltd. is a dual listed company (TSX:AND)(ASX:AND), actively and aggressively exploring for gold resources in Argentina. The company is well positioned to become a mid-tier gold producer over the next two years as it commences production from its 100% owned Cerro Negro project. This high-grade, world-class deposit is located in the mining-friendly province of Santa Cruz, in southern Argentina, and contains a growing resource base of over 2.5 million ounces of gold. In order to expand its resource base and add to the future production profile, Andean is committed to ongoing exploration and building its resource inventory at the Cerro Negro project and, in the process, generating enhanced returns for its shareholders as a platform for future growth.

ABN 064 494 319

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