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

Andean American Gold Corp.

November 16, 2007 09:18 ET

Andean American Announces Acquisition of an Additional 5,300 Hectares at the Invicta Project, Peru; Reports Drill Results from Hole AE-DDH-07 31

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2007) - Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) -

Andean American Mining Corporation is pleased to announce the acquisition of an additional 5,300 hectares at the Invicta Project, adjacent to the current holdings of 16,900 hectares and bringing the total land position to 22,200 hectares. Invicta hosts low-sulphidation epithermal style gold-silver-copper mineralization and is located in the Department of Lima, Province of Huara, approximately 225 kilometers north of the city of Lima at an altitude of 3,400 metres. Andean American acquired an option to purchase 100% of an advanced exploration stage project of 3,700 hectares, which it named Invicta, from a Barrick wholly owned subsidiary, Minera ABX Exploraciones SA in 2005. Subsequent to this date, Andean American independently acquired an additional 13,200 hectares contiguous to the property and brought the land position for the project to 16,900 hectares.

In addition, results have been received for infill hole AE-DDH-07-31, drilled approximately 175 metres to the northeast and along strike from cross-section ATE-6NW (cross-section 4-4', see news release dated November 13, 2007) in the central portion of the Atenea Vein. The Atenea Vein has been traced for approximately 600 metres of strike length, and remains open along strike to both the northeast and southwest.

Significant results are:



Hole AE-DDH-07-31

Estimated
From To Interval True Width Au Ag Cu Pb Zn
(m) (m) (m) (m) g/t g/t % % %

47.30 56.00 8.70 8.67 1.98 12.22 0.17 0.28 0.20

inc.

47.30 50.30 3.00 2.99 0.69 19.47 0.38 0.41 0.23

50.30 56.00 5.70 5.68 2.76 8.65 0.07 0.21 0.19


"We are pleased that the diamond drilling continues to intersect significant widths of mineralization," stated President Andrew Gourlay, "and we look forward to completing the drill program in order to further define the mineralization and potential resources."

The objective of the Infill drill program is to convert Inferred resources to Measured and Indicated resources, if possible. The drilling has focused on the Atenea Vein where a Measured and Indicated Resource of 3,132,568 tonnes grading 2.63g/t Au, 21.95g/t Ag and 0.48% Cu has been estimated. An Inferred resource of 5,187,775 tonnes grading 1.43 g/t Au, 17.35 g/t Ag and 0.61% Cu has also been estimated. Resource estimates are from the NI 43-101 Invicta Technical Report dated July 24, 2007.

"Inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

The infill drilling has identified at least three distinct styles of mineralization at the Atenea vein, and has identified a zone of high grade zinc mineralization (See news release dated November 14, 2007). The results from this hole will be incorporated in an updated NI 43-101 resource to be estimated upon completion of this phase of drilling.

Mr. Andrew Gourlay, P. Geol., President of Andean American Mining Corp., is a Qualified Person as defined in the Canadian Securities Administrators National Instrument 43-101 with the ability and authority to verify the authenticity and validity of technical and scientific data. This news release has been prepared under Mr. Gourlay's supervision. All samples were prepared and analyzed by CIMM Labs in Lima, Peru, an ISO-accredited laboratory. Standard reference materials, blanks and field duplicates were inserted prior to the shipment from site to monitor the quality control of analytical data.

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 22,400 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.

This news release may use terms such as "inferred resources", "indicated resources", "measured resources", and "mineral resources". These terms are recognized and required by Canadian securities regulations (under National Instrument 43-101 "Standards of Disclosures for Mineral Projects"). Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under National Instrument 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

SEDAR Profile # 00003879

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

Contact Information

  • Andean American Mining Corp.
    John Huguet
    Chairman & CEO
    (604) 681-6186 or Toll Free: 1-888-356-4784
    Website: www.andeanamerican.com