Andean American Gold Corp.

Andean American Gold Corp.

April 26, 2007 09:22 ET

Andean American Mining Corp. Announces $7 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 26, 2007) -


Andean American Mining Corp. ("Andean American" or "Company") (TSX VENTURE:AAG) (FRANKFURT:AQN) is pleased to announce that it has appointed a syndicate including Research Capital Corporation and PowerOne Capital Markets Limited to act as agents on a best-efforts basis, for a private placement offering of up to $7,000,000 of units ("Units") of the Company at a price of $0.65 per Unit. In addition, the agents have been granted the option to increase the offering size by up to $3,000,000 of additional Units on the same terms as the offering.

Each Unit shall consist of one common share of the Company and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire, at any time within twenty four months from the closing of the offering, one common share of the Company at a price of $0.85 per share. The Units and underlying securities will be subject to a four-month hold period following closing.

Proceeds from the Offering will be used to fund the development of the Invicta Project and for working capital and general corporate purposes. For consideration for their services, the agents will receive a cash commission equal to 8% of the gross proceeds of the offering and broker warrants entitling them to purchase 10% of the number of Units sold.

On behalf of Andean American Mining Corp.,

John Huguet, Chairman & CEO

About Andean American:

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 Invicta gold-silver-copper pre-feasibility stage project; 74% 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 producing open-pit mine.

This release was prepared by management of the Company who takes full responsibility for its contents.

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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