Andean American Gold Corp.

Andean American Gold Corp.

January 18, 2006 11:56 ET

Andean American Mining Corp.: Geological Update for the Invicta Gold-Silver-Copper Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Further to our news release dated October 20, 2005, Andean American Mining Corp. (TSX VENTURE:AAG) is pleased to provide a geological update on its Invicta Project located in west central Peru.

The project area comprises approximately 13,900 hectares of mining and exploration concessions on strategic ground that hosts low-sulphidation epithermal style gold-silver-copper mineralization. The Andean project team have verified and validated to date the following main mineralized structures:

The Atenea Vein: Length equals 550 metres (approx. 1,804 feet)
and remains open laterally.
Average width equals 7.98 metres
(approx. 26 feet)
Depth equals 500 metres (approx. 1,640 feet)
and remains open to depth

A historical indicated resource was estimated for this vein to be
approximately 1,252,000 (metric) tonnes, grading 6.09 g/t (0.196 oz)
gold, 67.19 g/t (2.16 oz) silver and 1.22% copper.

The Pucamina Vein: Length equals 450 metres (approx. 1,476 feet)
and remains open laterally.
Average width equals 2.68 metres
(approx. 8.8 feet)
Depth equals 170 metres (approx. 558 feet)
and remains open to depth.

A historical indicated resource was estimated for this vein to be
approximately 264,000 (metric) tonnes, grading 6.53 g/t (0.21 oz)
gold, 14.45 g/t (0.46 oz) silver and 0.1% copper.

Zone 4 & 6 Veins: Length equals 250 metres (approx. 820 feet)
and remains open laterally
Average width equals 1.10 metres
(approx. 3.6 feet)
Depth equals 150 metres (approx. 492 feet)
and remains open to depth

A historical indicated resource was estimated for this vein to be approximately 184,000 (metric) tonnes, grading 6.09 g/t (0.196 oz) gold, 39.53 g/t (1.27 oz) silver and 0.89% copper.

The Vein system at Invicta is of a pinch and swell nature. At the Atenea vein, reported widths reach up to 10 meters (33.25 feet) and at the Pucamina Vein, up to 11 meters (36.5 feet) wide. The exploration potential to discover similar veins in the 10 target areas is excellent. There are still many vein outcrops that need to be mapped and sampled. The Company is currently working to complete a geophysical, geochemical and mapping exploration program in order to define potential drill targets.

Andean geologists are in the process of completing due diligence work in order to validate all the historical indicated resources. This work has included re-logging and re-sampling of drill core, measuring specific gravities and inserting blank and duplicate samples. Andean has used polygonal estimation techniques for this purpose. The indicated resources have been categorized into oxide, mixed and sulphide type mineralization. So far Andean has validated approximately 50% of the high grade areas contained in the historical resource. An infill drill program is being prepared to continue with the discovery and verification process and to explore for possible further continuity of the mineralization. A 43-101 fully compliant technical report is being prepared and should be delivered shortly after the resource validation is completed.

In this regard, the Company is also pleased to report that it has retained the services of Discover Geological Consultants, represented by Mr. Victor Jaramillo, P.Geo. as the Qualified Person for Andean as defined by NI 43-101. Mr. Jaramillo has provided geological services to the international mining community for over 20 years. He has worked in early exploration projects and producing mines, for major and junior companies in Canada, the United States and Latin America. Most of his experience has been focused in precious metal and porphyry copper systems. Mr. Jaramillo has extensive experience in Peru. Mr. Jaramillo reviewed and approved this news release.

The project team for the Invicta project is headed by Luis Vela, geologists, and masters in Economic Geology from the University of Santiago, Chile; Geologist Willy Caceres is the project Chief. Six additional geologists and 4 surveyors are currently also working on the project. In addition the entire ex Pangea geological is available to company for consultations.

The Invicta project is located 249 kilometer north of Lima, access is by the Pan Americana highway to Huaura, the 69 kilometers of semi paved highway to Huamboy, the 27 kilometers of mountain passes in single lane but well constructed roads. The project contains both land under option from ABX Peru and land acquired directly By Andean (10,200 hectares).uaHuarura

Andean American Mining Corp. (TSX VENTURE:AAG) is focused on gold mining, exploration and development with its head office in Vancouver and operations in Peru. The company is a low cost, profitable producer with sales up 111% in 2005. Andean is actively pursuing new opportunities and has recently acquired lands from Barrick. With its current and new properties, with its strong management team and with a commitment to steady growth and financial viability, Andean is well positioned to become a leading organization in the mining industry. For further information, please visit our website at

On behalf of Andean American Mining Corp.

John Huguet, President & CEO

This news release may contain forward-looking statements regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements.

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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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