Andean American Gold Corp.

Andean American Gold Corp.

April 05, 2007 09:00 ET

Andean American Mining Provides Invicta Property Update, Milestone Schedule

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 5, 2007) - Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) -

Andean American Mining ("the Company") is pleased to provide this update on the Invicta Project. The 16,900 hectare Invicta Project is located on strategic ground that hosts low-sulphidation epithermal style gold-silver-copper mineralization in west Central Peru in the department of Lima, the province of Huaura, approximately 250 kilometers by road north east of the city of Lima, Peru at an altitude of 3,400 meters.

The Project and the Company have just received a comprehensive review that was completed by consultants, analysts and potential financiers. Both the Invicta Project and the Company are considered robust by all measures.

At Invicta, Mine Plans currently provide for six plus years of mine life, starting with two years of high-grade gold and silver production. Project economics, which have been developed by using 3rd party engineers (i.e. Goltec, Cesel Engineers, Eldenor), consultants and in-house capacity, indicate payback can be achieved in less than three years for the 3000 TPD (Tonnes Per Day) Mine Mill complex.

Project Milestone Schedule:

Exploration: April 2007 - December 2007
- Infill Drilling (3,500 meters)
Upgrade Inferred resources to Measured resources,
where possible
Calculate resource additions
- Geologic Potential (7,200 meters)
Test and upgrade to Measured and Indicated
Resources, where possible
- Regional Exploration
Mapping, sampling, geophysical confirmation,
trenching, some drilling
- District Exploration
Stream sediments, geochemistry, mapping,
sampling, trenching

Mine Development: April 2007 - March 2008
- Production Adit, Elevation 3,600 meters
Allows exploration
- Production Adit, Elevation 3,400 meters
Allows exploration

Detailed Engineering:
- Finalize Mine Plan, first six years, contract
in negotiation
April 2007 - August 2008 (Minconsult)
- Finalize Metallurgical Plans, first six years,
contract initiated
August 2007 - December 2007 (Juan Zegarra West)
Onsite metals production for gold, silver and
- Finalize Environmental Impact Study
March 2007 - June 2007
High voltage power, including detailed
engineering, contract initiated
Water supply, including detailed engineering,
contract initiated
Environmental Modeling for dust, sound and
hydrologic and hydrogeology, contract initiated
- Obtain Production Permits
Cesel Engineering Sept 2006 - July 2007,
contract initiated
Ministerial Approval May 2007 - Sept 2007

The Company intends to put in place all necessary facilities to complete its feasibility study. The major debt financing for the Invicta Project will proceed after the exploration project has confirmed a ten year mine life from Measured and Indicated Resources or confirmed a minimum of four years of high-grade resources, or both.

The Board of Directors is taking these conservative measures to ensure future successes. The decision to produce metals onsite also brings some new considerations, which have been accounted for in the milestone schedule and the project economics. The benefits to the project from this more conservative approach include stronger initial resources, a higher rate of initial production, a higher degree of confidence in project feasibility and higher coverage for debt repayment.

On behalf of Andean American Mining Corp.,

John Huguet, President & CEO

Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) is focused on growth both organically and through acquisitions. The company is actively pursuing new properties with potential for early stage gold and silver targets. Andean American continues to maintain excellent community relations and a commitment to responsible environmental practices. The company has a strong management team with over 60 years experience and an effective board dedicated to excellence in corporate governance. Andean American Mining is committed to continuing to be a low-cost, profitable producer with an objective of producing 200,000 ounces of gold by 2010.

SEDAR Profile # 00003879

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