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

Andean American Gold Corp.

November 30, 2007 19:44 ET

Andean American Mining Reports Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2007) - Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) -

The Board of Directors of Andean American Mining Corp. announces that its Consolidated Interim Financial Statements and Management Discussion and Analysis for the quarter ended September 30, 2007 have been filed with SEDAR at www.sedar.com. Highlights of these statements are discussed below:

- The net loss for the period was $1,446,908 or $0.023 per share compared with net loss of $7,495,800 or $0.145 per share in the comparable period last year.

- Cash flow provided from (used by) operations in the quarter ended September 30, 2007 before changes to non-cash working capital items was ($993,692) compared with ($901,796) in the comparative quarter for 2006.

- Revenues for the three month period ending September 30, 2007 were $1,509,389 in 2007 compared with $1,468,902 in the comparative period in 2006. Sales of gold and gold equivalents in the quarter were 2,058 ounces compared to 2,137 ounces in the comparable period last year.

- A 13,000 metre drill program is underway at the Invicta project and at the end of September, over 5,000 metres had been drilled. An additional 5,300 hectares have been acquired bringing the total hectares to 22,200. Wardrop Engineering Inc. has been engaged to prepare a NI 43-101 Technical Report which will provide an updated resource estimate to include drill results from the current drill program.

- At Sinchao, a 5,000 metre drill program is continuing to test the limits and continuity of the Breccia Zone and will test the high grade zinc in the Skarn Zone. Additional targets defined by the geophysical surveys will be tested and an estimate of inferred resources will be compiled.

- At Santa Rosa, metal production during the quarter was 2,240 gold equivalent ounces compared to 2,160 gold equivalent ounces for the comparative period in fiscal 2007.

Outlook:

Gold and silver prices are showing continued strength and at the date of this report are US$810.75 and US$14.65 per ounce, respectively. The Company's revenues will be negatively affected by any further strengthening of the Canadian dollar against the US dollar. Metal prices and currencies are subject to fluctuation due to changes in global economic conditions. The Company is experiencing rising production costs due to increasing prices for fuel, chemicals and maintenance supplies. These rising prices, driven by the global economic boom, are expected to continue into calendar 2008.

For the complete Management's Discussion and Analysis and Financial Statements, please refer to the Company's filings at www.sedar.com.

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 the data herein.

On behalf of Andean American Mining Corp.,

John Huguet, President & 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 16,900 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.



ANDEAN AMERICAN MINING CORP.
INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian Dollars, except where noted)

Sept 30 Mar 31
2007 2007
----------- -----------
----------- -----------
(unaudited) (audited)
$ $

ASSETS
Current
Cash and cash equivalents 2,951,346 174,484
Accounts receivable (Note 3) 826,024 714,350
Prepaid expenses 296,842 207,053
Mineral on pads and inventories (Note 4) 2,671,840 2,546,590
----------- -----------
6,746,052 3,642,477
Mineral on pads (Note 4) 2,959,888 3,454,861
Mineral properties and deferred costs (Note 5) 32,679,846 30,453,207
Property, plant and equipment (Note 6) 977,420 1,188,152
----------- -----------
43,363,206 38,738,697
----------- -----------
----------- -----------

LIABILITIES
Current
Bank indebtedness 115,933 218,715
Accounts payable and accrued liabilities 3,045,539 3,440,277
Deferred income 88,640 303,054
Loans payable (Note 7) 38,358 44,387
Current portion of long term debt (Note 8) 374,069 543,615
----------- -----------
3,662,539 4,550,048

Long term debt (Note 8) 101,217 101,217
Future income tax liabilities 4,970,205 5,723,679
Provision for reclamation and closure costs
(Note 9) 112,479 130,159
----------- -----------
8,846,440 10,505,103
Minority interest 3,402,787 2,642,331
----------- -----------
12,249,227 13,147,434
----------- -----------

SHAREHOLDERS' EQUITY
Share capital (Note 10) 64,664,595 59,127,821
Contributed surplus (Note 11) 4,297,844 2,367,949
Deficit (37,848,460) (35,904,507)
----------- -----------
31,113,979 25,591,263
----------- -----------
43,363,206 38,738,697
----------- -----------
----------- -----------
Going concern (Note 1)
Contingency (Note 15)

"JOHN HUGUET" "BRYAN MORRIS"
------------- --------------
DIRECTOR DIRECTOR

The accompanying notes are an integral part of these interim consolidated
financial statements.


ANDEAN AMERICAN MINING CORP.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS,
COMPREHENSIVE INCOME (LOSS) AND DEFICIT
(unaudited)
(Expressed in Canadian Dollars, except where noted)

Three months Six months
Ended Ended
Sept 30 Sept 30
2007 2006 2007 2006
------------------------ ------------------------
------------------------ ------------------------
$ $ $ $

REVENUE
Sales of metals 1,509,389 1,468,902 2,637,941 2,702,522
------------------------ ------------------------
OPERATING EXPENSES
Direct operating costs 1,642,335 1,807,787 2,822,773 2,712,675
Royalty expense 24,748 26,296 45,217 47,234
Amortization and
depletion 339,237 287,968 773,140 430,368
Selling expenses 41,837 40,911 83,723 71,857
Stock based
compensation 421,733 - 814,047 -
Provision for
reclamation 16 2,384 3,440 7,132
------------------------ ------------------------
2,469,906 2,165,346 4,542,340 3,269,266
------------------------ ------------------------
GROSS PROFIT (LOSS) (960,517) (696,444) (1,904,399) (566,744)

OTHER (INCOME) EXPENSE

General and
administrative expenses 607,696 622,810 1,010,622 707,378
Interest expense 7,803 22,665 22,645 48,513
Other (income) expense (149,586) (137,738) (137,329) (137,738)
Foreign exchange (gain)
loss 109,269 253,597 (804,219) 156,990
Loss on sale of shares - 6,086,167 - 6,086,167
Minority interest (88,791) (48,145) (52,165) (48,145)
------------------------ ------------------------
486,391 6,799,356 39,554 6,813,165
------------------------ ------------------------

NET INCOME (LOSS) AND
COMPREHENSIVE INCOME
(LOSS) FOR THE PERIOD (1,446,908) (7,495,800) (1,943,953) (7,379,909)

DEFICIT, BEGINNING OF
PERIOD (36,401,552) (16,241,334) (35,904,507) (16,357,225)
------------------------ ------------------------
DEFICIT, END OF PERIOD (37,848,460) (23,737,134) (37,848,460) (23,737,134)
------------------------ ------------------------
------------------------ ------------------------

WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
BASIC 63,780,157 51,535,686 60,054,129 51,523,970
DILUTED 63,780,157 52,022,087 60,054,129 52,112,153

NET INCOME (LOSS) PER
COMMON SHARE
BASIC (0.023) (0.145) (0.032) (0.143)
DILUTED (0.023) (0.144) (0.032) (0.142)

The accompanying notes are an integral part of these interim consolidated
financial statements.


ANDEAN AMERICAN MINING CORP.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
(unaudited)
(Expressed in Canadian Dollars, except where noted)

Three months Six months
Ended Ended
Sept 30 Sept 30
2007 2006 2007 2006
----------------------- -----------------------
----------------------- -----------------------
$ $ $ $

CASH PROVIDED FROM
(USED FOR):
OPERATING ACTIVITIES
Net income (loss) for
the period (1,446,908) (7,495,800) (1,943,953) (7,379,909)
Adjustments for items
not affecting cash:
Amortization and
depletion 339,237 277,466 773,140 419,866
Stock based
compensation 421,733 - 814,047 -
Minority interest (88,791) - (52,165) -
Provision for
reclamation 16 2,384 3,440 7,132
Unrealized foreign
exchange gain on
long-term monetary
assets and liabilities (218,979) 48,937 (862,042) (47,670)
Loss on sales of shares - 6,265,217 - 6,265,217
----------------------- -----------------------
(993,692) (901,796) (1,267,533) (735,364)

Net changes in non-cash
working capital items:
Accounts receivable (22,861) 111,106 (111,674) 250,219
Mineral on pads and
inventories 498,989 (13,064) 369,723 259,329
Prepaid expenses (27,911) (77,772) (89,789) (118,798)
Accounts payable and
accrued liabilities 349,813 (46,162) (394,738) (433,601)
Deferred income (137,184) (15,585) (214,414) 64,361
----------------------- -----------------------
(332,846) (943,273) (1,708,425) (713,854)
----------------------- -----------------------

INVESTING ACTIVITIES
Mineral properties and
deferred costs (1,981,943) 108,534 (2,584,868) (1,332,325)
Property, plant and
equipment (51,307) (69,960) (146,306) (69,960)
----------------------- -----------------------
(2,033,250) 38,574 (2,731,174) (1,402,285)
----------------------- -----------------------

FINANCING ACTIVITIES
Sale of Sinchao (CMS) - 144,926 - 2,644,926
Change in restricted cash - 72,142 - 205,634
Private placement of
units, net of issue
costs 8,500 - 6,694,870 17,500
Shares issued by
subsidiary to minority
interest, net
issue cost 7,500 - 712,500 -
Payment of long term debt (60,395) (67,623) (88,127) (145,724)
Payment of loans payable - (26,758) - (54,144)
----------------------- -----------------------
(44,395) 122,687 7,319,243 2,668,192
----------------------- -----------------------

INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS
(DURING) THE PERIOD (2,410,491) (782,012) 2,879,644 552,053
CASH AND CASH
EQUIVALENTS,
BEGINNING OF PERIOD 5,245,904 2,144,565 (44,231) 810,500
----------------------- -----------------------
CASH AND CASH
EQUIVALENTS, END
OF PERIOD 2,835,413 1,362,553 2,835,413 1,362,553
----------------------- -----------------------
----------------------- -----------------------
CASH AND CASH EQUIVALENTS
IS COMPRISED OF:
Cash 2,951,346 1,470,933 2,951,346 1,470,933
Bank indebtedness (115,933) (108,380) (115,933) (108,380)
----------------------- -----------------------
2,835,413 1,362,553 2,835,413 1,362,553
----------------------- -----------------------
----------------------- -----------------------

The accompanying notes are an integral part of these interim consolidated
financial statements.


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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