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

Andean American Gold Corp.

February 03, 2011 11:44 ET

Andean American Renews Debt Arrangement Agreement With Barclays and WestLB

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2011) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Andean American Gold Corp. ("Andean American" or the "Company") (TSX VENTURE:AAG)(FRANKFURT:AQN) is pleased to announce that the agreement with Barclays Capital, the investment banking division of Barclays Bank PLC ("Barclays Capital") and WestLB AG, New York Branch ("WestLB"), as previously announced on February 17, 2010, has been renewed for a further period of 12 months until February 10, 2012. Barclays Capital and WestLB will act as the Joint Lead Arrangers for a senior debt financing (the "Facility") of up to US$68 million for the construction and start-up of production at the Company's wholly-owned poly-metallic Invicta Project in Peru.

The debt financing for the Invicta Project will be required by the Company once the community agreements have been finalized, the upgraded Feasibility Study has been completed and the construction permit has been received. Negotiations with the local communities are progressing well and the upgraded Feasibility Study is on track for completion in the second quarter of this year. Preparations for the permitting process and construction are well underway.

"We are making steady progress to bring the Invicta Project into production and, with the assurance of financing arrangements in place, we are in a position to advance the project with confidence. With many of the key components for a solid project well advanced, 2011 promises to be an exciting year for the Invicta Project," said David Rae, President and CEO of Andean American.

About Andean American

Andean American is an international mining and exploration company focused on value growth through the development of gold and copper projects in Peru and currently has two key assets: the 28,200 hectare Invicta gold-silver-copper advanced exploration stage project and 60% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project. In addition, the Company is actively targeting early stage gold and silver prospects in Peru.

For further information about Andean American, please visit the Company's website at www.aaggold.com or call (604) 681-6186 or toll free: 1-888-356-4784.

On behalf of Andean American Gold Corp.,

David Rae, President and Chief Executive Officer

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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