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

Andean American Gold Corp.

September 28, 2005 14:44 ET

Andean Announces the Closing of 1 Million Units Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - The Board of Directors of Andean American Mining Corp. (TSX VENTURE:AAG) is pleased to announce that it has closed the 1,000,000 unit non brokered private placement announced on September 16, 2005. The unit financing consists of one common share and one half warrant. Two half warrants entitle the holder to acquire one share at the price of $1.20 for the first six months and $1.50 for the second six months. The warrants also carry a forced conversion feature such that if the company's shares trade at or above $2.00 for a 20 day period, then the warrants must be exercised within 30 days or they will automatically expire.

There is a finder's fee of 6%, payable in units. All securities issued have a hold period expiring on January 22, 2006.

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 whose net income rose 114% in the 1st Quarter ended June 30, 2005. 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.

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.

Sedar Profile #00003879


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