Andean Resources Ltd.
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Andean Resources Ltd.

January 28, 2008 09:00 ET

Andean Drills 18m of 67.7 g/t Gold and 1207 g/t Ag at Eureka West

PERTH, AUSTRALIA--(Marketwire - Jan. 28, 2008) - Andean Resources (TSX:AND)(ASX:AND) reports the results of the latest seventeen drill holes of its current drill program at its 100% owned Cerro Negro project in Southern Argentina including the following highlights:

- Positive infill drilling in Eureka West resource including ERC-764 with 18m of 67.7 g/t gold and 1,207 g/t silver

- Multiple step-out holes intersected high grades including EDD-765 with 17m of 37.3 g/t gold and 1041 g/t silver

- ERC-767 and EDD-753 extend Eureka West a further 100m with high grades

- Successful infill drilling tabled for first quarter resource estimate

- Exploration drilling continues with 3 drill rigs at Eureka

All holes reported in this release were drilled into the Eureka West vein. Reported widths are intersected widths, and true widths are less in every case (see Table 1 for detailed drill data). Andean has assumed an underground cut-off grade of 2.5 g/t gold at Eureka for the interval summaries; the drill holes for which assays have been received are categorized as either Step-out Holes or In-fill Holes relative to the previous resource:

Step-outs: 100m to 200m from existing resource

The following holes were drilled 100 to 200 meters further along strike to the west of the existing Eureka West resource:



ERC-767: 17m of 10.4 g/t gold and 162 g/t silver from 208m and

9m of 8.0 g/t gold and 176 g/t silver from 262m and

4m of 15.2 g/t gold and 303 g/t silver from 275m and

14m of 6.7 g/t gold and 121 g/t silver from 286m and

3m of 9.1 g/t gold and 47 g/t silver from 306m and

6m of 8.8 g/t gold and 25 g/t silver from 314m

EDD-753: 8m of 13.7 g/t gold and 505 g/t silver from 382m


Step-outs: 0m to 100m from existing resource

The following holes were drilled up to 100 meters along strike to the west of the existing Eureka West resource:



ERC-745: 12m of 13.9 g/t gold and 234 g/t silver from 211m and
3m of 4.2 g/t gold and 38 g/t silver from 274m
EDD-762: 10m of 11.0 g/t gold and 270 g/t silver from 265m and
4m of 17.0 g/t gold and 242 g/t silver from 319m
EDD-765: 17m of 37.3 g/t gold and 1041 g/t silver from 174m and
5m of 10.2 g/t gold and 55 g/t silver from 235m


The details for each of the holes within the release are provided on in Table 1 and are plotted on the Longitudinal Section provided. In addition, all the holes are shown on the web at www.corebox.net.

Existing Resource Infill Drilling

These holes were drilled to further upgrade the classification of mineralization within Micon International's existing Eureka West inferred resource of 3.05 million tonnes at 6.4 g/t Au and 82 g/t Ag, for 624,000 ounces of gold and 8 million ounces of silver. These holes are shown below:



EDD-751 5.7m of 6.5 g/t gold and 212 g/t silver from 96m

EDD-755 13.5m of 12.0 g/t gold and 76 g/t silver from 326.5m and
7.0m of 17.6 g/t gold and 61 g/t silver from 355m

ERC-757 13m of 15.6 g/t gold and 161 g/t silver from 117m and
3m of 3.8 g/t gold and 44 g/t silver from 184m

ERC-758 18m of 5.8 g/t gold and 68 g/t silver from 223m including
7m of 9.7 g/t gold and 327 g/t silver from 228m

EDD759 5.1m of 4.9 g/t gold and 46 g/t silver from 309m

EDD760 27m of 32.5 g/t gold and 179 g/t silver from 319m

ERC-763 7m of 21.7 g/t gold and 320 silver from 224m

ERC-764 18m of 67.7 g/t gold and 1,207 g/t silver from 157m, including
2m of 483 g/t gold and 5,965 g/t silver from 163m

EDD-766 19m of 19.1 g/t gold and 361 g/t silver from 170m and
9m of 5.9 g/t gold and 28 g/t silver

EPQ-7E 18m of 15.7 g/t gold and 106 g/t silver from 160m


Each of these holes are shown in Table 1 and plotted on the attached Longitudinal Section. Some of the intersections listed above are also shown on cross sections 125E, 150E and 200E.

Wayne Hubert, Andean's CEO, commented, "Current drilling has expanded the prior resource in the following ways: the infill drilling is higher grade than what was previously estimated, and we have extended the strike length of the high-grade core of the Eureka West vein by another 200m. In addition, this zone remains open to the west."

Project Status

Currently, the drill program is ahead of schedule with more than 15,000m completed of the total 30,000m planned for the Phase 4 program. Three drill rigs are currently being focused on the following targets:

- Following the Eureka West Vein to the west

- Defining two potential new ore-shoots intersected by previous drilling (EDD-721 with 17m of 9.2 g/t gold and 69 g/t silver) and the five holes that intersected grades permissive for underground mining on the Main Eureka Vein).

- Exploring the remaining 4 km of the Eureka Main Vein

Andean and Micon are currently preparing an updated Eureka West resource estimate based the drilling completed through this release as the basis for the Pre-Feasibility Study mineplans. The results of this NI 43-101 compliant resource estimate will be released in March 2008.



Table 1: Drill Hole Data

--------------------------------------------------------
Hole Easting Northing Section Azimuth Angle Depth
(m)
--------------------------------------------------------
ERC-745 2,393,959 4,808,309 00EW 45 -60 327
--------------------------------------------------------
EDD-751 2,394,162 4,808,158 250E 45 -55 129
--------------------------------------------------------
EDD-752 2,393,888 4,808,238 00EW 45 -60 452.3
--------------------------------------------------------
EDD-753 2,393,817 4,808,310 100W 45 -60 419
--------------------------------------------------------
EDD-755 2,393,968 4,808,177 100E 45 -60 399.2
--------------------------------------------------------
ERC-757 2,394,085 4,808,226 150E 45 -60 317
--------------------------------------------------------
EDD-758 2,394,031 4,808,170 150E 45 -55 353
--------------------------------------------------------
EDD-759 2,394,122 4,808,048 300E 45 -60 332
--------------------------------------------------------
EDD-760 2,394,015 4,808,145 150E 45 -60 368.3
--------------------------------------------------------
EDD-761 2,393,852 4,808,273 50W 45 -60 400.3
--------------------------------------------------------
EDD-762 2,393,985 4,808,229 75E 45 -60 322.6
--------------------------------------------------------
ERC-763 2,394,082 4,808,195 175E 45 -73 305
--------------------------------------------------------
ERC-764 2,394,047 4,808,220 125E 45 -60 300
Incl.
--------------------------------------------------------
EDD-765 2,394,011 4,808,256 75E 45 -60 321
--------------------------------------------------------
EDD-766 2,394,104 4,808,171 200E 45 -60 251.3
--------------------------------------------------------
EPQ-7E 2,394,293 4,808,077 400E 45 -65 251.0
--------------------------------------------------------
ERC-767 2,393,923 4,808,344 50W 45 -65 350
--------------------------------------------------------

---------------------------------------------------
Hole From To Width(1) Au Ag AuE(3)
(m) (m) (m) (g/t) (g/t) (g/t)
---------------------------------------------------
ERC-745 211 223 12 13.9 234 17.8
---------------------------------------------------
274 277 3 4.2 38 4.8
---------------------------------------------------
EDD-751 96 101.7 5.7 6.5 212 10.0
---------------------------------------------------
EDD-752 NSR
---------------------------------------------------
EDD-753 382 390 8 13.7 505 20.0
---------------------------------------------------
EDD-755 285 287 2 6.4 130 8.6
---------------------------------------------------
317 320 3 4.7 72 5.9
---------------------------------------------------
326.5 340 13.5 12 76 13.3
---------------------------------------------------
351 353 2 3.3 41 4.0
---------------------------------------------------
355 362 7 17.6 61 18.6
---------------------------------------------------
ERC-757 117 130 13 15.6 377 21.9
---------------------------------------------------
184 187 3 3.8 44 4.5
---------------------------------------------------
EDD-758 223 241 18 5.6 68 6.7
---------------------------------------------------
262 265 3 4.6 14 4.8
---------------------------------------------------
EDD-759 309 314.1 5.1 4.9 46 5.7
---------------------------------------------------
EDD-760 319 346 27 32.5 179 35.5
---------------------------------------------------
EDD-761 NSR
---------------------------------------------------
EDD-762 265 274.8 9.8 11.0 270 15.5
---------------------------------------------------
318.5 322.6 4.1 17 242 21.0
---------------------------------------------------
ERC-763 224 231 7 21.7 320 27.0
---------------------------------------------------
238 240 2 4.6 55 5.5
---------------------------------------------------
ERC-764 157 175 18 67.7 1207 87.8
---------------------------------------------------
incl. 163 165 2 483 5965 582.4
---------------------------------------------------
225 230 5 5.6 21 6.0
---------------------------------------------------
EDD-765 174 191 17 37.3 1041 54.7
---------------------------------------------------
209 212 3 6.5 215 10.1
---------------------------------------------------
235 240 5 10.2 55 11.1
---------------------------------------------------
EDD-766 170 189.2 19.2 19.1 361 25.1
---------------------------------------------------
212.5 221.6 9.1 5.9 28.2 6.4
---------------------------------------------------
EPQ-7E 160 178 18 15.7 106 17.5
---------------------------------------------------
ERC-767 208 235 27 10.4 162 13.3
---------------------------------------------------
230 232 2 6.4 155 9.0
---------------------------------------------------
262 271 9 8.0 176 10.9
---------------------------------------------------
275 279 4 15.2 303 20.3
---------------------------------------------------
286 300 14 6.7 121 8.7
---------------------------------------------------
306 309 3 9.1 47 9.9
---------------------------------------------------
314 320 6 8.8 25 9.2
---------------------------------------------------

(1) Intersections are drilled widths, not true widths. True widths are less
than drilled intersections and can be determined from the Eureka cross-
sections provided
(2) Coordinates and elevations are approximate and subject to final survey
by a licensed surveyor
(3) Gold equivalent ounces calculated using a 60:1 silver:gold ratio based
on prices without factoring silver and gold recoveries


In the above table, the Gauss Kruger coordinate system and the Campo Inchauspe datum are used to define drill hole collar positions. However on the longitudinal projection and cross sections shown below, the coordinate system refers to a local grid established for drilling the Eureka West Vein. The north direction for this grid is oriented 045degrees True, and the origin, (00E, 00N) is at 2,393,888E, 4,808, 238N. The longitudinal projection therefore looks 045degreesTrue and the cross sections look 315degrees True.

To view maps of the Collar positions of holes included in this release please visit the following link:

http://www.ccnmatthews.com/docs/and128.pdf

The analytical results quoted in this release are derived from half drill core in the case of diamond drill holes, or from cuttings in the case of reverse circulation holes. Samples are prepared on site and a 200 gram sample crushed to 85% -200 mesh is sent to Alex Stewart Argentina in Mendoza, Argentina, for gold and silver determination on a 50 gram split of the assay sample.

Gold is determined by fire assay with AA finish. Samples assaying more than 10 ppm gold are re-assayed using a gravimetric finish.

Silver is determined by fire assay, and samples assaying more than 200 ppm silver are re-assayed by a gravimetric method.

Quality control of the analytical results is maintained by inserting standards, blanks, and duplicates into the sample run, approximately every twenty samples. Additional quality control is maintained by sending assay sample splits to a second laboratory from time to time. These checks are evaluated statistically at regular intervals.

All analytical data are entered into a Microsoft Access database, with limited access and numerous checks to ensure integrity of the data.

Note: The information in this Report that relates to exploration results is based on information provided by David Shatwell who is a Fellow of the Australian Institute of Geoscientists.

Mt Shatwell has extensive experience relevant to the style and type of mineralisation and deposits under consideration, and to the activity undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Mineral Resources and Ore Reserves" (the J.O.R.C. Code). Mr Shatwell consents to the inclusion in this Report on his work in the form and context in which it appears.

Andean Resources Ltd (www.andean.com.au) is an Australian and Toronto listed gold explorer searching for precious metals in the Andes, with four large property positions in the Patagonia.

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