Andean Resources Ltd.

Andean Resources Ltd.

December 10, 2007 11:42 ET

Andean Reports 21m of 49 g/t Gold Equivalent at Eureka West

PERTH, AUSTRALIA--(Marketwire - Dec. 10, 2007) - Andean Resources (TSX:AND)(ASX:AND) reports the results of the latest six drill holes of its Phase 4 drill program at its 100% owned Cerro Negro project in Southern Argentina with the following highlights:

- EDD-749 drilled 50m to the west of Phase 3 drilling intersects 21m of 32.3 g/t gold and 904 g/t silver, or 21m of 49 g/t gold equivalent (assuming 55:1 Ag:Au ratio)

- EDD-748 drilled 50m to the west of Phase 3 drilling intersects two intersections of 15m of 10.5 g/t gold and 95 g/t silver plus 8m of 32.4 g/t gold and 570 g/t silver

- Infill drilling continues to produce higher grades at Eureka West than was previously modelled

- Additional step-out drilling to the west awaiting assays

All holes reported in this release were drilled into the Eureka West vein and 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 previous Phase 3 drilling:

Step-out Holes to Phase III drilling

The objective of the step-out drilling at Eureka West is to define the limits of this the first mineralised ore shoot to be delineated with the new results shown below:

- EDD-749: 21m of 32.3 g/t gold and 904 g/t silver from 197m and

3m of 7.9 g/t gold and 330 g/t silver from 221m and

6.1m of 4.7 g/t gold and 70 g/t silver from 250.3m

- EDD-748: 15m of 10.5 g/t gold and 95 g/t silver from 361m and

8m of 32.4 g/t gold and 570 g/t silver from 382m

- EDD-744: 2.25m of 6.4 g/t gold and 200 g/t silver from 120m and

7m of 5.0 g/t gold and 61 g/t silver from 167m

- ERC-741: 14m of 6.9 g/t gold and 48 g/t silver from 336m

EDD-749, a diamond drill-hole, drilled 50m to the west of EDD-723 (52m of 25 g/t gold and 379 g/t silver), intersected the westerly plunging high-grade ore shoot on the Eureka West Vein. EDD-748, a diamond-hole, drilled on the same section (50E) as EDD-749 also intersected the high-grade westerly plunging ore shoot 150m deeper than the intersection in EDD-749. A previously-announced hole, ERC-743, intersected the vein on the same section, 50m up-dip from EDD-748 and 100m down-dip from EDD-749, with 21m of 15.3 g/t gold, 298 g/t silver and 7m of 25.9 g/t gold, 129 g/t silver.

EDD-744 intersected the top of the ore shoot, while ERC-741 and EDD-740 (2m of 4.3 g/t gold and 12 g/t silver) defined the bottom limits of the plunging high grade ore shoot. All holes reported in this release are shown in both Table 1 and the longitudinal section provided with the release. The shoot remains open down-plunge to the west.

Infill Holes to Phase III drilling

- EDD-750: 25m of 8.3 g/t gold and 171 g/t silver from 181m

This infill hole at Eureka West was drilled on section 200E and intersected grades higher than the average grade of the resource as previously modelled.

Dave Shatwell, Cerro Negro's Chief Geologist, commented, "I am pleased to note good corroboration between the reverse circulation drilling reported during the last release and the diamond drilling reported this release. In addition, it is intriguing that at Eureka, we have the top of a large epithermal system that is covered and our ongoing geological mapping is providing evidence that there is much more to the system than what appears on the surface."

Project Status

Currently, the drill program is ahead of schedule with more than 12,000m completed of the total 30,000m planned for the Phase 4 program. All three drill rigs are currently focused on expanding and improving the confidence of the existing mineral resource at Eureka West, prior to the scheduled year-end cut-off for the Pre-Feasibility Study resource estimate, which will be completed in the first quarter of 2008. A 100m step-out hole beyond the current western limit (ERC-747) of drilling, EDD-753 has been completed and intersected approximately 12m of quartz vein at 380m elevation, and is awaiting assays. Another step-out hole, EDD-761, is being drilled 50m west of ERC-747 and is currently in the Eureka West vein. Since step-outs to the west are becoming more expensive with topography (a hill) working against the effort, further step-outs to the west will be reconsidered once assays for these latest holes have been received. New assays will be reported in batches as they are received.

In January, efforts will also be focused on defining two potential new ore-shoots previously intersected by 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). In addition, the remaining 4 km of the Eureka Main Vein remains to be tested together with many promising targets on the Cerro Negro property -- starting in the first quarter of 2008.

Table 1: Drill Hole Data

Hole From To (m) Interval Gold Silver
number (m) (m) (g/t) (g/t)
EDD-740 360 362 2 4.3 12
ERC-741 336 350 14 6.9 48
EDD-744 119.75 123 2.25 6.4 200
167 174 7 5.0 61
EDD-748 200.3 203 2.7 4.6 118
361 376 15 10.5 95
382 390 8 32.4 570
EDD-749 197 218 21 32.3 904
221 224 3 7.9 330
250.3 256.4 6.1 4.7 70
EDD-750 156 181 25 8.3 171

Hole Elevation Easting Northing Azimuth Inclination
number (m) (true)
EDD-740 671 2,394,042 4,808,108 045 -60
ERC-741 666 2,394,082 4,808,078 045 -60
EDD-744 662 2,394,048 4,808,259 045 -55

EDD-748 665 2,393,924 4,808,203 045 -60

EDD-749 669 2,393,944 4,808,273 045 -60

EDD-750 644 2,394,142 4,808,138 045 -60

(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

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 045 degrees True, and the origin, (00E, 00N) is at 2,393,888E, 4,808, 238N. The longitudinal projection therefore looks 045 degreesTrue and the cross sections look 315 degrees True.

To view a map of "Longitudinal Projection Showing projected drillhole intersections on the Eureka West Vein", please visit the link below:

To view a map of "Cross-Section 50E", please visit the link below:

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 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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