AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

December 17, 2008 09:00 ET

AndeanGold Acquires 17 Gold-Silver Concessions in Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2008) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that its wholly owned Peruvian subsidiary, PeruGold Resources S.A.C. ("PGR"), has signed Assignment and Purchase Option Agreements (the "Agreements") with three concessionaires (the "Concessionaires") to acquire eleven gold-silver exploration concessions (the "Concessions") in Peru, amounting to 1,325 hectares. PGR has applied for an additional six exploration concessions, amounting to approximately 2,000 hectares, that are contiguous with the eleven Concessions. The overall project area, referred to as the Rio Seco Project (the "Project"), covers approximately 3,325 hectares and is located in the Department of Libertad, approximately 33 km southeast of the city of Trujillo. There is excellent road access to the Project (45 minutes from Trujillo), which is located at an altitude of between 200m to 600m and has an arid and dry climate.

PGR has been conducting due diligence and general field investigations on the Project, pursuant to an Exclusivity Agreement PGR signed with the Concessionaires on October 2, 2008. The investigations have included regional geological reconnaissance, detailed geological and alteration mapping, and continuous channel sampling of outcrop faces, veins and trenches.

To date, four mineralized zones have been outlined and ten main veins have been identified. Preliminary data suggest the shear-controlled West and South Zones have the best potential for hosting significant gold mineralization.

WEST ZONE:

The West Zone comprises two target areas:

Camino - Contains four sub-parallel quartz veins with an overall strike length of up to 1 km and exhibiting gold values up to 39.8 g/t gold and 93.7 g/t silver in separate samples (see table below). In addition, two developments of stock working have been discovered covering a collective area of approximately 96,000 square metres and containing anomalous gold and silver in rock trenches.

Santa Catalina - Contains two sub-parallel main veins with an overall strike length of up to 300 metres and assaying up to 9.0 g/t gold and 184 g/t silver in separate samples (See table below).

SOUTH ZONE:

The South Zone is located along the southern portion of the shear zone and to date, two gold-bearing veins have been identified with strike lengths of approximately 300 metres, with assays of up to 33.76 g/t gold and 13.10 g/t silver in separate samples (See table below).

Selected assay results to date for certain key vein structures and an initial, limited trenching program are, as follows:

VEINS



------------------------------------------------------------------
SAMPLE WIDTH AU AG CU PB
TYPE (metres) (g/t) (g/t) (%) (%)
------------------------------------------------------------------
WEST ZONE
---------
---------------------
CAMINO STOCKWORK A
---------------------
VEIN 1 CHANNEL 0.20 39.86 78.20 0.41 4.42
CHANNEL 0.25 8.30 24.00 0.43 3.10
CHANNEL 0.25 6.78 67.00 0.46 2.01
VEIN 2 CHANNEL 0.25 24.80 12.30 0.20 0.66
---------------------
CAMINO STOCKWORK B
---------------------
VEIN 3 CHANNEL 0.30 2.90 13.60 2.08 0.22
CHANNEL 0.40 13.80 93.70 0.73 0.82
VEIN 4 CHANNEL 1.20 1.07 35.50 0.20 0.29
CHANNEL 2.00 2.39 29.90 0.17 0.14
---------------------
SANTA CATALINA TARGET
---------------------
VEIN 6 CHANNEL 0.60 9.07 6.30 0.04 0.29
CHANNEL 0.30 8.70 2.20 0.26 0.39
VEIN 7 CHANNEL 0.60 6.73 184.00 0.48 1.58
---------------------
SOUTH ZONE
---------------------
VEIN 8 CHANNEL 0.15 28.30 8.00 0.04 0.50
VEIN 9 CHANNEL 0.20 30.11 3.50 0.06 0.29
CHANNEL 0.10 13.90 13.10 0.50 1.69
CHANNEL 0.12 33.76 3.00 0.04 0.19
------------------------------------------------------------------


STOCKWORKS

(Trenches along access road)



------------------------------------------------------------------
SAMPLE LENGTH AU AG CU PB
TYPE (metres) (g/t) (g/t) (%) (%)
------------------------------------------------------------------
WEST ZONE
---------
---------------------
CAMINO STOCKWORK A
---------------------
TRENCH 5 CHANNEL 18.00 1.35 6.42 0.03 1.12
TRENCH 6 CHANNEL 30.00 1.92 10.24 0.10 0.64
TRENCH 8 CHANNEL 48.00 0.35 2.96 0.04 0.10
Including CHANNEL 6.00 1.06 14.45 0.06 0.34
TRENCH 9 CHANNEL 48.00 0.48 1.48 0.03 0.08
Including CHANNEL 9.00 1.22 4.17 0.05 0.17
---------------------
CAMINO STOCKWORK B
---------------------
TRENCH 18 CHANNEL 2.00 3.82 4.90 0.39 0.05
TRENCH 20 CHANNEL 5.00 2.23 37.00 0.59 0.64
TRENCH 21 CHANNEL 9.00 0.80 10.03 0.35 0.10
Including CHANNEL 3.00 2.21 27.50 0.81 0.24
------------------------------------------------------------------


A summary table of all sample assays can be found on the Company's website: www.andeangoldltd.com.

The Project area contains numerous outcrops of the Late Cretaceous "Coastal Batholith", composed of porphyritic diorite, granodiorite and tourmaline granodiorite rocks affected by a zone of strong shearing. These rocks have intruded metamorphic and volcanic sequences. On the western section of the Project area, and hosted in granodiorite, are several sets of sub-parallel veins and veinlets striking N40 degreesE, E-W and N-S and dipping sub-vertically.

During the first quarter of 2009, planned exploration programs will be focused on detailed geochemical sampling grids over the main targets identified to date in the West and South Zones and photo interpretation, followed by structural mapping.

All assays are based on continuous channel samples, generally 3m in length. All samples from the Project were sent for sample preparation and assaying to the Inspectorate laboratory in Lima, Peru.

According to the terms of the Agreements signed on December 11, 2008, PGR has the option (the "Option") to purchase, for US$340,000, a 100% interest in each of the 11 concessions by making the following cash payments, in total, to the Concessionaires:



On signing the Agreements US$50,000 (less a credit of US$4,500 for prior
cash advances)
6 months after Signing US$30,000
12 months after Signing US$50,000
18 months after Signing US$50,000
24 months after Signing US$50,000
30 months after Signing US$50,000
36 months after Signing US$60,000


In addition, the Concessionaires are entitled to receive a 2% Net Smelter Return Royalty (the "NSR") on any production from the concessions. Once PGR has exercised the Option and made all of the Option payments, PGR has the right to purchase the NSR on the basis of US$200,000 per 1% of NSR. PGR has the right to exercise the Option at any time during the three-year Option period.

Mr. Anthony F. Ciali, President and CEO, stated, "We are very pleased to have acquired our first project in Peru. PGR is actively investigating other potential mineral properties and regions for future acquisitions, and we are encouraged by the number and quality of available Peruvian prospects under investigation that meet with the Company's exploration growth strategy."

Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.

About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties in Colombia, Peru and Ecuador. The focus of the Company's exploration activities is presently in Colombia and Peru, where the Company is aggressively pursuing mineral property acquisitions. AndeanGold has signed several exclusivity and confidentiality agreements with various concessionaires in Colombia and Peru and a Joint Venture Letter of Intent on two gold properties in Colombia. In Ecuador, the Company's activities are presently limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008, which, among other provisions, provided for the suspension of exploration activities in Ecuador for a period of 180 days.

Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director

The statements contained in this news release that are not purely historical are forward-looking statements. Forward-looking statements may relate to the success of any of the company's strategic initiatives, the company's expectations, beliefs, growth and future prospects, and the company's position in the market and future opportunities therein. Forward-looking statements may also include, without limitation, any express or implied statement relating to future events, industry performance, general business and economic conditions or circumstances, regulatory and legal requirements, and other matters, many of which are beyond the control of the company. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. All forward-looking statements included in this news release are based upon information available to the company as of the date hereof and the company does not undertake any obligations to update forward-looking statements should circumstances or management's beliefs or opinions change.

No stock exchange has approved or disapproved the information contained herein.

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