AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

February 24, 2011 13:33 ET

AndeanGold Announces Approval of Water Permit-Now Fully Permitted to Initiate Phase I Drill Program at Urumalqui Au-Ag Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2011) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that Peru's Local Water Authority has approved the Company's water permit application for its advanced-stage Urumalqui Au-Ag exploration project (the "Project") in Peru. On February 14, 2011, Peru's Ministry of Energy and Mines issued the approval voucher of the Company's Declaration of Environmental Impact Study ("DIA") application for the Project (see news release of February 16, 2011). With the approval of the DIA and water permit applications, the Company is now fully permitted to initiate its Phase I drill program (the "Program") on the Project. The Company is earning a 60% joint venture interest in the Project from Gitennes Exploration Inc. (see news release of April 22, 2010).

The Program will focus on infill drilling to a depth of 200 meters along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated. Based on a review of the Project's historical geological information, the Company has increased the Program from 2,000 metres to approximately 3,000 metres of diamond core infill drilling, which is intended to achieve an overall drill hole spacing of approximately 50 metres over the 1.0 kilometre vein strike, to a depth of 200 metres. This level of drilling density should optimize the results of a NI 43-101 resource estimate, which the Company plans to commission upon completion of the Program.

A Lima-based drilling company has been selected to complete the Program, and a drilling contract should be concluded in time to initiate the Program during March 2011.

About AndeanGold Ltd.:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. In November 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has been issued new mining titles under the new Mines law to its three key Ecuadorian projects and has filed the requisite documents with the Ministry of Non-Renewable Natural Resources and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. The Company is actively working with government officials to achieve this end.

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

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director

Neither the 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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