AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

July 16, 2012 13:23 ET

AndeanGold Announces Closing of First Tranche of $500,000 Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2012) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that it has closed (the "Closing") the first tranche of its previously announced $500,000 non-brokered private placement (the "Placement") (news release of July 6, 2012) pursuant to which it has issued an aggregate of 7,200,000 units ("Units") at a price of $0.05 per Unit to raise aggregate gross proceeds $360,000. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant, each whole such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.10 for a period of eighteen months from the Closing. The Company anticipates that a second tranche closing of the Placement will take place by early August 2012.

All securities issued in the private placement will be subject to a four-month hold period from the Closing of the Placement.

The Company will pay finders' fees on portions of the first tranche in the aggregate amount of $21,000 and issue 420,000 warrants, each such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.10 for a period of eighteen months from the Closing.

The proceeds of the Placement will be used principally to fund future exploration programs on the Company's Urumalqui Project in Peru and for general working capital purposes.

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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