AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

March 04, 2011 09:00 ET

AndeanGold Announces Closing of $3,856,810 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2011) - AndeanGold Ltd. (TSX VENTURE:AAU) ("the Company" or "AndeanGold")  is pleased to announce that the Company has increased its previously announced non-brokered private placement (the "Placement") (news release of February 10, 2011) from $3,000,000 to $3,856,810. The Placement has closed, and the Company has issued an aggregate of 17,530,955 Units at a price of $0.22 per Unit. Each Unit consists of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company for a period of two years at a price of $0.33 per share.

In accordance with applicable securities laws and the policies of the TSX Venture Exchange, the Company paid finders' fees and expenses on portions of the Placement in the aggregate amount of $210,494 cash and issued 955,427 warrants, each such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.33 for a period of two years from the Closing.

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

The proceeds of the Placement will be used principally to fund a Phase I infill drill program and future exploration programs on the Company's Urumalqui Project in Peru; potential acquisitions 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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