AndeanGold Ltd.

AndeanGold Ltd.

February 16, 2012 09:30 ET

AndeanGold Provides Positive Update on Transaction to Acquire a 100% Interest in the Urumalqui Ag-Au Project, Peru

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2012) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that both the Company and Gitennes Exploration Inc. ("Gitennes") have received approval from the TSX Venture Exchange ("TSX-V") of the proposed transaction ("the Transaction") providing AndeanGold with the opportunity to acquire a 100% interest in the Urumalqui Ag-Au Project in Peru. (See new release dated January 23, 2012). Further, Gitennes has reported that the TSX-V advised that it will not be required to hold a shareholder meeting to approve the Transaction.

The Company is completing its legal due diligence in support of the Transaction, following which the parties will finalize and sign the Share Sale and Mining Agreement.

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 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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