AndeanGold Ltd.
TSX VENTURE : AAU

AndeanGold Ltd.

May 24, 2011 09:00 ET

AndeanGold Reports Additional Positive Assay Results, Urumalqui Au-Ag Project, Peru

New Intersects: 10.26 oz/t AGE over 2.81 metres and 11.16 oz/t AGE over 3.09 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2011) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to announce that it has received the assay results for the second set of three drill holes from the Phase I infill drilling program (the "Program") at its advanced-stage Au-Ag Urumalqui exploration project (the "Project") in Peru. The planned Program comprises up to 23 diamond core holes and 3,000 to 4,000 metres of drilling on the Urumalqui Epithermal Vein (the "Vein"). To date, 17 holes have been completed for 2,960 metres. Core samples for the first 12 completed holes have been shipped to the Inspectorate Lab in Lima for assaying.

The assay results for the second set of three drill holes, which are vertically aligned in the central portion of the 1,000 metre strike length being drilled in the Program, are, as follows:

DRILL HOLE PGUR #06 (VEIN INTERSECT - 57.9 METRES BELOW SURFACE)
TRUE
FROMTOINTERVALWIDTHAUAGAG EQUIVALENT
(metres)(metres)(metres)(metres)(g/t)(g/t)(g/t)(oz/t)
80.3586.15.754.502.03142.83244.337.86
INCLUDING
80.8584.453.602.812.94172.21319.2110.26
DRILL HOLE PGUR #07 (VEIN INTERSECTED - 102.7 METRES BELOW SURFACE)
TRUE
FROMTOINTERVALWIDTHAUAGAG EQUIVALENT
(metres)(metres)(metres)(metres)(g/t)(g/t)(g/t)(oz/t)
133.60137.704.103.110.4480.57102.573.30
INCLUDING
133.60135.602.001.520.78110.50149.504.81
DRILL HOLE PGUR #08 (VEIN INTERSECTED - 138.8 METRES BELOW SURFACE)
TRUE
FROMTOINTERVALWIDTHAUAGAG EQUIVALENT
(metres)(metres)(metres)(metres)(g/t)(g/t)(g/t)(oz/t)
155.70160.815.113.092.38228.09347.0911.16
INCLUDING
157.70160.813.111.883.82274.68465.6814.97
AG EQUIVALENT - Based on a silver to gold ratio of 50:1 and assuming 100% metallurgical recoveries.
oz/t: Troy ounces per metric tonne.

The three new holes were drilled approximately 100 metres to the west of the first three holes drilled in the Program (See news release of March 13, 2011). Including Gitennes Exploration Inc.'s three sets, each, of three vertically aligned historical holes, drilled to the west, east and between AndeanGold's six reported drill holes in the Program, approximately 200 metres of the 1,000 metre Vein strike being tested have now been infilled at approximately 50 metre spacings. (To see the Urumalqui Vein Longitudinal Section, please visit the following link: http://media3.marketwire.com/docs/aau524i.pdf)

Mr. Anthony F. Ciali, President & CEO of AndeanGold states, "We are very pleased with the continuing positive assay results to date, as well as the comparability of the Company's and Gitennes' assay results, from the Phase I infill drilling program at the Urumalqui Project. A 0.30 metre true width interval in hole PGUR # 08 returned 17.40 g/t Au, which is the highest Au assay ever reported from any drilling program at the Project. Overall, the drilling performance is in line with the Company's expectations, and the Program continues to proceed on schedule."

All of the 17 completed holes have intersected the Urumalqui Vein as predicted in cross sections prepared by the Company, providing initial support for the continuity of mineralization along the strike and down dip. To date, the contract driller, Explomin de Peru S.A.C. has achieved an average daily drilling rate of 84 metres, and core recoveries per hole have averaged 94% within the Vein and 97% for the entire hole.

The Program is focused on infill drilling to a depth of 200 meters so as to provide a drill spacing of approximately 50 metres along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre long Urumalqui Vein outcrop where the majority of the Project's historical drilling programs were concentrated. This level of drilling density should be sufficient for the preparation of a NI 43-101 resource estimate, which the Company plans to commission upon completion, and subject to the results, of the Program.

Quality Assurance / Quality Control:

AndeanGold has in place a detailed QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 and using best industry practices. The program includes chain of custody of samples; standards and blanks submitted to the independent Inspectorate Lab in Lima Peru with each batch of samples, and a check assay program on a proportion of sample pulps with a second independent laboratory. The results of the QA/QC program to date have been satisfactory.

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, 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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