AndeanGold Ltd.
TSX VENTURE : AAU
LMA : AAU

AndeanGold Ltd.

February 28, 2014 07:30 ET

AndeanGold: Urumalqui Ag-Au Project, Peru; 40% Option Agreement Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 28, 2014) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) is pleased to announce that the Company has made a $150,000 cash payment to Gitennes Exploration Inc. ("Gitennes), which timely cured the Company's default on the option payment that was scheduled for payment on December 31, 2013 pursuant to the Share Sale and Mining Agreement dated May 17, 2012, as previously amended on May 10, 2013 and September 16, 2013 (collectively, the "Agreement"). The Agreement provides the Company with the right to acquire Gitennes' 40% interest in the Urumalqui Ag-Au Project in Peru (see news releases of May 22, 2012, May 21, 2013 and September 19, 2013).

The Company is also pleased to announce that Gitennes and the Company have signed a further amendment to the Agreement which revises the timing and certain amounts of future payment obligations stipulated in the Agreement. The scheduled March 17, 2014 cash payment of $400,000 and issuance of 250,000 common shares (the "Shares") of the Company to Gitennes has been amended to a payment of $50,000 cash due on March 3, 2014 (which amount has been paid), with no change in either the amount or timing of the payment of Shares. The remaining payment of $350,000 has been rescheduled for payment on June 17, 2014. In addition, the due dates for all remaining future payment obligations stipulated in the Agreement have each been extended by three months.

AndeanGold Ltd. has the right to earn a 100% interest in the Urumalqui Project from Gitennes pursuant to an existing Option Agreement (the "60% Option") between the parties dated April 21, 2010 (see news release dated April 22, 2010) and the Share Sale and Mining Agreement (the "40% interest")

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 ("MRNNR") in support of the Company's request to renew exploration programs on its key projects in Ecuador. In September 2012, the Company received authorization from the MRNNR to renew exploration programs on its Curiplaya Project.

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.

Contact Information