SOURCE: Andes Gold Corporation

March 29, 2012 16:34 ET

Andes Gold Corp. CEO Discusses Gold Reserves, Viability for Extraction

BOCA RATON, FL--(Marketwire - Mar 29, 2012) - Andes Gold Corp. (PINKSHEETS: AGCZ), a gold mining company with existing operations in Ecuador, Chief Executive Officer, Robert Talbot, today released information about the company's existing gold reserves, the viability criteria used to establish such reserves, and the potential for future expansion.

"We have seen a lot of speculative press announcements and analyst propaganda over the past few years as the price of gold has exploded," Mr. Talbot explained. "Investors need to consider several factors before believing the hype. First, are the reserves proven? For Andes Gold, we don't consider reserves 'proven' until our mining efforts have reached the gold and we've had an assay study done showing us the concentration of gold, its purity, and the extent of the vein. Many companies out there proclaim to have found gold but are, in fact, several years away from reaching that gold, let alone proving the value and extent of the find.

"Second, and just as import, the gold must be economically viable to extract. Again, we've seen claims of massive gold reserves when in reality, the cost to mine and process the gold is greater than its value. An investor should always ask the relevant question: how much gold per ton is being extracted. At Andes Gold, our average is one ounce of gold per ton of aggregate. What this means is that we can extract and process our gold profitably."

Discussing proven reserves, Mr. Talbot added, "Right now we have proven reserves of over 300,000 ounces. This is gold that we have found, tested and are currently mining. In addition, we have located additional reserves on site and have been evaluating these reserves. We expect that, once the evaluation is completed, and the new ore is tested, our proven reserves will increase substantially."

About Andes Gold Corporation

Andes Gold engages in mining and milling gold and silver in Ecuador. The company is currently producing on concessions located in the cantons of Zaruma and Portovelo, province of El Oro, southern Ecuador. These concessions are producing gold and silver ore which is being processed in a company-owned mill.

Andes Gold trades in the United States on the Pink Sheets under the symbol "AGCZ". For further information, please contact the Company at (561) 210 8496 or at www.andesgoldmine.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving risks and uncertainties. Results, events and performances could vary from those contemplated. These statements involve risks and uncertainties which may cause actual results, expressed or implied, to differ from predicted outcomes. Risks and uncertainties include product demand, market competition, and Andes Gold's ability to meet current or future plans. Investors should study and understand all risks before making an investment decision. Readers are recommended not to place undue reliance on forward-looking statements or information. Andes is not obliged to publicly release revisions to any forward-looking statement, to reflect events or circumstances afterward, or to disclose unanticipated occurrences, except as required under applicable laws.

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