SOURCE: Andes Gold Corporation

June 19, 2012 02:15 ET

Andes Gold Corporation Increases Capacity to Zaruma Mill

BOCA RATON, FL--(Marketwire - Jun 19, 2012) - Andes Gold Corporation (PINKSHEETS: AGCZ) a gold mining company with existing operations in Ecuador is pleased to announce that it has added a water flotation plant to the Zaruma mill. The water flotation plant will increase the capacity of the Zaruma mill by 20 tons per day to 170 tons per day. The Company projects that at capacity the mill will have an average head grade of 1.0 oz of gold per ton while processing 170 tons of ore per day.

With the increase in capacity, the Company will increase the amount of ore it is processing from other mines that do not have milling capacity. Testing of ore from other mines show that the grades will range from 0.6 oz per ton to 1.45 ozs per ton.

The Company is completing development work that will increase its proven reserves and increase the production of the mines as it brings its mills up to capacity and brings additional concessions on production. The Company currently has two(2) producing gold mines and a fully operating mill/ Smelter with an excellent cashflow.

Andes Gold Corporation 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 http://www.andesgoldmine.com/.

NOTE: 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 but are not limited to product demand, market competition and Andes Gold Corporation'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 Gold is not obligated 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.

Contact Information