SOURCE: Andes Gold Corporation

August 14, 2012 00:56 ET

Andes Gold Corporation Releases Six Month Financial Results With Increased Profits

BOCA RATON, FL--(Marketwire - Aug 14, 2012) - Andes Gold Corporation (PINKSHEETS: AGCZ), a gold mining company with existing operations in Ecuador and Peru, today released its financial results for the six (6) months ended June 30, 2012. The report was filed and is available on the Pink Sheets.

The financial report for the six (6) months ended June 30, 2012 shows total revenues of $2,793,923 compared to revenues of $1,824,363 for the six months ended June 30, 2011. This is an increase of $960,560 or 53% over the prior year. Net profits for the six (6) month period ended June 30, 2012 were $481,871 compared to $265,303 last year. This represents an increase in profits of 81.6%. The profit for the year ended December 31, 2011 was $521,294 versus a profit at six months of $481, 871.

Based on the financial results obtained in the first six (6) months of 2012, the Company is projecting total revenues in excess of $6,000,000 and net profits in excess of $1,000,000 for the year ended December 31, 2012. The projections are based on existing production, increasing mining production by 20% and increasing milling operations. As development continues, the Company will continue growing at an accelerated rate.

On the balance sheet, the Company reported assets of $4,054,872 and liabilities including amounts due to related parties of $1,057,211 yielding a 3.8 to 1 asset to debt rate.

The Company has 2 producing gold mines and 3 fully operating mills/smelters. At capacity, the mills can produce 240 tons of ore per day. During the last half of the year, the company will continue to expand its daily production, extraction and milling operations with output increasing every day. Andes is ideally positioned to show significant growth over the rest of 2012.

Andes Gold Corporation trades in the United States on the OTC Pink under the symbol "AGCZ". For further information, please contact the Company at (561) 210 8496 or www.andesgoldmine.com or investors can find real-time quotes and market information for the Company on www.otcmarkets.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 '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 released 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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