Andean American Gold Corp.
TSX VENTURE : AAG
FRANKFURT : AQN

Andean American Gold Corp.

October 16, 2006 12:08 ET

Invicta Project: Andean American Announces Another 60+ Meter Mineralized Drill Intercept

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Andean American Mining Corp. (TSX VENTURE:AAG) is pleased to announce that it has received information from our site geologists that the mineralized intercept for hole DDH-17, drilled on the Atenea Structure by the previous operator, was not reported accurately by them. Data re-evaluation has revealed a significant and much larger mineralized section then previously reported. These findings will add significant tonnage and grade to the current validated resources.

The former operator reported for drill hole DDH-17 a mineralized intercept of 14.25 meters with 1.74 g/t gold, 34.97 g/t silver, 1.31% copper, 0.19% Pb and 0.90% Zn. Andean geologists indicate the actual mineralized intercept to be 64.10 meters long. All holes drilled into the Atenea Structure are now being re-examined as considerable copper mineralization is being identified in other holes that was not considered by the past operator.

Drill hole DDH-17 intercepted from 162.6 to 239.1 meters (64.10 meters) a mineralized breccia zone composed of quartz, pyrite, chalcopyrite, hematite, galena and minor sphalerite. This mineralized section has a true width of 39.61 meters and has returned (weighted averages) 0.47 g/t gold, 24.01 g/t silver, 0.63% copper, 0.05% lead and 0.24% zinc.



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DDH-17
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width True Au Ag Cu Pb Zn
Sample from to m width S.G. g/t g/t % % %
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4922 162.6 163.7 1.10 0.680 2.57 1.65 23.00 1.11 0.21 1.18
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4923 163.7 165.2 1.50 0.927 2.57 0.56 36.00 0.63 0.11 0.45
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4924 165.2 166.7 1.50 0.927 2.57 0.26 25.00 0.94 0.33 4.65
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4925 166.7 167.8 1.10 0.680 2.57 0.85 59.00 2.10 0.97 1.73
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4926 167.8 168.7 0.90 0.556 2.57 0.26 16.00 0.60 0.05 0.17
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4927 168.7 169.3 0.60 0.371 2.57 3.16 50.00 1.53 0.08 2.10
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4928 169.3 170.4 1.10 0.680 2.57 11.70 146.00 4.53 0.03 0.33
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4929 170.4 171.9 1.50 0.927 2.57 0.08 2.50 0.04 0.00 0.04
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4930 172.3 173.8 1.50 0.927 2.57 0.09 1.00 0.01 0.00 0.04
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4931 173.8 174.8 1.00 0.618 2.57 1.19 44.00 2.45 0.54 0.06
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4932 174.8 175.65 0.85 0.525 2.57 3.98 60.00 3.63 0.01 0.05
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4933 175.65 177.25 1.60 0.989 2.57 0.59 7.50 0.44 0.01 0.03
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4934 177.25 178.75 1.50 0.927 2.57 0.07 1.50 0.11 0.00 0.11
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4935 180.5 180.8 0.30 0.185 2.57 0.03 16.00 1.06 0.01 0.04
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4936 184.05 185.55 1.50 0.927 2.57 0.08 2.50 0.07 0.01 0.07
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4937 185.55 187.2 1.65 1.020 2.57 0.07 1.00 0.03 0.00 0.16
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4938 187.2 188.5 1.30 0.803 2.57 0.03 33.00 1.99 0.01 0.10
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4939 188.95 190.5 1.55 0.958 2.57 0.08 3.00 0.08 0.00 0.10
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4940 192.45 194 1.55 0.958 2.57 0.02 1.00 0.10 0.00 0.06
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4941 194 195.4 1.40 0.865 2.57 0.03 1.50 0.08 0.00 0.05
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4942 195.85 197.25 1.40 0.865 2.57 0.02 0.50 0.01 0.00 0.04
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4943 197.25 197.85 0.60 0.371 2.57 0.07 4.50 0.28 0.00 0.01
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4944 197.85 199.2 1.35 0.834 2.57 0.08 25.00 1.60 0.00 0.03
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4945 199.2 200.7 1.50 0.927 2.57 0.02 3.50 0.20 0.00 0.05
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4946 202.8 203.85 1.05 0.649 2.57 0.02 0.50 0.04 0.00 0.05
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4947 203.85 205.45 1.60 0.989 2.57 0.03 0.50 0.00 0.00 0.03
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4948 205.45 206.95 1.50 0.927 2.57 0.46 28.00 1.59 0.00 0.03
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4949 206.95 208.05 1.10 0.680 2.57 0.14 11.00 0.51 0.00 0.03
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4950 208.05 209.55 1.50 0.927 2.57 0.06 3.00 0.18 0.00 0.03
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4951 210.85 212.35 1.50 0.927 2.57 0.04 3.00 0.14 0.00 0.02
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4952 212.35 213.7 1.35 0.834 2.57 0.04 6.00 0.33 0.00 0.03
-----------------------------------------------------------------------
4953 213.7 214.2 0.50 0.309 2.57 0.04 7.50 0.46 0.00 0.01
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4954 214.2 215.05 0.85 0.525 2.57 0.03 1.50 0.06 0.00 0.03
-----------------------------------------------------------------------
4955 215.05 215.85 0.80 0.494 2.57 0.19 7.00 0.29 0.00 0.04
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4956 215.85 217.35 1.50 0.927 2.57 0.02 0.50 0.01 0.01 0.04
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4957 217.35 218.75 1.40 0.865 2.57 0.02 0.50 0.02 0.01 0.04
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4958 218.75 219.8 1.05 0.649 2.57 0.19 1.00 0.04 0.00 0.04
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4959 219.8 220.9 1.10 0.680 2.57 0.02 9.00 0.52 0.01 0.03
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4960 220.9 222.4 1.50 0.927 2.57 0.05 1.50 0.07 0.00 0.04
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4961 222.4 223.65 1.25 0.772 2.57 0.03 2.50 0.13 0.01 0.06
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4962 224.4 226.1 1.70 1.050 2.57 0.07 21.00 0.95 0.01 0.05
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4963 226.1 227.25 1.15 0.711 2.57 0.18 3.00 0.15 0.00 0.04
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4964 227.25 228.75 1.50 0.927 2.57 0.13 6.00 0.27 0.01 0.02
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4965 228.75 230.25 1.50 0.927 2.57 0.23 5.50 0.28 0.00 0.02
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4966 230.25 231.8 1.55 0.958 2.57 0.31 4.00 0.22 0.00 0.03
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4967 231.8 233.3 1.50 0.927 2.57 0.29 11.00 0.40 0.05 0.03
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4968 233.3 234.8 1.50 0.927 2.57 0.28 31.00 1.28 0.12 0.15
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4969 234.8 236.3 1.50 0.927 2.57 0.21 21.00 1.53 0.00 0.01
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4970 236.3 237.8 1.50 0.927 2.57 0.08 15.00 0.94 0.00 0.01
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4971 237.8 239.1 1.30 0.803 2.57 0.11 9.50 0.66 0.00 0.01
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162.6 239.1 64.10 39.607 0.47 14.01 0.63 0.05 0.24
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The Invicta Project is located in West-Central Peru in the department of Lima, province of Huaura, approximately 250 kilometers by road northeast from the city of Lima, Peru.

All the above samples were submitted to CIMM Labs in Lima, for prep work and analyses. CIMM Labs is a Certified and Accredited Laboratory of International Standards.

The Qualified Person for this news release is Victor Jaramillo, P.Geo. of Discover Geological Consultants.

Andean American Mining Corp. (TSX VENTURE:AAG) is focused on growth both organically and through acquisitions. The company is actively pursuing new properties with potential for early stage gold and silver targets. Andean American continues to maintain excellent community relations and a commitment to responsible environmental practices. The company has a strong management team with over 40 years experience and an effective board dedicated to excellence in corporate governance. Andean American Mining is committed to continuing to be a low-cost, profitable producer with an objective of 200,000 ounces of gold by 2010. For further information, please visit our website at www.andeanamerican.com.

On behalf of Andean American Mining Corp.,

John Huguet, President & CEO

This news release may contain forward-looking statements regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements.

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