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

Andean American Gold Corp.

October 20, 2006 09:07 ET

Invicta Project: Andean American Announces New Significant Mineralized Drill Intercepts and the Validation of Additional Drill Holes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2006) - Andean American Mining Corp. (TSX VENTURE:AAG) is pleased to announce that its onsite geologists have just completed a revision and re-evaluation of all diamond drill holes that were drilled by the previous operator into the Atenea Vein Structure. Drill core and data examination has revealed significant and much larger mineralized sections than previously reported.

Some drill holes, such as DDH-17, were found to have ended prematurely in a well-mineralized structure. Other drill holes have been found to contain significant gold and copper content not reported before. Also, drill holes that had not been validated previously by Andean American will now be added into a new indicated resource database. This new validation has been possible by having Mr. Victor Jaramillo P.Geo., of Discover Geological Consultants; supervise procedures and examine all mineralized intercepts, sample intervals, sampling methods used and compare Andean American analytical data with that reported by the previous operator. The new drill hole database, with the inclusion of the new validated drill holes and the inclusion of wider mineralized intercepts, will considerably increase the current resources for the Atenea Vein Structure.

Discover Geological Consultants of Vancouver has been retained by Andean American to complete a NI 43-101 compliant report with revised and updated measured plus indicated and inferred resource categories.

The Table below shows the new drill holes that will be included in the updated resources (now validated), and for comparative reasons, provides the intervals and grades that were used previously in resource calculations for the Atenea Structure.



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DDH Length Gold Silver Copper Lead Zinc STATUS
m g/t g/t % % %
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DDH-1 17.35 2.76 5.64 0.12 0.45 0.62 NEW
16.00 2.94 5.41 0.12 0.47 0.62 Historical Resources
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DDH-2 18.4 2.43 10.73 0.25 0.31 0.20 NEW
11.45 3.51 9.69 0.22 0.41 0.22 Historical Resources
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DDH-3 17.8 2.97 10.81 0.15 0.55 0.32 NEW
8.25 5.58 15.92 0.24 0.71 0.29 Historical Resources
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DDH-5 5.63 1.43 8.66 0.17 0.27 0.17 NEW
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DDH-6 19.10 5.92 20.51 0.29 0.60 0.69 NEW
12.90 6.42 20.93 0.33 2.00 1.93 Historical Resources
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DDH-8 15.25 1.79 29.12 0.56 1.50 1.54 NEW
12.00 2.22 27.79 0.65 1.84 1.93 Historical Resources
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DDH-12 9.30 1.03 27.94 0.39 0.20 0.18 NEW
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DDH-14 4.55 3.52 35.41 0.55 0.05 0.23 NEW
3.95 4.02 28.61 0.43 0.04 0.26 Historical Resources
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DDH-15 13.15 0.41 37.07 1.15 1.03 1.04 NEW
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DDH-17 64.10 0.50 14.17 0.63 0.05 0.23 NEW
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DDH-18 13.55 1.06 4.23 0.15 0.06 0.16 NEW
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DDH-49 10.75 0.30 63.63 1.76 0.12 0.10 NEW
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DDH-51 6.85 6.91 10.63 0.23 0.18 0.34 NEW
2.50 18.51 27.93 0.5 0.32 0.51 Historical Resources
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DDH-52 11.50 4.70 43.56 0.97 0.37 0.53 NEW
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DDH-53 3.10 0.11 38.35 1.56 0.01 0.10 NEW
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DDH-56 35.45 5.25 46.81 1.04 0.33 0.22 NEW
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DDH-58 5.90 4.57 50.97 0.85 0.16 0.16 NEW
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DDH-71 20.80 6.53 7.58 0.10 0.27 0.07 NEW
8.05 15.99 14.95 0.09 0.44 0.06 Historical Resources
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DDH-72 35.65 2.70 7.13 0.07 0.24 0.14 NEW
11.3 7.11 15.36 0.11 0.61 0.11 Historical Resources
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DDH-74 27.50 1.38 4.61 0.08 0.19 0.10 NEW
Grades not Historical Resources
8.85 calculated yet
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DDH-80 49.25 2.38 11.04 0.44 0.40 0.22 NEW
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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.

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

Andean American Mining Corp. (TSX.V-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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release

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