Minera Andes Inc.

Minera Andes Inc.

March 23, 2005 08:30 ET

Minera Andes Closes Financing for Gross Proceeds of Cdn$10 Million


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINERA ANDES INC.

TSX VENTURE SYMBOL: MAI
OTC Bulletin Board SYMBOL: MNEAF

MARCH 23, 2005 - 08:30 ET

Minera Andes Closes Financing for Gross Proceeds of
Cdn$10 Million

SPOKANE, WASHINGTON--(CCNMatthews - March 23, 2005) - Not for
distribution to U.S. newswire services or for dissemination in the U.S.

Minera Andes Inc. (the "Corporation") (TSX VENTURE:MAI)(OTCBB:MNEAF) has
completed a brokered private placement of units for gross proceeds of
Cdn$10 million.

Each unit priced at Cdn$0.55 per unit consists of one common share and
one-half of one common share purchase warrant. One whole common share
purchase warrant entitles the holder to purchase one additional common
share at an exercise price of Cdn$0.70 per share until March 22, 2010.
The securities are subject to a four-month hold period. Canaccord
Capital Corporation ("Canaccord") is the agent on the private placement
along with Raymond James Ltd. as part of the syndicate (together the
"Agents").

The Agents received a 7 percent commission. The Agents also received
Agent's warrants equal to 7 percent of the aggregate number of units
sold pursuant to the offering. Each Agent's warrant upon exercise will
entitle the holder to acquire one common share at an exercise price of
Cdn$0.70 per common share until March 22, 2007. A total of 18,180,450
common shares have been issued pursuant to the private placement, and
9,090,222 common shares have been reserved for issuance on exercise of
the warrants and 1,272,632 common shares for issuance on the exercise of
the agent's warrants.

Minera Andes intends to use the proceeds from the offering to fund its
share of the construction costs for gold/silver ore reserve development
and feasibility work at the advanced-stage Huevos Verdes/San Jose
project in southern Argentina, as well as for other exploration and
general corporate purposes. At Huevos Verdes, a work force of 180 is
developing the underground workings exploring the main gold/silver vein.

Minera Andes is a gold, silver and copper exploration company working in
Argentina funded with working capital of about US$7.6 million and a
pending credit facility of up to US$2 million for feasibility completion
and underground construction at its advanced-stage silver/gold project
in Santa Cruz province. Minera Andes holds about 500,000 acres of
mineral exploration land in Argentina, including the co-owned Huevos
Verdes/San Jose silver/gold project now under construction and
feasibility consideration for possible mine production. Minera Andes has
also discovered an enriched copper zone at its Los Azules property and
is acquiring other exploration targets in southern Argentina. The
Corporation presently has 90,079,504 issued and outstanding shares.



Spokane Office Vancouver Office
111 East Magnesium Rd., Suite A 410-744 West Hastings Street
Spokane, WA 99208 USA Vancouver, B.C. V6C 1A5


FORWARD-LOOKING STATEMENT - Although Minera Andes believes many of its
properties have promising potential, its properties are in the early
stages of exploration. None have yet been shown to contain proven or
probable mineral reserves. There can be no assurance that such reserves
will be identified on any property, or that, if identified,
mineralization may be economically extracted. There can be no assurance
that the San Jose gold/silver project will be found to be economically
feasible or that a mine will be successfully constructed.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Minera Andes Inc.
    Art Johnson
    Spokane Office
    (509) 921-7322
    mineraandes@minandes.com
    or
    Minera Andes Inc.
    Krister A. Kottmeier, Investor Relations - Canada
    Vancouver Office
    (604) 689-7017; (877) 689-7018
    ircanada@minandes.com
    www.minandes.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.