Minera Andes Inc.

Minera Andes Inc.

March 31, 2005 08:30 ET

Minera Andes Feasibility Study Expanded at San Jose Project; Start-Up Plant Capacity Increased


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINERA ANDES INC.

TSX VENTURE SYMBOL: MAI
OTC Bulletin Board SYMBOL: MNEAF

MARCH 31, 2005 - 08:30 ET

Minera Andes Feasibility Study Expanded at San Jose
Project; Start-Up Plant Capacity Increased

SPOKANE, WASHINGTON--(CCNMatthews - March 31, 2005) - Minera Andes Inc.
(TSX VENTURE:MAI)(OTCBB:MNEAF) is pleased to announce that decision has
been made to increase the initial start-up mine operating capacity to be
used in the feasibility study at the San Jose project. The feasibility
study was originally being based on a start-up operation at 500 ton per
day (tpd) and will now be based on an expanded 750 tpd scenario.

The feasibility study at the San Jose project, an advanced exploration
and construction project, is scheduled for completion in the third
quarter of 2005. Minera Andes' joint venture partner, Mauricio
Hochschild & Cia. Ltda. ("MHC"), of Lima, Peru, is the operating partner
and owns 51 percent of the project. The expansion of the proposed
start-up mine capacity is an outgrowth of the continued progress at the
San Jose project. Positive exploration results have allowed the joint
venture to evaluate the feasibility of expanding any potential mining
operation beyond the original start-up plan for a 500 tpd plant.

Allen V. Ambrose, president of Minera Andes said "The exploration and
development at the San Jose project continue to deliver strong results
that appear to support a larger start up operation. A larger operation
has the potential to deliver a greater return on investment to the
company."

In addition, Minera Andes has received a semi-annual US$200,000 payment
under the terms of the San Jose exploration/operating joint venture
agreement with MHC.

Minera Andes is a gold, silver and copper exploration company working in
Argentina. The corporation is funded with working capital of about
US$7.6 million and a pending credit facility of up to US$2 million for
feasibility study 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.

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/Huevos Verdes gold/silver project will be found to be
economically feasible or that a mine will be successfully constructed.
In addition, Minera Andes' joint venture partner, Mauricio Hochschild &
Cia. Ltda., does not accept responsibility for the use of project data
or the adequacy or accuracy of this release.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Minera Andes Inc.
    Spokane Office
    111 East Magnesium Rd., Suite A
    Spokane, WA 99208 USA
    (509) 921-7322
    mineraandes@minandes.com
    or
    Minera Andes Inc.
    Vancouver Office
    410-744 West Hastings Street
    Vancouver, B.C. V6C 1A5
    (604) 689-7017 or (877) 689-7018
    ircanada@minandes.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.