Minera Andes Inc.
OTC Bulletin Board : MNEAF

Minera Andes Inc.

March 28, 2006 09:30 ET

Minera Andes Joint Venture Formalizes Decision To Place San Jose Project Into Production

SPOKANE, WASHINGTON--(CCNMatthews - March 28, 2006) - Minera Andes (TSX VENTURE:MAI)(OTCBB:MNEAF) is pleased to announce that the joint venture company Minera Santa Cruz (MSC), co-owned by Minera Andes (49%) and Mauricio Hochschild & Cia. Ltda. (51%), has made a formal decision through its board of directors to place the San Jose project into production.

Allen Ambrose, president of Minera Andes, said, "This is another important step in the advancement of the co-owned San Jose project that moves along the road to production. We look forward to attaining our portion of production and cash flow on a project whose annual production is anticipated to be 3.1 million ounces of silver and 61,000 ounces of gold."

After receiving a positive feasibility study supporting development of a mine on the property in October of 2005, MSC submitted an Environmental Impact Assessment (BG1)(EIA) study to seek permitting approvals to build a mine from the province of Santa Cruz. MSC then formalized the decision to proceed to place the project into production. In March of 2006, we received the approval of the EIA and are proceeding to build the mine to place the San Jose project into production by the first quarter of 2007. We anticipate financing completion of the San Jose project with a banking credit facility. A letter of intent for the credit facility is currently in place and the bank's due diligence and the final agreement are expected to be completed next month.

In addition, Minera Andes received Cdn$2,472,400 from the exercise of warrants by Macquarie Bank Limited to purchase 3,987,742 common shares of Minera Andes at Cdn$0.62 per share. The warrants were issued in a 2005 financing with Macquarie Bank at a 20 percent premium to the 10 day weighted average stock price at that time. Proceeds from the warrant exercise were used to reduce the credit facility of $4 million with Macquarie Bank by $2 million.

Minera Andes is a gold, silver and copper exploration company working in Argentina. Minera Andes holds about 440,000 acres of mineral exploration land in Argentina, including the co-owned San Jose silver/gold project now under construction for 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 129,381,042 issued and outstanding shares.

Information used in this release was reviewed by Brian Gavin, Minera Andes' vice president of exploration and an appropriately qualified person as defined by National Instrument 43-101.

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 -The Corporation's results will be subject to known and unknown risks and uncertainties that may cause the Corporation's actual results in future periods to differ materially from forecasted or anticipated results. Among those factors which could cause actual results to differ materially are the following: the risks inherent in mineral exploration and the mining industry, the Corporation's needs for additional capital, and other risk factors listed from time to time in the Corporation's public filings. 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.


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