Minera Andes Inc.

Minera Andes Inc.

February 25, 2005 20:49 ET

Minera Andes Sets Terms For Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINERA ANDES INC.

TSX VENTURE SYMBOL: MAI
OTC Bulletin Board SYMBOL: MNEAF

FEBRUARY 25, 2005 - 20:49 ET

Minera Andes Sets Terms For Financing

SPOKANE, WASHINGTON--(CCNMatthews - Feb. 25, 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
set terms for the financing announced on February 8, 2005 for a brokered
private placement of units for gross proceeds of up to Cdn$10.0 million.

Each unit, priced at Cdn$0.55, will consist of one common share and
one-half of one common share purchase warrant. One whole common share
purchase warrant will entitle the holder to purchase one additional
common share at an exercise price of Cdn$0.70 per share for a period of
60 months from the closing date. The proposed private placement is
subject to receiving all necessary regulatory approvals and issued
securities will be subject to a four-month hold period. Canaccord
Capital Corporation ("Canaccord") will be acting as agent on the private
placement along with Raymond James Ltd. as part of the syndicate
(together the "Agents").

The Agents will receive a 7 percent commission. The Agents will also
receive 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 for a period of 24 months from the date of
issue. A total of 18,181,818 common shares may be issued pursuant to the
private placement, and up to 9,090,909 common shares will be reserved
for issuance on exercise of the warrants and 1,272,727 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. The corporation is funded with working capital of about US$1
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 71,674,306 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
    E-mail: mineraandes@minandes.com
    or
    Minera Andes Inc.
    Krister A. Kottmeier, investor relations - Canada
    Vancouver office
    (604) 689-7017; (877) 689-7018
    E-mail: ircanada@minandes.com
    Web site: www.minandes.com
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.