Southern Andes Energy Inc.

Southern Andes Energy Inc.

November 30, 2010 16:30 ET

Southern Andes Energy Inc. Announces Private Placement

Southern Andes Proposes Private Placement For Up To $4,000,000

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2010) -


Southern Andes Energy Inc. (TSX VENTURE:SUR) ("Southern Andes" or "the Company") is pleased to announce that it is offering up to 10,000,000 units (the "Units") priced at $0.40 per Unit with each Unit consisting of one common share of the Company (the "Common Share") and one common share purchase warrant (a "Warrant") for gross proceeds of up to $4,000,000, with an Agent's option to increase the offering for an additional $2,000,000 (the "Offering"). Each Warrant will entitle the holder to acquire one Common Share at a price of $0.55 per share for the first year following the closing date, and $0.60 per share for the second year following the closing date.

BayFront Capital Partners Ltd. has agreed to act as agent for and on behalf of the Company (the "Agent"), on a best efforts agency basis with respect to the Offering, pursuant to which they will receive an aggregate cash commission of 6% of the gross proceeds raised in the Offering, as well as such number of broker warrants (the "Broker Warrants") as is equal to 10% of the total number of Units sold in the Offering. Each Broker Warrant shall be exercisable to acquire one Unit at a price of $0.40 per Unit for a period of 24 months from the closing date.

Southern Andes expects closing of the transaction to take place on December 16, 2010.

Any securities to be issued will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws. The proceeds of the offering will be used for general corporate purposes.

About Southern Andes Energy Inc.

Southern Andes Energy Inc. is focused on exploring and developing uranium resources to meet the world's growing demand for clean energy. The Company is the largest landowner in the emerging Macusani Uranium District in Peru with holdings of more than 100,000 hectares of land. The Company also owns a 10% interest in Macusani Yellowcake Inc., which controls two advanced stage uranium projects in the district. Southern Andes owns a 100% interest in Caracara Silver Inc., which has been created to advance and develop the Company's extensive silver and zinc projects in Peru.

This news release may contain forward-looking statements that are based on Southern Andes Energy Inc.'s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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