VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2011) - Andean American Gold Corp. ("Andean" or the "Company") (News - Market indication)(FRANKFURT:AQN) reports that for the third quarter ended December 31, 2010, it incurred a net loss of $1,516,777 or $0.01 per share compared to a profit of $909,832 or $0.01 for the same period in 2009, which was due to a foreign exchange gain of $1,143,166. For the nine months ended December 31, 2010 the Company reports that it incurred a net loss of $3,486,880 or $0.03 per share compared to a profit of $539,179 or $0.01 per share for the same period in 2009. Andean ended the third quarter with cash on hand of $14,714,659 and a working capital surplus of $10,414,161.

About Andean American

Andean is an international mining and Exploration Company focused on value growth through the development of gold and copper projects in Peru and currently has two key assets: the 28,200 hectare Invicta gold-silver-copper advanced exploration stage project located in the Huaura Province in Peru, and 60.13% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead exploration project. In addition, the Company is actively targeting early stage gold and silver prospects in Peru.

Company Highlights

• On November 12, 2010, the Company completed a bought-deal private placement resulting in the issuance of 18,169,000 common shares at a purchase price of $0.90 per common share for aggregate gross proceeds to Andean of $16,352,100 and net proceeds of $15,534,495 after paying a 5% cash fee on the gross proceeds of the offering to the underwriters.
• On February 3, 2011, the Company announces that the agreement with Barclays Capital, the investment banking division of Barclays Bank PLC ("Barclays Capital") and WestLB AG, New York Branch ("WestLB"), as previously announced on February 17, 2010, has been renewed for a further period of 12 months until February 10, 2012. Barclays Capital and WestLB will act as the Joint Lead Arrangers for a senior debt financing (the "Facility") of up to US$68 million for the construction and start-up of production at the Company's wholly-owned poly-metallic Invicta Project in Peru.
• On February 1, 2010, the cash position was further strengthened when the Company announced that, pursuant to the Option Agreement signed with Trafigura Beheer B.V. ("Trafigura") on March 31, 2010, and which agreement was subsequently assigned to Trafigura's wholly-owned subsidiary, Urion Mining International B.V. ("Urion") on September 30, 2010, Urion exercised its option to purchase 19,574,605 common shares of the company by way of a private placement for proceeds of $15,072,445.85.

Results of Operations

1. On February 1, 2011, 19,574,605 common shares were issued by way of a private placement at $0.77 per common share.

Cash Flow and Liquidity

As at December 31, 2010 the Company had a working capital surplus of $10,414,161, compared to a working capital deficit of $4,455,745 at December 31, 2009. For the nine months ended December 31, 2010, Andean generated cash of $19,856,789 through proceeds from a private placement and the exercise of options and warrants. This was offset by cash used in operating activities of $2,782,248, cash used in investing activities of $3,955,713 and loans repaid in financing activities of $1,532,800. Most of the cash used in investing activities was used to advance the Invicta Project.

During the nine months ended December 31, 2010, the Company issued 27,445,594 common shares for cash proceeds of $20,794,352. Share issue costs totaled $949,585.

The information above should be reviewed in conjunction with the Company's unaudited consolidated financial statements, management discussion and analysis, for the three and nine months ended December 31, 2010 that will be available shortly on www.sedar.com.

On behalf of Andean American Gold Corp.,

Bruce Ramsden, Vice President, Finance and CFO

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and such securities may not be offered or sold within the United States absent an applicable exemption from U.S. registration requirements.