AndeanGold Announces Closing of First Tranche of $1.5 Million Non-Brokered Private Placement

Vancouver, Oct. 8, 2010 - AndeanGold Ltd. (“the Company“ or “AndeanGold“) (TSX VENTURE: AAU) is pleased to announce that it has closed (the “Closing“) the first tranche of its previously announced $1.5 million non-brokered private placement (the “Placement“) (news release of September 23, 2010) pursuant to which it has issued an aggregate of 3,750,000 units (“Units“) at a price of $0.12 per Unit to raise aggregate gross proceeds of approximately $450,000. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant, each whole such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.20 for a period of twelve months from the Closing. The Company anticipates that the second tranche closing of the Placement will take place in mid-October 2010.

All securities issued in the private placement will be subject to a four-month hold period from the Closing of the Placement.

The Company will pay finders' fees on portions of the first tranche in the aggregate amount of $6,930 and issue 57,750 warrants, each such warrant entitling the holder to acquire one additional common share of the Company at a price of $0.20 for a period of twelve months from the Closing.

The proceeds of the Placement will be used principally to fund a Phase I infill drill program on the Company's Urumalqui Project in Peru and for general working capital purposes.


About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company's activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. In November 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has been issued new mining titles under the new Mines law to its three key Ecuadorian projects and has filed the requisite documents with the Ministry of Non-Renewable Natural Resources and Ministry of Environment in support of the Company's request to renew exploration programs on its key projects in Ecuador. The Company is actively working with government officials to achieve this end.

Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.


On Behalf of the Board of Directors of AndeanGold Ltd.

Anthony F. Ciali
President, CEO and Director



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.



For more information, please contact

AndeanGold Ltd. - Corporate Office
Tony Ciali
732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com or

Ascenta Capital Partners Inc.
Jim Glass
Investor Relations
604.684.4743 ext. 225 or Toll free: 1.866.684.4743 ext. 225
jim@ascentacapital.com