Andean American Raises Over Fifteen Million Dollars; Trafigura Beheer's Wholly-Owned Subsidiary, Urion Mining, Purchases Over 19.5 Million Shares

TORONTO, ONTARIO -- (Marketwire) -- 02/01/11 -- Andean American Gold Corp. (TSX VENTURE: AAG)(FRANKFURT: AQN) ('Andean American' or the 'Company') is pleased to announce that, pursuant to an agreement with Trafigura Beheer B.V. ('Trafigura') as disclosed 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 has purchased 19,574,605 common shares of the Company at the agreed Discounted Market Price of CDN$0.77 per share, calculated using the closing share price of Andean's common shares on the TSX-V on January 28, 2011. The aggregate purchase price for the common shares was CDN$15,072,445.85.

Andean American and Trafigura, a privately-held international commodity trader, established a strategic relationship in March 2010 which included Trafigura's initial equity investment of CDN$3,000,000 in the Company and long-term off-take agreements for the sale of the Invicta Project's copper, lead and zinc concentrates, as well as an agreement to acquire up to an additional 16% of the Company's common shares by way of private placement.

'We are very pleased with Trafigura's demonstrated on-going confidence in the Invicta Project and with the stability which this relationship provides for the Company. The funds raised through this purchase will be used primarily to advance the Invicta Project towards production and will position us well to expand the project through further exploration drilling once the land use agreements are finalized,' said David Rae, President and CEO of Andean American.

As at January 31, 2011, Andean American had 122,341,287 common shares outstanding. Following the purchase of these 19,574,605 options, the Company now has 141,915,892 common shares outstanding, of which Trafigura holds 27,574,605 shares, or 19.43%. The issuance of the shares remains subject to a TSX-V four month hold.

About Andean American

Andean American 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 and 60% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project. In addition, the Company is actively targeting early stage gold and silver prospects in Peru.

About Trafigura Beheer B.V.

Trafigura is one of the world's leading international commodity traders, specializing in the oil, minerals and metals market, with 67 offices in 44 countries in Europe, Africa, Asia, Australia, and North, Central and South America. Its principal corporate offices are in Amsterdam, London and Lucerne. Trafigura's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, non-ferrous concentrates and refined metals. It is the world's second largest independent non-ferrous trading company and the third largest independent oil trader. Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in the last five years, growing turnover from US$18 billion in 2004 to US$47 billion in 2009.

For further information about Andean American, please visit the Company's website at www.aaggold.com or call (604) 681-6186 or Toll Free: 1-888-356-4784.

On behalf of Andean American Gold Corp.,

David Rae, President and Chief Executive Officer

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.

Neither 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.

Contacts:

Andean American Gold Corp.

David Rae

President and Chief Executive Officer

(416) 368-9500
investors@aaggold.com
www.aaggold.com