Andean American Completes Fifteen Million Dollars Financing Trafigura Beheer's Wholly-Owned Subsidiary, Urion Mining, Closes on Previously Announced Private Placement

TORONTO, ONTARIO -- (Marketwire) -- 02/16/11 -- Andean American Gold Corp. ('Andean American' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) wishes to announce that it has closed on the non-brokered private placement of 19,574,605 shares at a price of C$0.77 per share as announced on February 1, 2011. The shares are subject to a four month hold period under the policies of the TSX Venture Exchange, expiring June 15, 2011. Proceeds from the financing will be used for advancement of the Invicta Project and general working capital.

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.

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.

(604) 681-6186 or Toll Free: 1-888-356-4784


Andean American Gold Corp.

David Rae

President and Chief Executive Officer

416 368 9500
investors@aaggold.com
www.aaggold.com