AndeanGold Reports Additional Noteworthy AGE Assay Results, Urumalqui Au-Ag Project, Peru

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/07/11 -- AndeanGold Ltd. (TSX VENTURE: AAU) -

--  13.56 oz/t AGE over 3.12 metres
--  15.73 oz/t AGE over 2.24 metres
--  11.83 oz/t AGE over 2.52 metres
--  15.39 oz/t AGE over 4.98 metres

AndeanGold Ltd. ('the Company' or 'AndeanGold') is pleased to announce that it has received the assay results for the latest five drill holes from the Phase I infill drilling program (the 'Program') on the Urumalqui Epithermal Vein (the 'Vein') at its advanced-stage Au-Ag Urumalqui exploration project (the 'Project') in Peru. The assay results are, as follows:

          DEPTH
          BELOW                     INT-   TRUE
        SURFACE       FROM     TO  ERVAL  WIDTH                      AG
DRILL     (met-       (met-  (met-  (met-  (met-    AU     AG    EQUIVALENT
HOLE       res)       res)   res)   res)   res)  (g/t)  (g/t)  (g/t)  (oz/t)
----------------------------------------------------------------------------
PGUR #01  86.77     103.90 108.80   4.90   3.92   3.42 184.45  355.45  11.43
                 INCLUDING
                    103.90 107.80   3.90   3.12   4.26 208.95  421.85  13.56

PGUR #2  146.74      161.3 168.12   6.82   3.78   3.03 189.21  340.93  10.96
                 INCLUDING
                    162.15 166.20   4.05   2.24   4.98 240.27  489.24  15.73

PGUR #3  146.03     165.25  170.4   5.15   3.42   1.96 183.66  281.83   9.06
                 INCLUDING
                    166.00 169.80   3.80   2.52   2.65 235.67  368.03  11.83

PGUR #4  129.91     142.50 155.10  12.60   7.48   0.35 321.23  338.88  10.90
                 INCLUDING
                    142.50 150.91   8.41   4.98   0.46 455.47  478.53  15.39

PGUR #5  177.85     185.20 193.75   8.55   3.80   0.28  95.78  109.90   3.53
                 INCLUDING
                    185.20 188.10   2.90   1.29   0.27 148.33  162.06   5.21
----------------------------------------------------------------------------

AG EQUIVALENT - Based on a silver to gold ratio of 50:1 and assuming 100%
 metallurgical recoveries
oz/t - Troy ounces per metric tonne

Mr. Anthony F. Ciali, President & CEO of AndeanGold states, 'We are very pleased with the latest assays from the Urumalqui infill drill program. The results include some of the best intersected vein widths and Au and Ag grades reported to date in the Program. In particular, PGUR #01 and #04 are the best overall holes drilled to date in the Program, with intervals of: PGUR #01 - 1.56 metres true width @ 7.56 g/t Au, 165.31 g/t Ag, 543.19 g/t AGE (17.47 oz/t) and PGUR #04 - 2.66 metres true width @ 0.48 g/t Au, 541.67 g/t Ag, 565.79 g/t AGE (18.19 oz/t). The overall drilling performance is in line with the Company's expectations, and the Program continues to proceed on schedule.'

The latest holes were drilled along strike over an approximate 350 metre interval to the west of the Company's previously announced six drill holes (See news releases of May 13 and 24, 2011). PGUR #01 was the furthest western hole planned in the Program along the 1,000 metre Vein strike being drilled. Including Gitennes Exploration Inc.'s historic holes, drilled to the west, east and between AndeanGold's eleven reported drill holes in the Program to date, good continuity of mineralization has now been confirmed for approximately 550 metres of the 1,000 metre Vein strike. (See updated Urumalqui Vein Longitudinal Section attached).

The original Program envisaged up to 23 diamond core holes and up to 4,000 metres of drilling. The Company is now planning to drill up to 5,000 metres, consisting of 29 diamond core holes, in order to provide additional infill drilling in some key areas. To date, 23 holes have been completed for 3,637 metres, and all 23 completed holes have intersected the Urumalqui Vein as predicted in cross sections prepared by the Company. The contract driller, Explomin de Peru S.A.C. has achieved an average daily drilling rate of 75 metres, and core recoveries per hole have averaged 94% within the Vein and 97% for the entire hole. Core samples for the first 17 completed holes have been shipped to the Inspectorate Lab in Lima for assaying.

The Program is focused on infill drilling to a depth of 200 meters so as to provide a drill spacing of approximately 50 metres along the central and southeastern segments of the Urumalqui Vein, which cover 1.0 kilometre of the 1.5 kilometre long Urumalqui Vein outcrop where the majority of the Project's historical drilling was concentrated. This level of drilling density should be sufficient for the preparation of a NI 43-101 resource estimate, which the Company plans to commission upon completion, and subject to the results, of the Program.

To view the Longitudinal Section included with this release, please click the following link: http://media3.marketwire.com/docs/Urumalqui-AAU.pdf.

Quality Assurance / Quality Control:

AndeanGold has in place a detailed QA/QC program consistent with Canadian Securities Administrators National Instrument 43-101 and using best industry practices. The program includes chain of custody of samples; standards and blanks submitted to the independent Inspectorate Lab in Lima Peru with each batch of samples, and a check assay program on a proportion of sample pulps with a second independent laboratory. The results of the QA/QC program to date have been satisfactory.

Dr. William F. Lindqvist, a director of the Company, is the Qualified Person in compliance with National Instrument 43-101 with respect to this release.

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.

Contacts:

AndeanGold Ltd.

Tony Ciali

732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com


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