Andean American Reports Financial Results for the Quarter Ended June 30, 2011

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/28/11 -- Andean American Gold Corp.('Andean' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) reports that for the three monthsended June 30, 2011, it incurred a net loss of US$1,615,541 or US$0.01 per share compared to a loss of US$770,978or US$0.01 for the same period in 2010. Andean ended the quarter with cash on hand of US$22,548,826 and a working capital surplus of US$20,140,869.

Results of Operations
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                                     Three months ended  Three months ended
                                          June 30, 2011       June 30, 2010
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Income/(loss) before income tax             ($1,615,541)          ($770,978)
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Income/ (loss) per share                         ($0.01)             ($0.01)
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Total assets                                $64,251,792         $43,404,289
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Working capital surplus/ (deficit)          $20,140,869         ($4,537,921)
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Mineral properties                          $39,405,443         $41,175,711
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Share Capital:
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Outstanding                              145,376,810 (i)         94,570,693
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Warrants                                   3,908,450(ii)          7,688,645
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Options                                   8,277,588(iii)          8,383,588
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i.   Common shares outstanding at June 30, 2011 were 143,295,892. Subsequent
     to the quarter ended June 30, 2011, the Company issued 2,080,918 common
     shares.
ii.  Warrants outstanding at June 30, 2011 were 5,589,368. Subsequent to the
     quarter ended June 30, 2011, 1,680,918 warrants were exercised.
iii. Options outstanding at June 30, 2011 were 5,977,588. Subsequent to the
     quarter ended June 30, 2011, 400,000 options were exercised and
     2,700,000 options were issued to Staff, Directors and Officers of the
     Company.

Cash Flow and Liquidity

As at June 30,2011 the Company had a working capital surplus of US$20,140,869, compared to a working capital surplus of US$22,894,386 at March 31, 2011. For the three months ended June 30, 2011, Andean generated cash of US$268,152 through proceeds from the exercise of options. This was offset by cash used in operating activities of US$1,911,310, cash used in investing activities of US$1,827,435 and loans repaid in financing activities of US$181,522. Most of the cash used in investing activities was used to advance the Invicta Project.

During the three months ended June 30, 2011, the Companyissued 380,000 common shares from the exercise of options for cash proceeds of US$268,152. For the same period 23,000 warrants were exercised for cash proceeds of US$7,828 and for the same period 209,912 stock options were exercised for cash proceeds of US$83,013.

The information above should be reviewed in conjunction with the Company's unaudited consolidated financial statements, management discussion and analysis, for the three months ended June 30, 2011 that will be available shortly on www.sedar.com. For further information call (416) 368-9500 or toll free: 1-888-356-4784 or visit our website at www.AAGgold.com.

About Andean American

Andean is an international mining and Exploration Company focused on value growth through the development of gold and copper projects in Peruand currently has two key assets: the 31,600 hectare Invicta gold-silver-copper advanced exploration stage project located in the Huaura Province in Peru, and 59.8% 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 and elsewhere in South America or elsewhere in the region.

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.

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.

Bruce Ramsden

Vice President, Finance and CFO

416-368-9500
bramsden@aaggold.com
www.AAGgold.com