Andean American Engages Paradigm Capital to Provide Strategic Financial Advisory Services

TORONTO, ONTARIO -- (Marketwire) -- 11/02/11 -- Andean American Gold Corp. ('Andean American' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) reports that, further to the announcement made on October 28, 2011 regarding the strategic review of the Company's assets and operations, it has retained Paradigm Capital Inc. ('Paradigm Capital'), as its financial advisor to identify and conduct an analysis of the strategic alternatives available to the Company.

The management and Board believe that the current market presents various merger and acquisition opportunities and that Paradigm Capital is well positioned to assist with the identification and assessment of the opportunities which will maximize value for the Company's shareholders.

'We are fairly flexible as to the nature and structure of the transactions which may be recommended by Paradigm Capital, provided that they are in the best interests of our shareholders and present a solid platform for value growth,' said David Rae, President and CEO of Andean American.

Andean American does not intend to disclose developments with respect to the strategic review process unless and until its Board of Directors has approved a definitive transaction or other course of action or otherwise deems that disclosure of developments is appropriate. There can be no assurance that any transaction will occur, or if a transaction is undertaken, as to its terms or timing.

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 31,600 hectare Invicta gold-silver-copper advanced exploration stage project and 65% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project. In addition, the Company is actively targeting early stage precious metals and copper prospects in Peru.

For further information about Andean American, please visit the Company's website at www.AAGgold.com.

On behalf of Andean American Gold Corp.,

David Rae, President and Chief Executive Officer

Forward Looking Information

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 press release.

Contacts:

Andean American Gold Corp.

David Rae

President and Chief Executive Officer

416 368 9500
investors@aaggold.com


Andean American Gold Corp.

Linda Dorrington

Investor Relations

416 368 9500
ldorrington@aaggold.com
www.AAGgold.com