Andean American Reports Financial Results for the Quarter Ended September 30, 2011 and Provides a Corporate Update

TORONTO, ONTARIO -- (Marketwire) -- 11/16/11 -- Andean American Gold Corp. ('Andean' or the 'Company') (TSX VENTURE: AAG)(FRANKFURT: AQN) reports that for the three and six months ended September 30, 2011, it incurred a net loss of US$3,152,566 or US$0.02 per share and US$4,768,107 or US$0.03 per share compared to US$890,347 or US$0.01 per share and US$1,661,325 or US$0.02 per share for the same period in 2010. Andean ended the quarter with cash on hand of US$19,454,725 and a working capital surplus of US$17,172,485.

Andean is an international mining and Exploration Company focused on gold and copper projects in Peru and 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 64.95% of Sinchao Metals Corp., a company listed on the TSX-V trading under the symbol 'SMZ'. Sinchao is the owner of a gold-silver-copper-zinc-lead exploration project.

Results of Operations

----------------------------------------------------------------------------
                                  Six months ended         Six months ended
                                September 30, 2011       September 30, 2010
----------------------------------------------------------------------------
Income/(loss) before
 income tax                            ($4,768,107)             ($1,661,325)
----------------------------------------------------------------------------
Income/(loss) per share                     ($0.03)                  ($0.02)
----------------------------------------------------------------------------
Total assets                           $61,907,971              $46,143,937
----------------------------------------------------------------------------
Working capital
 surplus/(deficit)                     $17,172,485              ($2,501,078)
----------------------------------------------------------------------------
Mineral properties                     $40,398,760              $42,826,794
----------------------------------------------------------------------------
Share Capital:
----------------------------------------------------------------------------
Outstanding                            144,543,476              102,797,287
----------------------------------------------------------------------------
Warrants                               3,908,450(1)               5,005,918
----------------------------------------------------------------------------
Options                                  7,670,088                9,240,588
----------------------------------------------------------------------------

1.  On November 12, 2011, 908,450 warrants expire and on November 25, 2011,
    500,000 warrants expire.

Cash Flow and Liquidity

As at September 30, 2011, Andean had working capital of US$17,172,485, compared to a working capital surplus of US$22,894,392 at March 31, 2011. For the six months ended September 30, 2011, Andean used cash of US$6,746,216, which included cash used in operations of US$4,134,861, expenditures on plant and equipment and mineral properties and deferred costs of US$3,396,779. This was offset by financing activities of $785,424.

International Financial Reporting Standards ('IFRS')

The Company adopted IFRS on April 1, 2011, with a transition date of April 1, 2010. Under IFRS 1 First-time Adoption of IFRS, the IFRS are applied retrospectively at the transition date of April 1, 2010. The effect of the transition from Canadian Generally Accepted Accounting Principles ('Canadian GAAP') to IFRS is not material and the explanation of how the transition from Canadian GAAP to IFRS has affected Andean's financial position, financial performance and cash flows are set out in the financial statements.

The information above should be reviewed in conjunction with the Company's unaudited consolidated financial statements, management discussion and analysis, for the three and six months ended September 30, 2011 that will be available shortly on www.sedar.com. For further information visit our website at www.AAGgold.com.

Acquisition of Sundust Resources Inc.'s interest in Invicta

Andean wishes to report that it has entered into a letter of intent with Sundust Resources Inc. to resolve its previously disclosed disagreement regarding Sundust's ownership interest in the Company's Invicta Project. Under the terms of the letter of intent, Sundust would transfer any interest it has in the Invicta Project and provide Andean with a release with respect to any future claims in exchange for a payment of $400,000 and the issuance of 5,600,000 common shares. The completion of this transaction is subject to, among other things, the negotiation and execution of definitive documentation, receipt of shareholder approval from the shareholders of Sundust, expected to take place mid-January 2012, and receipt of all necessary regulatory approvals, which will include a minimum four month hold. Following the approval of the transaction by the Sundust shareholders, Sundust will cause the Andean shares to be distributed to its shareholders by way of dividend or in the most tax efficient manner. The Company cannot be certain that these conditions will be satisfied and that the transaction will be completed.

Award of Stock Options

The Company has granted 100,000 options to a director of the Board, effective November 15, 2011. The options will have a term of five years, will vest immediately and have an exercise price of $0.415 per share.

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 or Toll Free: 1-888-356-4784
bramsden@aaggold.com
www.AAGgold.com