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.
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