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March 30 - Andes Gold Corp. Releases Financial Statements, Reports Increased Revenues for 2011

Andes Gold Corp. (Pinksheets: AGCZ.PK), a gold mining company with existing operations in Ecuador, today released its financial statements for the year ended December 31, 2011. The report was filed and is available on Pink Sheets.

The report shows total revenues of $4,447,521, compared to revenues of $2,926,000 for the year ended December 31, 2010, an increase of $1,521,521, or 52% over the prior year. Gross profits for the 2011 year were $2,074,388, compared to $1,307,109 for fiscal 2010, an increase of $767,279. Net profits for December 31, 2011 were $521,294 compared to $257,289 last year. This represents an increase of $264,005, an increase of 103%.

Robert Talbot, Chairman and Chief Executive Officer of Andes Gold Corp., commented, "We are generally pleased with the increase in revenues from the prior year. While the 14% jump last year in gold prices accounts for some of this growth, we also began increasing our daily production efforts. Our short term goal is to extract and process 100 ounces of gold per day, which, once we reach that goal, will translate into revenues ten times that generated in 2011."

On the balance sheet, the company reported assets of $2,984,538 and liabilities, including amounts due to related parties, of only $939,315, creating a healthy 3:1 asset to debt ratio.

Mr. Talbot added, "Andes Gold has a healthy balance sheet with close to $800,000 in current assets, and liabilities that mostly consist of deferred officer compensation and debts to our parent company, New World Gold. Excluding the value of our proven reserves of over 300,000 ounces of gold, we have net assets of over $2,000,000. Not reflected in the financial statements are revenues being generated from processing third party ore, which did not commence until the current quarter. As we continue to expand our extraction and milling operations, we anticipate that net assets and revenues will continue growing at an accelerated rate."

The complete financial report is available online at: http://www.otcmarkets.com/stock/AGCZ/financials

Company Overview

Andes Gold, through its wholly owned subsidiary company Compania Minera P.L. In Eucador, South America) controls a gold mining and exploration concession called the Miranda Alto.

Andes has a producing gold mine with proven producing reserves in Ecuador South America. The mine produces up to 20 tons per day with an average head grade of 1.0 ozs (32 gms) of gold per ton. Andes has its own operating mill to process its ore and is not dependent on other companies with mills to process its ore. The company is currently upgrading the capacity of the mill so that it will be in a position to process other people's ore. This will result in a secondary income for the company. Andes continues to examine new leases with the intention of increasing its proven reserves.

Operations

The Zaruma-Portovelo district of southern Ecuador has been a prolific producer of both gold and silver for over 450 years. No records of mine production exist for the first 300 years, but since 1905, over a period of only 50 years, mining activities have produced an excess of 4.5 million ounces of gold, when the cut-off grade for ore was 14.5 g/T of gold. The district, an area of 150 km2, contains at least 15 major veins. All of these veins are currently covered by only small mining concessions of 10 to 40 hectares in surface area.

Andes Gold Corp. holds the rights to the Miranda Alto concession and has assessed the economic potential of the land. Except for the work carried out by Andes Gold and a few earlier international companies, lack of previous funding had prevented the use of modern exploration and mining methods to significantly increase reserves and to maintain historical high grades. Strike length of major veins can range up to 1 kilometer. Depth potential can range up to 1500 m where current mining has exploited only the first 200 m below surface. Andes has now obtained the necessary funding to increase reserves and upgrade the mill to increase production.

An Active Gold Mine in Development

Since 2007, Compañia Minera PL S.A. has developed to a fully equipped gold mine processing plant in Portovelo / Zaruma. The development includes the expansion of the current milling process and also the purchase of CIP tanks for the cyanide leaching process.

The company can now produce up to 100 T/d ore, but it doesn’t have the capacity to process all the production. By the end of March, 2012, the company will be at full capacity of 150 T/d (Tonnes per day).

Possibility of Expansion

The property is surrounded by several concessions. The Miranda concession is the key to the neighboring four concession areas, as it is located on a mountaintop and is connected to the most tunnels. The concession area towards the north and also the concession areas towards the south are accessible via the Miranda tunnels. Acquiring the surrounding concession will give the company a resource potential to be the biggest gold producing company in the area.

The Process

At the moment, we are processing 50t/day of ore from two different shafts. One at 1250 level and the other at 1450 level, which gives us the great advantage to develop six more mine levels right now. The company is currently extracting ore from three different veins, and with new acquisitions currently on the way, the company will soon double production after raising more capital to improve the capacity of the processing plant.

The capital raised will be invested in the following Gold circuit process:

The 20t/d processing plant that is processing material at the moment is using four primary Chilean mills with three wheels to grind the ore and then the free gold is recovered on sluice boxes. The tailings are sent by the slurry pump to the ball mill and then to the CIP agitating tanks.

Mineral Resources

The two dominant vein systems within the Miranda Alto concession are the Azul Vein and the Miranda Vein. The Azul Vein is exposed on surface directly east of the Miranda Vein, near the eastern boundary of the concession. Underground work has revealed that there are at least two other subsidiary veins (Sul, Estrella) that lie parallel to the Miranda Vein. The Viscaya Vein lies directly west of the Miranda Alto concession. There are additional unexplored subsidiary veins between the Viscaya and Miranda veins. The mineralization in the concession area ranges from a gold:silver ratio of 1:10 to 1:100, all within a small area examined and sampled. The major veins (Azul, Viscaya) are recognized from the Rio Amarillo north for at least 4 kilometres, to the Miranda Alto concession.

Historic Resource Estimations

The first attempt at precious metals resource estimation was made by TVX Gold Corp. geologists in 1995. They estimated a resource of 9.1 MT with an average grade of 8 g/t totaling 2.3 Moz of gold in the whole Zaruma- Portovelo district

So Why Invest in Andes Gold Corp.?

• 16,000,000 grams (500,000 oz) Au estimated resources
• Reserves being increased substantially through new concessions and a mining tunnel
• Low cost cash producer
• Superior exploration and development prospects
• Highly liquid gold vehicle
• Leverage to gold price
• High performing management and operations teams
• Delivering value to shareholders
• Company has its own mill to process its ore and is not dependent on other milling operations

Andes Gold Corp.

1200 N. Federal Highway, Suite 200
Boca Raton, FL 33432
Phone: 561-210-8496

Website:
http://www.andesgoldmine.com/index.html