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AndeanGold Announces Increase in $1,200,000 Private Placement and Additional Tranche Closings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec 5, 2012) - AndeanGold Ltd. (the "Company" or "AndeanGold") (TSX VENTURE:AAU)(AAU.V) is pleased to announce that it has increased its previously announced private placement (the "Placement") (news releases of November 2, 2012 and November 15, 2012) from $1,200,000 to $1,271,500 and has closed (the "Closings") two additional tranches of the Placement. The Placement is being made on a non-brokered basis in Canada, and on a brokered basis in South America. Kallpa Securities SAB ("Kallpa"), based in Lima, Peru, is agent for any units sold to qualified South American investors. Kallpa was the sponsoring broker to the Company''s recent listing on the Lima Stock Exchange.

The first tranche of the Placement closed on November 15, 2012, and involved the issuance of an aggregate of 9,975,000 Units to raise aggregate gross proceeds of $997,500. Pursuant to the Closings, the Company issued an additional 2,500,000 Units on November 30, 2012 to raise aggregate gross proceeds of $250,000 and an additional 240,000 Units on December 3, 2012 to raise aggregate proceeds of $24,000. 

Under the Placement, the Company has issued to date an aggregate of 12,715,000 units ("Units") at a price of $0.10 per Unit. Each Unit consists of one common share and one-half share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company for a period of eighteen months from the respective Closing of each tranche at a price of $0.15 per share. The Company may close a final tranche of the Placement in December 2012.

In accordance with securities legislation currently in effect in Canada, the Shares, the Warrants and the Warrant Shares will be subject to a "hold period" of four months plus one day from the date of closing of the private placement.

The Company will pay finders'' fees with respect to the non-brokered portions of the tranche offerings to date and an agent''s commission to Kallpa on portions of the first tranche in the aggregate amount of $79,100 and 791,000 Warrants, each such Warrant entitling the holder to acquire one additional Share of the Company at a price of $0.15 for a period of eighteen months from the Closing.

The proceeds of the Placement will be used principally to fund future exploration programs on the Company''s Urumalqui Project in Peru, as well as an updated mineral resource estimate and option payment obligations, and for general working capital purposes.

About AndeanGold Ltd.:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of primarily precious metals properties, principally in Peru and Ecuador. The focus of the Company''s exploration activities is presently in advancing its Urumalqui Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador, the Company''s activities have been limited to administrative and legal matters due to the Mining Mandate issued by the Ecuador Constituent Assembly on April 18, 2008. In November 2009, President Correa signed the Mining Regulations into law pursuant to the requirements of the new Mines Law, which was passed in January 2009. This was the final legal precursor to the re-initiation of exploration and mining development in Ecuador. The Company has been issued new mining titles under the new Mines law to its three key Ecuadorian projects and has filed the requisite documents with the Ministry of Non-Renewable Natural Resources and Ministry of Environment ("MRNNR") in support of the Company''s request to renew exploration programs on its key projects in Ecuador. In September 2012, the Company received authorization from the MRNNR to renew exploration programs on its Curiplaya Project.

Please refer to AndeanGold''s website at www.andeangoldltd.com for further information on the Company''s projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director