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AndeanGold Announces $1,200,000 Private Placement

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2012) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) announces a private placement (the "Placement") for the issuance of up to 12,000,000 units at a price of $0.10 per unit to raise gross proceeds of up to $1,200,000. The Placement will be on a non-brokered basis in Canada, and on a brokered basis in South America. Kallpa Securities SAB ("Kallpa"), based in Lima, Peru, will act as agent to any units sold to qualified South American investors. Kallpa was the sponsoring broker to the Company's recent listing on the Lima Stock Exchange.

Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company for eighteen months at a price of $0.15 per share.

All securities issued in Canada will be subject to a four-month hold period from the closing of the Placement. Completion of the Placement is subject to regulatory approval.

The Company will pay agency fees, commissions and finders' fees with respect to the Placement, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

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

FOR FURTHER INFORMATION PLEASE CONTACT:
AndeanGold Ltd. - Corporate Office
Tony Ciali
732.940.5487
tciali@andeangoldltd.com
www.andeangoldltd.com


Ascenta Capital Partners Inc. - Investor Relations
Jim Glass
604.684.4743 ext. 225 or Toll free: 1.866.684.4743 ext. 225
jim@ascentacapital.com

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