AndeanGold Signs Letter of Intent for U.S. $4.0 Million Loan

AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) is
pleased to announce that the Company has entered into a non-binding letter of
intent ("LOI") with Corporacion Financiera de Desarrollo ("COFIDE"), a Peruvian
state-owned development bank, for a U.S. $4 million loan facility (the "Loan").
The Loan will be made available to the Company's Peruvian subsidiary, PeruGold
Resources S.A.C. ("PGR"), which will utilize the funds to finance plans to
develop a small-scale, mining only operation (the "Operation") at the Company's
Urumalqui Ag-Au Project (the "Project") located in the Department of Libertad,
Peru. 


In order to finalize the Loan, the Company must provide COFIDE, principally,
with an independent report (the "Report") on the requisite mine development
costs to initiate the proposed Operation; a related operating cash flow
analysis; completion of COFIDE's standard Information Request form; and a
Company guaranty of PGR's Loan obligations. It is estimated that it will take 3
months to provide this information and that COFIDE would then require at least
30 days to approve the Loan. In addition, closing of the Loan would be subject
to execution and delivery of definitive documentation. The Company has received
proposals from independent engineering firms based in Lima, Peru for preparation
of the Report.


It is intended that the Operation would accommodate a production rate of up to
350 TPD, although it is anticipated that the initial operating rate may be lower
in order to coincide with available third-party processing facilities. The
Company has identified several potentially suitable processing facilities,
although no formal agreements have yet been signed. It is estimated that
permitting for the Operation may take 9 - 12 months and that the Operation
should commence production within 3 - 6 months from the receipt of all permits,
subject to the conclusions reached in the Report.


Once the Loan has been approved, COFIDE has indicated that it would be prepared
to consider providing additional loan facilities in order for the Company to
carry out additional exploration / development programs, geological /
engineering studies, permitting, etc. leading to commencement of an eventual
full-scale mining and processing operation at the Project. Once fully permitted,
COFIDE has further indicated that it would be prepared to consider providing the
Company with a construction loan to build the full-scale operation.


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 

Neither the 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
AndeanGold Ltd. - Corporate Office
Tony Ciali
732.940.5487
[e-mail]
www.andeangoldltd.com


AndeanGold Ltd. - Investor Relations
Jamie Mathers
604.218.5460
[e-mail]