In June, 2009, the audit of the Invicta Mine Feasibility Study by The Lokhorst Group Ventures Inc. was completed. The study was filed on SEDAR on July 8, 2009 and is available at http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00003879

Highlights

Stanford Financial Analysis Highlights

• Year 1 EBITDA/Sales ratio is 72.3.
• Year 1 EBITDA/Sales ratio is 72.3.
• Average EBITDA/Net Investment ratio is above 158% during the first year of operation.
• 5-year Average ROI of 67.8%.
• Invicta Project’s NPV remains positive at higher discount rates.
• When price levels are 20% below the base forecast, the NPV for shareholders remains USD 98.90 million and the IRR of the project at 72%.
• Invicta would remain a profitable project even if the estimated net investment rises up to USD 90 million.
• For every 5% change in the operating costs of Invicta the NPV changes approximately USD 5 million.
• When the operating costs are 20% above the estimated value the NPV for shareholders is calculated as USD 137.65 million.
• The base case on actual metals produced by the average metal prices over the 5 year period were: Gold - $819.54/oz, Silver - $14.48/oz, Copper - $2.59/lb, Lead - $0.76/lb and Zinc - $1.01/lb.

Guy Lokhorst, P. Eng., the Senior Geological Engineer at The Lokhorst Group, is an Independent Qualified Person as defined by National Instrument 43-101 and is responsible for the audit of the Invicta Feasibility Study.

NI 43-101 Invicta Technical Report of 11-20-09 Resource Estimate

The updated resource estimate, comprised of sulphide mineralization only, is based on 12,400 metres of diamond drilling completed by Pangea Peru SA during 1997 and 1998, as well as 16,401 metres of diamond drilling and approximately 1,200 metres of underground development completed by Andean American during 2007 and 2008.

Notes:

1. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by the inability to obtain required environmental and other regulatory approval, environmental or operating permits. The estimate may also be materially affected by global economic conditions such as the price of gold and silver, the price of oil and other commodities utilized in the production of gold and silver. Unknown geologic or hydrologic conditions or other unknown factors may materially affect the resource estimates.

2. The quantity and grade of reported Inferred Resources in these estimations are conceptual in nature. There has been insufficient exploration to define these Inferred Resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

3. Victor Jaramillo, P. Geo., of Discover Geological Consultants Inc. is an Independent Qualified Person as defined by National Instrument 43-101 and is responsible for the resource estimates.

The Measured, Indicated and Inferred Resources have been estimated for the Atenea Structure only, which has been traced for over 2,700 metres of strike length and includes the Dany and Pucamina Structures (see Longitudinal Section below). Mineralization has been at depths of 400 metres below surface, and remains open to both depth and along strike.

The initial property acquisition entailed 5,800 hectares acquired by Andean American in early 2005. On October 20, 2005 Andean American acquired an option to purchase 100% of an advanced exploration project of 3,700 contiguous hectares from a Barrick wholly owned subsidiary, Minera ABX Exploraciones SA. Subsequent to this date, Andean American independently acquired an additional 15,600 hectares bringing the total land position for the project to 25,100 hectares (see Claims Map below).

The Invicta Project is located in West–Central Peru in the department of Lima, province of Huaura, approximately 250 kilometres by road northeast from the city of Lima, Peru. It is accessible by driving on the Pan–American Highway 154 kilometres (1:45 hours), and continuing approximately 96 kilometres on a steep terrain gravel road until the project area is reached (2:00 hours) at an elevation of 3,400 meters above sea level.

The climate is semi–arid most of the year, with little vegetation. The topography is rugged with deep V shaped valleys. Glacial springs supply water approximately 12 to 15 km east of the project. A creek that supplies water throughout the year is located at the Huaura River, located 7.5 kilometres to the west of the property. Trained mining personnel and power supply are available in the town of Sayan, approximately 55 kilometres from the Invicta Camp. The property is located within the limits of two indigenous communities named Paran and Collaray, with a population of approximately 400 inhabitants. Andean Explorations, a subsidiary of Andean American, has signed agreements with both communities that include social support and the hiring of workers.