The Invicta Project Optimized Feasibility Study, dated July 2010, shows robust project economics over an initial 5 year mine life. Highlights of the study include:
Average Annual Production of 97,931 Oz Gold and Average Annual Gold Equivalent Production of 160,857 Oz²

1. LOM Cash Cost Per Oz Gold1
• On a co-product basis: $451.38 US;
• On a gold-equivalent basis: $274.80 US;
• On a by-product basis ($126.91) US
2. 5 Year AVG Annual Free Cash Flow of $65,273,398 US²
3. Net Present Value using an 8% discount rate of $265,057,808 US²
4. Capital Expenditures of $65M including: $49M project costs, $9M in refundable IVG taxes, $7M in contingency funds and a $3M start up facility ;
5. Mine life based on probable mineral reserves of 7.9M tonnes grading 2.14 g/t Au, 18.76 g/t Ag, 0.52% Cu, 0.38% Pb and 0.30% Zn3. Not included were inferred resources of 14.2M tonnes grading 0.67 g/t Au, 11.20 g/t Ag, 0.36% Cu, 0.24% Pb, and 0.15% Zn³, or a high grade zone currently being sampled and drilled to NI 43-101 standards;
6. Operating costs of $28.31 US/tonne;
7. Updated resource estimate and improved metallurgical process;
8. Production rates of 3,000 tpd in year one, 4,000 tpd in year 2 and 5,000 tpd in years 3 through 5.
9. The company intends to hedge base metal production in order to fully gear the Invicta project towards upside movements in the price of gold and silver, while at the same time ensuring cash flow on an operating basis to protect the project loan repayment schedule.

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.

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 28,200 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.