ANDEAN AMERICAN MININ G CORP.

CONSOLIDATED BALANCE SHEETS

As at March 31

2008

2007

Rest ated Not e 17

$

$

ASSETS

Current

Cas h and cash equivalents

5,973,16 6

174,484

Accounts receivable (Note 3)

843,75 6

714,350

Prepaid expens es

239,73 2

207,053

Mineral on pads and inventories (Note 4)

752,22 8

2,546,590

7,808,88 2

3,642,477

Mineral on pads (Note 4)

-

3,454,861

Mineral properties and deferred costs (Note 5)

33,799,10 8

30,453,207

Property, plant and equipment (Note 6)

1,648,96 5

1,188,152

43,256,95 5

38,738,697

LIABILITIES

Current

Bank indebtednes s

92,04 8

218,715

Accounts payable and accrued liabilities

4,982,43 6

3,440,276

Deferred income

-

303,054

Loans payable (Note 7)

39,57 4

44,387

Current portion o f long term debt (Note 8)

381,30 0

543,615

5,495,35 8

4,550,047

Long term debt (Note 8)

-

101,217

Future income tax liabilities (Note 13)

6,080,37 2

5,723,679

Provis ion for reclamation and clos ure cos ts (Note 9)

127,08 5

130,159

6,207,45 7

5,955,055

Minority interes t

9,752,04 7

4,437,698

21,454,86 2

14,942,800

SHAREHOLDERS ' EQUITY

Share capital (Note 10)

69,653,24 8

59,127,821

Contributed s urplus (Note 11)

9,182,03 5

2,458,879

Deficit

(57,033,19 0)

(37,790,803)

21,802,09 3

23,795,897

43,256,95 5

38,738,697

Going concern (Note 1)

Contingency (Note 16)

Subs equent Events (Note 18)

APPROVED BY THE DIRECTORS

“JOHN HUGUET’

“BRYAN MORRIS"

DIRECTOR

DIRECTOR

The accompanying notes are an integral part of these consolidated financial statements.