ANDEAN AMERICAN MININ G CORP.

CONSOLIDATED STATEMENTS OF LOSS, COMPREHENSIV E LOSS AND DEFICIT

FOR THE YEARS ENDED MARCH 31

2008

2007

Rest ated Not e 17

$

$

REVENUE

Sales of metals

5,829,730

5,901,665

OPERATING EXPENSES

-

Direct operating costs

6,981,507

6,215,261

Royalty expens e

99,194

104,644

Amortization and depletion

860,175

864,670

Selling expenses

205,868

159,252

Stock bas ed compens ation

1,785,307

615,767

Provis ion for reclamation

3,495

22,486

9,935,546

7,982,080

OPERATING LOSS

(4,105,816)

(2,080,415)

OTHER (INCOME) EXPENSE

General and adminis trative expens es

2,466,739

1,679,082

Interes t expens e

(62,481)

107,103

Other (income) expens e

(307,411)

(74,054)

Foreign exchange (gain) los s

(7,489)

440,519

Dilution (gain) los s on s ale of s hares by s ubs idiary

3,490,008

1,886,296

Los s on s ale of mineral property

-

6,086,167

Write-down of mineral on leach pads

3,859,867

-

Write-down of mineral properties (Note 5)

5,132,844

7,715,233

Write-down of property, plant and equipment (Note 6)

589,888

1,286,674

Write-off of exploration properties (Note 5)

-

592,299

Current income tax provis ion (Note 16)

754,951

-

Minority interes t

(780,345)

(366,156)

15,136,571

19,353,163

NET LOSS AND COMPREHENSIVE LOSS FOR THE YEAR

(19,242,387)

(21,433,578)

DEFICIT, BEGINNING OF YEAR

(37,790,803)

(16,357,225)

DEFICIT, END OF YEAR

(57,033,190)

(37,790,803)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES

OUTSTANDING

BASIC AND DILUTED

64,695,729

51,832,039

NET LOSS PER COMMON SHARE

BASIC AND DILUTED

(0.30) (0.41)

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