ANDEAN AMERICAN CORPORATE UPDATE

The Board of Directors of Andean American Mining Corp. (“the Company”) (TSX.V-AAG) (FWB-AQN) is pleased to announce that the non-brokered private placement of 6,623,682 million shares at a price of C$0.50 per share reported on July 20, 2010, has received conditional acceptance from the TSX Venture Exchange. Participation in the private placement is now concluded.

The shares are subject to a mandatory four-month hold period, expiring November, 2010. Although the TSX Venture Exchange has conditionally approved this private placement, all closings of this private placement are subject to final acceptance from the Exchange.

Proceeds from the financing will be used for advancement of the Invicta Project and general working capital.

On behalf of Andean American Mining Corp.,
“John Huguet”
John Huguet
Chairman & CEO
T: 604.681.6186
E: investors@andeanamerican.com

Andean American Mining Corp. (TSX.V:AAG) (FWB:AQN) is an international mining and exploration company actively pursuing precious and base metal opportunities in Peru. The company currently has two key assets: the Invicta gold-silver-copper feasibility stage project and 60% of Sinchao Metals Corp. (TSX.V:SMZ), owner of the Sinchao polymetallic mineralization project.

For further information call (604) 681-6186 or toll free: 1-888-356-4784 or visit www.andeanamerican.com.

This news release may contain forward-looking information within the meaning of the Securities Act (Ontario) ("forward-looking statements"). Such forward-looking statements may include the Company's plans for its mineral projects, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of gold and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.