Andean American Mining 2008 Exploration and Development Recap

Andean American Mining 2008 Exploration and Development Recap

Vancouver, British Columbia CANADA, December 17, 2008 /FSC/ - Andean American Mining Corp. (AAG - TSX Venture, AQN - FWB), (BVL - AAG) is pleased to provide a review of the Company's progress during 2008.

"Amid the volatility of the past 12 months, Andean American has achieved technical success on the Sinchao project with the first inferred resource estimate. A good result for the 2 year program but in reality only a good beginning, as the potential of the project has grown dramatically as knowledge was gained through the drilling, mapping, sampling and geophysical programs," states Chairman John Huguet. "At the Invicta project, a greatly expanded resource estimate was realized and, more importantly, the potential of the Mesothermal discovery was recognized. The two projects completed over 23,000 metres of diamond drilling, 1200 metres of 12 foot diameter tunneling at Invicta, expanded the contained metals on both projects and importantly, identified geological potential that should carry this Company into 2009 and beyond."

Details of the 2008 achievements include:

Invicta:
* A 1.2 kilometer adit was driven at the 3400 meter elevation parallel to and in the hanging wall of the Atenea Vein Structure and drilling and sampling results encountered high grade gold. (see news release of June 11, 2008)
* Over 2.7 kilometers of continuous structure were connected over the Dany (900m), Atenea (950m) and Pucamina (850) structures. The Dany and Pucamina zones have a structure similar to the Atenea structure and have the potential to be significant sources of gold mineralization. These structures were discovered to both the east and west of the Atenea structure. Mineralization remains open at both ends and the system continues to depth.
* 14,200 metres of diamond drilling was completed. This, along with results from a previous 12,400 m drill program, formed the basis for an updated NI 43-101 Technical Report. (see news release of September 4, 2008) The resource estimate is for 7.9 million tonnes of measured and indicated resources and over 11.6 million tonnes of inferred resources.  
* The report also outlines some of the geological potential contained in the property and proposes a further 16,500 meter drill program to test this potential and determine the tonnes and grade of any resources that may or may not be forthcoming as a result of the additional drilling.
* The measured and indicated resources have been utilized as the starting point for a feasibility study for the project, expected to be completed in the first quarter of 2009.  
* The process engineering has been completed for the feasibility study by GOLDEX engineers of Lima, Peru.
* The metallurgical work has been accomplished by a variety of companies including Lakefield in Canada, SGS Lakefield in South Africa and Act Labs in Lima and Vancouver.
* The Company has completed the Environmental Impact Study, with the aim to evaluate, determine, and measure the environmental and socio-economic impacts related to the project, as well as the required mitigation measures. The Company received approval of its Environmental Impact Assessment Executive Summary from the Ministry of Energy and Mines, Peru, at 5000 tpd (tonnes per day). This initial approval leads to the February, 2009 public consultations. The project will meet or exceed the industry standards in environmental protection and in establishing good relations with the communities around the Invicta site.
* The Stanford Group has completed all financial sensitivity analysis.
* The Company received the final report from Knelson Gravity Solutions concerning the recovery of high grade gold and polymetallic ore. The primary purpose of the testing was to determine gravity recovery using Knelson continuous variable discharge (CVD) technology. (see news release October 9, 2008)
* Some of the permanent equipment has been purchased, namely the grinding bay, the vacuum pumps and disc filters, the overhead crane and main mill building steel.  These purchases were made to protect the schedule and to create price predictability.
* Andean American has completed all the conditions of its purchase agreement with Minera ABX Exploraciones S.A., a wholly owned subsidiary of Barrick Gold Corporation (TSX-ABX; NYSE-ABX) and now controls 100% of all mineral rights with no minority interests for the 3,700 hectares of the Victoria project which it renamed Invicta in 2005. The Company independently acquired adjacent claims for an additional 37,800 hectares bringing the land position for the Invicta project to 41,500 hectares (102,549 acres).

Sinchao:
* The 2008 drill program concentrated on the Breccia zone as part of a 9,250 m program leading to an estimation of inferred resources.
* Highlights of this year's drilling include 170.3 metres grading 0.74% Copper, 1.19 g/t Gold and 7.1 g/t Silver in Hole SDH-46, and a 278.9 metre intersection in Hole SDH-50 grading 0.60% Copper, 0.53 g/t Gold and 18.4 g/t Silver. (see news releases of September 18 and 29, 2008)
* Copper-Gold-Silver mineralization has now been identified over an area of approximately 700m by 600m and to a depth of approximately 450m.
* The mineralization is hosted by breccia and skarn, and remains open in all directions.
* A NI 43-101 compliant resource estimate of inferred resources was completed October 30, 2008.
* The inferred resource estimate utilized various cut offs ranging from 0.13 % copper and 0.07 g/t gold with 416 million tonnes grading 0.36% Cu, 0.33 g/t  Au and 9.2 g/t Ag up to a cut off grade of 0.48% Copper and 0.64 g/t gold with 64 million tonnes grading 0.85% Cu, 0.90 g/t Au and 110.3 g/t Ag.
* As an example, the 237 million tonne inferred resource contains an estimated 3.73 million ounces of gold, 2.45 billion pounds of copper and 92 million ounces of silver, or 4.04 billion pounds of copper equivalent grading 0.77% copper equivalent based on US$600/oz gold, US$1.50/lb copper and US$8/oz silver.
* This inferred resource is within a larger inferred resource of 416 million tonnes grading 0.36% copper, 0.33 g/t gold and 9.3 g/t silver containing an estimated 3.3 billion pounds of copper, 4.4 million ounces of gold and 123 million ounces of silver.

Santa Rosa:
* Surface rights have been acquired which will allow the Company to reestablish the processing of fresh minerals.

Notes: 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. The quantity and grade of reported Inferred Resources in this estimation are conceptual in nature and 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. Metallurgical recoveries and net smelter returns have not yet been determined. There has been no metallurgical work done at the Sinchao Property to date.

Victor Jarmillo, 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. Mr. Andrew Gourlay, P. Geol., President of Andean American Mining Corp. is a Qualified Person as defined by National Instrument 43-101 with the ability and authority to verify the authenticity and validity of technical and scientific data.  This news release has been prepared under Mr. Gourlay's supervision.

On behalf of Andean American Mining Corp.,

"John Huguet"
John Huguet
Chairman & CEO

Andean American Mining Corp. (TSX.V:AAG) (FWB:AQN) (BVL:AAG) is an international mining and exploration company focused on growth. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has two key assets: the 41,500 hectare Invicta gold-silver-copper advanced exploration stage project; 61% of Sinchao Metals Corp., owner of the Sinchao zinc-copper-silver-gold-lead mineralization project. For further information call (604) 681-6186 or toll free: 1-888-356-4784 or visit our website at 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.

This document uses the terms "measured resources", 'indicated resources' and 'inferred resources'. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.




Source: Andean American Mining Corp. (TSX-V AAG) www.andeanamerican.com
Maximum News Dissemination by Filing Services Canada Inc. *
www.usetdas.com