FURTHER HIGH GRADE ORE ZONES CONFIRMED BY FIRST PHASE DRILLING AT CERRO NEGRO VEIN ZONE PROSPECT HIGHLIGHTS • Very encouraging initial results received from Phase One drill program at Andean’s Cerro Negro gold project in southern Argentina. • Drill results from 7 Reverse Circulation and 4 Diamond drill holes at the Vein Zone, Cerro Negro, have been received (see figure 1). • Drilling intercepts wide, high-grade gold zones over a strike length of 250m. Best intersections are: o 13 metres of 6.18 g/t gold followed by 10 metres of 3.43g/t gold (VDD – 502) o 10 metres of 4.1 g/t gold followed by 17 metres of 3.86 g/t gold (VRC – 505) o 23.1 metres of 2.09 g/t gold (VDD – 503) o 14.5 metres of 3.09 g/t gold (VDD – 505) o 39 metres of 2.45 g/t gold (VRC – 503) o 16 metres of 2.25 g/t gold (VRC – 504) • Results confirm interpretations from previous explorers with mineralisation (contained in moderately to steeply dipping quartz veins) remaining open, particularly to the east and down dip. • Two deep diamond holes (VDD-506 & VDD 507) completed below previously known mineralisation have intersected quartz stockwork mineralisation as predicted, over significant widths (>50m). Assays results are pending. • A new zone of quartz veining (below 120m) with potentially commercial gold grades intersected in the footwall of the previously identified main ore zone. • Newly identified zones of quartz stockwork uncovered by trenching 300m east of current drilling towards the adjacent Heradura prospect.
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