AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to
announce that it has closed (the "Closing") the first tranche of its previously
announced $1.5 million non-brokered private placement (the "Placement") (news
release of September 23, 2010) pursuant to which it has issued an aggregate of
3,750,000 units ("Units") at a price of $0.12 per Unit to raise aggregate gross
proceeds of approximately $450,000. Each Unit consists of one common share of
the Company and one-half of one common share purchase warrant, each whole such
warrant entitling the holder to acquire one additional common share of the
Company at a price of $0.20 for a period of twelve months from the Closing. The
Company anticipates that the second tranche closing of the Placement will take
place in mid-October 2010.


All securities issued in the private placement will be subject to a four-month
hold period from the Closing of the Placement.


The Company will pay finders' fees on portions of the first tranche in the
aggregate amount of $6,930 and issue 57,750 warrants, each such warrant
entitling the holder to acquire one additional common share of the Company at a
price of $0.20 for a period of twelve months from the Closing.


The proceeds of the Placement will be used principally to fund a Phase I infill
drill program on the Company's Urumalqui Project in Peru and for general working
capital purposes.


About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential
development of primarily precious metals properties, principally in Peru and
Ecuador. The focus of the Company's exploration activities is presently in
advancing its Urumalqui Project, as well as pursuing mineral property
acquisitions, in Peru. In Ecuador, the Company's activities have been limited to
administrative and legal matters due to the Mining Mandate issued by the Ecuador
Constituent Assembly on April 18, 2008. In November 2009, President Correa
signed the Mining Regulations into law pursuant to the requirements of the new
Mines Law, which was passed in January 2009. This was the final legal precursor
to the re-initiation of exploration and mining development in Ecuador. The
Company has been issued new mining titles under the new Mines law to its three
key Ecuadorian projects and has filed the requisite documents with the Ministry
of Non-Renewable Natural Resources and Ministry of Environment in support of the
Company's request to renew exploration programs on its key projects in Ecuador.
The Company is actively working with government officials to achieve this end.


Please refer to AndeanGold's website at www.andeangoldltd.com for further
information on the Company's projects and activities.


On Behalf of the Board of Directors of ANDEANGOLD LTD.

Anthony F. Ciali, President, CEO and Director
Angold Resources (TSXV:AAU)
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