AAU Angold Resources Ltd

AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU) is pleased to
announce that the Company has closed the final tranche of its previously
announced non-brokered private placement ("Placement") (news releases of
September 23, 2010 and October 8, 2010). Under the Placement, the Company issued
a total of 12,500,000 units ("Units") at a price of $0.12 per Unit to raise
aggregate gross proceeds of $1,500,000. Each Unit is comprised of one common
share and one-half of one common share purchase warrant. Each whole warrant will
entitle the holder to purchase one additional common share for one year from the
respective closing date of each tranche at a price of $0.20.


Pursuant to the second tranche of the Placement, the Company issued an aggregate
of 8,750,000 Units to raise aggregate gross proceeds of $1,050,000. The first
tranche of the Placement closed on October 8, 2010 and involved the issuance of
an aggregate of 3,751,000 Units to raise aggregate gross proceeds of $450,000.


In accordance with applicable securities laws and the policies of the TSX
Venture Exchange, the Company paid finders' fees with respect to portions of the
Placement, amounting to $71,645 in cash commissions and the issuance of 597,041
warrants, each warrant entitling the holder to purchase one additional common
share for one year from the respective closing date of each tranche at a price
of $0.20.


The Company also paid a corporate finance fee with respect to the Placement in
the form of an option to purchase up to 10% of the number of Units sold at a
price of $0.12 per Unit for a period of 30 days following the closing. This
option has been exercised, resulting in the issuance of an additional 1,000,000
Units, for gross proceeds of $120,000. Thus, in connection with the overall
Placement, the Company issued an aggregate of 13,500,000 Units to raise
aggregate gross proceeds of $1,620,000.


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


The Placement remains subject to the receipt of final acceptance from the TSX
Venture Exchange.


The proceeds of the Placement will be used principally to fund a Phase I 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

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