Andean American Reports That Its Subsidiary Sinchao Metals Has Filed a Revised NI 43-101 Technical Report on Its Sinchao Prop...

Andean American Gold Corp. ("Andean") (TSX VENTURE:AAG)(FRANKFURT:AQN) announces
that its subsidiary, Sinchao Metals Corp. ("Sinchao") (TSX-V: SMZ) has received
and filed an updated NI 43-101 Technical Report on its Sinchao Property (the
"Property") in the Yanacocha-Hualgayoc Mining District of Cajamarca, Peru. The
effective date of the Technical Report is April 15, 2012. The report was
prepared by Scott. E. Wilson Consulting Inc. ("SEWC").


The Sinchao Property consists of an area of known mineralization that is covered
in part by 11 mining claims that are the subject of the report; ten claims
controlled by Sinchao Metals Corp. through a Peruvian subsidiary, Corporacion
Minera Sinchao S.A.C., and one overlapping claim jointly held with a 50%
ownership.


Seventy drillholes have been drilled to date in the Property, totalling 17,622.5
meters of drilling and the geological interpretations in the technical report
are based on this drilling. Seventy three percent (73%) of the drillholes
referenced in the technical report are not located on SMZ mineral claims. Only
twenty eight of those drillholes actually penetrate the mineral tenure
controlled by SMZ. There are only nineteen drillholes (27% of the 70 total
drillholes) that are collared on SMZ mineral tenure.


The drilling is a combination of reverse circulation and core hole drilling.
While there is significant mineralization on the Property represented by strong
dissemination and veins/veinlets of pyrite and/or
enargite-(sphalerite-tenantite-galena) with high contents of
Cu-Au-Ag-Zn-As-(Sb), there are no mineral resource or mineral reserve estimates
for the Property that are in accordance with the current CIM Definition
Standards on Minerals Resources and Mineral Reserves (CIM Definition Standards)
required by the Canadian National Instrument 43-101 "Standards for Disclosure of
Mining Projects" ("NI 43-101").


Rationale for the Revised Technical Report on the Sinchao Property

In its April 20, 2011 news release, Sinchao disclosed a material change to its
mineral resource estimates for the Property. This material change was caused by
title defects resulting in a loss of title to portions of the previous mineral
resource. In view of the changes to the property titles, a revised mineral
resource estimate was required for the Property. For this reason, in a press
release dated February 9, 2012, Sinchao announced that it had commissioned SEWC
to do a revised mineral resource estimate for the Property. As the Property no
longer comprises contiguous property titles SEWC has recommended that the
mineralization on the Property does not satisfy tests for reasonable prospects
of economic extraction. Therefore, SEWC concluded there are no Mineral Resources
on the Property in accordance with CIM Definition Standards for Mineral
Resources and Mineral Reserves.


Future Plans for the Property

As announced on March 2 and March 28, 2012, Sinchao and Southern Legacy Minerals
Inc. have signed an agreement to combine their businesses. The completion of
this transaction will consolidate a majority of Sinchao's deposit claims,
located within the Yanacocha-Hualgayoc mining district in the department of
Cajamarca, Northern Peru. Once the transaction is complete and the two companies
mining claims have been amalgamated, a NI 43-101 Technical Report will be
completed on the combined properties.


Commenting on the revised Technical Report, David Rae, President and CEO of
Andean American, Sinchao's largest shareholder, said, "We are making steady
progress in rationalising our business with a view to optimising value from our
assets. We understand that the current markets, and that the loss of certain of
the Sinchao property titles, have been cause for frustration. This updated
Technical Report is a necessary prerequisite for understanding the Sinchao
Property and it puts Sinchao on a solid footing to complete the previously
announced transaction with Southern Legacy Minerals Inc. The newly combined
company, which will result from the transaction between Sinchao Metals and
Southern Legacy Minerals, will then be in a strong position to maximize value
from the consolidation of the majority of Sinchao's deposit claims in the
Yanacocha-Hualgayoc mining district in the department of Cajamarca, Northern
Peru."


Full details of the transaction will be included in the management information
circular that Sinchao will prepare and file with the regulatory authorities and
mail to its shareholders in connection with the special meeting of the Sinchao
shareholders to be held on June 27, 2012 to consider the transaction in
accordance with applicable law. All shareholders are urged to read the
information circular once it becomes available as it contains additional
important information about the transaction.


The full NI 43-101 Technical Report on the Sinchao Property is available on
SEDAR at www.sedar.com and on the Company's website at www.sinchaometals.com.


Qualified Person

Scott Wilson of Scott E. Wilson Consulting, Inc. is a Certified Professional
Geologist and member of the American Institute of Professional Geologists in
Denver, Colorado. The technical contents of this news release have been reviewed
and verified by Mr. Wilson who is a Qualified Person as defined by NI 43-101.
Mr. Wilson is an independent consultant and is the Qualified Person for Sinchao.


ABOUT ANDEAN AMERICAN GOLD CORP.

Andean American is an international mining and exploration company focused on
value growth through the development of gold and copper projects in Peru and
currently has two key assets: the 31,600 hectare Invicta gold-silver-copper
advanced exploration stage project and 65.81% of Sinchao Metals Corp., owner of
the Sinchao gold-silver-copper exploration project.


For further information about Andean American, please visit the Company's
website at www.AAGgold.com or call 416 368 9500.


On behalf of Andean American Gold Corp.,

David Rae, President and CEO

FORWARD LOOKING STATEMENTS

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.
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