🕐05.04.10 - 19:23 Uhr

Andean American Initiates Strategic Relationship With Trafigura



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Andean American Initiates Strategic Relationship With Trafigura

VANCOUVER, BRITISH COLUMBIA -- The Board of Directors of Andean American Mining Corp. ("the Company") (TSX VENTURE:AAG)(FRANKFURT:AQN) wishes to announce that it has entered into a strategic relationship with the Trafigura Beheer B.V. ("Trafigura"), a privately-held international commodity trader, in regards to the Invicta Mining Project located in the Province of Lima, Peru.

Trafigura has agreed to make an equity investment in the Company in the amount of C$3,000,000 and has long term off-take agreements for the sale of the Invicta Projects copper, lead and zinc concentrates. The off-take agreements will provide the Company with predictability in cash flow and assist in obtaining financing.

The Company and Trafigura also intend to negotiate a project finance, cost overrun and working capital facility for up to US$15 million currently. This facility is expected to be negotiated with traditional lenders on commercial terms standard for these types of subordinated loans.

The Company has also granted to Trafigura a conditional option to acquire up to an additional 16% of the Company. If Trafigura exercises the option to increase its equity interest in the Company, the Company will also enter into an ancillary rights agreement that will entitle Trafigura to Board representation and various other rights as well, as it also intends to enter into a technical services agreement pursuant to which Trafigura will assist the Company in putting the Invicta Project into production including negotiation of a project finance facility.

"This agreement reflects the quality of the Invicta Project," states Chairman and CEO, John Huguet. "We welcome Trafigura as new shareholders in Andean American, and appreciate their commitment to the success of the Invicta Project. We look forward to many years of favorable business together."

Trafigura is one of the worlds leading international commodity traders, specializing in the oil, minerals and metals market, with 67 offices in 44 countries in Europe, Africa, Asia, Australia, and North, Central and South America. Its principal corporate offices are in Amsterdam, London and Lucerne. Trafiguras primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, non-ferrous concentrates and refined metals. It is the worlds second largest independent non-ferrous trading company and the third largest independent oil trader. Founded in 1993, the company is owned by its founding shareholders and senior management. It has achieved substantial growth in the last five years, growing turnover from US$18 billion in 2004 to US$47 billion in 2009.

On behalf of Andean American Mining Corp.,

John Huguet, Chairman & CEO

Andean American Mining Corp. (TSX VENTURE:AAG)(FRANKFURT:AQN) 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 Invicta gold-silver-copper feasibility stage project and 59% of Sinchao Metals Corp., owner of the Sinchao copper- gold project. For further information call (604) 681-6186 or toll free: 1-888-356-4784 or visit

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 Companys 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 Companys 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 Companys Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact
Andean American Mining Corp.
John Huguet
Chairman & CEO
604.681.6186 or Toll Free: 1.888.356.4784
604.681.3652 (FAX)

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