Andean American Gold Corp. : Andean American Files Early Warning Report in Connection With Exercise of Warrants in Sinchao Metals Corp.

TORONTO, ONTARIO--(Marketwire - April 3, 2012) - Andean American Gold Corp. ("Andean" or the "Company") (TSX VENTURE:AAG)(FRANKFURT:AQN) has acquired, by the exercise of 2,222,222 warrants of Sinchao Metals Corp ("Sinchao"), 2,222,222 common shares of Sinchao (the "Transaction") at an exercise price of $0.12 per warrant. The shares acquired pursuant to this Transaction represent approximately 2.48% of the issued and outstanding common shares of Sinchao. The common shares were issued from Sinchao's treasury. Upon completion of the Transaction Andean will hold 59,047,619 common shares of Sinchao, representing approximately 65.81% of Sinchao's issued and outstanding common shares.

Andean entered into the Transaction for investment purposes and may increase or reduce its investment in Sinchao according to market conditions or other relevant factors. No person is acting jointly or in concert with Andean in connection with the acquisition of the Securities.

A copy of the early warning report filed in connection with the transaction will be made available on SEDAR (www.sedar.com) and may also be obtained from David Rae, President and Chief Executive Officer (416-368-9500).

About Andean American Gold Corp.

Andean 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 64.95% (65.81% once it has exercised its 2,222,222 warrants) of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper exploration project.

For further information about Andean American Gold Corp. please visit the Company's website at www.aaggold.com or view the Company's documents on SEDAR at www.sedar.com.

On behalf of Andean American Gold Corp.,

David Rae, President and CEO

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 FURTHER INFORMATION PLEASE CONTACT:
        Andean American Gold Corp.
        David Rae
        President and CEO
        416-368-9500
        [e-mail]

        Andean American Gold Corp.
        Linda Dorrington
        Investor Relations
        905 491 6852
        [e-mail]
        www.aaggold.com

Source: Andean American Gold Corp.