Andean American is developing one of the lowest cost gold mines in Peru—The Invicta Project.

Invicta is an advanced stage gold and copper project located in the mineral rich Western Pre-Cordillera of the Peruvian Andes, approximately 250 km north of Lima.

MINE DEVELOPMENT WITH CONFIDENCE

Andean American is an international

mining and exploration company focused

on value growth through the development

of gold and copper projects in Peru. The

Company currently has two key assets: the

28,200 hectare Invicta gold-silver-copper

advanced exploration stage project and

60% of Sinchao Metals Corp., owner of the

Sinchao gold-silver-copper exploration

project. In addition, the Company is

actively targeting early stage gold and

silver prospects in Peru.

TSX.V:AAG

ABOUT ANDEAN AMERICAN

• NeartermlowcostgoldproductioninPeru

• 160,000AuEqOzperyearatUS$275/Ozprojected LOM

• Excellentaccesstoinfrastructureinwellestablished mining region

• 20,000mdrillingprogramplannedtoexpandresourceandextendlifeofmineto12years

• Constructionfinancingsecured

INVICTA PROJECT HIGHLIGHTS

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MARCH 2011ANDEAN AMERICAN GOLD CORP.

Andean American Gold is an international mining & exploration company focused on advanced stage gold & copper opportunities in peru

www.AAGgold.com

INVICTA PROJECT OPTIMIZED FEASIBILITY STUDY—SUMMARY Anoptimizedfeasibilitystudy,filedinJuly2010,demonstrates robust project economics over an initial 5-year mine life.

Production• 97,931ozAuperyearand160,000ozAuEq2peryearoveraninitial5-yearLOM

• 5,000tpdatfullproductionfromanunderground mine

LOM cash cost per oz Au2

• Onaco-productbasis:US$451.38• Onagoldequivalentbasis:US$274.80• Onaby-productbasis:US($126.91)

Operating costsofUS$28.31pertonneCapital ExpenditureofUS$68millionallocated as follows:

• US$49millionprojectcosts• US$9millioninrefundableIGVtaxes• US$7millioncontingencyfunds• US$3millionstart-upfacility

5 year average annual free cash flow of US$65,273,3983

Net Present ValueofUS$265,057,808,usingan 8% discount rate3

Mine life is based on mineral reservesof7.8million tonnes grading:• 2.14g/tgold• 18.76g/tsilver• 0.52%copper• 0.38%lead• 0.30%zinc4

Indicated resources not included in mine life total2.3milliontonnesgrading:• 1.99g/tgold• 14.74g/tsilver• 0.4%copper• 0.28%lead• 0.27%zinc4

Inferred resources not included in mine life total14.2milliontonnesgrading:

• 0.67g/tgold• 11.20g/tsilver• 0.36%copper• 0.24%lead• 0.15%zinc4

Theoptimizedfeasibilitystudyiscurrentlybeing upgraded by SRK Consulting and this is expectedinJune2011.

PROGRESS TOWARDS PRODUCTIONAndeanAmericanhasmadesignificantprogresson all fronts in preparing the Invicta Project for construction.

COMMUNITY AGREEMENTS:First of three agreements with primary communities signed. Completion of second one expected in March2011andthirdbymid-2011.

MINING AND BENEFICIATION PERMITS:Applications will be submitted following signed community agreements, environmental studies in progress and EIA being prepared, permit anticipatedlateQ42011.

FINANCING:Well funded for pre-construction activities.

ProjectDebtFinanceFacilityofUS$68milliontofund project construction is in place with Barclays Capital and West LB.

MINE PLANNING:Improvements have been made to the mine plan. Longhole stoping will be the primary method with cutandfillextractionbeingusedinareaswhereground faulting or low stopes make it necessary. Current plans envisage a production rate of between4,000and4,500tonnesperday.Theplant design remains at 5,000 tonnes per day to accommodate upside potential.

METALLURGY:Following studies conducted on the two principal ore types to be mined at Invicta, the mineral processingflowsheethasbeensimplifiedwiththeremovalofthegravimetricseparationandzincrecoveryequipment.Spacewillbeleftinthedesignfortheinstallationofthezincrecoveryequipmentshould it become economically favourable in the future. The processing plant will extract gold contained in a copper concentrate and silver which is principally contained in the lead concentrates. The Company has signed an offtake agreement with TrafigfuraBeheerB.V.forthebulkconcentrates.

MINE DESIGN AND ENGINEERING:An independent technical engineering report has beencommissionedandisexpectedinQ32011.

CONSTRUCTION PREPARATION:Long lead items such as the rod mill, overhead craneandfiltrationequipmenthavealreadybeenpurchased. Construction on the roads, power and water provision will begin once the remaining community agreements have been signed.

GOOD GOVERNANCE— A PRE-REQUISITE FOR LONG-TERM SUCCESS Andean American is committed to coopera-tive and mutually beneficial mine development. We aim to create economic prosperity for our shareholders and the communities in which we operate and in a safe, environmentally and socially responsible manner.

Andean American Gold and its Board of Direc-tors take a proactive approach to corporate governancerequiringthehigheststandardsofethical behaviour and practice throughout the company’s business. Please visit our website at www.AAGgold.com to learn more about our commit-ments to good governance, environmental and social responsibility.

In accordance with the com-pany’s commitment to good governance, the Invicta Proj-ect has adopted the “Equator Principles”,afinancialindus-try benchmark for determin-ing, assessing and managing social and environmental risk inprojectfinancing.Theseprinciples are aimed at ensur-ing that projects which are financedbytheinstitutionswhich subscribe to them, are developed in a manner that is socially responsible and environmentally sound. In this way, negative impacts on project-affected ecosys-tems and communities should be avoided where possible, and where unavoidable, they shouldbereduced,mitigatedand/orcompen-sated for appropriately. For more information on this, please see the Invicta Project Feasibility study whichisfiledonSEDARandcanbedownloadedfrom the Andean American Gold website.

COMMUNITY RELATIONS AND ENVIRON- MENTAL STEWARDSHIP

The Company is contributing actively to en-vironmental programs and socio-economic development in the surrounding communities. In the Santo Domingo de Apache community, Andean American and, a big group of commu-nitymembers,recentlyplanted30,000pinetreeson38hectaresofland.Thetreesbringmultiple benefits to the community includ-ing providing wood, acting as windbreaks and

providing a good substrate for the cultivation of mushrooms as an additional source of revenue. Fur-thermore, in this community, two pilot programs will be launched in March for irri-gation to support the cultivation of peaches and blueberries. An-dean American has upgraded, and is maintain-ing,12kmofcanals provid-ing water to the local communi-ties. In addition, the Company is currently con-ducting a tech-nical study for

the irrigation of 220 hectares of agricultural land in the community of Sayán. The Company has hosted numerous educational visits to the project site for the local communities and is engaged in ongoing consultation.

1. invicta resource numbers taken from the ni 43-101 invicta technical report dated nov 20, 2009. sinchao attributable resource is 60.16%

of global resource of 237 million tonnes containing 3.73 million oz Au, 2.45 lb cu and 92 million oz Ag with average grades of 47% cu,

0.49g/t Au and 12.1 g/t Ag. resource was calculated using cut-off grade. 2.4g/t Au and 27% cu, using prices of $1.50/lb cu, $600/oz

Au and $8/oz Ag from ni 43-101 sinchao technical report, october 30, 2008. Metallurgical recoveries and net smelter returns are not

considered.

2. price deck: gold $900/oz, silver $12.50/oz , copper $2.50/lb, lead $0.70/lb, Zinc $0.75/lb.

3. price deck: gold $900/oz, silver $12.50/oz , copper $2.50/lb, lead $0.70/lb, Zinc $0.75/lb.

4. Victor Jaramillo, p. geo., of discover geological consultants inc. is an independent Qualified person as defined by national instrument

43-101 and is responsible for the resource estimates. guy lokhorst, p. eng., of the lokhorst group, is an independent Qualified person

as defined by ni 43-101 and is responsible for the review of the mining methodology, including the probable reserves and life of mine,

for the invicta Feasibility study. deepak Malhotra, phd., Ms in Metallurgical engineering and phd. in Mineral economics, independent

Qualified person as defined by ni 43-101, of resource development inc., reviewed the metallurgy for the invicta project and developed

the finalized process flow diagram for the invicta Feasibility study. leslie F. tarnai, p. eng., general Manager of engineering for invicta

Mining corp., is a Qualified person as defined by ni 43-101 and is responsible for the invicta Feasibility study.

5. the sinchao properties are subject to an ownership review as reported in the press release dated February 7, 2011, and the outcome of my

affect the resources attributed to sinchao.

DAVID RAE—PRESIDENT AND CEO

Ten years in senior operating and executive positions withFalconbridge/Xstrata,includingSeniorVicePresident Europe & Africa, and worldwide head of sales for all Nickel Group products. Previously he managed the Sudbury Smelter and the Timmins Copper Operations. Prior to joining Andean American, Mr. Rae provided consulting services to companies such as Kinross, Vale Inco and Iamgold on operational, productivity and strategic challenges.

BRUCE RAMSDEN—VICE PRESIDENT AND CFOVice President and CFO with noted resource companies since1996andhasreceivedthe2006MiningJournalDevelopment Funding Award for his work with Tiomin Resources Inc. He has a Bachelor of Commerce as well as a degree from the Institute of Chartered Secretaries and Administrators. Mr. Ramsden is a member of the Institute of Commercial and Financial Accountants of Southern Africa; the Institute of Chartered Secretaries and Administrators in both South Africa and Canada; and Financial Executives International Canada.

MARK ZABEL—VP CORPORATE DEVELOPMENT

From2005–2010Mr.Zabelworkedinequityinvestmentsat Praetorian Capital Management LLC, a highly successful smallcaplong/shortequityhedgefundbasedinMiami,Florida. Mr. Zabel has development experience as an active shareholder across an array of industries, having worked closely with senior management teams to help implement business expansion plans, restructure management, and definenewcorporateandoperationalstrategy.

MIGUEL HUAMAN—VP OPERATIONS

From2004to2009,Mr.HuamanwasthePresidentofMineraHuallanca,wherehemanagedthe1000tpdPucarrajo Zn-Pb-Ag mine and the 850tpd Contonga Zn-Pb-Ag-Cu mine, both underground operations. From 2002to2004,hewasGeneralManagerofCediminSAC,a subsidiary of the BRGM–France and Buenaventura Mining Company Peru. Mr. Huaman is an Engineering Graduate of the Universidad Nacional Mayor de San Marcos and a Geologist Engineer with a Postgraduate degree in Exploration and Valuation of Mineral Resources from the University of Nancy, France. Mr. Huaman is a former President of the Geological Society of Peru.

STRONG SENIOR MANAGEMENT

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CORPORATE INFO UpdAted As At FebrUAry 28, 2010

Market Cap at . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CdN$118 ,412,690

basic shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,665,892

Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,770,588

Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,589,368

At tribUtAble M&i resOUrCes (gold only, as at May 15, 2009)

invic ta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709,000 ounces 1

sinchao . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 ,237,000 ounces 1,5

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email . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . investors@AAGgold.com

HeAd OFFiCe tOrONtO OFFiCe

Andean American Gold Corp. 55 University Avenuesuite 1340, 1090 West Georgia street 11th Floor, suite 1105Vancouver, bC V6e 3V7 toronto, ON M5J 2H7