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News Releases Details

Minera Andes Reports Drill Results and Development Update for the Los Azules Copper Project

06/27/2011

TORONTO, ONTARIO -- (MARKET WIRE) -- 06/27/11 -- Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI)(OTCBB: MNEAF) is pleased to announce drill assay results from the January - May 2011 drill program and a development update for the 100% owned Los Azules Copper Project, in San Juan Province, Argentina. Highlights from the recent drilling include a step-out drill hole, located approximately 250 meters west of the resource that returned 0.50% copper over 269 meters, including 0.95% copper over 45 meters. Infill drilling was generally in line with expectations, for example intersecting 0.66% copper over 395 meters and 0.63% copper over 237 meters (Table 1).

Exploration Drilling West of Resource

Two exploration holes were designed to test geophysical anomalies located west and north of the resource. The best result, hole T-01, located approximately 250 meters west of the resource, intersected 0.50% copper over 269 meters, including 0.95% copper over 45 meters. This hole is encouraging for several reasons, 1) it demonstrates that geophysics may be a useful guide for copper mineralization at Los Azules, 2) this area is only one of several high priority geophysical targets that have been identified on the property, and 3) the hole bottomed in 0.42% copper and was terminated before reaching its target depth, suggesting that there may be potential to find additional mineralization at depth. Follow up exploration is currently being planned.

Infill Drilling Confirms Expectations

Drilling to upgrade the inferred mineralization to the indicated category consisted of nine drill holes. In general, the holes returned mineralization in-line with expectations. Drill holes AZ1168 and AZ1170 were terminated while in mineralization due to difficult drilling conditions, bottoming in 0.95% and 0.55% copper, respectfully. The mineralization at Los Azules is open at depth.

Hole AZ1164 was extended as planned, intersecting good copper grades over a wide intersection. This result helps infill the central portion of the deposit.

Table 1 - Los Azules Infill Drilling Summary

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Hole                                  Cu   Thickness        From          To
                                     (%)         (m)         (m)         (m)
----------------------------------------------------------------------------

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AZ1164                              0.55       284.4       120.0       404.4
Including                           0.75       128.0       120.0       248.0
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AZ1168                              0.66       395.4       148.0       569.3
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AZ1169                              0.36       229.8        86.0       315.8
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AZ1170                              0.63       237.3       112.0       349.3
Including                           0.85        62.0       112.0       174.0
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AZ1176                              0.63       130.0       162.0       292.0
----------------------------------------------------------------------------

Despite encountering low grade copper mineralization, infill holes AZ1171, AZ1172, AZ1173 returned values less than expected.

Planned Exploration at Los Azules

Due to difficult ground conditions the amount of meters drilled between January-May was less than planned. The strategy for the upcoming season is to continue testing deep geophysical targets. Also, Minera Andes will look to begin drilling at Los Azules earlier than previous years in order to extend the drill campaign.

Preliminary Feasibility Study

Minera Andes continues to advance work related to Los Azules Preliminary Feasibility Study including the following:

--  Developed preliminary hydrologic model
--  Evaluated potential geotechnical risks with positive outcome
--  Completed evaluation of construction/production access road alternatives
--  Continued environmental base line assessment and monitoring, including
    glaciology studies (no ice glaciers are present in the project area)
--  Drilled condemnation holes in areas that are potential locations for
    surface facilities (Exhibit 1A and Exhibit 4)
--  Completed archeological assessment
--  Completed initial stakeholder mapping
--  Conducted preliminary testing of alternative metallurgical processing
    options with positive results
--  Completed trade-off study of heap leaching option as an alternative to
    flotation recovery with determination that heap leaching is not a viable
    option
--  The anticipated cost to complete the Preliminary Feasibility Study is
    $30 million, with the earliest completion date being late 2013.

About Los Azules

Los Azules is a large copper porphyry system located in western San Juan Province in a belt of porphyry copper deposits that straddles the Chilean/Argentine border. This belt contains some of the world's largest copper deposits, including Codelco's El Teniente and Andina mines, Anglo American's Los Bronces mine, Antofagasta PLC's Los Pelambres mine and Xstrata's El Pachon project, among others.

The mineral resources for Los Azules were calculated in June 2010 and are summarized in the table below for the "base case" cut-off grade of 0.35 percent copper. The base case cutoff grade is based on experience from other projects with similar characteristics, potential scale of operation and location.

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Mineral
Resource         Tonnes   Copper  Contained Copper         Gold       Silver
Category     (millions)        %          (MM lbs)  grams/tonne  grams/tonne
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Indicated           137     0.73               2.2         0.07          1.7
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Inferred            900     0.52              10.3         0.07          1.7
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There is a high-grade secondary enrichment zone near the top of the mineralization. We use a cut-off grade of 0.70% copper to define "high-grade" mineralization, and the material above the 0.70% cut off approximates the secondary enrichment zone, but it is not exactly coincident. The portions of the deposit that exceeded the 0.70% copper limit are 67 million tonnes of indicated resources at an average grade of 0.95% (1.4 billion pounds of contained copper) and 127 million tonnes of inferred resources at an average grade of 0.86% (2.4 billion pounds of contained copper).

The results of the 2011 drilling will not have a material impact on the inferred mineralization and no resource update is warranted.

Refiled Interim Financial Report

Minera Andes also announces today that it is refiling its interim financial statements for the three months ended March 31, 2011 to provide a condensed consolidated statement of changes in equity for the period ended March 31, 2010 under International Financial Reporting Standards ("IFRS"). The refilling was made at the request of the Ontario Securities Commission and the additional disclosure does not impact any of the other interim financial statements previously filed.

About Minera Andes

Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine in close proximity to Goldcorp's Cerro Negro project; 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; and, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project in Santa Cruz Province. Minera Andes had $22 million in cash and short-term investments, with no bank debt (as of May 31, 2011). Rob McEwen, Chairman and CEO, owns 31% of the shares of the corporation. On June 14, 2011 the corporation announced that Mr. McEwen has proposed to combine the corporation with US Gold Corporation to create a high growth, low-cost, mid-tier silver producer focused on the Americas.

This news release has been submitted by James K. Duff, Chief Operating Officer of the Corporation.

For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.

Scientific and Technical Information:

This news release was prepared by James K. Duff, Chief Operating Officer of the Corporation and a registered Professional Geologist in the State of Idaho, who is a Qualified Person as defined by National Instrument 43-101. Bruce Davis, PhD, FAusIMM, who is a Qualified Person as defined by National Instrument 43-101 and responsible for the quality control for the assaying of the Los Azules drill core has reviewed the assay quality control information and is awaiting final results from additional quality control samples. All samples were collected in accordance with industry standards. Splits from the drill core samples were submitted to the ACME sample preparation laboratory in Mendoza, Argentina, and then transferred to ACME's laboratory in Santiago, Chile for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. The mineral resource estimate referenced in this press release was prepared in June 2010 by Robert Sim, P.Geo. and Bruce Davis, PhD, FAusIMM, both independent Qualified Persons as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").

For further information in respect of the Los Azules project please refer to the technical report entitled "Canadian National Instrument 43-101 Updated Preliminary Assessment, Los Azules Project, San Juan Province, Argentina" dated December 16, 2010, prepared by Kathleen Altman, Robert Sim, Bruce Davis, William L. Rose, Scott Elfen, and Richard Jemielita, each of whom is "independent" of the Corporation and a "qualified person" for the purposes of National Instrument 43-101 - "Standards of Disclosure for Mineral Projects . This report is available on SEDAR (www.sedar.com).

Cautionary Note to U.S. Investors:

All resource estimates reported by the Corporation are calculated in accordance with 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Caution Concerning Forward-Looking Statements:

This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results and management's understanding of proposed legislative changes. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, risks related to on-going or pending litigation including specifically risks related to litigation which if resolved adversely to Minera Andes could materially impact the Corporation's value and interest in and ability to develop the Los Azules project, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks.

Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

    Exhibit 1 - Summary of Drill Hole Results for 2010-2011 Drill Season

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            Intersection
----------------------------------------------------------------------------
                            Vertical
                           Thickness
          From (m)  To (m)       (m)  % Cu                          Comments
----------------------------------------------------------------------------
                 0     120     120.0     -     Pre hole drilled in 2009-2010
HOLE 1064A                                                           season.
               120     248     128.0  0.75         Secondary enrichment zone
               248     288      40.0  0.58   Mixed secondary enrichment (Cc)
                                             and chalcopyrite mineralization
                                                              disseminations
               288   404.4     116.4  0.33 Primary disseminated chalcopyrite
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                 0     156     156.0     -     Pre hole drilled in 2009-2011
HOLE 1067                                                             season
               156     336     180.0  0.23    Mixed secondary enrichment and
                                                   disseminated chalcopyrite
               336     375      39.0  0.40 Primary disseminated chalcopyrite
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Hole 1168        0      46      46.0     -                 Gravel overburden
                46     148      95.0  0.04                       Leached cap
               148     515     344.4  0.67    Mixed secondary enrichment and
                                                   disseminated chalcopyrite
               515     557      39.5  0.48 Primary disseminated chalcopyrite
               557   569.3      11.5  0.95 Primary disseminated chalcopyrite
                                                                 and bornite
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Hole 1169        0      50      50.0     -                 Gravel overburden
                50      86      36.0  0.10                       Leached cap
                86  315.75     229.8  0.36              Primary chalcopyrite
                                               mineralization disseminations
----------------------------------------------------------------------------

----------------------------------------------------------------------------
HOLE 1170        0      30      30.0     -                 Gravel overburden
                30     112      82.0  0.05                       Leached cap
               112     174      62.0  0.85              Secondary enrichment
               174   349.3     175.3  0.55    Mixed secondary enrichment and
                                                   disseminated chalcopyrite
----------------------------------------------------------------------------

----------------------------------------------------------------------------
HOLE 1171        0      50      50.0     -                 Gravel overburden
                50      86      36.0  0.05                       Leached cap
                86     201     115.0  0.12    Mixed secondary enrichment and
                                                   disseminated chalcopyrite
               201   400.1     199.1  0.16 Primary disseminated chalcopyrite
----------------------------------------------------------------------------

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HOLE 1172        0      62      62.0     -                 Gravel overburden
                62      74      12.0  0.09                       Leached cap
74 125 51.0 0.22 Mixed secondary enrichment and
disseminated chalcopyrite
125 152 27.0 0.07 Primary pyrite and chalcopyrite
veinlets
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Intersection
----------------------------------------------------------------------------
Vertical
Thickness
From (m) To (m) (m) % Cu Comments
----------------------------------------------------------------------------
HOLE 1173 0 32 32.0 - Gravel overburden
32 80 48.0 0.11 Leached cap
80 99 19.0 0.34 Secondary enrichment
99 228 129.0 0.22 Mixed secondary enrichment and
disseminated chalcopyrite
228 294.5 66.5 0.18 Primary disseminated chalcopyrite
----------------------------------------------------------------------------

----------------------------------------------------------------------------
HOLE 1174 0 24 24.0 - Overburden
24 76 52.0 0.03 Leached cap
76 250 174.0 0.17 Mixed secondary enrichment and
disseminated chalcopyrite
250 341.4 91.4 0.10 Primary chalcopyrite
mineralization disseminations
----------------------------------------------------------------------------

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HOLE 1175 0 63 63.0 - Overburden
63 74 11.0 0.03 Leached cap
74 249.5 175.5 0.22 Primary disseminated pyrite and
veinlets
----------------------------------------------------------------------------

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0 32 32.0 -
HOLE 1176 Overburden
32 162 130.0 0.03 Leached cap
162 292 130.0 0.63 Secondary enrichment
292 393.4 101.4 0.19 Primary disseminated pyrite and
veinlets
----------------------------------------------------------------------------

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HOLE T-01B 0 72 72.0 - Overburden
72 80 8.0 0.09 Leached cap
80 86 6.0 0.78 Secondary enrichment
86 132 46.0 0.27 Primary disseminated chalcopyrite
132 140 8.0 0.73 Mixed secondary enrichment and
disseminated chalcopyrite
140 186 46.0 0.25 Primary disseminated chalcopyrite
186 192 6.0 1.43 Secondary enrichment
192 387 195.0 0.13 Primary disseminated chalcopyrite
387 408 21.0 0.62 Secondary enrichment
408 422 14.0 0.54 Mixed secondary enrichment and
disseminated chalcopyrite
422 468 46.0 0.25 Primary disseminated chalcopyrite
468 486 18.0 0.49 Mixed secondary enrichment and
disseminated chalcopyrite
486 496 10.0 0.95 Secondary enrichment
496 560 64.0 0.33 Mixed secondary enrichment
560 605 45.0 0.95 Primary chalcopyrite and bornite
605 656 51.0 0.42 Primary chalcopyrite
----------------------------------------------------------------------------

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HOLE T-02 0 76 76.0 0.04 Leached cap
76 700.1 624.1 0.06 Primary pyrite mineralization
disseminations and veins
----------------------------------------------------------------------------

Exhibit 1A - Summary of Condemnation Drills Results for 2010-2011 Drill Season

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              Intersection
----------------------------------------------------------------------------
                              Vertical
                             Thickness
            From (m)  To (m)       (m)    % Cu                      Comments
----------------------------------------------------------------------------

HOLE CO 01         0     200     200.0   0.001      Fresh unmineralized rock
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HOLE CO 02         0     168     168.0   0.001      Fresh unmineralized rock
                 168     200      32.0   0.006      Fresh unmineralized rock
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HOLE CO 03         0     200     200.0   0.003      Fresh unmineralized rock
----------------------------------------------------------------------------

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                                                   Fresh unmineralized rock,
HOLE CO 04         0      28      28.0   0.004             partially leached
                  28     186     158.0   0.001      Fresh unmineralized rock
----------------------------------------------------------------------------

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HOLE CO 05         0     162     162.0   0.002      Fresh unmineralized rock
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HOLE CO 06         0     200     200.0   0.003      Fresh unmineralized rock
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HOLE HB 04         0     200     200.0   0.002      Fresh unmineralized rock
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HOLE HB 05         0     200     200.0   0.001      Fresh unmineralized rock
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HOLE HB 06         0     200     200.0   0.003      Fresh unmineralized rock
----------------------------------------------------------------------------

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                                               Fresh unmineralized rock with
HOLE HB 07         0      82      82.0   0.002           meteoric weathering
                  82     200     118.0   0.006      Fresh unmineralized rock
----------------------------------------------------------------------------

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                                               Fresh unmineralized rock with
HOLE GB 02         0      42        42   0.003           meteoric weathering
                  42     200     158.0   0.007      Fresh unmineralized rock
----------------------------------------------------------------------------

To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/mai_627_figures.pdf

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

Contacts:
Minera Andes Inc. James K. Duff, Chief Operating Officer
99 George St. 3rd Floor, Toronto, Ontario, Canada, M5A 2N4
647-258-0395 or Toll-Free: 1-866-441-0690
647-258-0408 (FAX)
info@minandes.com www.minandes.com

Source: Minera Andes Inc.

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