ANDINA announces CAD$15 million non-brokered private placement financing

ANDINA Minerals Inc. (TSX VENTURE:ADM) (“Andina” or the “Company”) announced today that after having reached agreement on pricing and terms on October 21, 2011 it has completed a non-brokered private placement financing totalling 18,750,000 units (the “Units”) at a price of CAD$0.80 per Unit for gross proceeds of CAD$15 million.

Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of Andina at a price of CAD$1.00 for a period of 12 months from closing. No finder’s fee will be paid in respect of this private placement.

The Company intends to use the net proceeds of the offering for continued advancement of the Company’s Volcan Gold Project (“Volcan”), including completion of the feasibility study and obtaining operating permits, and for general corporate purposes.

The offering was placed with existing shareholders who have been longstanding supporters of Andina.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Andina Minerals Inc.

Andina’s primary focus is mining exploration and development in Chile. The Company’s flagship development project is the 100%-owned Volcan project, strategically located in the prolific Maricunga Gold Belt.

In February 2011, Andina announced the results of a positive pre-feasibility study for Volcan. Initial Proven and Probable Mineral Reserves are 6.6 million ounces of gold at an average grade of 0.73 g/t contained in 283 million tonnes of ore. In addition, there remain 2.4 million ounces of Measured and Indicated gold resources at an average grade of 0.68 g/t contained in 110 million tonnes of ore plus 1.35 million gold ounces in the Inferred category contained in 64 million tonnes of ore at an average grade of 0.66 g/t Au.

Andina is progressing with a feasibility study and EIA application for Volcan, targeted for completion in the first half of 2012.

In addition to Andina’s extensive underexplored land position surrounding Volcan, the Company holds two other mineral properties located within Chile’s primary mining regions.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities laws and regulations. Such information is based on the current expectations and beliefs of Andina’s management and is subject to a number of risks and uncertainties that may cause the actual results to differ materially from those described above. Forward-looking information in this press release includes, but is not limited to, statements with respect to the completion of the feasibility study and construction permits, the timing and success of permitting activities generally. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “planning”, “planned”, “expects”, “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipate”, “does not anticipate”, or “belief”, or describes a “goal”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

The forward-looking information contained in this press release is based on a number of material factors and assumptions, including, but not limited to, that estimates and studies are accurate, that Andina’s mining operations continue in the ordinary course and as expected, that contracted parties provide goods and/or services on the agreed time frames, that the equipment necessary for exploration and development work is available as scheduled, availability of water for milling and mining, that no labour shortages or delays are incurred, that plant and equipment function as specified, Andina’s ability to obtain adequate financing when and as needed, the continued favourable market for gold at prices at or above estimated levels, that no unusual geological or technical problems occur, that no unusual or unexpected events have a material adverse effect on Andina’s operations or financial condition, and such other assumptions and factors as set out herein.

Forward-looking information involves known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, projection, forecast, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company’s publicly filed documents. Although Andina has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Andina does not undertake any obligation to update or revise publicly any forward-looking information whether as a result of new information, future events or otherwise, unless required to do so by applicable laws.