Andean American Announces Grant of Stock Options

TORONTO, ONTARIO -- (Marketwire) -- 03/31/11 -- Andean American Gold Corp. (TSX VENTURE: AAG)(FRANKFURT: AQN) -

CORPORATE UPDATE

Andean American Gold Corp. ("Andean American" or the "Company") has granted 250,000 options to an officer of the Company effective March 11, 2011. The options will have a term of five years and have an exercise price of $0.79.

For further information, please visit the Company's website at www.aaggold.com.

About Andean American

Andean American 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 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.

On behalf of Andean American Gold Corp.,

David Rae, President and Chief Executive Officer

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 Company's 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 Company's 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 Company's Financial Statements, Management Discussion and Analysis and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Contacts:
Andean American Gold Corp.
(604) 681-6186 or Toll Free: 1-888-356-4784
(604) 681-3652 (FAX)

Andean American Gold Corp.
David Rae
President and Chief Executive Officer
(416) 368-9500
investors@AAGgold.com