Mr. Jim Duff reports

MINERA ANDES PROVIDES UPDATE ON EXPLORATION DRILLING AT THE SAN JOSE MINE

Minera Andes Inc. is providing the results of exploration drilling at its 49-per-cent-owned San Jose mine in Santa Cruz province, Argentina. Drilling during the first half of the year was mainly dedicated to infill drilling, whereas drilling during the second half will focus on exploration for new resources. A total drilling program of 50,600 metres is planned for 2011. During the second quarter a total of 58 diamond core holes totalling 14,300 metres were drilled compared with 24 core holes totalling 5,411 metres during the first quarter.

The drilling successfully extended the Dos Lauras vein several hundred metres to the northwest and the known vein strike length is now just over 1,000 metres. In addition, infill drilling was completed with good results on the Micaela, Luli, Susana and Marta veins. Resources defined by the drilling will be reported as part of the year-end resource update that will be released near the end of the first quarter of 2012.

Drilling results highlights include the following.

Susana vein:

• Hole SJD-864 -- 0.56 metre at 6.93 grams per tonne gold and 1,504 grams per tonne silver;
• Hole SJD-875 -- 0.88 m at 5.28 g/t Au and 441 g/t Ag.

Luli vein:

• Hole SJD-869 -- 1.05 m at 16.89 g/t Au and 1,642 g/t Ag;
• Hole SJD-871 -- 1.98 m at 19.55 g/t Au and 1,721 g/t Ag.

Luli Cymoid loop:

• Hole SJD-869 -- 1.19 m at 5.54 g/t Au and 668 g/t Ag;
• Hole SJD-871 -- 0.80 m at 44.48 g/t Au and 7,747 g/t Ag;
• Hole SJD-879 -- 0.79 m at 11.9 g/t Au and 1,263 g/t Ag.

Dos Lauras vein:

• Hole SJD-884 -- 1.37 m at 43.32 g/t Au and 5,314 g/t Ag.

Micaela vein:

• Hole SJD-889 -- 1.32 m at 7.71 g/t Au and 825 g/t Ag;
• Hole SJD-895 -- 4.03 m at 21.37 g/t Au and 2,285 g/t Ag.

The vein system at San Jose continues to be open at depth and laterally. As a result of the discovery of the east-west-trending Micaela-Sofia vein system last year, previous drill results are being reinterpreted to define new drilling targets in and near the mine area in conjunction with new surface magnetic data and existing induced polarization geophysics data.

During the first half of 2011, 3,147 line kilometres of surface magnetic lines spaced 75 metres apart were run covering 22,000 hectares (54,000 acres) southeast of the mine area. The magnetic data are being analyzed to define drilling targets southwest of the mine, an area that is covered by a layer of postmineral basalt. The magnetic data will be complemented by 342 line kilometres of gradient-array induced polarization to be run over the same area during the next four months as well as 25 line kilometres of pole-dipole array IP.

Technical information

This news release has been reviewed and approved by Jim Duff, the chief operating officer of the corporation, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Assay results were reported to Minera Andes by MSC, which is the operating company for the San Jose joint venture. Assay results for the drilling were reviewed by Mr. Duff. All samples were collected in accordance with industry standards. Splits from checks of the drill core samples assay at the San Jose mine laboratory were submitted to Alex Stewart Assayers Argentina SA in Mendoza, Argentina, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. Mr. Duff has reviewed the results of the check assays and other quality control measures.

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