Andina Minerals

Volcan Resources

The 2009 Volcan Gold Project resource update was based on 96,000 metres of drilling, including 6,000 metres completed since the previous resource update. The 2009 Update was completed by Micon International Limited and was based on the following initial engineering parameters: mining costs of US$1.10 per tonne, process cost (heap leach) of US$3 per tonne, general & administration costs of US$0.69 per tonne, process recoveries ranging from 55-80%, recommended slope angles ranging from 48-52 degrees and a gold price of US$850/ounce. Prior resources were not based on these parameters and therefore are not comparable. The 2009 Update included the Dorado area deposits but not the Ojo de Agua area, which is also located on the Volcan Gold project and was the subject of the October 2008 Ojo de Agua resource.

As of September 10, 2009, the updated resource for the Dorado deposits estimated measured and indicated mineral resources of 492.5 million tonnes at an average grade of 0.62 g/t Au for 9.8 million ounces of contained gold and inferred resources of 36.8 million tonnes at an average grade of 0.65 g/t Au for 768,000 ounces of contained gold. Both estimates are at a cut-off grade of approximately 0.3 g/t Au. For more details on the 2009 Update, see Andina's press release dated September 10, 2009.

In addition, the Ojo de Agua area hosts an inferred resource of 18.6 million tonnes grading 0.85 g/t Au for total contained gold content of 510,000 ounces at a cut-off grade of 0.5 g/t (see October 6, 2008 press release).

2009 Mineral Resource Estimate for the Volcan Gold Project (Dorado deposits)