I am pleased to report that we recently completed the third phase of exploration drilling on our flagship Volcan Gold Project, located in Chile’s Maricunga Gold Belt, with continued positive results. It was a busy eight-month exploration campaign focused largely on increasing the resource base of the known Volcan gold deposits in the Dorado area as well as on expanding our exploration activities over a larger area in order to outline targets for a Phase IV program. We completed approximately 34,000 metres of drilling this past season, which brings our total amount of drilling completed since May of 2005 to over 50,000 metres. Currently, we are in the process of compiling all the data from the previous exploration campaigns in order to prepare a revised resource estimate for release during the third quarter of this year.

As a result of our exploration success, our shareholders have been well rewarded as our market capitalization rose to $157.1 million at the end of 2006 (Dec 29, 06 share price - $2.99) from $14.7 million at the start of the year. Our exploration success has also enabled us to complete two private placements since the beginning of 2006: 16 million units at $1.10 per unit for $17.6 million in April 2006; and more recently, 8 million units at $3.00 per unit for $24 million in February 2007. Andina now has the financial strength to aggressively pursue the mineral potential of the Volcan Gold Project.

In addition to Volcan, Andina Minerals maintains a portfolio of exploration projects in Chile including the Pampa Buenos Aires gold silver property which is under option to Rusoro Mining Ltd. and the recently acquired Valeriano property, located in the El Indio Belt 30 kilometers north of Barrick’s Pascua Lama gold silver copper project. Our geologists are ever watchful for new opportunities in Chile.

Andina’s success is due to the dedication and efforts of its employees, management and Board and I would like to take this opportunity to thank them all. We have been very fortunate to have an experienced exploration team in Chile, led by Dr. Albrecht Schneider, General Manager of our Chilean subsidiary and a founder of Andina, and Hector Aquiles Alegria, Technical Manager, Exploration, who joined us in August 2006. I would also like to thank the Board of Directors led by T. Sean Harvey, who I am pleased to report are all Andina shareholders. Their direction and support has been instrumental in our success. And most sincerely, a special thank you to all our shareholders for there continued belief and support of Andina Minerals and its endeavours.

Sincerely,

Carl B. Hansen
President and CEO
August, 2007