Minera Andes engages Macquarie Bank Limited for debt financing for San Jose Project



    TSX: MAI
    NASD-OTCBB: MNEAF

    SPOKANE, WA, Oct. 25 /CNW/ - October 25, 2007 - Minera Andes Inc. (TSX:
MAI and US OTC: MNEAF) has accepted an offer letter from Macquarie Bank
Limited ("Macquarie Bank", Australian Stock Exchange, ASX: MBL) to provide a
loan facility of US$10 million. The main purpose of the facility will be to
provide additional funding to Minera Andes for its 49% portion of the costs of
the exploration, sustaining capital, cost overruns and expansion related costs
of the San José silver/gold project that entered its production commissioning
phase in the third quarter of 2007.
    The US$10 million debt facility provided by Macquarie Bank is subject to
completion of documentation. The funds from the facility have been delivered
and Toronto Stock Exchange approval received. The debt financing is for part
of Minera Andes' share of the October cash call for costs of mine
construction, expansion of the exploration program which will include drilling
new targets, expanding the reserves and resources, and for general working
capital. In addition, since this facility is an extension of a previously used
debt facility with Macquarie Bank, we realize a significant savings in cost to
document and complete the loan.
    Allen Ambrose, president of Minera Andes, said: "As the San José project
is continuing to grow in size and scope, making adjustments in the mine plan
now allows us to make significant cost savings of the operations down the
road. The Macquarie Bank bridge facility provides us with additional funds to
complete our objectives."
    The commercial terms of the loan include a facility fee of 1.75% of the
principal amount of the loan and interest of Libor plus 2.75% p.a., currently
totaling approximately 7.79% p.a. In addition, Minera Andes has issued share
purchase warrants acquiring 4,066,390 Common Shares of Minera Andes at an
exercise price of C$2.41 per share. The warrant exercise price was calculated
at a 20 percent premium to the volume weighted average of Minera Andes' common
stock determined from the ten business days prior to October 22, 2007. The
warrants issued are exercisable until September 30, 2009 the same term as the
loan. The warrants and the underlying common shares will have a hold period
until February 25, 2008. A success fee of US$100,000, being one percent of the
principal amount of the facility, is payable to Xystus Limited for assisting
with the structuring and negotiation of the loan facility.

    Macquarie Bank Limited is a diversified international provider of
specialist investment banking, trading and financial services with over
11,000 employees in 24 countries. Headquartered in Sydney, Australia,
Macquarie Bank listed on the Australian Stock Exchange in 1996 and is ranked
as one of Australia's top 20 companies by market capitalization.

    Minera Andes is a gold, silver and copper exploration company working in
Argentina. The Corporation holds about 410,000 acres of mineral exploration
land in Argentina including the co-owned San José silver/gold mine that has
started initial production. Minera Andes is also exploring the Los Azules
copper project in San Juan province, where an exploration program is underway
to define a resource. Other exploration properties, primarily silver and gold,
are being evaluated in southern Argentina. The Corporation presently has
166,767,517 shares issued and outstanding.

    Caution Concerning Forward-Looking Statements:

    This press release contains certain "forward-looking statements",
including, but not limited to, the statements regarding the Company's
strategic plans, evolution of mineral resources and reserves, work programs,
development plans and exploration budgets at the Company's San José Project.
Investors should be aware that the introduction of new technology such as ILR
can create added risk in achieving metallurgical performance. The
forward-looking statements express, as at the date of this press release, the
Company's plans, estimates, forecasts, projections, expectations or beliefs as
to future events and results. Forward-looking statements involve a number of
risks and uncertainties, and there can be no assurance that such statements
will prove to be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements. In particular,
there can be no assurance that commercial production at the San José mine will
be achieved on a timely basis, or at all, that production capacity at the San
José mine will be successfully increased, that resources and reserves at the
San José mine will be increased or that Minera Andes will successfully raise
the funds necessary to maintain its interest in the San José mine. Risks and
uncertainties that could cause results or future events to differ materially
from current expectations expressed or implied by the forward-looking
statements include, but are not limited to, factors associated with
fluctuations in the market price of precious metals, mining industry risks,
risks associated with foreign operations, the state of the capital markets,
environmental risks and hazards, uncertainty as to calculation of mineral
reserves, dilution risks to it 49% ownership by not being able to contribute
pro-rata to Minera Santa Cruz S.A. cash calls, and other risks. Reference is
made to the risk factors and uncertainties described in the Company's
continuous disclosure record, a copy of which is available under the Company's
profile at www.sedar.com. In addition, Minera Andes' joint venture partner, a
subsidiary of Hochschild Mining plc, and its affiliates do not accept
responsibility for the use of project data or the adequacy or accuracy of this
release.

    Cautionary Note to U.S. Investors:

    The United States Securities and Exchange Commission (the "SEC") permits
mining companies, in their filings with the SEC, to disclose only those
mineral deposits with "mineral reserves" that a company can economically and
legally extract or produce. We use certain terms in this press release, such
as "mineral resources", that the SEC guidelines strictly prohibit us from
including in our filings with the SEC.




For further information:

For further information: Art Johnson at the Spokane office, or Krister
A. Kottmeier, investor relations - Canada at the Vancouver office. Visit our
web site: www.minandes.com; Spokane Office, 111 East Magnesium Road, Ste. A,
Spokane, WA, 99208 USA, Phone: (509) 921-7322, E-mail: info@minandes.com;
Vancouver Office, 911-470 Granville Street, Vancouver, B.C., V6C 1V5, Phone:
(604) 689-7017, (877) 689-7018, E-mail: ircanada@minandes.com

Organization Profile

MINERA ANDES INC.

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