Minera Andes announces retraction and clarification of news release

    TSX: MAI

    SPOKANE, WA, June 18 /CNW/ - Minera Andes Inc. ("Minera Andes" or the
"Company") (TSX: MAI and US OTC: MNEAF) announces that it is retracting its
April 10, 2007 news release and Material Change Report dated April 12, 2007.
Consequently, investors should rely upon the reserves and information reported
prior to the Company's April 10, 2007 news release that did not include the
drilled off Kospi vein. The Company is also retracting all the disclosure in
its 2006 Annual Report related to the Kospi vein. It is Minera Andes' current
expectation that the Kospi vein will be added to the existing resources at the
time a new technical report is filed in respect of the San José Mine. However,
at this point we have insufficient data to include the Kospi vein in our
resource calculations. The San José Project is owned by Minera Santa Cruz
("MSC") a company co-owned by Minera Andes (49%) and joint venture partner and
operator Hochschild Mining plc (51%) ("Hochschild") (London Stock Exchange,
LSE: HOC). Minera Andes understands that MSC is proposing to undertake the
necessary additional technical work to allow the Kospi vein to be classified
as a reserve.
    The news release of April 10, 2007 discusses Hochschild's disclosure of
the addition of new reserves at the Kospi vein to the existing San José
reserves. This disclosure of an apparent material increase in reserves
triggered the requirement for a new Canadian National Instrument 43-101("NI
43-101") technical report that is being completed by our independent
consultants, AMEC. Based on work required to reconcile the reserve as
disclosed by Hochschild (estimated to JORC standards) to NI 43-101 standards
the Company and AMEC are reviewing whether the Kospi vein can properly be
added to the reserves at the San José Project in compliance with the
requirements of NI 43-101, given the technical work that has been done to
    Minera Andes will file its new NI 43-101 technical report as soon as it
is available. However, it appears that the report will not be available by
June 25, 2007, the current deadline for completion of the report. As soon as
the report is filed, Minera Andes will issue a news release that summarizes
the report and reconciles differences between the reserves that were referred
to in its April 10, 2007 news release and the reserve and resource figures
that are supported by AMEC's independent technical report.
    Production at the San José mine is scheduled to begin at the end of the
second quarter of 2007. The November 2005 feasibility study on the San José
Project assumed the use of conventional flotation, followed by leaching in a
Merryl-Crowe plant to recover the gold and silver. As part of optimizing the
processing operations MSC decided that the mine will use an intensive leaching
reactor (ILR), in lieu of the Merryl-Crowe plant. The ILR was chosen because
of its higher recoveries for gold and silver, better control of cyanide, and
lower investment and operating costs, all of which were determined as a result
of a comprehensive prefeasibility level metallurgical testwork undertaken in
2006. In addition, Hochschild has advised Minera Andes that they are using
successfully an ILR in one of its Peruvian operations.

    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 under
construction for production and cash flow by mid-2007. Minera Andes has a 49%
interest in the San José Project. Minera Andes is also exploring the Los
Azules copper project in San Juan province, where drilling is underway to
define a resource. Other exploration properties, primarily gold and silver,
are being evaluated in southern Argentina. The Corporation presently has
166,605,767 issued and outstanding shares.
    Allen V. Ambrose, Minera Andes' President, who is an appropriately
qualified person as defined by National Instrument 43-101, has reviewed the
information used in this news release.
    This news is submitted by Allen V. Ambrose, President and Director of
Minera Andes Inc.

    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. 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, environmental risks and hazards,
uncertainty as to calculation of mineral reserves and other risks. In
addition, Minera Andes' joint venture partner, Hochschild Mining plc., does
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 Rd., 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

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