Minera Andes announces San Jose update

    TSX: MAI

    SPOKANE, WA, Nov. 9 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) is pleased to announce that the San José mine attained some production
during the third quarter commissioning and start-up of the mine. Currently,
the mining operation is expected to reach full production by year end and the
process plant in commissioning is forecast by Minera Andes to reach full
capacity in first half of 2008. The San José project is operated by Minera
Santa Cruz S.A. ("MSC") is owned 51% by Hochschild Mining plc and 49% by
Minera Andes.
    In the third quarter of 2007, a stock pile of 60,000 tonnes was in place
and the mine processed 27,494 tonnes of ore with an average head grade of
544 g/t silver and 7.2 g/t gold. A total of 182,000 ounces of silver and
3,290 ounces of gold were produced in the third quarter during the
commissioning phase and Minera Andes has a 49% interest in this production.
    Minera Andes had completed a NI 43-101 technical report which was the
subject of a news release on September 17th 2007 and which announced that
resources at San José had increased by 62 percent. Surface and underground
exploration, development, and drilling at San José project has continued to
identify additional reserves and resources. Minera Andes has therefore
commissioned AMEC, our independent engineer, to complete a new NI 43-101
report. The new report is expected to be completed on San José shortly.
    In November 2007, the board of MSC approved project capital increases of
$42.5 million. These costs are related to the fact that the processing
facility at San José is taking longer than anticipated to reach full capacity
requiring $34.1 million in funds to replace the deficit in the planned
operating cash flow and capital costs have increased by $9.2 million due
primarily to plant construction and the processing plant. To fund these costs
Minera Andes has received an MSC cash call and its portion is $15.93 million
due on January 5, 2008. An additional $4.9 million may be due by Minera Andes
if local debt financing for MSC is not available.

    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
166,832,517 shares issued and outstanding.

    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.
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.
Minera Andes anticipates raising it 49 percent interest in the current cash
call through the sale of equity. 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

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