Minera Andes provides San Jose mine update

    TSX: MAI

    SPOKANE, WA, March 27 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC:
MNEAF) announced today details of the San José mine performance to 31 December
2007. The San José project is operated by Minera Santa Cruz S.A. ("MSC") and
is owned 51% by Hochschild Mining plc ("Hochschild") (HOCM.L: Reuters and HOC
LN: Bloomberg - London Stock Exchange) and 49% by Minera Andes. The San José
mine commenced production during the second quarter of 2007 and approached
full production by year-end 2007. Hochschild forecasts that the processing
plant, which is still in the commissioning phase, is to reach full capacity in
the first half of 2008. Plans are underway to expand the mine and double the
current production rate by year-end 2008.


    In 2007, we saw significant growth in the San José project through its
exploration program results. The last independent NI43-101 Technical Report
commissioned by Minera Andes was released in November 2007 and showed an
increase in reserves at San José of more than 100%, based on surface drilling
and under ground exploration completed in 2006 through the first half of 2007.
    On March 12, 2008, Hochschild released updated resource and reserve
estimates at San José in their Preliminary Results for Year Ended 31 December
2007. These results show an increase in reserves of 19% and an increase in
resources of 28% over the year ended 31 December 2006 JORC Code results.
Currently Minera Andes cannot endorse these results as only a part of the data
on which the resource /reserve calculations are based has been released to
Minera Andes. Minera Andes is in the process of obtaining this information and
will review the data and report on the results as soon as practicable.
Exploration work completed in the second half of 2007 includes 20,274 meters
(82 holes) of drilling mainly on Frea, Odin, and Ayelén veins and several
hundred meters of drifting along the Frea vein. Receipt of assay results is
underway for 19 drill holes. The Frea, Odin, and Ayelén veins all have mineral
potential and remains open at depth and along strike.
    MSC plans a 2008 exploration program at San José consisting of mapping,
compilation and interpretation of all project data on a district scale
(115 km2) to identify new targets. Approximately 4,000 meters of surface
drilling and 3,800 meters of underground drilling are planned for 2008 as a
follow-up on the targets generated from the surface work.


    Based on the significant increase in the reserves during 2007, the board
of MSC last November approved an expansion at San Jose from 750 to 1,500
tonnes per day, thereby doubling the rate of production at San José. Minera
Andes anticipates the expansion to be completed by year-end 2008.
    Various pieces of new equipment have been ordered by MSC for the mine
expansion, including a new ball mill, flotation cells, a crusher and other
ancillary equipment. Also, work to connect to the national power grid is
underway, and this connection is forecast to provide significant cost savings
over the on-site diesel generators that currently supply the electrical power
to the project. Following connection to the power grid, the diesel generators
will be retained as a backup power supply.


    The San José mine now comprises more than 13 km of underground workings
accessed by ramps accessing the Huevos Verdes and Frea veins. A third ramp has
also been constructed to access the Kospi vein, where 173 meters of the vein
have been developed to date. The mine is currently staffed with 436 employees
and 148 contractors.
    The San José gold/silver mine saw a steady increase in production in Q4
2007 as reported by MSC to the owners. The San José mine is currently
operating at rate of 750 tonnes per day. The first sales of metal from the
mine occurred in December of 2007. The sales of the metals that were produced
during the construction/commissioning phase of the plant went to reduce the
capital required for 2007. At year-end the mine had had about 90% of its metal
in inventory in the form of concentrates and doré. Several contracts are in
place to sell doré and concentrate production.

                           SAN JOSE MINE PRODUCTION
    Product                                     Q4          Q3      Full year
                                               2007        2007        2007
    Ore production (tonnes)                   65,480      27,494      92,974
    Average head grade silver (g/t)              536         544         538
    Average head grade gold (g/t)               7.03        7.21        7.08
    Silver produced (ounces)                 776,000     182,000     958,000
    Gold produced (ounces)                    11,660       3,300      14,960
    Net silver sold (ounces)(*)               92,000           0      92,000
    Net gold sold (ounces)(*)                  1,490           0       1,490
    (*) 855 ounces of gold and 42,379 ounces of silver were produced during
        construction phase of the plant and have been recorded as a reduction
        to the capitalized cost of the plant.

    During the start-up of San José in Q2 2007, several factors contributed
to delays in the processing plant becoming fully operational, including
technical issues related to the mill and the flotation process; problems with
the intensive leaching process that produces a precipitate that is converted
into doré, and extreme August weather conditions. We are advised that although
the processing plant is now operating at capacity, the intensive leaching
process remains in the commissioning stage. Re-engineering work is currently
underway to improve the detoxification process. The operator expects theses
issues to be corrected in the first half of 2008.

    Allen V. Ambrose, Minera Andes' President, who is an appropriately
"qualified person" as defined by National Instrument 43-101, is responsible
the information used in this news release and has supervised the preparation
of the information and reviewed all information used in this news release.

    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
recently commenced 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
189,334,935 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.
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 and other risks. We refer readers 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. 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, because these terms are common usage in
Canada and form part of our Canadian filing requirements.

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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