13/2/2011

MINE DEVELOPMENT WITH CONFIDENCEFEBRUARY 2011

• Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of1995 and Canadian securities legislation. Such forward-looking statements involve known and unknown risks, uncertainties and other factors whichmay cause the actual results, performance or achievements of the Company, or other future events, including forecast production, earnings and cashflows, to be materially different from any future results, performances or achievements or other events expressly or implicitly predicted by suchforward-looking statements.

• Such risks, uncertainties and other factors include, but are not limited to, factors associated with fluctuations in the market price of precious metals,mining industry risks, recent operating losses, uncertainty of title to properties, risk associated with foreign operations, environmental risks andhazards, proposed legislation affecting the mining industry, litigation, governmental regulation of the mining industry, properties without knownmineable reserves, uncertainty as to calculations of reserves, mineral deposits and grades, requirement of additional financing, uninsured risks, risk ofhedging strategies, competition, dependence on key management personnel, potential volatility of market price of the Company’s common shares,dilution and certain anti-takeover effects. Such information contained herein represents management’s best judgment as of the date hereof based oninformation currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

• Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materiallyaffected by the inability to obtain required environmental and other regulatory approval, environmental or operating permits. The estimate may alsobe materially affected by global economic conditions such as the price of gold and silver, the price of oil and other commodities utilized in theproduction of gold and silver. Unknown geologic or hydrologic conditions or other unknown factors may materially affect the resource estimates. Netsmelter returns and metallurgical recoveries at Sinchao have not been considered.

• This document uses the terms "measured resources", 'indicated resources' and 'inferred resources'. Investors are cautioned not to assume that anypart or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount ofuncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will everbe upgraded to a higher category. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legallymineable.

• Mr. Les Tarnai, P.Eng., General Manager of Engineering, Invicta Mining Corp., is a Qualified Person as defined by National Instrument 43-101 with theability and authority to verify the authenticity and validity of the data herein. Victor Jaramillo, P. Geo., of Discover Geological Consultants Inc. is anIndependent Qualified Person as defined by National Instrument 43-101 and is responsible for the resource estimates. Guy Lokhorst, P. Eng., of TheLokhorst Group, is an Independent Qualified Person as defined by NI 43-101 and is responsible for the review of the mining methodology, including theprobable reserves and life of mine, for the Invicta Feasibility Study. Deepak Malhotra, PhD., MS in Metallurgical Engineering and PhD. in MineralEconomics, Independent Qualified Person as defined by NI 43-101, of Resource Development Inc., reviewed the metallurgy for the Invicta project anddeveloped the finalized process flow diagram for the Invicta Feasibility Study. Leslie F. Tarnai, P. Eng., General Manager of Engineering for InvictaMining Corp., is a Qualified Person as defined by NI 43-101 and is responsible for the Invicta Feasibility Study.

• All amounts are in Canadian dollars unless otherwise stated.

SAFE HARBOR STATEMENT

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CAPITAL STRUCTURE TSX:V AAG

CAPITALIZATION

Market Cap at Feb 11, 2011 C$126.7 million

Basic Shares Outstanding 141,365,892

Options 7,870,588

Warrants Price between $0.35 - $1.25expiry starting 20 Sept 2011

5,614,368

Cash $28 million

Debt At present: nil

MAJOR SHAREHOLDERS

Trafigura Beheer B.V. 19.5%

Richmond Capital LLP 7.4%

Management and Insiders 6%

Praetorian Capital Management LLC

5.5%

Sprott Asset Management LLP

3.9%

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EXPERIENCED MANAGEMENT• DAVID RAE – PRESIDENT AND CEO

Ten years in senior positions with Falconbridge/Xstrata, including Senior Vice President Europe & Africa, andworldwide head of sales for all Nickel Group products. Previously he managed the Sudbury Smelter and theTimmins Copper Operations. Prior to joining Andean American, Mr. Rae has been advising in a consulting capacityto companies such as Kinross, Vale Inco and Iamgold on operational, productivity and strategic challenges.

• BRUCE RAMSDEN - VICE PRESIDENT AND CFOVice President and CFO with noted resource companies since 1996 and has received the 2006 Mining JournalDevelopment Funding Award for his work with Tiomin Resources Inc. He has a Bachelor of Commerce as well as adegree from The Institute of Chartered Secretaries and Administrators. Mr. Ramsden is a member of the Institute ofCommercial and Financial Accountants of Southern Africa, the Institute of Chartered Secretaries and Administratorsin both South Africa and Canada and Financial Executives International Canada.

• MARK ZABEL – VP CORPORATE DEVELOPMENTFrom 2005 - 2010 Mr. Zabel worked in equity investments at Praetorian Capital Management LLC, a highlysuccessful small cap long/short equity hedge fund based in Miami, Florida. Mr. Zabel has development experienceas an active shareholder across an array of industries, having worked closely with senior management teams to helpimplement business expansion plans, restructure management, and define new corporate and operational strategy.

• MIGUEL HUAMAN – VP OPERATIONSFrom 2004 to 2009, Mr. Huaman was the President of Minera Huallanca, where he managed the 1000tpd PucarrajoZn-Pb-Ag mine and the 850tpd Contonga Zn-Pb-Ag-Cu mine, both underground operations. From 2002 to 2004, hewas General Manager of Cedimin SAC, a subsidiary of the BRGM–France and Buenaventura Mining CompanyPeru. Mr. Huaman is an Engineering Graduate of the Universidad Nacional Mayor de San Marcos and a GeologistEngineer with a Postgraduate degree in Exploration and Valuation of Mineral Resources from the University ofNancy, France. Mr. Huaman is a former President of the Geological Society of Peru.

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ANDEAN AMERICAN HIGHLIGHTS

Near term low cost gold production from Invicta Project in Peru

160,000 AuEq Oz per year at US$275/Oz projected LOM

World class assets in pipeline: Sinchao gold/copper project in Peru

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INVICTA PROJECT – KEY FACTS• 5,000 tpd at full production from underground mine• Five year initial life of mine PRODUCTION

• Conventional metallurgical flowsheet• High recoveries, low grinding costs • Flexible process

METALLURGY

• Excellent access to infrastructure in well established mining regionINFRASTRUCTURE

• Drilling planned to expand resource and extend life of mine to 12 years

GROWTH POTENTIAL

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MINE DEVELOPMENT MILESTONES

• Completed in July 2010• Bankable Feasibility Study expected Q2 2011FEASIBILITY STUDY

• Negotiations progressing well with communities• Agreements expected Q2

COMMUNITY AGREEMENTS

• Application being prepared• Subject to signed community agreements

CONSTRUCTION PERMIT

• Company is well funded, cash balance $28 M as at Feb 11, 2011

• Debt financing for CAPEX in placeFINANCING

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INVICTA PROJECT - LOCATION• Located in the Western Pre-Cordillera of

Peruvian Andes in the Huaura Province, Department of Lima.

• Approx. 250 km north of Lima & 29 km east of the town of Sayan.

• Sayan provides services, supplies & skilled personnel to the mining industry.

• Accessible by road from Lima via the Panamerican Highway, north to Huaura & east to Sayan via Highway 16 & Huamboy, on packed dirt road - Approx 4½ hours by car.

Sinchao MetalsTSX.V:SMZAAG owns 60%Invicta

Project

Cajamarca

Lima

INVICTA WELL LOCATED FOR ESSENTIAL INFRASTRUCTURE & SERVICES

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READILY ACCESSIBLE INFRASTRUCTURE

• Government backed 29km extension of the 220kv national grid• Engineering completed by CESEL• 27 towers to be erected mostly on land purchased by Invicta• Power cost 6c/kwh

POWERCAPEX US $6M

• Sourced from well drilled next to Huara River near Paran at 1100m elevation• Requires 201 litres/second• Well engineered & tested by CESEL & performs at 501 litres/second• Water is pumped & stored in a pond at 2400m elevation• Excess water is supplied to the communities

WATERCAPEX US $1M

• An existing 10m wide concentrate haul road runs 13km from the project• A 13.8km long, 10m wide connection from 1100 masl to the plant at 2300 masl

to be constructed• A 4km long, 3m wide access road from the plant to mine site at 3400 masl to be

constructed

ROADSCAPEX US $2M

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FEASIBILITY STUDY SUMMARY1

• Average annual production of 97,931 oz gold & 160,8572 oz gold equivalent over 5 year initial mine life

• LOM cash cost per oz gold2

– Co-product basis: : US$451.38– Gold-equivalent basis: US$274.80– By-product basis: (US$126.91)

• Estimated CAPEX US$68 million

• Operating costs US$28.31 per tonne

• 1 year payback

1 Summary of July 2010 Optimized Feasibility Study. SRK are currently upgrading this study.

2 Price deck for AuEq: Gold $900/oz, Copper $2.50/lb, Lead $0.70/lb, Zinc $0.75/lb

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FEASIBILITY STUDY FINANCIALSAFTER TAX FREE CASH FLOW & NPV SENSITIVITY ANALYSIS ON A PROJECT BASIS 1

GOLD PRICE TOTAL FREE CASH FLOW

5 YEARAVERAGE FREE

CASH FLOW

NPV 8% NPV 10%

$900 $264,691,245 $52,938,249 $215,191,049 $203,542,333

$1,000 $295,525,040 $59,105,008 $249,917,929 $227,112,434

$1,100 $326,366,991 $65,273,398 $265,057,808 $250,688,663

$1,200 $357,185,186 $71,437,037 $289,974,787 $274,246,114

PROJECT REVENUE DISTRIBUTION 2

Au Ag Cu Pb ZnRevenue % 65.5 5.9 20.3 4.5 3.8

1. Prices: $12 Ag, $2.50 Cu, $.70 Pb, $.75 Zn2. Prices: $900 Au, $12 Ag, $2.50 Cu, $.70 Pb, $.75 Zn

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FINANCINGCAPITAL COSTS US $ MM

Project Costs $49

IGV (Refundable Tax) $9

Contingency $7

Start-up Facility $3

Total Capital Cost $68

SOURCE OF FUNDS US $ MM

Senior Secured Project Debt Facility $68

Subordinated Debt $15

Total Capital Cost & Overrun Facility $83

$15M already invested in the project by Andean American GoldSenior Secured Project Debt Facility underwritten by internationalbanks Barclays Capital and West LBSubordinated Debt Facility to be negotiated with Trafigura BeheerB.V..

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STRATEGIC RELATIONSHIP WITH TRAFIGURA BEHEER

• Major shareholder: 19.5% interest

• Offtake agreement for all base metal concentrates

• World's second largest independent non-ferrous trading company & third largest independent oil trader

• Existing presence, network and global logistics in Peru

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RESERVES AND RESOURCESCATEGORY TONNES DENSITY GOLD SILVER COPPER LEAD ZINC GOLD

g/t g/t % % % OzMeasured 868,000 2.77 2.71 31.26 0.69 0.73 0.61 75,724

Indicated 9,866,735 2.73 1.99 14.74 0.4 0.28 0.27 632,336

Inferred 14,224,661 2.75 0.67 11.2 0.36 0.24 0.15 306,913

MINEABLE RESERVES – FIRST FIVE YEARSTonnes 7,807,157

Metal Au Ag Cu Pb Zn

Grade (g/t or %) 2.14 18.76 0.52% 0.38% 0.30%

Contained Metal (oz or lb) 538,946 4,724,589 89,476,265 65,386,501 51,620,922

Metals expressed in AuEqOunces *

538,946 65,619 248,545 50,856 43,017

* Price deck for AuEq: Gold $900/oz, Copper $2.50/lb, Lead $0.70/lb, Zinc $0.75/lb

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INVICTA PROPERTY MAP• Invicta project covers 28,200 hectares• Located in a prolific mining district

Flor de Lotopast producing Au/Ag mine

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INVICTA LONGITUDINDAL SECTION 2.7 KM MINERALIZED STRUCTURE

20,000 m drill program to be completed during construction to extend mine life to 12 years

Measured

Indicated

Inferred

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MINERAL PROCESSING FLOWSHEET

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(internal)

NEXT STEPS TOWARD PRODUCTION

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ESTIMATED TARGET DATE

ACTIVITY

Q2 2011 Complete community agreements

Q2 2011 Start of construction following signed community agreements

Q3 2011 Start exploration drilling to expand Invictaresource & LOM

Q3 2011 Completion of independent engineering technical report

Q3 2011 Debt financing approval, drawdown subject to achievement of certain conditions precedent

Q4 2011 Receipt of construction permit approx. 6 months after community agreements are signed

Q3 2012 Revised expanded resource including results from planned definition drilling

Q2/Q3 2012 Commissioning 12 months after start of construction

All dates are estimated and dependent on satisfactory completion of previous steps in the process. Please see the Safe Harbour Statement on slide 2.

ANDEAN AMERICAN ADVANTAGES• Near term low cost

production• Potential for resource

expansion• Projected production

160,000 AuEq Oz p.a.• Well funded• Undervalued• Production-ready

management team• Strong strategic partners• Located in well established

mining region

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ACTIVE COMMUNITY ENGAGEMENT

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Andean American is committed to cooperative and mutually beneficial mine development• We have strong community relationships • Regular & ongoing community meetings• Significant socio-economic contribution:

o 30,000 trees planted on 38 hectareso Established peach plantation of 2 hectares, including agricultural engineeringo Upgrading & maintenance of 12km of water canals for local communitieso Creation of detailed technical engineering project for the development of 220 hectares of agricultural land to benefit the communities.o Support for cultural events

COMPARISON TABLECOMPANY MARKET CAP EST. ANNUAL

PRODUCTIONOz/Au

EST. BY-PRODUCT CASH COST/OZ

EST. ANNUAL FREE CASH FLOW

($1,100 Au)

MULTIPLE OF EST. ANNUAL

FREE CASH FLOW

EST. EV/OZ AuEq GLOBAL

RESOURCE

Timmins Gold $290,000,000 90,000 $412 $44,100,000 6.6 $242

Brigus Gold $320,000,000 90,000 $600 $25,000,000 12.8 $69

Luna Gold Corp $330,000,000 90,000 $450 $39,000,000 8.5 $253

Gold Resource Corp

$1,230,000,000 100,000 $200 $60,000,000 20.5 n/a

Minefinders $791,000,000 85,000 $450 $35,000,000 22.6 $110

Alamos Gold $1,750,000,000 170,000 $338 $98,000,000 17.9 $273

Average $785,166,667 100,833 $408 $50,183,333 15.6 $189

Andean American $130,000,000 97,000 -$126 $65,000,000 2.0 $15*

Company comparisons are for illustrative purposes only and are based on publicly available information. Andean American Gold is not responsible for the validity of this information. The Company’s projects are not currently in production and all estimates are based on data from the Invicta Project Feasibility Study of July 2010. Please refer to the Safe Harbour statement on slide 2.*Global resource includes all attributable ounces including 60% ownership in Sinchao, where title review is currently underway

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THANK YOU

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For more information:

Andean American Gold

Suite 1340-1090 West Georgia StreetVancouver, BC V6E 3V7Tel: 604 681 6186Fax: 604 681 3652

www.AAGgold.com

TSX:V AAG