AAG Aftermath Silver Ltd

Andean American Gold Corp. ("Andean" or the "Company") (TSX
VENTURE:AAG)(FRANKFURT:AQN) reports that for the year ended March 31, 2012, it
has recorded a net loss US$8,179,396 or US$0.04 per share compared to a net loss
of US$17,206,005 or US$0.11 per share for the same period in 2011. This was
mainly due to a write-off of exploration properties of $5,050,619 and
$11,465,806 for the years ended March 31, 2012 and March 31, 2011 respectively.
Andean ended the quarter with a cash position of US$15,527,132 and a working
capital surplus of US$12,826,925.


Andean is an international mining and Exploration Company focused on gold and
copper projects in Peru and currently has two key assets: the 31,600 hectare
Invicta gold-silver-copper advanced exploration stage project located in the
Huaura Province in Peru, and 65.81% of Sinchao Metals Corp. ("Sinchao"), a
company listed on the TSX-V trading under the symbol 'SMZ'. Sinchao is the owner
of a gold-silver-copper-zinc-lead exploration project. 


On March 2, 2012 Sinchao and Southern Legacy Minerals Inc. ("Southern Legacy"),
a private mineral exploration company organized under the laws of the State of
Idaho, announced that they have entered into an agreement to combine the two
companies by means of a share exchange or statutory arrangement (the
"Transaction"). The Transaction will consolidate a majority of Sinchao's deposit
claims, located within the Yanacocha-Hualgayoc mining district in the department
of Cajamarca, Northern Peru, and form a diversified mineral exploration company
with base and precious metals properties in Peru, Chile and Colombia. The two
companies have agreed to combine through Sinchao acquiring all of the issued and
outstanding common shares of Southern Legacy by means of a share exchange on the
basis of (0.8352) of a common share of Sinchao for each one common share of
Southern Legacy. The Transaction has been unanimously approved by the boards of
directors of both companies and the Sinchao shareholder meeting has been planned
for June 27, 2012 to approve the transaction. The Andean board has agreed to
support the transaction and will vote its current 65.81% in favour of the
transaction. On completion of the transaction, which includes a $7.1 million
financing, Andean will own approximately 17% of the combined company which will
be renamed Southern Legacy. 


On completion of the Transaction, Southern Legacy will repay all loans made by
Andean to Sinchao. At March 31, 2012, Sinchao owed Andean and its subsidiaries
$1,151,973. 


In November 2011, the Company announced that it had retained Paradigm Capital
Inc., as its financial advisor to conduct an analysis of the strategic
alternatives available to the Company in circumstances where the management and
Board believes that the market presents various merger and acquisition
opportunities. A number of these opportunities are currently under review by the
Company and its financial advisor.


Selected Financial Information

(Expressed in United States Dollars, except share capital amounts):



                                          March 31,      March 31,
                                               2012           2011
         ---------------------------------------------------------
         Net Loss for the year           $8,179,396    $17,206,005
         Loss per share                       $0.04          $0.11
         Total assets                   $57,947,351    $65,578,559
         Working capital surplus        $12,826,925    $21,997,770
         Mineral properties             $40,957,490    $37,214,016
         Share Capital:                                           
           Outstanding                  150,976,810    142,715,892
           Warrants                       2,500,000      5,589,368
           Options                        6,850,000      8,157,588
         ---------------------------------------------------------



Cash Flow and Liquidity

As at March 31, 2012, Andean had working capital surplus of US$12,826,925,
compared to a working capital surplus of US$21,997,770 at March 31, 2011. For
the year ended March 31, 2012, Andean used cash of US$10,673,809, which included
cash used in operations of US$4,735,015, expenditures on plant and equipment and
mineral properties and deferred costs of US$6,714,530. This was offset by
financing activities of $775,736. 


International Financial Reporting Standards ("IFRS")

The Company adopted IFRS on April 1, 2011, with a transition date of April 1,
2010. Under IFRS 1 First-time Adoption of IFRS, the IFRS are applied
retrospectively at the transition date of April 1, 2010. The effect of the
transition from Canadian Generally Accepted Accounting Principles ("Canadian
GAAP") to IFRS is not material and the explanation of how the transition from
Canadian GAAP to IFRS has affected Andean's financial position, financial
performance and cash flows are set out in the financial statements. 


The information above should be reviewed in conjunction with the Company's
audited consolidated financial statements, management discussion and analysis,
for the year ended March 31, 2012 that will be available shortly on
www.sedar.com. For further information call (416) 368-9500 or toll free:
1-888-356-4784 or visit our website at www.AAGgold.com.


On behalf of Andean American Gold Corp.,

Bruce Ramsden, Vice President, Finance and CFO

This news release may contain forward-looking information within the meaning of
the Securities Act (Ontario) ("forward-looking statements"). Such
forward-looking statements may include the Company's plans for its mineral
projects, the overall economic potential of its properties, the availability of
adequate financing and involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
expressed or implied by such forward-looking statements to be materially
different. Such factors include, among others, risks and uncertainties relating
to potential political risks involving the Company's operations in a foreign
jurisdiction, uncertainty of production and costs estimates and the potential
for unexpected costs and expenses, physical risks inherent in mining operations,
currency fluctuations, fluctuations in the price of gold and other metals,
completion of economic evaluations, changes in project parameters as plans
continue to be refined, the inability or failure to obtain adequate financing on
a timely basis, and other risks and uncertainties, including those described in
the Company's Financial Statements, Management Discussion and Analysis and
Material Change Reports filed with the Canadian Securities Administrators and
available at www.sedar.com.


This press release is not an offer to sell or the solicitation of an offer to
buy the securities, nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to qualification or registration under the securities laws of such jurisdiction.
The securities being offered have not been, nor will they be, registered under
the United States Securities Act of 1933, as amended and such securities may not
be offered or sold within the United States absent an applicable exemption from
U.S. registration requirements.

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