Minera Andes Inc (C:MAI)
Shares Issued 230,158,851
Last Close 3/13/2009 $0.64
Monday March 16 2009 - News Release

Mr. Art Johnson reports

MINERA ANDES PAYS OFF OUTSTANDING MACQUARIE LOAN OF US$17.5 MILLION

Minera Andes Inc. has repaid in full the corporation's indebtedness to Macquarie Bank Limited of Australia. The total indebtedness was $17.5-million (U.S.), which consisted of a loan of $7.5-million (U.S.) due on or about March 7, 2009, and a loan of $10-million (U.S.) due in September, 2009. The corporation no longer has any bank debt.

With the repayment of the indebtedness to Macquarie and the payment of $11.3-million (U.S.) to satisfy the cash call made in respect of the corporation's 49-per-cent interest in the producing San Jose gold/silver mine operated by Minera Santa Cruz SA, the corporation has met its current financial obligations. As previously announced San Jose is forecast to produce approximately 7.5 million ounces of silver and 95,000 ounces of gold in 2009.

Allen V. Ambrose, president and chief executive officer of Minera Andes, said: "We are pleased to report that, with the completion of the private placements of $40-million from Rob McEwen, we have paid off our bank debt and cleaned up our balance sheet. With the company's financial condition improved, management will be able to focus on increasing shareholder value by increasing its exploration drilling activities on its high-potential 100-per-cent-owned prospects in the San Cruz province of Southern Argentina."

The funds for the payment of the cash call and repayment of the indebtedness to Macquarie were obtained via private placements with Mr. McEwen, a director of Minera Andes and the company's largest shareholder. Mr. McEwen purchased 40 million shares of Minera Andes for $40-million ($1 per share). The details of the private placements with Mr. McEwen have been the subject of previous news releases by Minera Andes