Minera Andes files short-form prospectus
Ticker Symbol: C:MAI

Minera Andes files short-form prospectus

Minera Andes Inc (C:MAI)
Shares Issued 230,648,851
Last Close 7/31/2009 $0.71
Friday July 31 2009 - News Release

Mr. Art Johnson reports

MINERA ANDES FILES PRELIMINARY SHORT FORM PROSPECTUS FOR PREVIOUSLY ANNOUNCED CDN$20 MILLION EQUITY FINANCING

Minera Andes Inc. has filed a preliminary short-form prospectus in Canada in relation to the previously announced $20,025,000 financing (see Stockwatch news dated July 24, 2009). A syndicate of underwriters led by Canaccord Capital Corporation and including Scotia Capital Inc., GMP Securities LP and Haywood Securities Inc. has entered into an agreement with the corporation to purchase for resale to the public, and the corporation has agreed to issue, 26.7 million units at a price of 75 cents per unit.

In addition, the corporation has agreed to grant the underwriters an option to purchase additional units of Minera Andes to raise additional gross proceeds of up to 15 per cent of the offering, on the same terms and conditions as the offering, exercisable any time, in whole or in part, up to 48 hours prior to the closing date of the offering. If the overallotment option is exercised in full, the total gross proceeds to Minera Andes will be $23,028,750. For additional detail, please refer to the corporation's news in Stockwatch dated July 24, 2009.

The offering is expected to close on or about Aug. 19, 2009, and is subject to normal regulatory approvals, including the approval of the Toronto Stock Exchange.

The net proceeds from the offering are expected to be used to finance the corporation's general administrative expenses to maintain capacity for the next 12 months; to evaluate its portfolio of exploration properties; for the corporation's Los Azules project (including making property payments in respect thereof); and for working capital.