TORONTO, ONTARIO--(Marketwire - Sept. 22, 2011) -

US Gold Corporation ("US Gold") (NYSE:UXG)(TSX:UXG) and Minera Andes Inc. ("Minera Andes") (TSX:MAI)(OTCBB:MNEAF) are pleased to announce that US Gold and Minera Andes have entered into an arrangement agreement dated September 22, 2011 (the "Arrangement Agreement"), pursuant to which US Gold and Minera Andes will combine to form McEwen Mining.

Under the terms of the Arrangement Agreement (and as previously announced in US Gold and Minera Andes' joint news release dated September 2, 2011) holders of Minera Andes common shares will receive 0.45 (the "Exchange Ratio") shares of a subsidiary of US Gold which are exchangeable for common shares of US Gold for each 1 common share of Minera Andes held. This transaction will be carried out pursuant to the Arrangement Agreement under a court-approved statutory plan of arrangement governed by the Business Corporations Act (Alberta).

The special committees of US Gold and Minera Andes have each obtained a valuation and a fairness opinion from their respective independent financial advisors to the effect that, subject to the assumptions, qualifications and limitations contained therein, the Exchange Ratio is fair, from a financial point of view, to their respective shareholders (other than Rob McEwen). The US Gold and Minera Andes boards of directors have each unanimously determined, based on, among other things, recommendations from their respective special committees, that the transaction is in the best interest of their respective companies and is fair to their respective shareholders. The directors and senior officers of each company (including Rob McEwen) have also entered into a customary support and voting agreement to vote their shares in favour of the arrangement. Closing of the transaction is expected to occur in late 2011.

The Arrangement Agreement includes customary deal protection and non-solicitation provisions including reciprocal break fees (equal to approximately 3% of the market capitalization for each company as of September 1, 2011) and fiduciary-out provisions.

The completion of the business combination remains subject to customary approvals, including stock exchange, court approval and approval by shareholders of US Gold and Minera Andes, including minority shareholder approval that excludes the votes of Rob McEwen and certain other interested persons.

The Arrangement Agreement will be filed under each of US Gold and Minera Andes' profiles on SEDAR (www.sedar.com) and EDGAR (www.sec.gov). The terms of the Arrangement Agreement will also be described in detail in the management information circulars of US Gold and Minera Andes to be filed with the regulatory authorities and mailed to US Gold and Minera Andes shareholders in accordance with applicable securities laws. The record date and date of the special meetings of the shareholders of US Gold and Minera Andes will be announced in the near future.

Based on today's closing price, McEwen Mining would have a market capitalization of approximately US$ 1.3 billion with approximately 267 million shares outstanding. Robert McEwen, current Chairman and President/CEO of each of Minera Andes and US Gold will hold a 25% interest in the combined company valued today at approximately US$ 325 million.

Raymond James Inc. served as the independent financial advisor to the special committee of US Gold and RBC Capital Markets served as independent financial advisor to the special committee of Minera Andes.

ABOUT US GOLD (www.usgold.com)

US Gold's objective is to qualify for inclusion in the SP 500 by 2015. US Gold explores for gold and silver in the Americas and is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production. US Gold's shares are listed on the NYSE and the TSX under the symbol UXG, trading 1.9 million shares daily during the past twelve months. US Gold's shares are included in SP/TSX and Russell indices and Van Eck's Junior Gold Miners ETF. Rob McEwen, Chairman and CEO, owns 20% of the shares of US Gold.

ABOUT MINERA ANDES (www.minandes.com)

Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine in close proximity to Goldcorp's Cerro Negro project; 100% ownership of the Los Azules copper deposit and 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project in Santa Cruz Province. As of June 30, 2011, Minera Andes had $22 million in cash and short-term investments, with no bank debt. Rob McEwen, Chairman and CEO, owns 30% of the shares of Minera Andes.

Hg