Award of a new exploration licence in Paraguay

25 November 2013

Andes Energia plc

("Andes" or "the Company")

Award of a new exploration licence in Paraguay

The Board of Andes (AIM: AEN; BCBA: AEN), is pleased to announce the award by the Government of Paraguay of new a exploration permit on a block named "Capitan Mesa", located in the Itapua Department in the southeast region of Paraguay. The exploration block covers an area of 825,000 acres and has been awarded to a 50%/50% consortium between Kilwer S.A., a wholly owned subsidiary of Andes and Integra Natural Resources LLC.

The San Alfredo formation is present in the block, a source of unconventional resources in the region.

Nicolas Mallo Huergo, Chairman of the Company, commented:"This new exploration block increases our exposure to the unconventional play in the Chaco-Paranaense basin in Paraguay. The market friendly policies of the Paraguayan Government and the prospectivity of the area make us very enthusiastic about the potential of this Country."

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Note to Editors:

Andes is a Latin American oil and gas group, with interests in Argentina, Colombia, Paraguay and Brazil. The Company's focus is on the oil and gas sector in South America, which it believes offers premium assets at undervalued prices.