Colombia award of blocks

26 November 2012

Andes Energia plc

("Andes" or "the Company")

Award of 7 Blocks - Open Round Colombia 2012

The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, following our announcement on 2 October 2012, is pleased to announce that Andes, through its subsidiary Andes Energía Argentina S.A., in a consortium ("Consortium") with Integra Oil & Gas SAS ("Integra"), a private registered company in France with operating activities in Venezuela that has a 26.39% interest in Lagopetrol S.A., has been awarded seven blocks in Colombia´s Agencia Nacional de Hidrocarborus ("ANH") 2012 Bidding Process. The blocks awarded are: Llanos 2, Llanos 12, Llanos 28, Llanos 49, Llanos 51, Llanos 79 and VMM 8. Andes has a 70% interest in the Consortium.

The Consortium was the most successful bidder for Class 1 blocks in the bidding process and the second most successful bidder overall, after Ecopetrol and its affiliates. The terms of the bids by the Consortium include the lowest royalty, in the range 9-15%, amongst the other successful bidders for Class 1 blocks.

Six of the seven awarded blocks are located in the Llanos basin, the most prolific oil basin in Colombia. These blocks are surrounded by fields that are currently in production. The seventh block, VMM8 is located in the "Valle Medio del Magdalena", which has high potential for conventional resources. The total area of the blocks awarded to Andes covers 470,000 acres.

Preliminary estimates by the Company indicate that there could be total recoverable resources of over 100 million barrels of oil in the seven blocks¹. The Consortium has already signed a finance agreement with Integra, under which Integra will fund the exploration program on blocks LLA 12, LLA 51 and LLA 79,

According to ANH's timetable, the contracts are expected to be signed on 6 December 2012. Subject to further data gathering and interpretation by the Consortium, the initial drilling campaign is expected to start in 2014.

The success of Andes in the bidding process, confirms that the Company has the potential to become one of the major players in Latin-American E&P. This step in the Company's development is part of its diversification strategy to acquire assets in highly competitive markets and highly valued by investors.

Nicolas Mallo Huergo, Chairman of Andes, commented, "We are very pleased with Andes's entrance into Colombia. Colombia has a prolific, productive and very profitable petroleum market. The skills of our people should allow us to develop and put into production the full potential of these blocks. We are looking to become one of the top ten reserves holders in Colombia within the next 5 years.".

For further information please contact:

Note to Editors:

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

¹ Please note that this figure has not been independently verified by a Competent Person.