Drilling of well YPF.MdN-MdV.x-1. Manzano West

9 July 2013

Andes Energia plc

("Andes" or "the Company")

Drilling of well YPF.MdN-MdV.x-1.

Manzano West block, Argentina

The Board of Andes (AIM: AEN; BCBA: AEN), a Latin American E&P group, is pleased to announce that the JV of Andes and YPF S.A. ("YPF") has drilled and cased the vertical exploration well YPF.MdN-MdV.x-1.

Highlights:

·; The well YPF.MdN-MdV.x-1. has been successfully drilled and cased to a depth of 1,740 metres (5,708 feet )

·; Primary Target : Neuquén Group formation

Manzano West block

The Manzano West block covers 92,350 acres (373 km²) and is located in the north western part of the Neuquén basin in west-central Argentina.

AEN holds a 100% interest in the Agrio formation and 40% in the other formations. As part of the farm-out agreement with YPF, the well was spudded on 11 May 2013, with the main aim of appraising the potential of the Neuquén Group.

Drilling operations were conducted by YPF and several oil shows were detected in the lower Neuquén formations.

The well is waiting for the availability of a completion rig to undertake well testing.

Qualified Person Review

In accordance with AIM guidance for mining, oil and gas companies, Mr. Juan Carlos Esteban has reviewed the information contained in this announcement. Mr. Juan Carlos Esteban, an Officer of the Group, is a petroleum engineer with over 20 years of experience and is a member of the SPE (Society of Petroleum Engineers).

For further information please contact:

Note to Editors:

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