Group Production Update

3 February 2016

Andes Energia plc

("Andes" or "the Company")

Group Production Update

Further to the operational update on the Chachahuen licence issued on 25 January, the Board of Andes (AIM: AEN; BCBA: AEN) is pleased to provide an update on current production at a Group level based on the December 2015 sales and production reports.

Group production for December 2015 was 3,287* bpd.

Argentine licences production update for the month of December 2015:

• In Chachahuen, Chanares Herrados, Puesto Pozo Cercado, Vega Grande, La Brea and El Manzano average production was 2,036 bpd net to Andes

Colombian licences production update for the month of December 2015:

• In Mana and Altair average production was 1,251 boepd (62% Oil) net to Interoil, in which Andes holds a 26% interest

Nicolas Mallo Huergo, Chairman, commented: "We are pleased to see overall production continuing to grow."

For further information please contact:

Andes Energia plc Nicola Mallo Huergo, Chairman T: +54 11 4110 5150

Alejandro Jotayan, CEO

Billy Clegg, Head of Communications

Macquarie Capital (Europe) Jon Fitzpatrick T: +44 20 3757 2000

Fergus Marcroft

Guy de Freitas

Stockdale Securities Antonio Bossi T: +44 20 7601 6100

David Coaten

Camarco Gordon Poole T: +44 20 3757 4980

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 30 years of experience and is a member of the SPE (Society of Petroleum Engineers).

Note to Editors:

Andes Energia plc is an oil and gas exploration and production company focused on onshore assets in South America with a market capitalisation of circa £112m. The Company has its main operations in Argentina and Colombia.

The Company has approximately 25* MMbbls of conventional 2P reserves, and it also has certified prospective resources of 640 MMboe, primarily in the Vaca Muerta unconventional development in Argentina and over 7.5 million acres across South America.

The Company has approximately 250,000 net acres in the Vaca Muerta formation, which is the second largest shale oil deposit in the world and the only producing shale oil deposit outside of North America, currently producing 45,000 boepd. Over 300 wells have already been drilled and fracked in the Vaca Muerta formation.

Andes is the only AIM quoted company on the London Stock Exchange with exposure to the Vaca Muerta shale.

The Company currently produces approximately 3,300* boepd in Argentina and Colombia from six conventional fields in Argentina and two in Colombia, with positive cash flows generated.

*Includes 100% of Interoil's net reserves and production