Issue of Equity and Grant of Warrants

4 November 2013

Andes Energia plc

("Andes" or the "Company")

Issue of Equity and Grant of Warrants

The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, announces, pursuant to the terms of Mr Jotayan's service agreement as Chief Executive Officer and a Director of the Company, the grant of warrants (the "Warrants") over 2,000,000 ordinary shares in Andes ("Ordinary Shares") to Mr Jotayan and the payment of a success fee in relation to the award of licences in Colombia to be satisfied by the issue of 770,833 ordinary shares in Andes. Subject to the terms of the warrant instrument, the Warrants are exercisable at any time up to November 2020 at an exercise price of 40p per Andes ordinary share.

Mr Alejandro Jotayan holds no other interests in the Company's share capital, other than the interests disclosed above.

Application has been made for admission to AIM ("Admission") of the 770,833 new Ordinary Shares and it is expected that Admission will occur on 7 November 2013.

Total Voting Rights

Following Admission of the 770,833 Ordinary Shares, the total number of Ordinary Shares in issue will be 514,770,468. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

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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.