Issue of Equity

21 August 2013

Andes Energia plc

("Andes" or "the Company" or "the Group")

Acquisition transaction fee

Further to the announcement released on 11 April 2013, the Board of Andes (AIM: AEN; BCBA: AEN), has, under the terms of the stock purchase agreement with the Ketsal vendors, exercised its option to satisfy the transaction fee payable to the vendors' advisors by the issue of 7,677,980 new ordinary shares at a price of 32 pence per share and the grant of 2.3 million warrants at 40 pence, with a 7 year term and 2 year vesting period.

Application for Admission and Total Voting Rights

Application has been made for the 7,677,980 new ordinary shares to be admitted to AIM, which is expected to become effective on 27 August 2013.

Following admission of the 7,677,980 New Ordinary Shares, the total number of issued ordinary Shares will be 513,999,635 Ordinary Shares. 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 Service 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.