Issue of shares

31 December 2015

Andes Energia plc

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

Issue of shares

Further to the announcements released on 2 September 2014 and 27 October 2014, the Board of Andes (AIM: AEN; BCBA: AEN) is pleased to announce that under the terms of the agreement with Trayectoria Oil & Gas ("TOG"), Andes has now issued 4,865,679 Andes ordinary shares of 10p each ("Ordinary Shares") at 47p per ordinary share and a rate of exchange of US$/£1.6705 following the transfer to Andes of US$3.8 million in cash for the financing of the guarantees for two of Andes' Colombian exploration blocks LLA 2 and LLA 12 and granted warrants to subscribe for 7,000,000 Ordinary Shares at 60 pence per Ordinary Share with a 2 year exercise period. The cash received by Andes under this transaction will remain restricted in support of the guarantees and will be released as the various exploration commitments on these blocks are met.

Application for Admission and Total Voting Rights

Application has been made for the 4,865,679 new Ordinary Shares to be admitted to AIM, which is expected to become effective on 6 January 2016.

Following admission of the 4,865,679 new Ordinary Shares, the total number of issued Ordinary Shares will be 605,504,802 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 Conduct Authority's Disclosure and Transparency Rules.

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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 £116m. 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 3,200* boepd in Argentina and Colombia from 6 conventional fields in Argentina and 2 in Colombia, with positive cash flows generated.

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