Minera Andes Incorporated - Los Azules Copper Project

San Jose Project Los Azules Copper Project Exploration

A Highly Prospective Copper Discovery

The Los Azules copper discovery is emerging as a very large copper porphyry system.

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Located in western San Juan province, Los Azules has an independently-calculated inferred mineral resource of 922 million tonnes grading 0.55 percent copper, and containing 11.2 billion pounds of copper. This resource, at 0.35 percent total copper cutoff grade, is defined by an area approximately 3.7 kilometers by one kilometer in size. Exploration has determined the existence of a high-grade near-surface copper core, exceeding one percent in grade. Los Azules is open at depth and at least three kilometers to the north where exploration suggests the extension of Los Azules into a valley.

The presence of a high-grade, near-surface core is important in that it may benefit the economics of the Los Azules project. If the decision is made to develop a mine at Los Azules, near-surface high-grade deposits could be produced which may help recapture capital costs sooner. Other positive economics include favorable metallurgy, simple processing technology and a large mineral resource with good potential to grow.

Since the discovery of Los Azules about four years ago, Minera Andes has engaged in successive drill programs which have located new mineralization. Some 83 drill holes have produced 19,680 meters of drill core samples. Including the inferred mineral resource estimate, four years of field work are now included in an economic scoping study for Los Azules. A preliminary engineering report has also been compiled.

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Minera Andes has a 100% earned-in interest in the Los Azules property and is focussing on aggressively continuing to explore + develop this property. (please see our news release dated Oct 2, 2009 for further information)

Since discovery, subsequent exploration at Los Azules has encountered features associated with many copper porphyry systems. Programs have been conducted to test the grade and continuity of known leachable (chalcocite) copper mineralization. In the discovery zone, strongly leached cap rock extends from the subcrop to as much as 161 meters beneath the surface followed by an enriched zone of secondary mineralization (chalcocite) over a zone of secondary and primary (chalcopyrite) copper mineralization.

Maps

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