SPOKANE, WA––March 27, 2008–– Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) announced today details of the San José mine performance to 31 December 2007. The San José project is operated by Minera Santa Cruz S.A. (“MSC”) and is owned 51% by Hochschild Mining plc (“Hochschild”) (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange) and 49% by Minera Andes. The San José mine commenced production during the second quarter of 2007 and approached full production by year-end 2007. Hochschild forecasts that the processing plant, which is still in the commissioning phase, is to reach full capacity in the first half of 2008. Plans are underway to expand the mine and double the current production rate by year-end 2008.

Exploration

In 2007, we saw significant growth in the San José project through its exploration program results. The last independent NI43-101 Technical Report commissioned by Minera Andes was released in November 2007 and showed an increase in reserves at San José of more than 100%, based on surface drilling and under ground exploration completed in 2006 through the first half of 2007.

On March 12, 2008, Hochschild released updated resource and reserve estimates at San José in their Preliminary Results for Year Ended 31 December 2007. These results show an increase in reserves of 19% and an increase in resources of 28% over the year ended 31 December 2006 JORC Code results. Currently Minera Andes cannot endorse these results as only a part of the data on which the resource /reserve calculations are based has been released to Minera Andes. Minera Andes is in the process of obtaining this information and will review the data and report on the results as soon as practicable. Exploration work completed in the second half of 2007 includes 20,274 meters (82 holes) of drilling mainly on Frea, Odin, and Ayelén veins and several hundred meters of drifting along the Frea vein. Receipt of assay results is underway for 19 drill holes. The Frea, Odin, and Ayelén veins all have mineral potential and remains open at depth and along strike.

MSC plans a 2008 exploration program at San José consisting of mapping, compilation and interpretation of all project data on a district scale (115 km2) to identify new targets. Approximately 4,000 meters of surface drilling and 3,800 meters of underground drilling are planned for 2008 as a follow-up on the targets generated from the surface work.

Expansion

Based on the significant increase in the reserves during 2007, the board of MSC last November approved an expansion at San Jose from 750 to 1,500 tonnes per day, thereby doubling the rate of production at San José. Minera Andes anticipates the expansion to be completed by year-end 2008.

Various pieces of new equipment have been ordered by MSC for the mine expansion, including a new ball mill, flotation cells, a crusher and other ancillary equipment. Also, work to connect to the national power grid is underway, and this connection is forecast to provide significant cost savings over the on-site diesel generators that currently supply the electrical power to the project. Following connection to the power grid, the diesel generators will be retained as a backup power supply.

Production

The San José mine now comprises more than 13 km of underground workings accessed by ramps accessing the Huevos Verdes and Frea veins. A third ramp has also been constructed to access the Kospi vein, where 173 meters of the vein have been developed to date. The mine is currently staffed with 436 employees and 148 contractors.

The San José gold/silver mine saw a steady increase in production in Q4 2007 as reported by MSC to the owners. The San José mine is currently operating at rate of 750 tonnes per day. The first sales of metal from the mine occurred in December of 2007. The sales of the metals that were produced during the construction/commissioning phase of the plant went to reduce the capital required for 2007. At year-end the mine had had about 90% of its metal in inventory in the form of concentrates and doré. Several contracts are in place to sell doré and concentrate production.

SAN JOSE MINE PRODUCTION

*855 ounces of gold and 42,379 ounces of silver were produced during construction phase of the plant and have been recorded as a reduction to the capitalized cost of the plant.

During the start-up of San José in Q2 2007, several factors contributed to delays in the processing plant becoming fully operational, including technical issues related to the mill and the flotation process; problems with the intensive leaching process that produces a precipitate that is converted into doré, and extreme August weather conditions. We are advised that although the processing plant is now operating at capacity, the intensive leaching process remains in the commissioning stage. Re-engineering work is currently underway to improve the detoxification process. The operator expects theses issues to be corrected in the first half of 2008.

Allen V. Ambrose, Minera Andes' President, who is an appropriately “qualified person” as defined by National Instrument 43-101, is responsible the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.

Minera Andes is a gold, silver and copper exploration company working in Argentina. The Corporation holds about 410,000 acres of mineral exploration land in Argentina including the co-owned San José silver/gold mine that has recently commenced production. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to define a resource. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 189,334,935 shares issued and outstanding.

This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.