2009-02-18 16:01 PT - News Release

Mr. Art Johnson reports

MINERA ANDES COMPLETES FIRST TRANCHE OF PRIVATE PLACEMENT WITH ROBERT R. MCEWEN

Minera Andes Inc. has issued 18,299,970 common shares of the corporation to Robert R. McEwen, a director and existing shareholder of the corporation. The shares were issued in the first tranche of the transaction with Mr. McEwen (under amended terms announced yesterday in Stockwatch news, Feb. 17, 2009) at a price of $1 per share for gross proceeds to the corporation of $18,299,970.

Of the funds that have been received from Mr. McEwen, $11.3-million (U.S.) will be used to satisfy the cash call made in respect of the corporation's 49-per-cent interest in the San Jose project, operated by Minera Santa Cruz S.A. (MSC) and the balance will be used for exploration and working capital.

The corporation also announced that it has been advised by Hochschild Mining PLC that Hochschild has withdrawn its proposals to make a takeover bid for the corporation's common shares or to acquire those shares by way of a plan of arrangement or to acquire the corporation's interest in the San Jose project. Hochschild also confirmed that the amounts due to MSC pursuant to its cash call must be paid by March 3, 2009.

As a result of the issuance of 18,299,970 common shares to Mr. McEwen, he now owns or exercises control or direction over 64,357,113 common shares or approximately 30.9 per cent (increased from approximately 24 per cent) of the issued and outstanding common shares of the corporation. Mr. McEwen also has the right to appoint an additional director, with the result that he now has the right to nominate a total of three directors to Minera Andes's board of directors.