Progress Update at Minera Andes' San Jose Gold/Silver Project.

SPOKANE, Wash. -- Minera Andes Inc. (TSX VENTURE:MAI) (OTCBB:MNEAF) is pleased to announce that progress at its San Jose high-grade gold/silver joint venture in southern Argentina continues at an accelerated pace. In addition as previously reported, four new veins outside of the reserves under development have been discovered on the project during the last six months.

During 2005, the development of underground infrastructure such as tunnels, ore passes and vertical structures totaled 2,837 meters, an average of about 236 meters per month. Total completed underground workings over the past two years aggregate almost 5,300 meters.

Allen Ambrose, president of Minera Andes said "The continued intensity of the underground and surface work programs by our operating partner in 2005 are part of the process taking the San Jose project closer to a formal production decision."

Exploration - A New Mining District

Early in its exploration history, the 99,000-acre San Jose project revealed its potential to emerge as a mining district that could be in production for many years to come. Although more exploration will be required, the success to date at the original San Jose project, as well as numerous other subsequent discoveries, indicate that a mining district is beginning to be delineated. Four new veins have been reported within the last six months, and less than 15 percent of 32 kilometers of known vein trends drill-tested so far. About ten other drill targets are also known to exist and warrant further testing. Over 5 kilometers of geophysical resistivity anomalies exist on trend and parallel with the currently known veins, and extend to the northeast of the San Jose project.Drilling to date on this type of anomaly has a 100 percent success rate for finding vein. The exploration is being done by Minera Andes' joint venture operating partner, Mauricio Hochschild & Cia. Ltda. of Lima, Peru. Minera Andes owns 49 percent of the San Jose project, and Hochschild, 51 percent.Including consultants, approximately 260 personnel are working at the site.

Further exploration is planned for the current field season. This work will include the completion of a large geophysical gradient array IP geophysical grid in the northern portion of the project where no drilling has been conducted to date.Previous sampling in the Aguas Vivas area, 10 kilometers north on trend of the Huevos Verdes vein, revealed gold values up to 15 g/t. Drilling of approximately 9,000 meters on several targets is planned for this field season.

Minera Andes is a gold, silver and copper exploration company working in Argentina.Minera Andes holds about 500,000 acres of mineral exploration land in Argentina, including the co-owned San Jose silver/gold project now under construction and feasibility consideration for possible mine production. Minera Andes is also exploring an enriched copper zone at its Los Azules property and is acquiring other exploration targets in southern Argentina. The Corporation presently has 110,027,637 issued and outstanding shares.

This news is submitted by Allen V. Ambrose, president and director of Minera Andes Inc.

For further information, please contact: Art Johnson at the Spokane office, or Krister A. Kottmeier, investor relations - Canada, at the Vancouver office. Visit our Web site: www.minandes.com.

FORWARD-LOOKING STATEMENT - Although Minera Andes believes many of its properties have promising potential its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, mineralization may be economically extracted. There can be no assurance that the San Jose/Huevos Verdes gold/silver project will be found to be economically feasible or that a mine will be successfully constructed.In addition, Minera Andes' joint venture partner, Mauricio Hochschild & Cia. Ltda., does not accept responsibility for the use of project data or the adequacy or accuracy of this release.

This news is submitted by Allen V. Ambrose, president and director of Minera Andes Inc.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESP ONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Minera Andes Inc. (TSX VENTURE:MAI) (OTC Bulletin Board:MNEAF)