11 December 2014

Andes Energia plc

("Andes" or "the Company")

Appointment of Financial Adviser and Joint Broker

and

US$5,000,000 debt facility

The Board of Andes (AIM: AEN; BCBA: AEN) is pleased to announce that Macquarie Capital (Europe) Limited ("Macquarie") has been appointed as Financial Adviser and as Joint Broker to the Company alongside GMP Securities Europe LLP ("GMP") and Westhouse Securities Limited ("Westhouse"). The appointment is with immediate effect.

The Board is further pleased to announce that it has entered into a US$5,000,000 debt facility (the "Facility") with Macquarie Capital Group Limited. The proceeds are to be used to support Andes through its exploration and development programmes throughout South America. The Facility carries interest at a rate of LIBOR plus 9.5%, which can be capitalised, and is repayable 1 year from the date of draw down, with the option to extend by 1 year, subject to the lender's consent. Andes has also issued Macquarie Capital Group Limited 7.5 million warrants with an exercise price of 43p per share.

Alejandro Jotayan, CEO of the Company, commented: "Macquarie's appointment as Financial Adviser and as Joint Corporate Broker, alongside GMP and Westhouse, puts the Company in a strong position as it continues to develop its material asset base. The Facility provides Andes with additional funding flexibility and further strengthens our ability to fast track various activities. We are delighted to welcome members of the Macquarie Group, a leading international financial institution with an excellent reputation and depth of experience in natural resources, as joint broker and lender to the Company. We see their involvement as a major indication of the strength of Andes and its projects."

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Note to Editors:

Andes Energia is an oil and gas company focussed on onshore South America with a market capitalisation of circa £210m. The Company has operations in Argentina, Colombia, Brazil and Paraguay, representing three of the largest economies and three of the four largest oil producing nations in South America.

The Company has 20MMbbls of conventional 2P reserves in Argentina and certified resources of 600MMBoe, primarily in the Vaca Muerta unconventional formation in Argentina and 7.5 million acres across South America.

The Company has approximately 2 million net acres in unconventional plays including 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 the USA. Over 250 wells have already been drilled and fracked in the Vaca Muerta formation.

Andes is the only AIM company on the London Stock Exchange with exposure to Vaca Muerta.

The Company currently produces 1,700 bbls per day in Argentina from 7 conventional fields, with positive cash flows generated. Andes Energia, with its partner YPF, has 30 wells planned over the next 12 months, which are fully funded by the field production cash flow.

Macquarie Capital (Europe) Limited is authorised and regulated by the Financial Conduct Authority.