2 October 2015

ANDES ENERGIA PLC

("Andes" or the "Company" or with its subsidiaries the "Group")

Brazil

Andes (AIM: AEN; BCBA: AEN), the Latin American E&P group, announces the termination of its joint venture agreement in Brazil.

We have previously indicated that Brazil was not the focus of our development activities and we have now, mutually agreed with our partner in Brazil, to terminate the joint venture agreement without further obligations.

Enquiries:

Note to Editors:

Andes Energia plc is an oil and gas exploration and production company focused on onshore assets in South America with a market capitalisation of circa £140m. The Company has its main operations in Argentina and Colombia.

The Company has approximately 25* MMbbls of conventional 2P reserves, and it also has certified prospective resources of 640 MMboe, primarily in the Vaca Muerta unconventional development in Argentina and over 7.5 million acres across South America.

The Company has approximately 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, currently producing 45,000 boepd. Over 300 wells have already been drilled and fracked in the Vaca Muerta formation.

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

The Company currently produces approximately 3,226* boepd in Argentina and Colombia from 6 conventional fields in Argentina and 2 in Colombia, with positive cash flows generated.

*Includes 100% of Interoil's net reserves and production in which Andes holds a 51% interest