PGR.L Regulatory News (PGR)

Andes Energia plc

("Andes" or "the Company")

EDELAR

The Board of Andes (AIM: AEN; BCBA: AEN), the Latin American energy group, is pleased to announce that it has entered into an option agreement to acquire a 78.44% indirect interest in the electricity distribution company Empresa Distribuidora de Electridad de La Rioja S.A. ("EDELAR").

The option agreement provides for an initial payment of US$1,500,000 and if the option is exercised a further payment of US$5,290,255 is due within 90 days of acceptance with a balance of US$15,000,000 due to be paid within 2 years of acceptance subject to annual interest of 12.5% per annum.

Neil Bleasdale, Chairman of Andes, commented: "This is an exciting opportunity for us to expand our electricity distribution business and we hope to complete this transaction by the end of the year".

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Note to Editors:

Andes is a Latin American energy group, with oil and gas, electricity distribution and hydro-electric power interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.