PGR.L Regulatory News (PGR)

3 November 2011

Andes Energia plc

("Andes" or the "Company")

Issue of new equity and total voting rights

The Company has been notified that, under the existing debt facility with Genipabu Investments LLC ("Genipabu"), Genibapu has exercised its option to covert the balance of the principal amount outstanding into ordinary shares of Andes of 10p each ("Ordinary Shares") and has further agreed to take Ordinary Shares for interest due for the period from 15 May 2011 to 31 October 2011 at a price equal to the higher of 20 pence per Ordinary Share and the average share price for the 90 days prior to the date of issue.

The conversion of US$3,591,820 of the balance of the principal outstanding and interest due for the period from 15 May 2011 to 31 October 2011 will be satisfied by the issue of 10,816,740 new Ordinary Shares at a price of 22p per share.

Application has been made for the 10,816,740 Ordinary Shares to be admitted to AIM. It is expected that admission of the new Ordinary Shares will become effective on 8 November 2011.

After admission of the new Ordinary Shares, Genipabu will own 27,611,282 Ordinary Shares representing approximately 17.6 per cent. of the Company's enlarged issued share capital.

Total Voting Rights

Following admission of the 10,816,740 Ordinary Shares, the total number of issued Ordinary Shares will be 157,025,217 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

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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.