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Southern Andes Energy Encounters High Grade Uranium Mineralization at Tupuramani Concession in Peru

Southern Andes Energy Inc. (TSX VENTURE:SUR), has announced the discovery of high grading uranium mineralization from preliminary work on its Tupuramani concession in the Macusani Uranium District, Southeast Peru.

Highlights from reconnaissance trench and channel sampling from a small portion of a 1.5 kilometre long radiometric anomaly at Tupuramani, have returned high values of 3,214.3 ppm U3O8 or 0.32% U3O8 across 20 metres in Trench T- 2 and 3,590.4 ppm U3O8 or 0.36% U3O8 across 12 metres in Trench T-3.

The radiometric anomaly associated with the discovery at Tupuramani has been interpreted by Southern Andes' geologists as the westerly extension of the anomaly underlying the Colibri II-III uranium deposit owned by Macusani Yellowcake Inc. The Colibri II-III deposit has been reported to host NI 43-101 indicated resources of 5.4 million lbs U3O8 grading 0.027% U3O8 and an inferred resource of 15.1 million lbs U3O8 grading 0.020% U3O8 at a 75 ppm U3O8 cut-off grade, according to information published by Macusani Yellowcake Inc.

Commenting on the results, Nick Tintor, President and CEO of Southern Andes, stated that, "The results from Tupuramani are the highest grading uranium values we have seen so far from any of Southern Andes projects in Peru. We are finding consistent, high grading uranium values over good widths and excellent correlation between ground radiometrics and uranium mineralization." Tintor further added, "These high grading results further underscore the potential we see on Southern Andes dominant land position in the Macusani Uranium District."

The Tupuramani Concession

A review completed last year of ground radiometric data compiled by Southern Andes' predecessor company in 2006, led to the identification of a strong radiometric anomaly striking for 1.5 kilometres across the Tupuramani concession and on strike with the Colibri II-III project. A field examination of the anomaly was carried out last December and only a very limited amount of work was been completed prior to the Christmas break by the Company's staff in Peru. This work included trenching and channel sampling over 400 metres of the radiometric anomaly.

Mineralization, occurring primarily as secondary autunite uranium, is visible across the sampled areas and occurs as disseminations and open spaced filling of NNE to ESE trending fractures. The host rock is a flat lying porous, medium to coarse grained polymictic ignimbrite composed of 20% quartz fragments, 5% volcanic glass, 15% feldspar, 3% biotite and 1% andalusite. Black quartz crystals are more prominent and larger closer to zones of visible uranium mineralization.

The mineralized zone remains to be defined on surface and is open in all directions. Southern Andes plans to continue with its field program assessing the full extent of the radiometric anomaly at Tupuramani and on nearby concessions in February and prior to drilling in the second quarter of this year.

Tupuramani is the third uranium discovery Southern Andes has made in the Macusani Uranium District area following the Accocucho Sur discovery in September 2010 and at Alpi-1 in January 2011 in the Chacaconiza project area.

Qualified Person

Mr. Alain Vachon, P.Geo, Southern Andes Manager – Exploration and the Company's Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.

Source:

Southern Andes Energy Inc.

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