Southern Andes Energys New Uranium Discovery at Alpi-1 Project in Peru

Southern Andes Energy Inc. is pleased to announce the discovery of widespread uranium mineralization from preliminary work on its Alpi-1 target in the Chacaconiza project area in the Macusani Uranium District, Southeast Peru.

Alpi-1 Discovery

Initial results from a comprehensive exploration program consisting of detailed mapping, hand-supported radiometric surveys, trenching and channel sampling from a portion of the Alpi-1 target have returned significant widespread uranium mineralization from intensely fractured volcanic ash and ignimbrites. The mineralized area is characterized by a radiometric anomaly striking for 1.5 kilometres that was outlined during a regional survey completed by the Company’s predecessor company in 2006.

Apli-1 is the second uranium discovery Southern Andes has made in the Chacaconiza project area following the Accocucho Sur discovery in September 2010. Alpi-1 is located approximately 6 kilometres northwest of Accocucho Sur. (Please visit our website for detailed project location maps at www.southernandes.ca)

Commenting on the results, Nick Tintor, President and CEO of Southern Andes Energy Inc., stated that “The results from Alpi-1, combined with the discovery of widespread uranium mineralization on surface at the nearby Accocucho Sur discovery underscores the significant potential we see in this new area.” Tintor further added that “These new discoveries are priority drill targets for our 2011 exploration program which is expected to begin early in the second quarter.”

The Company completed an exploration program in December 2010, in which a total of 42 trenches and eight channels totalling 402 metres were completed to test the most prominent portion of the radiometric anomaly. A total of 388 samples were collected. The samples were assayed for uranium and also a suite of 34 elements. A complete list of channel and trench sampling results are listed in the appendix at the end of this press release.