Exhibit 99.1

TSX: MAI NEWS RELEASE NASD-OTCBB: MNEAF

MINERA ANDES PROVIDES UPDATE ON EXPLORATION DRILLING

AT THE SAN JOSÉ MINE

TORONTO, ONTARIO – August 30, 2011 - Minera Andes Inc. (the "Corporation" or "Minera Andes") (TSX: MAI and US OTC: MNEAF) is pleased to announce the results of exploration drilling at its 49% owned San José mine in Santa Cruz Province, Argentina.  Drilling during the first half of the year was mainly dedicated to infill drilling, whereas drilling during the second half will focus on exploration for new resources.  A total drilling program of 50,600 meters is planned for 2011.  During the second quarter a total of 58 diamond core holes totaling 14,300 meters were drilled compared to 24 core holes totaling 5,411 meters during the first quarter.

The drilling successfully extended the Dos Lauras vein several hundred meters to the northwest and the known vein strike length is now just over 1,000 meters.  In addition, infill drilling was completed with good results on the Micaela, Luli, Susana and Marta veins.  Resources defined by the drilling will be reported as part of the year end resource update that will be released near the end of the first quarter of 2012.

A map of the principal veins at the San José mine is shown in Exhibit 1, and locations of some of the principal drill holes drilled during the quarter are shown in Exhibit 2.  Drilling results received for the drilling are provided in Exhibit 3 and highlights include:

·   Susana Vein

Hole SJD-864 – 0.56 m (meters) at 6.93 g/t (grams/tonne) Au and 1,504 g/t Ag

Hole SJD-875 – 0.88 m at 5.28 g/t Au and 441 g/t Ag

·   Luli Vein

Hole SJD-869 – 1.05 m at 16.89 g/t Au and 1,642 g/t Ag

Hole SJD-871 – 1.98 m at 19.55 g/t Au and 1,721 g/t Ag

·   Luli Cymoid Loop

Hole SJD-869 – 1.19 m at 5.54 g/t Au and 668 g/t Ag

Hole SJD-871 – 0.80 m at 44.48 g/t Au and 7,747 g/t Ag

Hole SJD-879 – 0.79 m at 11.9 g/t Au and 1,263 g/t Ag

·   Dos Lauras Vein

Hole SJD-884 – 1.37 m at 43.32 g/t Au and 5,314 g/t Ag

·   Micaela Vein

Hole SJD-889 – 1.32 m at 7.71 g/t Au and 825 g/t Ag

Hole SJD-895 – 4.03 m at 21.37 g/t Au and 2,285 g/t Ag

The vein system at San José continues to be open at depth and laterally.  As a result of the discovery of the east-west trending Micaela-Sofia vein system last year, previous drill results are being reinterpreted to define new drilling targets in and near the mine area in conjunction with new surface magnetic data and existing induced polarization geophysics data.

During the first half of 2011, 3,147 line-kilometers of surface magnetic lines spaced 75 meters apart were run covering 22,000 hectares (54,000 acres) southeast of the mine area.  The magnetic data is being

Minera Andes Inc.

News Release 11-19 Page 1

analyzed to define drilling targets southwest of the mine, an area that is covered by a layer of post-mineral basalt.  The magnetic data will be complemented by 342 line-kilometers of gradient array Induced Polarization (“IP”) to be run over the same area during the next four months as well as 25 line-kilometers of pole-dipole array IP.

About Minera Andes: Minera Andes is an exploration company exploring for gold, silver and copper in Argentina with three significant assets: One, a 49% interest in Minera Santa Cruz SA, owner of the San Jose Mine that is located near Goldcorp's Cerro Negro project; Two, 100% ownership of the Los Azules copper deposit with an inferred mineral resource of 10.3 billion pounds of copper and an indicated resource of 2.2 billion pounds of copper; Three, 100% ownership of a large portfolio of exploration properties in Santa Cruz province, Argentina, including properties bordering the Cerro Negro project.  The Company had $22 million USD in cash as at June 30, 2011 with no bank debt.  Rob McEwen, Chairman and CEO, owns 30% of the shares of the company.  On June 14, 2011 the Company announced that Mr. McEwen proposed to combine the Company with US Gold Corporation to create a high growth, low-cost, mid-tier silver producer focused on the Americas.  This transaction, subject to a number of approvals (including by the shareholders of the Corporation), is expected to close in late 2011.

About Minera Santa Cruz: Minera Santa Cruz SA is a joint venture owned 51% by Hochschild Mining Argentina, a wholly owned subsidiary of Hochschild Mining plc, and 49% by Minera Andes S.A., a wholly owned subsidiary of the Corporation. The joint venture owns and operates the San José property.

About Hochschild Mining plc: Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years of experience in the mining of precious metal vein deposits and currently operates four underground vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

For further information, please contact: Jim Duff or visit our Web site: www.minandes.com.

Jim Duff

Chief Operating Officer

99 George St. 3rd Floor,

Toronto, Ontario, Canada. M5A 2N4

Toll-Free: 1-866-441-0690

Tel:647-258-0395

Fax: 647-258-0408

E-mail: info@minandes.com

Technical Information:

This news release has been reviewed and approved by Jim Duff the Chief Operating Officer of the Corporation, a Qualified Person as defined by Canadian Securities Administrator National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“43-101”). Assay results were reported to Minera Andes by MSC, which is the operating company for the San José joint venture. Assay results for the drilling were reviewed by Jim Duff. All samples were collected in accordance with industry standards. Splits from checks of the drill core samples assay at the San José Mine laboratory were submitted to Alex Stewart Assayers, Argentina S.A. in Mendoza, Argentina, for fire assay and ICP analysis. Accuracy of results is tested through the systematic inclusion of standards, blanks and check assays. Jim Duff has reviewed the results of the check assays and other quality control measures.

Cautionary Note to U.S. Investors:

All resource estimates reported by the Corporation are calculated in accordance with 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

Minera Andes Inc.

News Release 11-19 Page 2

Caution Concerning Forward-Looking Statements:

This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, risks related to litigation, property title, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves and other risks.

Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's Annual Information Form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management.

Minera Andes Inc.

News Release 11-19 Page 3

Exhibit 1

Plan Map of Principal Veins at the San José Mine

Minera Andes Inc.

News Release 11-19 Page 4

Exhibit 2

 Drill Hole Location Map

Minera Andes Inc.

News Release 11-19 Page 5

Exhibit 3

 Surface Drilling Results from April 1, 2011 to June 30, 2011

Luli, Susana, Dos Lauras Extension, and associated splits and loops

Drill Hole	From (m)		To (m)		Intercept (m)		True Width (m)		Au (g/t)		Ag (g/t)		Vein
SJD‐864		217.29		217.89		0.60		0.55		0.01		5	Luli
SJD‐864		153.90		155.00		1.10		0.075		6.62		1,028	Orion
SJD‐864		177.79		178.40		0.61		0.056		6.93		1,504	Susana
SJD‐869		190.30		191.35		1.05		1.05		16.89		1,642	Luli
SJD‐869		122.00		122.95		0.95		0.73		0.11		5	Orion
SJD‐869		187.65		188.95		1.30		1.19		5.54		668	Luli Cymoid Split
SJD‐869		134.35		135.70		1.35		1.07		0.08		9	Susana
SJD‐870		228.15		228.90		0.75		0.55		1.34		102	Coiron
SJD‐870		247.75		248.75		1.00		0.72		3.77		9	Dos Lauras Extension
SJD‐870		248.75		249.75		1.00		0.72		0.86		53	Dos Lauras Extension
SJD‐870		129.55		130.90		1.35		1.23		0.28		52	Luli
SJD‐870		241.05		241.70		0.65		0.5		1.74		113	Neneo
SJD‐871		249.30		251.30		2.00		1.98		19.55		1,721	Luli
SJD‐871		245.95		246.95		1.00		0.8		44.48		7,747	Luli Cymoid Split
SJD‐872		118.75		128.45		9.70		7.9		5.85		229	Luli
SJD‐873		177.95		178.85		0.90		0.83		0.08		6	Luli
SJD‐873		137.20		138.55		1.35		1.06		0.58		64	Luli Cymoid Split
SJD‐874		345.10		345.80		0.70		0.65		0.02		6	Luli
SJD‐874		313.20		313.95		0.75		0.64		0.01		5	Oiron
SJD‐874		128.00		129.00		1.00		0.8		0.44		5	Perla
SJD‐874		334.95		335.95		1.00		0.82		0.01		4	Luli Cymoid Split
SJD‐874		317.00		317.75		0.75		0.6		1.99		187	Susana
SJD‐875		323.95		325.21		1.26		1.19		3.26		79	Luli
SJD‐875		144.00		145.30		1.30		0.8		0.52		92	Notro
SJD‐875		256.50		257.42		0.92		0.76		1.42		194	Orion
SJD‐875		310.82		311.80		0.98		0.59		2.67		83	Luli Cymoid Split
SJD‐875		305.51		306.61		1.10		0.88		5.28		441	Susana
SJD‐876		325.00		326.00		1.00		0.74		2.19		38	Coiron
SJD‐876		336.30		341.80		5.50		4.18		3.58		82	Dos Lauras Extension
SJD‐876		239.03		239.85		0.82		0.78		0.12		4	Luli
SJD‐876		334.00		335.38		1.38		0.86		2.83		146	Neneo
SJD‐876		189.96		190.70		0.74		0.61		0.77		60	Susana
SJD‐877		260.67		261.70		1.03		0.94		0.59		36	Luli
SJD‐877		212.50		213.30		0.80		0.62		0.12		1	Orion
SJD‐877		220.40		221.30		0.90		0.74		0.15		4	Susana
SJD‐878		148.40		149.30		0.90		0.42		0.77		148	Luli
SJD‐878		142.28		143.05		0.77		0.74		1.26		178	Luli Cymoid Split
SJD‐879		283.65		284.10		0.45		0.33		0.01		2	Dos Lauras Extension
SJD‐879		146.03		147.72		1.69		1.51		2.24		291	Luli
SJD‐879		137.88		138.70		0.82		0.79		11.90		1,263	Luli Cymoid Split
SJD‐880		103.40		104.70		1.30		0.92		0.01		5	Luli
SJD‐881		168.85		170.15		1.30		0.99		0.02		7	Luli
SJD‐883		377.82		378.23		0.41		0.3		1.91		62	Coiron
SJD‐883		280.10		281.10		1.00		0.82		0.46		47	Luli
SJD‐883		217.20		218.10		0.90		0.72		0.01		2	Molle
SJD‐885		124.90		125.60		0.70		0.6		1.05		88	Dos Lauras Extension

Sanson, Pablo G and Antonella Veins

Drill Hole

From (m)

To (m)

Intercept (m)

True Width (m)

Au (g/t)

Ag (g/t)

Vein

SJD-890

116.39

116.79

0.40

0.33

4.33

126

Sanson

Note:  Assays pending for Holes SJD-915, SJD-921, SJD-922 and SJD-925

Minera Andes Inc.

News Release 11-19 Page 6

Micaela, Sofia and Dos Lauras veins and associated splits and loops

Drill Hole	From (m)		To (m)		Intercept (m)		True Width (m)		Au (g/t)		Ag (g/t)		Vein
SJD‐884		131.30		132.92		1.62		1.37		43.32		5,314	Dos Lauras
SJD‐884		152.00		153.35		1.35		1.14		3.35		456	Sofia
SJD‐884		174.40		176.15		1.75		1.48		3.60		367	Sofia Footwall Cymoid
SJD‐884		188.50		190.20		1.70		1.44		2.71		143	Mara
SJD‐884		242.00		242.30		0.30		0.25		0.96		12	Frea 450 Split
SJD‐884		249.56		249.87		0.31		0.26		0.25		9	Micaela
SJD‐887		232.23		232.92		0.69		0.56		2.65		314	Marta
SJD‐888		121.72		124.70		2.98		2.44		3.99		259	Micaela
SJD‐889		131.20		132.50		1.30		1.08		2.02		274	Micaela HW Cymoid
SJD‐889		174.80		176.40		1.60		1.32		7.71		825	Micaela
SJD‐890		77.00		79.16		2.16		1.76		2.14		103	Micaela
SJD‐890		88.68		89.20		0.52		0.42		2.81		180	Micaela Footwall Cymoid
SJD‐890		107.16		107.86		0.70		0.57		2.38		243	Marta
SJD‐891		188.76		192.52		3.76		3.06		5.31		365	Micaela
SJD‐893		154.52		156.68		2.16		1.78		4.61		406	Micaela
SJD‐893		160.90		162.10		1.20		0.99		31.22		1,033	Marta
SJD‐894		210.14		212.35		2.21		1.8		0.17		10	Micaela
SJD‐894		214.36		216.05		1.69		1.37		0.06		3	Hera
SJD‐895		173.20		178.20		5.00		4.03		21.37		2,285	Micael
SJD‐895		185.00		187.65		2.65		2.14		21.70		2,035	Micaela Footwall Cymoid
SJD‐895		197.70		201.55		3.85		3.1		4.05		614	Hera
SJD‐897		144.55		149.35		4.80		3.94		2.75		292	Micaela
SJD‐897		158.50		161.40		2.90		2.3813		6.34		986	Hera
SJD‐900		124.00		127.30		3.30		2.68		0.54		135	Micaela
SJD‐901		153.00		153.50		0.50		0.41		1.17		65	Hera Footwall Cymoid
SJD‐902		129.35		133.45		4.10		3.31		1.67		173	Micaela
SJD‐902		133.45		134.45		1.00		0.81		0.15		127	Hera

Note:  No significant assays for Holes SJD-882 or SJD-924.  Holes SJD-864 and SJD-869 were started in the first quarter and finished in the second quarter.   Assays are pending for Holes SJD-886, SJD-892, SJD-896, SJD-898 through SJD-901, and Holes SJD-903 through SJD-923.

Minera Andes Inc.

News Release 11-19 Page 7