[LOGO]   MINERA ANDES

         INCORPORATED

 

Exhibit 10.1

 

June 27, 2003

 

La Mancha Resources Inc.

311 West First Street

North Vancouver, B.C.

V7M 1B3

 

Telecopier: 604.998.1253

 

Attention: Walter Berukoff

 

Copy to:

 

Anfield Sujir Kennedy & Durno

1600 – 609 Granville Street

Vancouver, B.C.

V7Y 1C3

 

Telecopier: 604.669.3877

 

Attention: Jay Sujir

 

Dear Sirs:

 

Termination of Arrangement Agreement

 

We refer to the letter agreement dated May 15, 2003 between Minera Andes Inc.
and La Mancha Resources Inc. (the “Arrangement Agreement”). The purpose of this
letter is to confirm our mutual agreement to terminate the Arrangement
Agreement, effective immediately.

 

Please confirm that La Mancha has agreed to the foregoing termination of the
Arrangement Agreement. Please evidence your agreement by signing a copy of this
letter where indicated below and returning it to us immediately.

 

Yours sincerely,

 

MINERA ANDES INC.

     

Agreed to June 27, 2003

LA MANCHA RESOURCES INC.

By:  

/s/    ALLEN V. AMBROSE         

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      By:  

/s/    WALTER BERUKOFF        

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Allen V. Ambrose

President

         

Walter Berukoff

President

 

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3303 N. Sullivan Road

  $  Spokane, Washington 99216   $  Phone: (509) 921-7322   $  Fax: (509)
921-7325