Spain reacted by appointing General Toribio Montes president of the Royal Audiencia of Quito and commander-in-chief of the army in the province.

After that, the Spanish army advanced north, and after a weak but brave resistance at El Panecillo led by Carlos Montúfar, Montes finally entered Quito and took possession of the Presidency of the Audiencia on 8 November.

The Patriot army was reorganized, gathering in Ibarra about 1,200 men under the command of Colonel Calderón.

Sámano cunningly proposed an agreement to the patriots, but they later realized his deception and prepared to fight in the nearby town of San Antonio on 27 November 1812.

Despite having been close to victory, certain tactical errors caused the patriots to retreat again to Ibarra, making a last stand against the Royalists on 1 December, on the shores of the Yahuarcocha lagoon.