INCA PACIFIC RESOURCES INC.

Inca Pacific Resources Inc. announces that Activos Mineros, the Peruvian agency responsible for administering Inca’s contract with the Government of Peru (“GOP”) has advised the company that it intends to withdraw $3M that Inca currently has on deposit as security for its investment commitments in connection with the company’s Magistral Project. Activos Mineros claims that the company did not satisfy its obligation to make certain investments and minimum levels of expenditure for the 2008 fiscal year which ended in February 2009. Activos Mineros also asserts that a pre-production spending guarantee in respect of approximately $24M for the 2009 fiscal year is required. Inca Pacific believes that it has honoured its obligations and confirms that it has spent in excess of the minimum expenditure requirements for the 2008 fiscal year. At the same time, the Inca Pacific is in active negotiations with the GOP to secure an extension for the deadline for bringing Magistral into production, currently set at December 31, 2011.