Inca Pacific Resources Inc.
TSX VENTURE : IPR

Inca Pacific Resources Inc.

December 01, 2009 22:43 ET

Inca Pacific Notified of Cancellation of Magistral Contract

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Inca Pacific Resources Inc. ("Inca Pacific" or "Company") (TSX VENTURE:IPR) reports that Activos Mineros S.A.C ("Activos Mineros"), the Peruvian agency responsible for administering the Magistral Contract ("Contract") between the Company's subsidiary Minera Ancash Cobre S.A. ("Minera Ancash") and the Government of Peru, has notified Minera Ancash that the Contract has been cancelled. The Contract governs the Company's rights to the core mining claims which cover the majority of the Magistral deposit. The notification was delivered on December 1, 2009 and indicated that the Contract was cancelled as a result of Minera Ancash not posting the second year's letter of credit of approximately US$24 million.

The Company does not agree with the position that Activos Mineros has taken as to the cancellation of the Contract, as well as to the seizing of the US$3 million letter of credit as reported in the Company's release on November 4, 2009. The Company will continue to work with Activos Mineros to resolve this situation while at the same time considering all options to protect the interests of Inca Pacific and its shareholders.

INCA PACIFIC RESOURCES INC.
Michael Winn, Chief Executive Officer
 

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