Inca Pacific Resources Inc.
TSX VENTURE : IPR

Inca Pacific Resources Inc.

January 17, 2007 12:00 ET

Inca Pacific Reports Progress on Final Feasibility Study for Magistral Copper-Molybdenum Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2007) - Inca Pacific Resources Inc. (TSX VENTURE:IPR) reports excellent progress with the preparation of a Final Feasibility Study (FFS) for its Magistral Copper-Molybdenum project in Ancash, Peru. The drilling program, which is 60% complete, is focused on collecting data for a number of key aspects of the FFS. Those aspects include refinement of the resource model, pit wall rock mechanics, plant and tailings dam foundation work. Detailed surveys have been completed from Magistral to the coast for access road design and upgrade. Metallurgical, environmental and social studies are ongoing. Currently the FFS is scheduled to be complete by the 4th quarter of 2007.

Under Inca Pacific's agreement with the Government of Peru (GOP), governing the Magistral concessions, the Company had to prepare and file no later than December 31st, 2006, a Feasibility Study in order to determine the Project's basic characteristics. On November 3rd 2006, the Company delivered a copy of a Preliminary Feasibility Study to the GOP and filed the same document on SEDAR. In addition on December 29th, 2006, the Company paid US$400,000 to the GOP to keep its agreement in good standing for another calendar year. Currently the Company is working closely with the GOP to find ways to have the majority of this money fund community projects in the vicinity of Magistral.

INCA PACIFIC RESOURCES INC.

Anthony Floyd, President and Director

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include Inca Pacific's commitment to, and plans for completing a final feasibility study, obtaining approval of an Environmental Impact Assessment and developing the Magistral Project. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Inca Pacific to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the Magistral Project, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of copper, silver and molybdenum. Although Inca Pacific has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Inca Pacific does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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