Inca Pacific Resources Inc.

Inca Pacific Resources Inc.

May 24, 2006 06:00 ET

Inca Pacific Resources Inc.: Magistral Pre-Feasibility Update & Antoro Sur Sale

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2006) - Inca Pacific (TSX VENTURE:IPR) is pleased to report that geotechnical drilling is underway at its Magistral copper-molybdenum project in Ancash, Peru. The work is being carried out under the supervision of SRK Consulting who has been retained to prepare a National Instrument 43-101 compliant Pre-Feasibility Study on the deposit. SRK is currently reviewing the recently updated mineral resource estimate, waste disposal options, processing and hydrology. The purpose of geotechnical drilling program is to better define pit wall rock characteristics. With this information in hand SRK will estimate ore reserves, prepare a production schedule, estimate capital and operating costs and complete an economic analysis. Delivery of the Pre-Feasibility Study is scheduled for August 2006.

Inca Pacific's sole focus is the development of the Magistral copper-molybdenum project in Peru. Magistral's current NI 43-101 compliant Mineral Resources, at the 0.4% Cu Equivalent cut-off, are as follows:

Resource Tonnes Copper Molybdenum Equivalent(i)
Category Millions % % %
Measured & Indicated 189.1 0.51 0.052 0.77
Inferred 56.0 0.56 0.024 0.68

(i)Copper Equivalent calculation is based on long term average
copper and molybdenum metal prices to arrive at a ratio of
5 to 1. Copper equivalent calculations reflect gross metal
content and have not been adjusted for metallurgical recoveries
or relative processing and smelting costs.

The Mineral Resource estimate was based on assay results from 46,220 metres of core drilling in 165 holes. Steven Ristorcelli, C.P.G., a qualified person as defined by NI 43-101, was responsible for the Mineral Resource estimate. George Sivertz, PGeo, a qualified person as defined by NI 43-101, was responsible for the preparation of the Technical Report, compliant with NI 43-101, that was posted on SEDAR on December 22nd 2005.

Antoro Sur

On February 22, 2006, Inca Pacific sold all its interests in the Antoro Sur project to Compania de Minas Buenaventura ("Buenaventura"). Consideration for the sale was US$3,597,000 payable as follows: a) US$1,694,000 payable immediately at execution and b) US$1,903,000 payable to Inca Pacific upon registration of all the Antoro Sur claims in the name of Buenaventura. The US$1,903,000 was received on May 18th, 2006 and with this addition to our treasury our working capital now stands at CDN$8.8 million.


Anthony Floyd, President and Director

Standard & Poor's Listed

Contact Information