Inca Pacific Resources Inc.

Inca Pacific Resources Inc.

December 21, 2007 14:00 ET

Inca Pacific to Raise Up to 3.4 Million Through Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2007) - Inca Pacific Resources Inc. (TSX VENTURE:IPR)(BVL:IPR) is pleased to announce that it intends to complete a non-brokered private placement of up to 2,000,000 common shares at a price of $1.70 per share to Sprott Asset Management on behalf of certain managed accounts ("Sprott").

Prior to the completion of the private placement, Sprott intends to sell an equal number of common shares of the Company at current market prices through the facilities of the TSX Venture Exchange (the "Exchange").

Following the sale of common shares by Sprott, and the private placement by the Company, Sprott expects to hold 19,336,793 common shares or 49.47% of the Company's outstanding common shares.

Proceeds of up to $3.4 million from the sale of the common shares by the Company will be used to advance the Company's Magistral copper-molybdenum deposit located in Ancash, Peru and for general working capital purposes.

Anthony Floyd, President & CEO said, "We have structured the financing in this way so as to increase the number of Peruvian investors in Inca Pacific and improve the liquidity of our shares on the Lima Stock Exchange."

A finder's fee is payable by the Company to Credibolsa S.A.B. S.A. for its role in facilitating the transaction. The fee is comprised of a cash fee equal to 5.0% of the aggregate proceeds realized from the sale of shares by Sprott and that number of warrants ("Warrants") which is equal to 5.0% of the number of shares sold by Sprott. Subject to certain restrictions, the Warrants shall be exercisable for a period of 18 months at an exercise price of $2.50.

The private placement is subject to acceptance by the Exchange, and will be closed when the final documentation is accepted for filing by the Exchange. The common shares are subject to a hold period of four months from the distribution date.


Anthony Floyd, President and Director

Standard & Poor's Listed

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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