Inca Pacific Resources Inc.

Inca Pacific Resources Inc.

June 06, 2007 08:30 ET

Sprott Moly Fund Expends $2.00 Per Share to Acquire 15,997,760 Shares of Inca Pacific

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2007) -


Sprott Molybdenum Participation Corporation ("Sprott") announces that it exercised its option yesterday to acquire 15,997,760 common shares of Inca Pacific Resources Inc. (TSX VENTURE:IPR) ("Inca Shares") from RAB Special Situations (Master) Fund Limited ("RAB") pursuant to the option agreement previously announced (see Inca's news release dated May 28, 2007).

Sprott paid an aggregate purchase price of Cdn $2.00 to RAB for each Inca Share. Of this amount, 50% was paid in cash and 50% was paid in common shares of Sprott. A total of 2,712,312 Sprott shares were issued to RAB at a price of $5.8982 per share, being the 20-day volume weighted average price as at June 5, 2007.

Following exercise of the option, Sprott now owns 19,317,593 common shares of Inca which represents approximately 53% of Inca's current issued and outstanding share capital.

The Inca Shares acquired by Sprott are for investment purposes, and not with a view of exercising control over Inca or being actively involved in its management. Sprott also entered into a voting trust agreement with Inca pursuant to which Sprott has agreed to vote any Inca Shares it holds in excess of 20% of Inca's issued and outstanding share capital in favour of matters Inca's management brings before its shareholders. The voting trust agreement has a term of one year and is renewable for successive one year terms.


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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