Inca Pacific Resources Inc.
TSX VENTURE : IPR

Inca Pacific Resources Inc.

January 02, 2007 10:26 ET

Inca Pacific Appoints Cutfield Freeman & Co. as Financial Adviser for Magistral Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 2, 2007) - Inca Pacific Resources Inc. (TSX VENTURE:IPR) is pleased to announce that it has engaged Cutfield Freeman & Co. ("CF&Co") to advise and assist in developing a strategy for financing the development of Inca's Magistral copper-molybdenum project in Peru. CF&Co is a London-based independent advisory firm that specializes in the mining sector and has an extensive track record in securing financing for mine development.

Initially, CF&Co will be focused on the strategic options for financing the development of the project. These options will include the potential to bring one or more joint venture partners into the project. Also to be considered are debt, equity, mezzanine products, "off take" finance, alternative financial products and assistance from government agencies.

Currently Inca Pacific is preparing a final feasibility study in a form and content that will satisfy the requirements of banking institutions to provide financing to construct a mining operation at Magistral. The final feasibility study is scheduled to be completed in the third quarter of 2007.

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

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