Inca Pacific Resources Inc.

Inca Pacific Resources Inc.

October 27, 2005 08:30 ET

Inca Pacific Resources Inc.: Quadra Withdraws from Magistral

VANCOUVER, BRITISH COLUMIBIA--(CCNMatthews - Oct. 27, 2005) - Inca Pacific Resources Inc. (TSX VENTURE:IPR) ("Inca Pacific") has been advised by Quadra Mining Ltd. (TSX:QUA) ("Quadra") that Quadra has elected not to proceed with further development of the Magistral copper-molybdenum deposit located in Ancash, Peru. Following Quadra's withdrawal, Inca Pacific will again own 100% of the project and Quadra will have no further rights or interest. The reason given by Quadra for not proceeding with the exploration and development of Magistral is that the project does not meet Quadra's investment criteria.

Anthony Floyd, President and CEO said, "We are obviously disappointed that the project does not meet Quadra's investment criteria. However having reviewed all the studies conducted to date I see no significant technical obstacles to preclude development of a mine at Magistral. Furthermore I shall be immediately initiating the process to find a new partner to place Magistral into production."

Since March 2005 Quadra has expended over US$ 4 million on the Magistral project, including 14,000 metres of infill drilling. Scoping studies, some at the pre-feasibility level of detail, have been carried out by Quadra. This work included geotechnical analyses, preliminary metallurgical testing, preliminary mine layout and open pit design, tailings studies, environmental base line studies, and socio-economic studies.

Quadra is in the process of delivering all pertinent data to Inca Pacific. Once Inca Pacific has received this data it intends to publish an updated resource estimate for the Magistral property. This resource estimate will be based on assay results from 46,989 metres of drill core in 168 holes.

The most recent independent study completed by AMEC (Peru) S.A. in January 2005 based on assay results from 32,640 metres of drill core in 108 holes estimated the Measured & Indicated Mineral Resources at Magistral to be 108 million tonnes grading 0.66% copper, 0.054% molybdenum and 3.4 grams/tonne silver at a copper cut-off of 0.4% copper. Additional Inferred Mineral Resources were estimated to be 62 million tonnes grading 0.61% copper, 0.041% molybdenum and 2.7 grams/tonne silver at a copper cut-off of 0.4% copper.

Armando Simon, Ph.D., MAIG and Doug Reddy, P.Geo., both employees of AMEC, were the principal Qualified Persons responsible for the Technical Report filed on SEDAR on February 1st, 2005. Steve Blower, P.Geo., under the direction and supervision of Dr. Simon and Mr. Reddy, P.Geo., prepared the resource. Doug Reddy provided AMEC's third party opinion as to compliance by Inca Pacific with National Instrument 43-101 with respect to disclosure of the resource estimates.


Anthony Floyd, President and Director

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