Inca Pacific Disagrees With the Government of Peru's Intention to Sell Magistral

Inca Pacific Resources Inc. (TSX VENTURE:IPR) ("Inca Pacific" or the "Company")
reports that the Government of Peru's Agency for the Promotion of Private
Investment ("ProInversion") has run an advertisement in several newspapers in
Peru calling for international bids for private investment in the development
and exploitation of the mining concessions comprising the core of the Magistral
Project. 


The Company is extremely disappointed that the Government of Peru has taken the
action to sell Magistral prior to a decision by the arbitration panel with
respect to the ongoing dispute between the Company's subsidiary Minera Ancash
Cobre S.A. ("MACSA") and Activos Mineros S.A. (for additional information see
news release dated October 1, 2010). ProInversion's action shows complete
disregard for the contractually agreed process of solving disputes between
parties and for what the arbitration panel, comprised of Dr. Cesar Luna Victoria
Leon, Dr. Cantuarias Fernando Salaverry, and Dr. Gonzalo Garcia Calderon
Moreyra, may think of the dispute. 


For the past ten months, the Company, through its subsidiary MACSA, has
attempted to maintain a dialogue with the Peruvian Government, including
representatives of Activos Mineros S.A. and ProInversion, in an attempt to find
a commercial resolution to the dispute. While progress has been slow, we
believed that the parties were acting in good faith and were willing to find a
solution. The actions today leave little doubt as to the intentions of the
Government of Peru. 


The Company is in the process of requesting ProInversion to cease all efforts to
sell or seek a third party to develop and exploit the Magistral Project prior to
a final decision having been reached by the arbitration panel. The Company is
considering all legal remedies available to protect its rights under the
terminated Magistral Transfer Agreement which govern the five core claims that
hold the Magistral copper deposit. The Company will provide additional
information as it becomes available.


INCA PACIFIC RESOURCES INC. 

Michael D. Winn, CEO & Director

Forward-Looking Statement - Some of the statements in this news release contain
forward-looking information that involves inherent risk and uncertainty
affecting the business of Inca Pacific Resources Inc. Actual results may differ
materially from those currently anticipated in such statements.