Government of Peru Seizes $3.0 Million Deposit From Inca Pacific

Inca Pacific Resources Inc. (TSX VENTURE:IPR) announces that Activos Mineros,
the Peruvian agency responsible for administering the Company's contract with
the Government of Peru, has withdrawn US $3 million that the Company had on
deposit as security for its investment commitments in connection with the
Company's Magistral Project. Activos Mineros claims that the Company did not
satisfy its obligation to make certain investments and minimum levels of
expenditure for the 2008 fiscal year which ended in February 2009. The company
disputes the interpretation Activos Mineros has taken.


"Following a year of good faith negotiations to make changes to our contract due
to the impact of the global financial crisis, we are very disappointed that
Activos Mineros has taken this step. We believe this action is unreasonable and
we will be considering all options to protect the interests of Inca Pacific and
its shareholders," said James Rothwell, President and CEO.


INCA PACIFIC RESOURCES INC.

James R. Rothwell, President and Chief Executive Officer

Standard & Poor's Listed