Inca Pacific Announces Steps to Conserve Working Capital

Inca Pacific Resources Inc. (TSX VENTURE:IPR) announces that as a result of
turbulent equity, debt and metal markets it is taking steps to conserve working
capital.


Until recently the Company, in the interests of accelerating the development of
its Magistral Copper & Molybdenum property, had budgeted to order long lead time
equipment and upgrade the main access road to the project prior to receiving
approval of its Environmental & Social Impact Assessment (ESIA) and being
granted the majority of its construction permits.


As result of current circumstances and the uncertainty of when project financing
might be obtained the Company has decided to:


1. cancel the previously placed order for a ball mill announced in August;

2. postpone any new orders for long lead time equipment; and

3. postpone the upgrade of the main access road.

All efforts will now be focused on obtaining ESIA approval and the principal
construction permits. Once permitting has been achieved and assuming a return of
more stable equity, debt and metal markets the Company will resume development
of the project.


These decisions may impact the commencement of commercial production. Under the
Company's current agreement with the Government of Peru (GOP), Inca Pacific has
an obligation to place the Magistral property into production no later than
December 31, 2011. Failure to meet this deadline may result in the loss of a key
portion of the Magistral property. As the current deterioration of equity, debt
and metal markets is beyond the control of the Company, Inca Pacific intends to
request an extension of the current deadline from the GOP by invoking the clause
in our existing agreement which provides that terms may be extended for duly
justified causes.


As of August 31, 2008 the Company had working capital of US$17.3 million. The
board of directors recently approved a US$11.5 million budget covering the
period September 1, 2008-February 28, 2010. A cancellation charge payable to the
supplier of the ball mill will be reported in the fourth quarter financial
statements.


INCA PACIFIC RESOURCES INC.

Anthony Floyd, President and Director

Standard & Poor's Listed