Inca Pacific Resources Inc. TSX VENTURE: IPR

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2007) - Inca Pacific Resources Inc. (TSX VENTURE:IPR) (the "Company") reports that it has received from the Government of Peru ("GOP"), an extension until July 30 of its requirement to file a Feasibility Study ("FS") in respect of its Magistral Property.

On November 3rd 2006 the Company delivered a Preliminary Feasibility Study to the GOP. On December 29th, 2006 the Company paid US$400,000 to the GOP to keep its agreement in good standing for another calendar year. On December 29th 2006 the GOP granted the Company an extension to June 30, 2006 to file a Feasibility Study. Over the last six months the Company has been working to complete a Final Feasibility Study which will meet or exceed the GOP requirements for a Feasibility Study and be in a form and content that will satisfy the requirements of banking institutions to provide financing to construct a mining operation at Magistral. This Final Feasibility Study is scheduled to be completed by October 30th 2007, and as such the Company has been negotiating with the GOP a further extension to the deadline to file a FS.

On June 25th 2007 the Company reached an agreement in principle with the GOP to receive a further six month extension to December 31st 2007 for the filing of the FS. Due to recent events in the Peruvian mining industry, the Company has learned that the GOP is unwilling to grant the requested extension on the negotiated terms. However the GOP has granted the Company a 30 day extension to allow a complete evaluation of the milestones within the existing agreement as requested by the company for further approval by the GOP.

There can be no guarantee that an agreement will be reached and that on July 31st 2007 the Company may be in default of its agreement to develop the Magistral Property, resulting in a significant consequences for the Company, including the possibility that the Company may lose all rights to the core claims at Magistral which hosts the deposit.

Inca Pacific has invested over US$18 million on exploration and development of the Magistral property. It currently has over 50 local people employed at site plus four engineering firms working to complete the FFS. The Company believes that since 1999, when it first acquired the Magistral property in a public auction, it has fulfilled all its obligations under the terms of its agreements with the GOP.

Conference Call

Call in details for the conference call to be held on Thursday, June 28th at 10:00am (Pacific Time) are:

Participation Dial-In Numbers:
Local / International: 513-587-6878
North American Toll-Free: 1-866-550-6338

A replay of this conference call will be available for 7 days on Inca Pacific's website at www.incapacific.com The replay numbers are:

Local Dial-In Number: 416-915-1028
Toll-Free Dial-In Number: 1-866-244-4494
Passcode: 612144

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. The Company's mineral property is located in Peru and thus may be exposed to various and unpredictable levels of political, economic and other risks and uncertainties. The Company conducts operations through Peruvian subsidiaries which hold the rights to the mineral properties. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, expropriation of property, maintenance of claims, environmental legislation, land use and land claims. Failure to comply with applicable laws, regulations and local practices relating to mineral right applications and tenure could result in loss, reduction or expropriation of entitlements.

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