Inca Pacific Notified of Cancellation of Magistral Contract

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 1, 2009) – Inca Pacific Resources Inc. (“Inca Pacific” or “Company”) (TSX VENTURE:IPR) reports that Activos Mineros S.A.C (“Activos Mineros”), the Peruvian agency responsible for administering the Magistral Contract (“Contract”) between the Company’s subsidiary Minera Ancash Cobre S.A. (“Minera Ancash”) and the Government of Peru, has notified Minera Ancash that the Contract has been cancelled. The Contract governs the Company’s rights to the core mining claims which cover the majority of the Magistral deposit. The notification was delivered on December 1, 2009 and indicated that the Contract was cancelled as a result of Minera Ancash not posting the second year’s letter of credit of approximately US$24 million.