Inca One Resources Corp. Closes First Tranche of Bond Financing

VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Jun 3, 2014) - Inca One Resources Corp. (TSX VENTURE:IO) ("Inca One" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced bond financing (the "Bond Financing") for gross proceeds to the Company of $2,700,000.

Pursuant to the Bond Financing, the Company's wholly-owned subsidiary (the "Subsidiary") issued a three year bond (the "Bond"), which will bear interest at a rate of 10% per annum, calculated and payable quarterly in arrears commencing no later than six months from the date of issue. An additional $2,800,000 in Bonds will be issued in a subsequent closing of the Bond Financing, which is expected to be on or around June 30, 2014.

In connection with the Bond Financing and as partial consideration for the subscription by the purchaser of the Bonds, the Company and the purchaser have entered into a financing fee agreement whereby the Company and the Subsidiary will provide the purchaser a 3.5% financing fee on the net revenues from the Company's Chala mill in Peru. The term of the financing fee agreement expires on December 31, 2024 and may be extended for a maximum of ten years, subject to certain adjustments and a right of repurchase in favour of the Subsidiary. The Subsidiary's obligations under the Bond Financing are also secured by a general security agreement over the Subsidiary's property, which will be guaranteed by the Company.

A finder's fee of 8% of the gross proceeds of the Bond Financing will be payable in cash by the Company to SC Strategy Consult AG (the "Finder"). The Company will also issue to the Finder that number of finder's warrants equal to 8% of the Bond Proceeds, divided by the exercise price of $0.15. Closing of the Bond Financing is subject to final approval of the TSX Venture Exchange.

The proceeds from the Bond Financing will be used to fund improvements on the Company's gold mining facility located in Chala, Peru.


About Inca One Resources Corp.

Inca One is a Canadian-based mineral resource company and ore processing company with a gold milling facility in Peru, servicing government-permitted small-scale miners. A highly mineral-rich country, Peru is one of the world's top producers of gold, silver, copper and zinc, with substantial production coming from small scale miners who need government permitted milling facilities to process their ore (such as the Company's Chala mill).


On behalf of the Board, Inca One Resources Corp.

Edward Kelly
President & CEO



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NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Statements regarding the Company which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) fluctuation of mineral prices; (ii) a change in market conditions; and (iii) the fact that the Company has limited operating experience with its Chala plant and future operational results may not be accurately predicted based on this limited information to date. Except as required by law, the Company does not intend to update any changes to such statements.

This news release deals only with the Company's Chala plant, which is an industrial project. This presentation does not deal at all with the Company's sole mineral exploration property, the Corizona property. Investors should note that no resource has been established on the Corizona property and all of the material currently being processed at the Chala plant is received from local small scale mining operations.



Contact

KIN Communications
1-866-684-6730 or 1-604-684-6730
io@kincommunications.com
www.kincommunications.com

Inca One Resources Corp.
1 604 568 4877
1 604 569 1604
ir@incaone.com
www.incaone.com