Inca One Gold Corp. Receives Final Refund Cheque from Peruvian IGV/VAT Audit and Issues Stock Options

VANCOUVER, Oct. 13, 2016 /CNW/ - Inca One Gold Corp. (TSX.V: IO) ("Inca One" or the "Company") is pleased to announce that SUNAT, the Peruvian tax and customs authority ("SUNAT"), has issued the second and final tranche of Inca One's outstanding IGV/VAT (Impuesto General a las Ventas, Value Added Tax, the "VAT") refund. This cheque, delivered on October 3, 2016 by SUNAT, in the amount of approximately S/1.25 million (the equivalent of approximately US$363,000 at current exchange rates) represents the Company's remaining filing outstanding from 2015. Earlier this year on June 18, 2016, and as reported in the Company's July 31, 2016 financial reports, Inca One had received its first tranche refund cheque in the amount of approximately S/2.2 million (the equivalent of approximately US$661,000). On June 30, 2016, SUNAT closed the VAT audit of Inca One's wholly owned subsidiary Chala One SAC ("Chala One").

With receipt of these outstanding refund cheques, totaling in aggregate S/3.5 million (approximately US$1.0 million) the Peruvian government has met its obligations to the Company and Inca One closes this extensive audit process that began in June 2015 with the Chala One's first VAT submission. All other VAT submissions and refunds are current and under monthly processing since January this year. The proceeds from these refunds have been used to further fund our mineral purchasing, reduce select debt obligations and strengthen our effort towards profitability and full production again.

"We are delighted to finally close off the original VAT audit and receive our remaining refunds," stated President and CEO Edward Kelly. "I congratulate our administrative staff in Peru for their patience navigating the Company through this longer than anticipated audit process and continuing to maintain their high administrative standards keeping Chala One on track with its monthly VAT submissions."

In conjunction with the restructuring and refinancing process, the Company also announces that pursuant to the Company's stock option plan, the Board of Directors has authorized the granting of incentive stock options to directors, officers, consultants and employees of the Company to acquire an aggregate of 995,000 common shares of the Company. The options have an exercise price of $0.30 per share and are exercisable until October 12, 2018. For certainty 3,595,000 stock options were authorized and granted at a price of $0.25 per common share with the first tranche private placement closing (see press release dated September 26, 2016), and the granting of these 995,000 stock options is concurrent with the closing of the second tranche private placement as announced on October 3, 2016.

About Inca One

Inca One is a Canadian-based mineral processing company with a gold milling facility in Peru, servicing government-permitted, small-scale miners. As part of the terms of the original purchase agreement for the Chala, Peru processing facility, Inca One has an agreement between its wholly owned subsidiary, Chala One SAC, and the seller and initial permit applicant, to operate under the umbrella of formalization until the successful completion of all the environmental and operating permits. Peru, a highly mineral-rich country, 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 mineral (such as the Company's Chala Plant).

On behalf of the Board,
Edward Kelly,
President and CEO
INCA ONE GOLD CORP.

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. Inca One believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

SOURCE Inca One Gold Corp.