Compañia Minera Milpo S.A.A. Completes Acquisition of Inca Pacific Resources Inc.

VANCOUVER AND LIMA, Oct. 26, 2011 - Inca Pacific Resources Inc. ('Inca Pacific') and Compañía Minera Milpo S.A.A. (BVL: MILPOC1) ('MILPO') jointly announce the completion of the acquisition by MILPO of all of the issued and outstanding common shares of Inca Pacific, effective today, by way of a statutory arrangement under the provisions of the Business Corporations Act (British Columbia).

Shareholders of Inca Pacific will receive C$0.61 in cash for each common share (each, a 'Share') of Inca Pacific held and holders of options to acquire Shares (each, an 'Option') will receive a cash payment in respect of each Option held equal to the excess, if any, of C$0.61 over the applicable exercise price of such Option. Registered shareholders and holders of Options should follow the instructions in Inca Pacific's management information circular dated September 22, 2011 in order to obtain the cash consideration in respect of their Shares and Options.

The Shares were halted from trading on the TSX Venture Exchange on October 26, 2011 and will be voluntarily delisted from the TSX Venture Exchange and the Lima Stock Exchange in the near future. Inca Pacific will also apply to terminate its status as a reporting issuer in certain provinces of Canada and as a public company in Peru.


About MILPO

MILPO is a Peruvian mining company headquartered in Lima and listed on the Lima Stock Exchange. The company was founded in 1949 and is controlled by Votorantim Metais Ltda.

MILPO is engaged in the exploration, development, and mining of zinc, copper, lead, silver and gold. It operates four mines in Peru: the El Porvenir and the Atacocha mines, located in Pasco; the Chapi mine, located in Moquegua, and the Cerro Lindo mine, located in Ica. In addition, MILPO operates the Ivan mine and refinery, located in Antofagasta, Chile. Also, MILPO has a strong pipeline of exploration projects at different development stages and is working to expand its operational footprint.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this news release, including any information relating to the transaction, Inca Pacific, may be deemed 'forward-looking'. All statements in this news release, other than statements of historical fact, that address events or developments that Inca Pacific expects to occur, are considered 'forward-looking information'. These statements relate to future events and reflect Inca Pacific's current internal projections, expectations or beliefs and are based on information currently available to Inca Pacific. In some cases forward-looking information can be identified by terminology such as 'may', 'will', 'should', 'expect', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'projects', 'potential', or the negative of those terms or other comparable terminology. Although Inca Pacific believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. Inca Pacific expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS



CONTACT:

regarding MILPO contact Francisco Ismodes Mezzano, (51-1) 710-5517