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Re: News Release - Thursday, July 26, 2007
Inca Pacific Signs Formal Agreement with Government Of Peru
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News Release #2007-12

Vancouver, BC, July 26, 2007 - Inca Pacific Resources Inc. (TSX-V: IPR)
(the "Company") reports that a formal agreement has been signed by
Proinversion and Activos Mineros S.A.C. representing the Government of
Peru ("GOP") and the Company. The agreement documents the modifications
described previously in our July 12th news release which are as
follows:

.. The Company has until December 31st, 2007 to fulfill its requirement
to file a Feasibility Study.

.. The Company has a further 60 days from the filing of the Feasibility
Study to provide one or more letters from major financial institutions
stating that the Feasibility Study is a Bankable Feasibility Study.

.. Within 15 working days following approval by the GOP of the
Feasibility Study, the Company must provide certain performance
guarantees concerning the investment commitment during the first year
of work on the permitting and construction of the mine.

Upon signing the agreement the Company paid the GOP the sum of
US$200,000. Upon achievement of commercial production the Company will
pay the sum of US$5,000,000 into a trust account for the benefit of the
communities in the area of influence of Magistral.

Anthony Floyd, President & CEO said, "We are pleased to have resolved
these issues with the Peruvian Government such that we now have
sufficient time to complete our feasibility study. We are now in a
position to focus all our financial and human resources on advancing
Magistral towards production."

The Company is developing the Magistral copper-molybdenum project
located 450 Kms north-north west of Lima in the department of Ancash,
Peru. A preliminary feasibility study was completed in 2006. A final
feasibility study is scheduled for completion in the 4th quarter of
2007.


INCA PACIFIC RESOURCES INC.

Signed: "Anthony Floyd"
President and Director

For further information contact:
Bill Galine
Investor Relations
Phone: 604-662-3922
Email: bgaline@incapacific.com


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.

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Copyright (c) 2007 INCA PACIFIC RESOURCES INC. (IPR) All rights
reserved. For more information visit our website at
http://www.incapacific.com/ or send mailto:contact@incapacific.com
Message sent on Thu Jul 26, 2007 at 6:48:57 AM Pacific Time
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