Mr. Edward Kelly reports

INCA ONE ENTERS INTO ADDITIONAL ORE PURCHASE ARRANGEMENTS AND CLOSES US$500,000 DEBENTURE

Inca One Gold Corp. has entered into an additional multidelivery letter of agreement (LOA) to purchase 400 tonnes per month of ore with an expected average grade of 30 grams per tonne gold from an additional mine in Peru as mill feed for the Chala One gold milling plant.

In addition, the company has received and closed a financing in the amount of $500,000 (U.S.) to provide capital for the purchase of additional mill feed materials for its Chala plant. The debt financing was closed under an arrangement with SC Strategy Consult AG, who assisted the company with its recent $5.5-million (Canadian) bond and debenture financings used in the completion of the expansion of the Chala plant.

LOAs in place for the purchase of ore

With the additional LOA announced today, the company now has a total of four LOAs in place covering 1,350 tonnes per month of gold ore, and is negotiating for the purchase of additional tonnage. The company's target is to have 1,500 tonnes per month under LOAs, or 50 per cent of the total expected 3,000 tonnes per month to supply the expanded operating capacity. The balance of the mill feed is expected to come from continuing spot purchases in the market.

Highlights of the LOAs and the company's ore purchase program include the following:

• LOAs signed with permitted mining operators in Peru.
• Mill feed is expected to meet the targets for grade, quality and consistency.
• Stockpiling continues in anticipation of ramping up to 100 tonnes per day (TPD).

"We are very pleased to continue to increase the amount of mill feed committed to us to supply our mill expansion," said Edward Kelly, Inca One's president and chief executive officer. "We continue to build new relationships with local miners and miners from around Peru, all of which are government-approved, permitted operations, and we look forward to reaching our goal of 1,500 tonnes per month of ore under LOAs as a base amount, while our ongoing negotiations to purchase quality ores under spot arrangements continues to provide us great advantages in enhancing our overall mix of mill feed."

Financing

The debt financing consists of units comprising one debenture of $25,000 (U.S.) and non-transferable warrants to purchase up to 25,000 shares of the company's common stock, exercisable for up to 12 months from closing at an exercise price of 25 Canadian cents. The holders of the debentures will be entitled to receive interest at the rate of 14 per cent per annum, calculated and paid quarterly in arrears.

A finder's fee of 8 per cent of the gross proceeds of the bond financing will be payable in cash by the company to SC Strategy Consult. The company will also issue to the SC Strategy Consult that number of finder's warrants equal to 8 per cent of the bond proceeds, divided by the exercise price of 25 Canadian cents. Closing of the bond financing is subject to final approval of the TSX Venture Exchange.

Bjorn Paffrath, CEO of Swiss-based SC Strategy Consult, stated: "The European and Swiss investors have been very pleased with the work performed by Inca One in constructing and completing the plant additions at Chala One on time and within budget. We have been excited to witness the successful start-up operations at the plant as it ramps up to 100 tonnes per day. Management has attracted talented operators and we are happy to continue our support for the growth of the company in the near term and beyond. Our focus is always on sustainable projects and sincere partners, who deliver on their promises. Ed Kelly and his team have so far exceeded the expectations in every aspect."

We seek Safe Harbor.