Mr. Edward Kelly reports

INCA ONE COMPLETES DESORPTION PLANT ACQUISITION AND BOOSTS NET REVENUE MARGIN

Inca One Gold Corp.'s wholly owned operating subsidiary, Chala One SAC, has acquired a carbon desorption plant for the Chala One processing plant.

The addition of the desorption plant is the most recent enhancement in the processing infrastructure at the Chala One plant, providing an additional layer of vertical integration. Desorption conducted in the newly acquired plant enables the company to perform the desorption step previously conducted by third parties, thereby removing a bottleneck and helping the company reduce operating cost. The desorption plant was operated successfully in situ at its original Chala City location for several harvests where it achieved all pre-established operating parameters and benchmarks. It has now been relocated to a secure facility on site at the Chala One mill site.

In addition to the acquisition of the desorption plant, the company has made continuing adjustments in the milling and leaching operations at the Chala One plant to fine-tune the performance of the plant to increase recovery and reduce costs. Over the last eight weeks, these adjustments have yielded an increase in Chala One's net revenue margins (NRM), or the difference between the cost of minerals purchased and the resulting sales revenue, from a somewhat inconsistent range up to 25-per-cent NRM (previous to this period), to a more consistent 40-per-cent to 50-per-cent NRM range.

Edward Kelly, president and chief executive officer, stated: "The Chala One plant has delivered a solid performance during its expansion, start-up and since the commencement of commercial production. The company has laid the foundation for the plant's performance on an ongoing basis into the future. The addition of the desorption plant and the full implementation of its operation at Chala One will further enhance our economic and operating efficiency at the plant. We are also pleased with the performance of our technical team in increasing our net revenue margins, a significant achievement in operating cost and a strong demonstration of the technical competency of our personnel. We look forward to the continuing economic performance of Chala One."

We seek Safe Harbor.