Mr. Edward Kelly reports

INCA ONE COMMENCES COMMERCIAL PRODUCTION AT ITS CHALA ONE PLANT, PERU

Inca One Gold Corp.'s Chala One gold-bearing ore processing facility in Peru, owned and operated by its wholly owned subsidiary Chala One SAC, commenced commercial production effective Feb. 1, 2015.

Management recently conducted an assessment of commercial production indicators and concluded that commercial production commenced as at Feb. 1, 2015. This assessment included key parameters being met such as:

• All major and auxiliary processing circuits were fully operational including ball mill, crushing and leaching circuits, and related facilities in place;
• Average production throughput at the plant since Feb. 1, 2015, has been in excess of 50 tonnes per day, with overall production now ramping up to the full 100-tonne-per-day capacity;
• A reasonable testing and commissioning period has completed.

In addition, since test milling began in November, 2014, the supply of legal mill feed, and the commercial recovery of gold and silver from production of this material at the Chala plant have met management's predetermined targets. Further, the operating and costing data during the precommercial production period indicate economic viability of the plant was met as at Feb. 1, 2015.

The Chala plant now constitutes a full-service 100-tonne-per-day-capacity facility, with weighing, sampling and metallurgical test facilities all on site, along with crushing, grinding and carbon-leaching circuits, as well as full material handling and tailings disposal facilities. This enables the company to receive and fully process gold-bearing ore from legal small-scale miners, and produce loaded carbon for smelting and recovery of gold and silver off-site.

The company expects that ramp-up of operations to the full 100-tonne-per-day capacity will be completed by the end of calendar second quarter 2015. Inca One will also continue to consider and implement process improvements and enhancements to its operations to continue to make Chala One more profitable and efficient as time goes on.

"We are pleased to report the achievement of commercial production on schedule, as well as the solid performance of our mill facilities and our personnel during the start-up phase of our operations," said Edward Kelly, president and chief executive officer. "We look forward to continued progress in our activities and to processing consistently at full capacity, focusing on efficiency in recoveries and costs, while we also continue to increase the quality and grade of our ore supply, and the entire customer experience. We look forward to a very successful year at Chala One."

We seek Safe Harbor.