Laboratory Flotation Test Completed

Arequipa, Peru, August 30, 2012 --( Inca Peruvian Mining Ltd. announced today that a laboratory flotation test was completed.

The test was carried out as a senior joint venture partner wants to explore better ways of processing the mineral. The results were exceptionally good, showing a greater than 90% recovery.

What this means for the recovery process is that the technique used to extract the gold will be changed. The carbon in pulp process (CIP) has been the preferred method to process gold at the concession and has also been used at surrounding mines in the area. Compared to the CIP process, flotation provides several distinct economical and environmental advantages.

Environmentally friendlier option. Flotation does not use any dangerous chemicals, CIP however, uses cyanide to leach the gold. The use of cyanide is associated with ill health effects and environmental pollution.

Lower processing costs. The cost of the chemicals used in flotation is significantly less expensive which in turn can lower the cost of processing the mineral by up to 75% per ton.

Better recovery percentage. The head grade of the test sample was 6.04 grams per ton. Several different flotation gravimetric tests were carried out with a variety of different recovery techniques. The results indicated that the best recovery came from the flotation extraction method, with a 90.56% gold recovery.

Flotation is an environmentally friendly technology with little to no toxicity for the environment. The Company are involved in setting up a new processing plant near the mine. The surrounding communities welcome flotation processing plants because they provide jobs and do not put their environment at risk.

Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward-looking statements.
Inca Peruvian Mining Ltd.
Lisa Logan - Investor Relations
+51 (0)1 705 7144