New Processing Plant Could Reduce Production Costs by 50% Per Ounce

Arequipa, Peru, January 09, 2013 --( Inca Peruvian Mining, Ltd. ("Inca Mining" or the "Company") is pleased to announce that its joint venture partner has secured a contractor to complete the construction and installation of the new processing plant.

The location of the site is perfect as it is within 15 kilometers of the mine and close to the electrical grid. It is not uncommon for processing plants in Peru to operate purely on generators. With the cost for gasoline far greater than the electricity off the grid, this will save substantial costs in the future.

The site is also distant from any population and down stream from water supplies.

Inca Mining’s joint venture partner owning and controlling the plant will enable the carbon-in-pulp processing to be carried out nearby without paying an external processing contractor to complete it. Thereby reducing transportation cost to under US $10.00 per ton and processing cost to approximately US $30.00 per ton. This represents about a 50% reduction of processing costs per ounce of gold. This potentially could work out even cheaper with a higher ore grade.

The land was acquired at the end of October, 2012. While detailed building plans have been approved and the terms agreed and the contractor started work this week, 13th November. First a new road is being constructed leading to the site. The next step is to cut into the side of the valley to make the elevations for each component of the plant.

The contractor is committed to having the land leveled and concrete slabs constructed before the end of November. The processing plant’s targeted completion date is mid to end of January, 2013 and will be ready for processing immediately.

About Inca Peruvian Mining, Ltd.
Inca Peruvian Mining, Ltd. is a South American mining company that specializes in gold, silver and copper mines with the intention to invest through joint venture contracts and seek out niche markets that focuses on low risk, with immediate cash flow.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it.

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