First Mineral Sold by Senior Joint Venture Partner

Arequipa, Peru, August 13, 2012 --(PR.com)-- Inca Peruvian Mining Ltd. is pleased to announce that their senior joint venture partner has sold its first shipment of gold.

The process used for extracting the gold is known as carbon in pulp (CIP).

The ore is first dumped into a primary crusher hopper where it reduced to 1 inch then conveyed to a classifier and either returned to the primary or sent onto the secondary crusher resulting in 1/4 inch average size rocks.

Sodium Hydroxide solution is premixed to a very low concentration of sodium cyanide and added to the crush as it enters the falling ball mill. Residing for about 30 min the steel balls grind in the revolving drum then the slurry is pumped to a cyclonic gravity separator for recycle or onto a secondary ball mill resulting eventually in a particle around 10 micrometers across or a size sufficient to expose all the contained gold to the dissolving cyanide solution. The slurry is them pumped to a series of cascading tanks agitated with a suspension of activated carbon where for about a day in each tank the cyanide complexes with gold microscopically and is absorbed into. After 2 or 3 days, depending on metallurgy, the ore is depleted of about 93% of its gold that has been absorbed in the now pregnant carbon. The carbon was shipped to nearby processing facility in Arequipa. It is at this processing facility where the gold is fully extracted and is then sold.

For this first shipment, the grade of grams per ton was slightly less than what had been indicated from the initial testing however the metallurgist has proposed to increase the amount of cyanide used in the tanks during the CIP phase of the processing which is carried out at the on site processing plant. This should improve the grade extracted from the carbon for future shipments to the “final phase” processing facility.

The senior joint venture partner has indicated that within the next 30-60 days they may expect to see gold production increased by in excess of 400%. This could be increased tenfold within a very quick time frame following a little more investment in infrastructure and some deeper tunneling at the site.

As improvements to production and development at the mineral concession continue, Inca Peruvian Mining Ltd. will keep their shareholders informed of the progress. Furthermore, as Inca Peruvian Mining Ltd. begin to see income through the joint venture partner, it expects profit margin over operating expenses to increase by over 200% from 3rd quarter to 4th quarter 2012.

About Inca Peruvian Mining Ltd.
Inca Peruvian Mining Ltd. is a South American mining company that specializes in gold, silver and copper mines. It invests in and seeks out niche markets with focus on low risk, with immediate cash flow through joint venture contracts.

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.

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