Inca Minerals Limited (Inca or the Company) has received results from a very brief reconnaissance ridge-top mapping and sampling program (program) recently conducted within Inca's Ccarhua I mining concession application area (Ccarhua I), located south of the Company's Riqueza Project.

This work is part of a larger program to find possible southern extensions of the Riqueza mineralised system, and/or to find possible new mineralised systems centred in the south.

As a result of the cancellation of a number of third-party owned mining concessions, a large area south of Riqueza became subject to a mining concession moratorium. This moratorium came to end on 1 November 2020. Competing applications from Inca and Anglo America were lodged on the first available business day, as detailed in a previous ASX announcement (18 November 2020).

Priorto this claim activity by Inca and Anglo American, in September 2020 Inca had lodged two mining concession applications, Ccarhua I and Gutierrez II, over two areas that were free of title and not subject to the moratorium.

New Targets at Cerro Vicuna and Cerro Ccarhua

Ridge-top mapping and sampling conducted at Ccarhua I has identified two new zones of alteration and mineralisation, which have been quickly elevated to drill target status. The first new target, known as Cerro Vicuna, hosts Cu mineralisation with a peak value of 4.55% Cu (sample BM-0062). The outcrops that were mapped and sampled at Cerro Vicuna host secondary copper mineralisation (malachite, chrysocolla and azurite) associated with argillic and sericite altered, brecciated and/or faulted and veined volcanic rocks.

The second, larger new target that has been identified is approximately 800m southeast of Cerro Vicuna. Coinciding with a distinctive satellite image colour anomaly, the target, referred to as Cerro Ccarhua, is roughly circular in shape and 1.3km in diameter. Mapping has identified multiple zones of argillic and phyllic alteration (including quartz and pyrite) associated with Fe/Mn-oxide stained breccias and quartz-calcite veins/veinlets within a sequence of volcanic country rock. A small phyllic altered porphyry intrusion was also identified at Cerro Ccarhua. It has disseminated boxwork grains (possibly after pyrite) and is highly silicic.

Whilst Cerro Ccarhua does not currently host Cu grades as high as those at Cerro Vicuna or at Riqueza (for example at Cuncayoc Copper and Ushpanga), the occurrence of a small porphyry intrusion and widespread phyllic alteration, including pervasive silicification and disseminated pyrite, makes Cerro Ccarhua an exceptional target. Importantly, the Cu levels at Cerro Ccarhua are comparable to those of the known Huancullo Au-Ag-Cu epithermal and Au-Ag-Cu porphyry deposits just 4kms the southeast.

Importance of Results

Cerro Vicuna and Cerro Ccarhua host new and significant Cu mineralisation and several porphyry-related features (alteration, veins/veinlets, porphyry intrusion). Whilst Cerro Ccarhua and Cerro Vicuna lack the level of work to that conducted at the 30 Riqueza drill targets, they are considered valid and compelling drill targets.

There are many reasons why these results are important:

Cerro Ccarhua and Cerro Vicuna occur within the northwest-southeast trending regional Chonta Fault System, well known to host epithermal, porphyry and skarn deposits in the region and local vicinity.

Cerro Ccarhua occurs at an intersection of the northwest-southeast Chonta Fault System and a southwest-northeast lineament. Southwest-northeast lineaments (i.e. faults, joints) are known to be important in controlling mineralisation and large geophysical targets at Riqueza.

Cerro Ccarhua and the Huancullo epithermal-porphyry deposits show a similar southwest-northeast orientation.

Cerro Ccarhua and the Huancullo epithermal-porphyry deposits are defined by large satellite image colour anomalies. BHP has three projects in the area that centred over satellite image anomalies.

Cerro Ccarhua and Cerro Vicuna occur along strike, between the Riqueza mineralised system and the Huancullo epithermal-porphyry deposits.

Cu grades at Cerro Vicuna are materially high (>3% Cu) and although the sample population is very low, the grades still represents very significant mineralisation.

Cerro Ccarhua hosts a small porphyry intrusion and hosts common phyllic alteration. These are indicative of possible proximal porphyry mineralisation.

Cu grades at Cerro Ccarhua are lower than at Cerro Ccarhua but are comparable to the Huancullo epithermal-porphyry deposits.

Cerro Ccarhua corresponds to a large, roughly circular alteration zone, approximately 1.3km in diameter. The overall size is commensurate with epithermal and porphyry deposits in this region and vicinity.

Cerro Ccarhua and Cerro Vicuna are considered highly prospective for Au-Ag-Cu epithermal and Au-Ag-Cu porphyry mineralisation. Further work has been strongly recommended (Refer below).

Next Steps South of Riqueza

Low-cost mapping and sampling will be conducted at Cerro Ccarhua and Cerro Vicuna as an interim program prior to drilling commencing at Riqueza. The ridge-top mapping and sampling was the preferred method for reconnaissance. More detailed mapping and sampling is now planned in December and January to focus on the known mineralisation and to cover areas, especially areas within satellite anomalies, that have not been traversed to date. Additional mapping and sampling will also occur at Inca's uncontested Gutierrez II mining concession application area. None of the planned exploration south of Riqueza will cause delays to the Company's FTA drill permit application.

FTA Drill Permit Update

Progress continues with the evaluation by the MINEM of our FTA drill permit application. Other than progress itself, no material developments have occurred since our latest detailed update of 10 November 2020 in respect to the FTA.

Inca-Anglo American Mining Concession Applications and BHP in the Area

In a previous ASX announcement (18 November 2020), the Company reported that it and Anglo American had applied for four mining concessions over the same ground. The Company also reported the application of two earlier mining concessions in the approximate same area that were not affected by completing applications.

The Ccarhua I mining concession, the subject of mapping and sampling results of this announcement, and Gutierrez II, are not contested. These are anticipated to be granted in March-April next year. The northwest-southeast trending epithermal-porphyry-skarn mineral belt in the vicinity of Riqueza is book-ended by the Bethania porphyry system to the north and the Huancullo porphyry system to the south. The ground between is predominantly held by Inca, and, subject of the tender, possibly Anglo American. To the south, BHP owns three projects, each targeting satellite image/alteration anomalies.

Forward Looking Statement

The information in this report contains forward looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and are believed to have a reasonable basis at the time of inclusion in this report. These statements reflect current expectations, intention and/or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and/or strategies described in this report. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Contact:

Tel: +61 (0) 8 6145 0300

Email: info@incaminerals.com.au

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