Ann: Company Update, page-2

COMPANY UPDATE

Inca Minerals Limited (Inca or Company) (ASX code: ICG) advises that the Company’s largest shareholder, Resource Capital Fund VI LP (RCF), has reduced its shareholding in the Company and informed the market by way of a Form 604 lodged earlier today. Immediately post-transaction RCF will hold 10.47% of the Company’s issued capital and remains Inca’s largest single shareholder.

RCF is part of a group of commonly managed private equity funds within Resource Capital Funds - one of the world’s largest specialist resource investment funds. The Company believes RCF’s decision to remain heavily invested in Inca reflects their understanding and expectations concerning the prospectivity and potential of Inca’s projects and particularly the Company’s flagship Riqueza Project in Peru.
Currently in Peru, the Company’s Managing Director, Mr Ross Brown, said “With the Company’s share price having enjoyed a 12-fold increase over the past 10 months it is not unreasonable to expect investors to realise some of the gains on their investment. Importantly for the Company, RCF remain a firm supporter and, like all shareholders, look forward to results from the current drilling campaign confirming Riqueza’s potential”.

With the Riqueza drilling campaign having recently commenced Mr Brown is expected to be on site on or around 29 March 2017 (Peru time). With the recent discovery of yet another manto occurrence and further broad areas of mineralised fractures the Company is extremely keen to examine the Callancocha feeder zone as a major focal point of the mineralising processes at Riqueza (Figure 1).
In addition, and most recently, the Detailed Mapping and Systematic Sampling Program (DMASS) (running concurrently with the current drill campaign) has identified a new cross- cutting fault and a cluster of five mineralised breccias at the intersection of HV04 (Figure 2).