Can-Cal Resources Ltd. Acquires Second Gold-Silver Property in Mexico.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Feb. 17, 2004

Can-Cal Resources Ltd. ("the Company") (OTCBB:CCRE) is pleased to announce that its wholly owned Mexican subsidiary, Sierra Madre Resources S.A. de C.V. ("SMR"), has acquired a 100 % interest in a gold-silver mineral concession, referred to as the Arco Project (the "Project"). The Project includes a land package of 463 hectares (approximately 1,140 acres), which is owned by a private Mexican individual (the "Concessionaire"). The Project is located in Durango State, approximately 120 kilometers north-northwest of the city of Durango, and lies in the Central Plateau Gold-Silver belt of the Sierra Madre Occidental, near the historic Silver-Lead-Zinc district of Tejamen.

Initial geological work indicates that the Arco Project is a low-sulfidation epithermal gold-vein occurrence in Upper Series rhyolite formation. Typically, it is the underlying andesite formations that are mineralized in Mexico. The fact that the veins occur in the rhyolite formation is unusual and indicates the potential for wider and stronger vein structures in the underlying Lower Series andesite formation. Limited surface chip sampling has returned encouraging gold values. Although the exposed surface veins are narrow (from 2 to 100 centimeters for individual veins in zones of up to 20 meters), they have a strike length of over 2 kilometers and form vein swarms, suggesting that the veins may thicken at depth in the underlying andesite series rocks.

SMR has acquired its 100% interest in the Project subject to a ninety days due diligence period, for which SMR has paid the Concessionaire $1,000. If SMR elects to proceed with the Project, it will be required to pay an additional $1,000 to the Concessionaire and make future minimum semi-annual advance royalty payments ("Advance Royalty"), ranging from $2,000 initially to a maximum of $4,000 after 4.5 years. If production commences on the Project, the Concessionaire will receive a quarterly net smelter returns production royalty ("Production Royalty"), ranging from 1% at gold prices less than $300 to a maximum of 6% at gold prices of $450 or higher. SMR will be permitted to deduct all Advance Royalty payments against any future Production Royalty payments, on an unlimited carry-forward basis. In addition, SMR will be permitted to recoup all of its development capital expenditures from the Project's net operating cash flow, before being required to make any Production Royalty payments. During the recoupment period, the periodic Advance Royalty payments will be doubled. When the sum of all payments to the Concessionaire amounts to $3.5 million, SMR will obtain title to the Arco concession and be relieved of making any further payments to the Concessionaire.

Mr. Anthony F. Ciali, President & CEO, stated, "We are very pleased to have acquired our second gold-silver project in Mexico in a period of a little over two months. Although a grassroots exploration property, we believe that it may be possible to timely advance the Arco Project to an initial drill phase, based on the significant and unusual vein outcropping in the Upper Series rhyolite formation and the implications this may have on the potential for more robust vein structures in the underlying andesite formation. SMR is proceeding with its due diligence work on the El Colomo Gold-Silver Project in Nayarit State, Mexico, which is an advance-staged exploration property in which SMR signed a letter of intent to acquired a 50% equity interest (50.1% operating interest) in early December 2003 (See press release dated December 9, 2003). In addition, SMR continues to investigate other mineral properties in Mexico for possible acquisition."

For additional information on the Company and its management team, strategic plans and projects, please visit our new website at www.can-cal.com.

Can-Cal Resources Ltd. is a public company engaged in the acquisition, exploration and development of precious mineral properties. As part of its future growth strategy, the Company will focus its efforts in the Western Hemisphere, with an emphasis on Latin America, particularly Mexico. Management intends to maximize exploration expenditures by utilizing a focused approach to generative exploration, while simultaneously seeking out potential near-term production properties.

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the United States Securities Exchange Act of 1933, as amended, and Section 21E of the United States Securities Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release, including, without limitation, statements regarding future plans and objectives of Can-Cal Resources and SMR, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities.