Can-Cal Resources Ltd. Acquires Three New Gold-Silver Concessions in Mexico.

LAS VEGAS -- 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 made applications to acquire three new gold-silver concessions located in the State of Chihuahua, Mexico, as follows:

Hoya

As part of SMR's focused exploration program using Thematic Mapper ("TM") satellite images, an extensive area of hydrothermal alteration was identified in south-central Chihuahua. The Mexican mining company, Penoles, recently staked a large part of the anomaly, but the alteration was found to extend to the south onto open ground, which is now covered by SMR's concession application.

The Hoya concession comprises 1,533 hectares (approximately 3,786 acres) and is located 180 kilometers south of the city of Chihuahua. Regional surface samples have given encouraging results from stockwork / disseminated mineralization in sandstone units of up to 0.439 g/t Au and 116 g/t Ag. Historic mining in the area was from silver-lead-zinc veins. The target SMR will be investigating is a gold-dominant stockwork / disseminated style of mineralization.

Carbon

The Carbon concession comprises 1,995 hectares (approximately 4,928 acres) and is located 130 kilometers south of the city of Chihuahua in south-central Chihuahua State.

Carbon is a CRD (Carbonate Replacement Deposit) target that lies adjacent to the southeastern boundary of Anglo America (Canada) Ltd.'s "Pinabete" concession, recently optioned to Southern Silver Exploration Corp. TM satellite image anomalies indicate that the northwest trending structural zone reported by Anglo continues to the southeast onto open ground and manifests itself as strong alteration of the Tertiary volcanic rocks overlying the carbonate sedimentary units and associated Pb-Zn-barite mineralization.

Cerritos

SMR's Cerritos concession comprises 1,955 hectares (approximately 4,829 acres) and is located 150 kilometers south of the city of Chihuahua in south-central Chihuahua State. Historically considered primarily a copper target, Noranda previously drilled this TM satellite anomaly for porphyry copper mineralization, and presently, Penoles and individual concessionaires control the known copper district. Recently, the valley to the southwest of the anomaly was staked by Kennecott to test for buried copper mineralization.

Initial fieldwork by SMR has identified an area to the northeast of the anomaly on open ground, with gold-anomalous samples from stream sediments peripheral to the copper zone. This is the area covered by SMR's concession application.

Mr. Anthony F. Ciali, President & CEO, stated, "During the past several months, SMR has investigated numerous geologic targets of interest based on satellite images. The targets were located in the States of Chihuahua and Durango, although SMR has numerous potential targets in several other states located in northern and central Mexico, which will be investigated in the future. In addition to the three new concessions recently applied for, SMR anticipates making applications for additional concessions in the coming months. SMR has also been pursuing the potential acquisition of third party concessions by way of option or joint venture agreements. While discussions have taken place, and are continuing, no agreements have yet been finalized. The next phase of work on SMR's Arco Project in the State of Durango, which will principally include a Phase I drilling program to test the outcropping vein structures that have been sampled, is pending financing, which the Company is pursuing."

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.