Can-Cal Resources Ltd. Announces Cancellation of the El Colomo Project Letter of Intent.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--March 25, 2004

Can-Cal Resources Ltd. ("the Company") (OTCBB:CCRE) announces that its wholly owned Mexican subsidiary, Sierra Madre Resources S.A. de C.V. ("SMR"), has received a letter of cancellation of the El Colomo Project Letter of Intent ("LOI") from Golden Anvil S.A. de C.V. ("Golden Anvil"). Pursuant to the terms of the LOI, which was signed in December 2003, Golden Anvil's authorization of the final joint operating agreement ("Agreement") was subject to the approval of its shareholders at the company's 2004 annual shareholders meeting. In the letter of cancellation, Golden Anvil advised SMR that the resolution to approve the Agreement was rejected by a majority vote of its shareholders at the meeting. SMR is presently reviewing its options and may attempt to renegotiate the terms of the LOI.

In addition to its ongoing review of mineral properties for potential acquisition in Mexico, SMR plans to initiate exploration activities in April at its 100% owned Arco Project ("Project"), a low-sulfidation epithermal gold-vein occurrence in Upper Series rhyolite formation, in Durango, Mexico (See press release dated February 17, 2004). These activities will include a mapping, sampling and trenching program, leading to a first phase drilling program to test 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. Typically, it is the underlying andesite formations that are mineralized in Mexico. 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.

The Project includes a land package of 463 hectares (approximately 1,140 acres), located 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.

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.