Can-Cal Resources Ltd. Announces News Update.

LAS VEGAS--(BUSINESS WIRE)--Oct. 13, 1999--

The board of directors of Can-Cal Resources Ltd. (OTCBB:CCRE) reported that the company will remain trading on the OTC Bulletin Board as a reporting company and will be filing all required reports on a timely basis.

Pisgah, Calif., Property (Privately Owned by Can-Cal)

Following lengthy analytical analysis, the company has now received the second analytical report from the independent assayer. The board of directors is encouraged with the assay results, and the company with which Can-Cal has been dealing has been instructed to further refine the material prior to shipment to the refinery.

Preliminary negotiations have been entered into with the company for contract processing of the Pisgah material, and based on the results, Can-Cal anticipates that it will enter into a contract for processing its material. The entire compilation of data will be published upon finalization by the refinery.

The Silurian Hills Project (Owl Canyon)

The Owl Canyon Joint Venture area has been totally re-staked and re-filed, incorporating 37 new mining lode claims comprising a block 1.7 miles long and 0.9 miles wide. The new project area constitutes a significant area for exploration of the many new zones of mineralization now recognized.

The first phase of reconnaissance surface rock chip sampling and systematic underground rock chip sampling has been completed at the newly acquired property. Three separate batches of surface and underground rock samples comprising approximately 100 samples from different areas have been shipped to Acme Labs in Vancouver, British Columbia.

These results will help to prioritize blasting and trenching of this project. The entire program is under the direction of geologist Bruce Ballantyne and support staff. The company anticipates assay results from the exploration phase of trenching to be introduced to a third-party mining company for a future drilling program.

Cerbat Leased Patented Mining Claims (Arizona)

Can-Cal is awaiting completion of the exploration program at Owl Canyon in order to relocate the geological team to this property for additional evaluation. The "In House" and historical data has provided the board of directors with sufficient analytical information to view this patented land optimistically.

Lucerne Valley, Calif. (Claimed Property)

This company holding comprises 1,460 acres. The claims will be maintained for future exploration of the lode and placer potential.

Field Office

The company has relocated the field office to Bullhead City, Ariz., which establishes a central point of operation to Can-Cal's mining properties. The new office hours are 9 a.m. to 5 p.m. Monday through Friday.