Can-Cal Resources Ltd.
OTC Bulletin Board : CCRE

Can-Cal Resources Ltd.

October 04, 2007 09:01 ET

Can-Cal Resources Ltd.-Announces Recent Developments

LAS VEGAS, NEVADA--(Marketwire - Oct. 4, 2007) - Can-Cal Resources Ltd. ("the Company") (OTCBB:CCRE) is pleased to announce the following new developments:

- Purchase of DC Arc Furnace

- Purchase or Lease of Nevada Mill Site

- Advanced Laboratories Results

- Chain of Custody Program

Throughout 2007, Can-Cal Resources Ltd. contracted with independent third-parties to conduct hundreds of assay tests on the Pisgah Mountain and Wikieup property head ores. Due to the encouraging results, the technical team was given instructions to repeat the process using larger quantities of material. During August and September the team began utilizing a variety of technologies including leaching processes, electrowining, thermite testing and furnacing with in-quart fluxes, focusing solely on gold recovery.

DC Arc Furnace

The induction furnace Can-Cal Resources purchased in 2007 did not achieve the required 3300 degree Fahrenheit temperature needed for the testing and smelting of the Pisgah & Wikieup ores. The Technical Team decided that due to the insufficient temperatures the precious metals were not being released from the silicates in the head ore. Since the oil/gas and induction furnaces did not meet the required temperatures, it was determined that the Company would purchase a furnace that would meet the desired temperature.

Following extensive research and test work performed over the past year by the Team, the Board of Directors has concluded that a DC Arc furnace is required to produce the higher temperatures for releasing the precious metals encapsulated in the silicates in the head ore. It is believed that this furnace will remove the restrictions on the quantity of base metals and sulphides in the head ore. Therefore, Can-Cal made inquiries and has located a DC Arc furnace in South Carolina. A company representative will be on site to evaluate the equipment within the next ten days. Providing the equipment meets specifications, it will be purchased, disassembled and shipped to its semi-permanent location in Searchlight, NV.

The success of the DC Arc furnace has been well documented and proven in production models used by major mining companies. As such, the Company is optimistic of the expectations of the extraction and recovery of precious metals from the Pisgah and Wikieup properties. Therefore, the Company's Board of Directors has concluded the purchase and utilization of the DC Arc furnace is the final step in the validation of the research and testing of the extraction methodologies of the head ores at the Pisgah and Wikieup properties.

All of the research to date has led Can-Cal to this point. Providing the move and installation at the site goes as anticipated, the furnace should be in production by end of the year.

In addition, with anticipated results the furnace will be used for commercial production of the Pisgah and Wikieup property head ores.

Proposed Testing and Production Facility

Can-Cal Resources is currently reviewing the potential purchase or lease of a mill site facility located in Nevada. The Company has been assured by the Real Estate Agent that the relevant licensing, permits, and water rights are in place. It is extremely important for the Company to have a facility that is legally permitted with water rights, etc. so that it can move into a production capability in a timely manner. This facility would be used for the testing and production of several ores on the Pisgah and Wikieup properties.

Advanced Laboratories Inc., Salt Lake City, Utah

In August, 2007 the laboratory staff delivered Pisgah samples to Advanced Laboratories Inc. for element determinations. Advanced identified the existence of gold, silver, platinum and palladium in the samples. Additionally the rare earths-yittria, europium, scandium, erbium, germanium, dysprosium, lanthanum and ytterbium were found and gallium and germanium were detected, which are not rare earths but are in high demand as determined by today's prices.

SGS Canada Inc.

On a preliminary basis the Company has recently contacted a field representative of SGS Canada Inc. regarding a chain of custody program. This program would be conducted following the DC Arc furnace installation and extraction process. Further discussions will be conducted outlining the evaluation program that will be required from head ore to recovered precious metal.

This news release includes statements, which may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release.

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