Can-Cal Resources Ltd.
OTC Bulletin Board : CCRE

Can-Cal Resources Ltd.

December 13, 2010 16:34 ET

Can-Cal Replaces Convertible Debenture Private Placement with a Unit Financing

LAS VEGAS, NEVADA--(Marketwire - Dec. 13, 2010) - Can-Cal Resources Ltd. ("Can-Cal") (OTCBB:CCRE) announces the replacement of the non-brokered US$1.0 Million Convertible Debenture private placement previously announced on June 11, 2010 with a non-brokered Unit financing. The replacement Unit private placement consists of up to 8,333,333 units ("Units") at a price of US$0.06 per Unit for gross proceeds of up to US$500,000. Each Unit will consist of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant will be exercisable into one additional Common Share at an exercise price of US$0.08 per share until June 30, 2012.

The use of proceeds will include but not be limited to: i) complete work-up of the 2 potential extraction processes that have currently been presented to determine which process will be used to potentially prove up any precious metals, platinum groups elements and/or other base metals on the Pisgah, California property and the Wikieup, Arizona property; ii) to conduct a drill program to potentially prove up the potential tonnages and subsequently any precious metals and/or other base metals on the Wikieup, Arizona property; iii) to conduct a comprehensive research and development program to ascertain the potential for any rare earth elements on the Owl Canyon, California property; iv) to determine and engage a qualified and comprehensive US and Canadian investor relations and shareholder communications group; and v) strategic working capital reserve.

The first closing of the Unit offering is expected to occur on December 31, 2010, or such other earlier or later date or dates as determined by the Corporation, upon completion and execution of the Subscription Agreement and payment of the aggregate subscription price for the Units subscribed for. There is no minimum amount for the Offering and the Corporation reserves the right to accept any subscription and close on that subscription at any time, with subscription funds being immediately released to the Corporation at closing.

About Can-Cal Resources

Can-Cal is an emerging precious metals exploration company actively engaged in identifying commercial mining opportunities. Can-Cal is currently focusing its efforts on the following three properties: Pisgah, California, Owl Canyon, California and Wikieup, Arizona.

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors and assumptions that should be considered is contained in the company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

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