Can-Cal Resources Ltd.

Can-Cal Resources Ltd.

June 20, 2012 09:00 ET

Can-Cal Resources Ltd.: Shareholder Update

LAS VEGAS, NEVADA--(Marketwire - June 20, 2012) - Can-Cal Resources Ltd. (OTCQB:CCRE) -

Dear Shareholders:

The Management of Can-Cal Resources Ltd. ("Can-Cal" or the "Company") is pleased to report that the Company is making good progress on several fronts. Here are the highlights:

Pisgah Project

Management met with the CEO of GoodCorp, Joseph Lenthen, and his Senior Management to discuss GoodCorp's operation plans at the Pisgah site for the remainder of 2012. GoodCorp will be initially leasing its specialized equipment from a manufacturer in the U.S.A. and indicated that the final testing of the equipment is now underway using Pisgah ore to ensure flawless operation upon arrival at the site. The delivery of the specialized equipment is expected to arrive at the site by the end of July, 2012. Operational production will then commence shortly after the equipment is set-up. Additionally, both Can-Cal and GoodCorp personnel met with the Bureau of Land Management ("BLM") to discuss and review existing Pisgah permitting requirements for allowing GoodCorp to have access to the Company's Property to set-up its production facilities.

Wikieup Project

The Company recently signed a Property Work out Agreement with the University of Nevada, Las Vegas (the "UNLV Project") to evaluate Can-Cal's Wikieup claims for the potential of large and small mineralization, including the potential for a large scale porphyry copper system. The UNVL Project commenced in mid-May with the collection of initial background information and maps to prepare the necessary logistics for the summer stage of project. The Company's consulting geologist overseeing all phases of the UNLV Project is Mr. Luis Vega, B.S. and M.S. in Economic Geology.

The UNVL Project will consist of, but not limited to the following:

  1. examination of Thematic Mapper false colour satellite images that indicate hydrothermal alteration;
  2. conducting a stream-sediment sampling program on major drainages;
  3. a geochemical analysis of samples will be sent out to a recognized 3rd party laboratory for creation of a metal distribution map of Can-Cal's claims (including precious and base metals; and
  4. additional samples of Wikieup ore along with ore from Can-Cal's Pisgah and Cerbat properties will be sent out to a recognized 3rd party laboratory where the ore will be "pretreated" with a multi-acid digestion, prior to conducting the regular assay procedures.

Cerbat Property

Management is very cognizant that there is currently a substantial mining presence in the area surrounding the Company's Cerbat property. Due to Cerbat's several delineated dump areas from previous mining operations, Mr. Vega, Can-Cal's consulting geologist, has recommended that the Company approach several of the mining companies with operations in the area to consider a joint venture to process tailings from the previously worked mines on the Company's patented claims. Additionally, the Company is considering a separate study, consisting of setting up a specific site, where both Wikieup and Cerbat ores could be processed.

Project Funding

In light of these aforementioned projects now underway, Can-Cal's Management has approved plans to raise up to US$250,000 in private placements of securities to support the current projects and related operations.

In summation, Management continues to remain optimistic that the current work out projects on the Company's properties will deliver positive results. As always, we are focused on bringing our Shareholders an above average return on investment and greatly appreciate your continuing patience and support. Thank you.

Yours truly,

Can-Cal Resources Ltd.

G. Michael Hogan, President and CEO

Can-Cal Profile

Can-Cal is an emerging precious metals exploration and chemical extraction company actively engaged in identifying commercial mining opportunities. Can-Cal is currently focusing its efforts on three main properties: PISGAH, California; WIKIEUP, Arizona; and CERBAT, 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 its expectations, except as may be required by law.

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