X-Cal Resources Ltd.

X-Cal Resources Ltd.

February 28, 2005 09:15 ET

Mill Creek Report Available On X-Cal Website and Sedar




FEBRUARY 28, 2005 - 09:15 ET

Mill Creek Report Available On X-Cal Website and Sedar

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - X-Cal
Resources Ltd. (TSX:XCL) has received a new updated technical report for
its 100% owned Mill Creek Gold Property, which is located on the Battle
Mountain Trend in the Cortez Area, Lander County, Nevada. The NI 43-101
compliant report has been posted to SEDAR and to the Company website at
www.x-cal.com. Investors are encouraged to read the complete report for
a comprehensive view of the early stage gold project.

The conclusion portion of the report states:

"The main objective of this technical report is to assess the
potential for the Mill Creek property to host Carlin-Style sediment
hosted gold and silver mineralization similar to in the nearby
Cortez-Pipeline-Cortez Hills deposits area. The Mill Creek
Property is considered to have good potential to host a Carlin-
Style gold-silver deposit because:

- the Property is situated directly along the northwest trending
Battle Mountain-Cortez-Eureka Trend, which hosts several nearby
large, economic Carlin-Style sediment hosted gold-silver mines;
- Geophysical data show a large magnetic high within the Property,
interpreted to indicate the presence of a large dioritic
intrusive complex that is bounded by two or major sets of faults
that carry gold mineralization;
- the Property exhibits dioritic dikes, pyrrhotite skarn, and
alteration and gold mineralization in Lower Plate Wenban and
Hanson Creek limerocks;
- the Property exhibits strong alteration and mineralization of
surface outcrops of Upper Plate Valmy Formation rocks, with
limonite, silica, and barite at the surface, and pyritic sulfides
in sheared, silicified and locally carbon-flooded rocks at depth
in exploration holes drilled to date;
- the Property exhibits moderately anomalous surface geochemical
anomalies of gold, arsenic, and antimony in soils and rocks, in a
high-grade gold intercept found in drillhole BMC-93-1A, which
encountered 3 meters that assayed .52 opt Au /17.45 gpt Au (true
width not known) and in lower grade gold and silver intercepts
found in the X-Cal drill holes.

The foregoing analysis leads to a number of conclusions:

- The Mill Creek property falls at a major structural nexus;
- The structures controlled emplacement of intrusions;
- Gravity data and drillholes suggest possible skarn development;
- Gold mineralization was emplaced along these structures; and
- The western structural "NNW Corridor" carries local high-grade
gold mineralization in BHP drillhole BMC-93-1A, and requires
continued testing by exploration drilling.

A Carlin-style Cortez Hills type carbonate-hosted replacement-type
gold deposit is interpreted by the writer to be the most likely
possibility for discovery of an economic gold deposit on the Mill
Creek Property. Marble is well developed in the lower plate rocks
at Mill Creek due to the proximal intrusive bodies, and pyrrhotite
skarn locally is present. As at Cortez Hills, the marble is
impermeable, thus channeling hydrothermal fluids into structural
traps in favorable lithologies, or possibly ponding fluids against
any marble/skarn front. Drillhole BHP-93-1A might have been
deepened 150 metres more, to test for such an environment. It is
interpreted that the geologic setting at Mill Creek is favorable as
a host for sediment hosted gold deposits. Less than half of the
known target areas were tested during X-Cal's initial exploration
program. In the writer's opinion, very favorable parts of the
Property remain to be tested during Phase 2 work. The gravity,
airborne magnetic and structural data indicate favorable target


Thirty thousand (30,000 ft.) feet of drilling is recommended for
Phase 11 Exploration of The Mill Creek Gold Property.

"The writer and James Wright, M.Sc, both recommend that X-Cal
should further test by drilling the prospective NNW Corridor on the
west side of the Mill Creek Property. James Wright, M.Sc, also
recommends that further geophysics be conducted prior to such
drilling, namely that the five NE-SW trending lines of audio
magnetotelluric data ("MT") be surveyed and collected first. The
locations of these proposed MT lines are shown on Figure 29.

Figures 29-31 show the Mill Creek aeromagnetic data, complete
bouguer gravity anomaly data, gold geochem distribution in soil
samples, and the structural interpretations of the writer and of
other workers on the Property.

A large area is present that is believed to have good potential for
the occurrences of gold within the NNW Corridor area. Due to the
large size of this target area, a sizeable number of drillholes
would be required to evaluate it. Figures 29-31 show a program of
ten drillholes that are recommended by James Wright, M.Sc, and by
the author for completion in a Phase 2 drilling program by X-Cal.
Additional fill-in holes would be required later, if any of the
first ten holes intersect gold mineralization of possible economic

In addition, five other holes should be drilled at Mill Creek
(total of 15). The order of prioritization recommended is outlined
in the report.

The writer concludes that exploration work conducted on the Mill
Creek Property has formed a good geologic and geochemical database
framework, from which X-Cal Resources may directly proceed with
additional drilling and exploration to define possible new gold
zones on the Property."

The report notes that all of the early stage drill holes in the 2004
X-Cal drill program encountered gold values (see attached Table) and
that Carlin type geochemistry, geology and favourable structural setting
all exist at the X-Cal Mill Creek Gold Property. The future exploration
will continue to test for a Cortez Hills/Meikle/Deep Star type of gold

The technical report was written by Richard R. Redfern, M.Sc, C.P.G.,
who is a Qualified Person as defined by NI 43-101. Mr. Redfern has also
reviewed the contents of this release.

X-Cal Resources Ltd. is encouraged by the results of the 2004 work
program and is reviewing the recommendation for continued exploration at
Mill Creek to determine the 2005 exploration budget.

The company also holds 50% interest in the 30 square mile Sleeper Gold
Project, located in Humboldt County, Nevada which is being actively
explored by The Sleeper Joint Venture. See press release dated Feb.

Caution Concerning Forward-Looking Statements

This news release and related images contain certain "forward-looking
statements" including, but not limited to, statements relating to
interpretation of drilling results and potential mineralization, future
exploration work at Mill Creek and the expected results of this work.
Forward looking statements are statements that are not historical facts
and are subject to a variety of risks and uncertainties which could
cause actual events or results to differ materially from those reflected
in the forward-looking statements, including, without limitation: risks
related to fluctuations in gold prices; uncertainties related to raising
sufficient financing to fund the planned work in a timely manner and on
acceptable terms; changes in planned work resulting from weather,
logistical, technical or other factors; the possibility that results of
work will not fulfill expectations and realize the perceived potential
of the Mill Creek Gold Project; uncertainties involved in the
interpretation of drilling results and other tests; the possibility that
required permits may not be obtained in a timely manner or at all; risk
of accidents, equipment breakdowns or other unanticipated difficulties
or interruptions; the possibility of cost overruns or unanticipated
expenses in the work program; the risk of environmental contamination or
damage resulting from the exploration operations at Mill Creek.

Forward-looking statements contained in this release are based on the
beliefs, estimates and opinions of management on the date the statements
are made. There can be no assurance that such statements will prove
accurate. Actual results may differ materially from those anticipated or
projected. X-Cal Resources undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change.

Shawn Kennedy


Note: X-Cal Resources Ltd. can be referenced through the Standard &
Poors Directory.

Au Ag
Drillhole Company Angle Azimuth Depth Interval Length (g/t) (g/t)
(feet) (feet) (feet)

XMC-1C X-CAL -90 - 854.5 252-285 33 0.059 2.19
XMC-2C X-CAL -90 - 1,412 500-525 25 0.064 6.80
640-665 25 0.148 2.67
XMC-3 X-CAL -90 - 700 120-140 20 0.034 0.78
XMC-4 X-CAL -60 240 230 80-110 30 0.053 1.83
XMC-5 X-CAL -90 - 1,140 210-230 20 0.036 0.68
XMC-6 X-CAL -60 240 1,200 410-420 20 0.022 1.55
XMC-7 X-CAL -90 - 1,000 40-90 50 0.286 0.53
130-170 40 0.093 1.72
XMC-7C X-CAL -90 - 1,612 130-180 50 0.078 1.68
455-490 35 0.143 1.46
XMC-8C X-CAL -90 - 1,093 35-65 30 0.131 0.46
130-180 50 0.182 3.82
315-335 20 0.101 0.60
605-615 10 0.079 0.26
XMC-9C X-CAL -90 - 1,482.5 160-190 30 0.217 0.90
355-395 40 0.114 0.14
455-470 15 0.406 0.56
522.5-523.5 1 1.045 0.48
530-531 1 0.582 0.23
705-720(i) 15 0.242 0.54
735-740(i) 10 0.447 5.28
750-805 55 0.050 1.15
880-885 5 0.124 1.74

XMC-10C X-CAL -60 090 1,700 60-65 5 0.134 0.30
105-125 20 0.096 0.51
140-145 5 0.211 0.45
490-510 20 0.209 0.39
550-590 40 0.174 0.29
630-640 10 0.254 0.52
715-720 5 0.145 0.73
770-795 25 0.078 0.34
835-850 15 0.086 2.25
1010-1030 20 0.080 4.43
1290-1315 25 0.049 0.75

C equal Wireline Core Drillhole
n/d equal no data
n/s equal not significant
(i): 10 feet of lost core between these two intervals

Note: True intersection widths are not known


Contact Information

    X-Cal Resources Ltd.
    Shawn Kennedy
    (604) 662-8245
    (604) 688-7740 (FAX)
    Email: invrel@x-cal.com
    Website: www.x-cal.com