X-Cal Resources Ltd.

X-Cal Resources Ltd.

January 19, 2006 09:10 ET

Placer Dome Returns Mill Creek To X-Cal Drill Test Inconclusive

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2006) - X-Cal Resources Ltd. (TSX:XCL) has received notice from the Cortez Joint Venture (a joint venture between Placer Cortez Inc. and Kennecott Explorations (Australia), Ltd.) ("CJV") that the option to purchase agreement announced by X-Cal relating to the Mill Creek Gold Property, located in Lander County, Nevada has been terminated. The option agreement would have required a $ US 5,000,000 payment and a 1.5% NSR to X-Cal for exercise (see X-Cal Press Release dated June 29/05 for details).

The CJV attempted two drill holes on the early stage property, neither of which reached their intended depths, due to difficult drilling conditions. It is known at this time that the two-hole program in the South Western part of the property was inconclusive from a geologic perspective. Both holes had to be located from existing roads to comply with present permit limitations (see X-Cal Press Release dated July 11/05). Partial data from the drill holes has been mailed to X-Cal, with multi-element ICP data to follow, at a later date. X-Cal will compile the additional data generated by CJV's program into the Mill Creek database, when it is received.

The Mill Creek drill targets described by X-Cal in a press release dated July 11, 2005 and posted to www.x-cal.com were not tested by the current work. The Plan of Operations application filed by X-Cal is under review, and if approved, will allow for drill sites throughout the target areas and will facilitate the next phase of exploration.

X-Cal Resources Ltd has three Nevada based gold projects: The 30 square mile Sleeper Gold Project, located in Humboldt County, the Mill Creek Gold Property, located over the "Goat Window" in Lander County, and The Reese River Pediment Property located on the "Horse Mountain Window" in Lander County.

The contents of this release have been reviewed by Larry Kornze, P. Eng, who is a Qualified Person as defined by NI-43-101.

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.

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