January 25, 2006 08:52 ET

X-Cal Resources to Acquire New Sleeper Gold's 50% Interest in The Sleeper Project in Nevada

LONGUEUIL, QUEBEC--(CCNMatthews - Jan. 25, 2006) - New Sleeper Gold Corporation (TSX VENTURE:NWS) announces today that it has entered into an agreement with X-Cal Resources Ltd. (TSX:XCL) under which X-Cal will acquire New Sleeper's 50% interest in the Sleeper Gold Project. Under the terms of the agreement, X-Cal will pay to New Sleeper Can$5 million and deliver 10 million of its common shares to New Sleeper by the latest of May 16, 2006 and 90 days of the receipt of regulatory approvals. The common stock to be received by New Sleeper will be subject to a timed release over a two-year time frame.

An amount of Can$50,000 has been paid by X-Cal to New Sleeper concurrent with the signing of the agreement. A further Can$100,000 will be paid when regulatory approvals are obtained. The balance of the cash payment (Can$4.85 Million) and the delivery of the common shares will follow the time frame set out above. The minimum exploration budget for the next phase is estimated at US$5 million. The timing and priorities for ongoing work and ultimate rate of expenditure on the Sleeper Gold Project will be determined by X-Cal.

New Sleeper will become the largest individual shareholder of X-Cal and as such will retain an indirect interest in the Sleeper Project. X-Cal will become operator of the Sleeper Gold Project and will fund ongoing exploration. New Sleeper, as the current operator of the Sleeper Joint Venture, has brought the Sleeper database to an advanced stage and defined attractive new targets. X-Cal intends to test these targets and also implement the recommendations of the review team.

The closing of the transaction is subject to regulatory approvals (including the approval of the TSX Venture Exchange) and X-Cal completing the necessary arrangement to finance the acquisition. All cash and share payments must be made by X-Cal to New Sleeper, prior to the transfer of New Sleeper's interest to X-Cal, within the time frames set out above, or the agreement will terminate and the initial cash payments will be retained by New Sleeper.

From this point on, New Sleeper intends to focus its attention on projects in the Guiana Shield in South America. New Sleeper has announced earlier this week that it has acquired the right to explore, develop and acquire the Antino 1 Project located in Southeastern Suriname. New Sleeper is actively looking for new opportunities in South America and anticipates the acquisition of additional projects in the Guiana Shield.

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the closing of the transaction, the anticipated benefits of this transaction and New Sleeper future plans. Forward-looking statements express, as at the date of this press release, New Sleeper's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to: fluctuations in gold prices; uncertainties related to raising sufficient financing to complete the transaction and fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; uncertainties involved in the interpretation of drilling results and other tests; and the possibility that required permits and approval may not be obtained in a timely manner or at all.

Further information about New Sleeper is available on its web site at

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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