X-Cal Resources Ltd.
TSX : XCL

X-Cal Resources Ltd.

July 10, 2007 08:00 ET

X-Cal Resources Ltd.: Consistent Drill Results/New Geologic Picture at Sleeper

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) - X-Cal Resources Ltd. (TSX:XCL) -

Development drilling at Sleeper, to achieve independent NI-43-101 confirmation of existing gold and silver mineralization, is ongoing.

New geologic understandings have been gained from the development drilling that will assist exploration of the district scale property, located in Humboldt County, Nevada.

A bulk test of material from the heaps at Sleeper is also underway.

FACILITIES AREA

Previously unrecognized shallow-dipping volcanic debris flows and high-angle (Sleeper vein type) structures control near surface mineralization in the Facilities Area at Sleeper.

Recognition of the low-angle debris flow strata(s) is a geologic break- through. The strata(s) can be seen in current drill core. Previous RC drilling returned chips that made identification of these units difficult.

Significant volumes of mineralization are contained in the debris flow units. This new understanding is important and has favorable implications for tonnage, mining logistics and exploration.

The Facilities Area year-to-date drilling has added 59 holes to the data-base for that area, all of which have been mineralized. Holes completed during 2007 for this location total 37,353 feet (11,385 meters).

The ongoing 2007 plan for Facilities calls for at least 26 additional drill holes totaling 17,300 feet (5,273 meters).

The portion of the Facilities Area that is being development drilled is approximately 1,970 by 1,475 feet (600 by 450 meters).

A total of at least 325 drill holes consisting of current, in progress and historic drilling will be used for calculation in this area.

The final drill hole spacing to be utilized for calculation will be determined by a qualified, independent engineering group.

The following results are from 22 newly assayed Facilities Area drill holes.

Current Facilities Drilling:



--------------------------------------------------------------
HOLE FROM TO LENGTH Au FROM TO LENGTH Au
feet feet feet opt meters meters meters gpT
--------------------------------------------------------------
XR-07-26 315 345 30 0.010 96 105 9 0.343
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545 565 20 0.015 166 172 6 0.514
---------------------------------------------------

--------------------------------------------------------------
XR-07-04 0 20 20 0.015 0 6 6 0.514
---------------------------------------------------
100 125 25 0.010 30 38 8 0.343
---------------------------------------------------
160 240 80 0.013 49 73 24 0.446
---------------------------------------------------

--------------------------------------------------------------
XR-07-37 70 120 50 0.010 21 37 15 0.343
---------------------------------------------------
415 525 50 0.010 126 160 34 0.343
---------------------------------------------------
590 620 30 0.014 180 189 9 0.480
---------------------------------------------------

--------------------------------------------------------------
XR-07-32 255 270 15 0.011 78 82 5 0.377
---------------------------------------------------
380 450 70 0.020 116 137 21 0.686
---------------------------------------------------
475 510 35 0.012 145 155 11 0.411
---------------------------------------------------

--------------------------------------------------------------
XR-07-39 70 115 45 0.011 21 35 14 0.377
---------------------------------------------------
230 270 40 0.021 70 82 12 0.720
---------------------------------------------------
300 315 15 0.019 91 96 5 0.651
---------------------------------------------------
380 420 40 0.016 116 128 12 0.549
---------------------------------------------------
495 590 95 0.013 151 180 29 0.446
---------------------------------------------------

--------------------------------------------------------------
XR-07-71 0 20 20 0.021 0 6 6 0.720
---------------------------------------------------
125 145 20 0.013 38 44 6 0.446
---------------------------------------------------
380 400 20 0.016 116 122 6 0.549
---------------------------------------------------
460 490 30 0.012 140 149 9 0.411
---------------------------------------------------
515 585 70 0.011 157 178 21 0.377
---------------------------------------------------

--------------------------------------------------------------
XR-07-42 220 250 30 0.020 67 76 9 0.686
--------------------------------------------------------------

--------------------------------------------------------------
XR-07-73 375 415 40 0.011 114 126 12 0.377
---------------------------------------------------
450 530 80 0.015 137 162 24 0.514
---------------------------------------------------

--------------------------------------------------------------
XR-07-72 515 595 80 0.010 157 181 24 0.343
--------------------------------------------------------------

--------------------------------------------------------------
XC-07-21 95 200 105 0.013 29 61 32 0.446
--------------------------------------------------------------

--------------------------------------------------------------
XR-07-82 315 335 20 0.011 96 102 6 0.377
---------------------------------------------------
335 350 15 0.065 102 107 5 2.229
---------------------------------------------------
380 445 65 0.020 116 136 20 0.686
---------------------------------------------------
470 500 30 0.026 143 152 9 0.891
---------------------------------------------------
500 510 10 0.125 152 155 3 4.286
---------------------------------------------------
515 620 105 0.024 157 189 32 0.823
---------------------------------------------------

--------------------------------------------------------------
XR-07-76 15 30 15 0.018 5 9 5 0.617
---------------------------------------------------
215 235 20 0.012 66 72 6 0.411
---------------------------------------------------
250 310 60 0.013 76 94 18 0.446
---------------------------------------------------
330 400 70 0.014 101 122 21 0.480
---------------------------------------------------
540 570 30 0.014 165 174 9 0.480
---------------------------------------------------

--------------------------------------------------------------
XR-07-81 0 25 25 0.015 0 8 8 0.514
---------------------------------------------------
130 275 145 0.017 40 84 44 0.583
---------------------------------------------------
335 370 35 0.012 102 113 11 0.411
---------------------------------------------------

--------------------------------------------------------------
XR-07-77 0 25 25 0.022 0 8 8 0.754
---------------------------------------------------
530 585 55 0.017 162 178 17 0.583
---------------------------------------------------
665 740 75 0.014 203 226 23 0.480
---------------------------------------------------

--------------------------------------------------------------
XR-07-89 235 290 55 0.010 72 88 17 0.343
--------------------------------------------------------------

--------------------------------------------------------------
XR-07-84 160 300 140 0.014 49 91 43 0.480
--------------------------------------------------------------

--------------------------------------------------------------
XR-07-83 265 340 75 0.017 81 104 23 0.583
--------------------------------------------------------------

--------------------------------------------------------------
XR-07-74 245 275 30 0.010 75 84 9 0.343
---------------------------------------------------
380 395 15 0.013 116 120 5 0.446
---------------------------------------------------

--------------------------------------------------------------
XR-07-76 215 235 20 0.012 66 72 6 0.411
---------------------------------------------------
250 315 65 0.013 76 96 20 0.446
---------------------------------------------------
330 400 70 0.014 101 122 21 0.480
---------------------------------------------------

--------------------------------------------------------------
XR-07-80 120 135 15 0.018 37 41 5 0.617
---------------------------------------------------
205 230 25 0.010 62 70 8 0.343
---------------------------------------------------
255 275 20 0.011 78 84 6 0.377
---------------------------------------------------
385 435 50 0.012 117 133 15 0.411
---------------------------------------------------

--------------------------------------------------------------
XR-07-90 480 545 65 0.019 146 166 20 0.651
---------------------------------------------------
590 655 65 0.017 180 200 20 0.583
---------------------------------------------------

--------------------------------------------------------------
XR-07-79 115 185 70 0.012 35 56 21 0.411
---------------------------------------------------
305 495 100 0.010 93 123 30 0.343
--------------------------------------------------------------


SOUTH FACILITIES AREA

The stratiform mineralization at Facilities can be traced to the south of the present development area for an additional 2,500 feet (762 meters) with widths of 650 to 800 feet (198 to 244 meters) through an area named "South Facilities".

Separate "South Facilities" drill data includes 150 historic holes. This data, in combination with the new geologic picture at Sleeper, indicates that "South Facilities" should also be considered for a development drill program.

BULK TESTING OF HEAPS

Approximately 49 million tons of mineralized material is located above ground in the Heap Leach Pads at Sleeper. This material is being evaluated as part of the development work.

The objective of bulk testing is to better quantify and determine recoverability of gold and silver from this material, with a view towards blending it with Facilities Area Mineralization into a new, restacked heap.

Kappes, Cassiday and Associates have been commissioned for the column testing and metallurgical work.

WEST WOOD

Development drilling of the West Wood Area is also progressing.

Volcanic debris flows visually similar to those encountered in the Facilities Area have been seen in core from West Wood. Higher grade gold zones within West Wood, which have returned historic intercepts such as 30 feet (9 meters) averaging 0.446 opt Au (15.30 gpT, hole WW-02-03) may be localized along low-angle dipping lithologic units, as seen at Facilities.

The strike length of West Wood has been extended to at least 900 feet (274 meters).

Year-to-date nine holes totaling 10,203 feet (3,110 meters) have been completed, expanding known mineralization in width and to the south. To date results from three of these holes have been received and published.

Assays from four new West Wood drill holes are pending.

At least 12 additional holes totaling 12,200 feet (3,719 meters) are planned in preparation for a resource calculation at West Wood.

NW AREA

The NW exploration target is described in the Sillitoe Report (2006).

This year to date, four holes totaling 4,227 feet (1,288 meters) have been drilled in this area. The last hole drilled contained an encouraging interval of strong quartz-pyrite alteration with anomalous gold values, which occurred at the same approximate elevation as West Wood.

Follow-up drilling is planned.

PENDING EXPLORATION

The new geologic picture incorporates favorable stratigraphic horizons seen at Facilities and West Wood. This breakthrough is expected to assist ongoing exploration and development drilling.

The NW target and West Wood occur along a trend that parallels the Sleeper vein on the west side of the mine. This trend is over 6,250 feet (1,905 meters) in length. Most of this trend has "not" been drilled at the elevation/strata where the West Wood mineralization and the anomalous NW intercept occur. Targeting along this extensive zone is in progress.

Additionally, gold values in the database that require offset drilling occur in a variety of locations throughout the 30 square mile Sleeper Gold Property.

SUMMARY

The 2007 goals are to complete the initial resource calculations and advance exploration of the Sleeper District.

Management views the current development drilling as a stepping-stone to the exploration potential of the Sleeper District.

The balance between exploration and development drilling will alter to favor exploration, when the data necessary to achieve the reporting goals has been collected and submitted to independents.

The Exploration Potential of the Sleeper District is best described in the 2006 paper by Dr. Richard H. Sillitoe, which can be viewed at www.x-cal.com.

In addition to the Sleeper Gold Project, X-CAL also holds two properties in the Cortez Area and one in the Spring Valley Area of Nevada.

The contents of this release have been reviewed by Robert Thomason, M.Sc., who is a "Qualified Person" as defined by NI-43-101.

Caution Concerning Forward-Looking Statements

This release and related documents may contain certain "forward-looking statements" including, but not limited to, statements relating to interpretation of drilling results and potential mineralization, future exploration work at the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project 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 Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area 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 the Sleeper Gold Project, the Mill Creek Gold Project, the Reese River Project and the Spring Valley Area Project. Forward-looking statements contained in this release and related documents 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 Ltd. and X-Cal USA, Inc. undertake no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.

Shawn Kennedy, President

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

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