X-Cal Resources Ltd.

X-Cal Resources Ltd.

January 26, 2006 09:10 ET

X-Cal Resources Ltd.: Dr. Hedenquist's Sleeper Observations

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2006) - X-Cal Resources Ltd. (TSX:XCL) has received a report entitled: "OBSERVATIONS ON THE SLEEPER GOLD PROJECT, NEVADA" by Dr. Jeffrey Hedenquist. The paper is not a NI-43-101 report and should be considered as a supplement to N1-43-101 documents for the project. The paper will not be filed on SEDAR but can be found in its entirety at www.x-cal.com.

Dr. Hedenquist is an independent, internationally recognized consultant. His "Observations" are encouraging and are part of the Sleeper Gold Project Review Process announced by X-Cal.

A panel of professionals was assembled by X-Cal to review the Sleeper Gold Project, located in Humboldt County, Nevada, and to make recommendations for ongoing work. A separate paper by Dr. Richard Sillitoe names the entire panel of professionals who participated in the process (See X-Cal Press release dated Jan. 26/06 re Dr. Sillitoe).

The contents of this release and the text of "Observations on The Sleeper Gold Project, Nevada" by Dr. Jeffrey Hedenquist have been reviewed by Larry Kornze, P.Eng, who is a qualified person as defined by NI-43-101.

To view Dr. Hedenquist's paper, go to the News Release section of www.x-cal.com (the link to the paper will be located within the press release).

Investors are asked to read the "Caution Concerning Forward-Looking Statements" located below, prior to review of Dr. Hedenquist's paper.

Caution Concerning Forward-Looking Statements

This news 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 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; 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.

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 undertakes 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 & Poors Directory.

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