X-Cal Resources Ltd.

X-Cal Resources Ltd.

December 12, 2006 08:00 ET

X-Cal Resources Ltd.: Winter Drill Program Begins at Sleeper

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 12, 2006) - X-Cal Resources Ltd. (TSX:XCL) -

Two drills (one core and one reverse circulation) are onsite at Sleeper to begin the winter drill program. The drills will work throughout the winter on a combination of exploration and definition.

The Exploration Potential of Sleeper is described in a paper by Richard Sillitoe, PhD. (See Jan. 26/06 press release at www.x-cal.com for link to Sillitoe Paper).

Gold mineralization, previously described by MRDI as being located "above ground" at Sleeper in the heaps and tails and "in ground" at Sleeper in the "West Wood" and "Facilities" areas is being re-evaluated.

The Sleeper Gold Project, located in Humboldt County, Nevada is a 30 square mile gold district centered around and including the historic Sleeper Gold Mine. The epithermal gold project is the primary focus of X-Cal.

The recommended exploration program for Sleeper is $US 15 million.

A NI 43-101 Technical Report on the Sleeper Gold Project by Thomason, Kornze and Rowe can be found on SEDAR or at www.x-cal.com, in the Current Reports section.

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

Shawn Kennedy, President

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 and the Reese River 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 and the Reese River 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 and the Reese River 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.

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

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