X-Cal Resources fka XCL

[Ed Monton]

X-CAL RESOURCES LTD.

TSX SYMBOL: XCL

JANUARY 5, 2004 - 17:32 ET

X-Cal Begins Work in the Cortez Area, Nevada

VANCOUVER, BRITISH COLUMBIA--X-Cal Resources Ltd. has allocated
an initial US$500,000 budget for advancing its 100%-owned Mill
Creek gold property located in Lander County, Nevada.

The 640 acre (one square mile) Mill Creek Property is located
within the Cortez Area, where Placer Dome operates the Cortez and
Pipeline Gold Mines. Recent announcements from Placer have
described new gold discoveries in this area named "ET Blue" and
"Cortez Hills".

X-Cal's Mill Creek Property is located on the "Goat Window" to
the northwest of Placer's Pipeline Gold Mine. The Mill Creek
Property has been held by X-Cal for several years, due to the
favourable geology and the presence of gold in early stage drill
holes. Many of the important mineral deposits on both the Battle
Mountain and Carlin Trends are located on what are locally
referred to as "lower plate windows" where deeper rocks have been
thrust to the surface.

Two major companies adjoin X-Cal's Mill Creek gold property with
contiguous claims. Several offers to joint venture from one of
the major companies were declined during the period of low gold
prices as the offers did not meet X-Cal's criteria.

The existing data on X-Cal's Mill Creek Property is being
compiled at this time for review by the Company's exploration
team members and subsequent production of a National Instrument
43-101 compliant report on the property.

The 2004 work program at Mill Creek will include offset drilling
of previous gold-bearing intercepts and testing of drill targets
in the northeast corner of the property nearest to the lower
plate outcrops.

The contents of this release have been reviewed by Richard
Redfern M.Sc., C.P.G. and Keith Blair, M.Sc., C.P.G., who are
Qualified Persons as defined by NI 43-101.

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FOR FURTHER INFORMATION PLEASE CONTACT:
X-Cal Resources Ltd.
Shawn Kennedy
President
[phone]
[phone] (FAX)
Email: [e-mail]
Website: www.x-cal.com
Note: X-Cal Resources Ltd. can be referenced through the Standard
& Poors Directory.