X-Cal Resources fka XCL

[Ed Monton]

X-CAL RESOURCES LTD.

TSX SYMBOL: XCL

JANUARY 12, 2004 - 09:00 ET

X-Cal Resources Ltd.: Sleeper Option Exercised, Joint
Venture Begins

VANCOUVER, BRITISH COLUMBIA--X-Cal Resources Ltd. has exercised
its option on the Kinross Interests in the Sleeper Gold Property
and has established a joint venture with New Sleeper Gold Corp.
to explore the 30 square mile (20,000 acre) Sleeper Gold
District, located on the Battle Mountain Trend in Humboldt
County, Nevada.

The exercise of X-Cal's option on the Kinross Interests in the
area is an important milestone which has resulted in 100%
consolidation of the mineral lands in the Sleeper Gold District
into one property. Prior to option exercise, Kinross and X-Cal
each held 50% of the mineral rights for 15,000 acres while X-Cal
held 100% of the mineral rights in an additional 5,000 acres of
the district.

Concurrent with the option exercise, X-Cal and New Sleeper Gold
Corp. have established a 50/50 joint venture to explore the
Sleeper Gold District. X-Cal will contribute all of its Sleeper
Area lands to the joint venture. New Sleeper has contributed
US$20 million and will manage the joint venture. The principals
of New Sleeper are David Fennell (Executive Vice Chairman of
Miramar Mining Corporation) and James Crombie (previously
President of Ariane Gold). New Sleeper has announced intentions
to merge with Upland Resource Corporation, which trades on the
TSX Venture Exchange under the symbol ULC.

The financing delivered by New Sleeper is allocated between
option exercise costs, bonding of the project and exploration.

An aggressive exploration program with a budget of US$8-10
million will begin within 30 days and continue throughout 2004.
The work programs will be carried out by an exploration team
composed of X-Cal and New Sleeper personnel. The exploration team
will include Winthrop Rowe, M.Sc., Ken Snyder, Ph.D., Larry
Kornze, P.Eng. and Keith Blair, M.Sc., and will be managed by
Adrian Fleming, P.Geo., of New Sleeper.

The expanded Sleeper exploration team (X-Cal/New Sleeper) is
compiling data from the 2003 work program in anticipation of
increased exploration activity throughout 2004.

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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.



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