X-Cal Resources fka XCL

[Ed Monton]

X-Cal Resources Ltd.: 2004 Exploration Program Begins at
Sleeper

VANCOUVER, BRITISH COLUMBIA--X-Cal Resources Ltd. is pleased to
announce the commencement of exploration activities at the
Sleeper Joint Venture. The first core drilling rig is on site at
the Sleeper Gold Property, located in Humboldt County, Nevada. A
second core drill and a reverse circulation rig are expected to
follow by mid March 2004.

In a press release dated January 12, 2004 X-Cal announced the
formation of a 50/50 joint venture with New Sleeper Gold LLC to
explore the 30 square mile Sleeper Gold District. X-Cal also
announced the exercise of its option on the Kinross lands in the
district which consolidated the Sleeper area lands for the joint
venture.

The core drilling program will begin in the West Wood Area, where
numerous encouraging intercepts have occurred in previous reverse
circulation (RC) drilling. Several twin holes will be included in
the West Wood Area core drilling program, in order to highlight
any inconsistencies between the two drilling methods, and allow
analysis of the previous data, including the evidence of free
gold previously reported by X-Cal. The core drilling will also
test the new deeper zone reported by X-Cal in a press release
dated October 20, 2003. (ALS Chemex will be the primary lab used
for the assay work.)

In general, the work program for the first half of 2004 will
address: (1) the areas of resource potential identified by
previous work within the minesite area, in particular the West
Wood and Silica Cap areas, (2) exploration targets identified
within the minesite area, including the depth and strike
extensions of the Sleeper Vein system and the Bedrock Casino
area, and (3) regional targets within the district where a number
of targets have been identified by previous work. All of these
programs will run simultaneously over coming months.

The joint venture, under the direction of Adrian Fleming of New
Sleeper Gold LLC, is consolidating all property data and adding
personnel to the team established by X-Cal. The joint venture is
committed to spending US$8 million to US$10 million to advance
the project. The initial 2004 budget has been set at US$6
million, subject to refinement as work progresses.

The Sleeper Joint Venture is being operated by a committee with
two members from each company and alternates appointed to
participate. X-Cal has appointed Messrs. Shawn Kennedy, President
of X-Cal, with John Arnold as alternate, and Larry Kornze,
P.Eng., with Ken Snyder, Ph.D. as alternate to the Joint Venture
Committee.

The contents of this release have been reviewed by Keith Blair,
M.Sc., who is a Qualified Person as defined by National
Instrument 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.