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Gold/Mining/Energy : X-CAL RESOURCES (TSE:XCL) -- Ignore unavailable to you. Want to Upgrade?

To: MasterRichie who wrote (24)	3/29/1998 10:49:00 PM
From: John Sladek	Respond to of 225

March 17, 1998 - March Payment Pivotal for Company Shawn Kennedy, President of X-Cal Resources Ltd. ("X-CAL") , announces that a pivotal point in the growth of X-Cal has been reached following more than two years of ongoing negotiations and legal work between X-Cal Resources Ltd. and Amax Gold Inc. The US$1,250,000 cash payment due to Amax Gold Inc. from X-Cal Resources Ltd. on March 17, 1998 has been made by X-Cal. The march payment secures X-Cal's three year right to purchase 100% of the Sleeper Gold Project and operatorship. (See news releases dated November 12, 1997 and November 19, 1997 for details.) X-Cal has made direct payments to Amax Gold totalling US$1,700,000 and 1,600,000 common shares of X-Cal under the Sleeper Area Agreements between the companies. X-Cal had previously earned an initial 50% interest in the project by making exploration expenditures in excess of US$2,000,000 on the combined lands of the companies in the Sleeper Area and a 1,000,000 common share payment to Amax. The three year option to purchase is the key piece that will allow for rapid exploration and development of the district. The Sleeper Gold Project covers an entire gold district, with the Sleeper Gold Mine (famous for its extremely high grade gold ore) at the centre of the project area. Assembly of the district was started by X-Cal in 1993 and accomplished by the backing of patient investors. The most recent compilation of all data show a relatively untested gold system pervasive throughout the 22,000 acres land package. Several Sleeper size targets for new gold deposits have been identified in the 1998 compilation. The Sleeper occurs on the northern extension of the Battle Mountain Trend. The scale of the project is such that if the claim block was made into a template and placed over top of the Carlin/Betze/Post area of the North Carlin Trend, it would encompass most of the major deposits of that area. The basis of the Sleeper Gold Project has been to identify the true orientation of the Sleeper gold system through geological mapping, extensive soil sampling, rock chip sampling, high quality geophysics, and drilling. The premise of the project is that multi-million ounce gold deposits in Nevada are not known to exist alone, but occur as clusters of several deposits in near proximity. The project is underpinned by an "in ground gold resource" of over one million ounces at the minesite as well as an unrecovered "above ground resource". X-Cal's work has demonstrated the Sleeper gold deposit, originally described as a three million ounce deposit, is certainly in excess of five million ounces when what has been mined to date is combined with existing resource at the minesite. Significant silver values also occur at the minesite and in exploration data. In addition to the potential for new high grade Sleeper type deposits in the volcanics, the property hosts bulk mineable ores. The property is also prospective for sediment hosted gold deposits. The work to date has been summarized in a report by Moyes, Newby & Co. of New York and in a presentation for institutional investors prepared by the Company. The overall potential for several "company making" gold deposits from the large project area is evident. The Company intends to host a group of mining analysts at the earliest possible date to review the project data in detail. The Company is also beginning review of proposals that will accelerate exploration and development of the Sleeper Gold District. Note: X-Cal Resources Ltd. can be referenced through the Standard & Poors Directory. The 1997 Annual Report is available through X-Cal Resources Ltd. TEL: (604) 662-8245 Shawn Kennedy, President FAX: (604) 688-7740

To: MasterRichie who wrote (24)	3/29/1998 11:06:00 PM
From: John Sladek	Read Replies (3) \| Respond to of 225

Richie, To get real information on the company, I recommend that you give them a call. For "unreal" information, talk to me. Here's what I think is going on. Basically, X-Cal thinks that it could have several deposits on their property that are similar to the original sleeper deposit. If this is correct, they are looking at several millions ounces, or possibly 10's of millions of ounces, since the original sleeper deposit held about 5 million ounces or so. This is more or less explained in the press release that I just posted. Getting a three year option on the property is amazing. X-Cal will now try to form a joint venture on the project with a major company. The major company will pay for exploration work over the next few years, and will be responsible for making the $16M payment to AMAX. The major company will also pay for the mine construction costs, and will be the operator. As you can see, under this scenario, X-Cal will not be going to the market for any more money - they will not need it. Other than the obvious questions (i.e., how much gold do they have, how much will it cost to mine), the only pther questions are how much will X-Cal get paid, and what stake of the joint venture they will own? Regards, John Sladek