Mill Creek

The Mill Creek Gold Property is owned 100% by X-Cal. The property is located in Lander County, Nevada. The Mill Creek Gold Property is located in an area where commercial gold deposits, such as Placer Dome’s Cortez and Pipeline projects are known to occur. The area is also known as the “Cortez Area” within the Battle Mountain-Cortez-Eureka Trend. A US$1,600,000 exploration work program that included drilling, mapping, sampling and geophysics has been completed by X-Cal on the Mill Creek Gold Property.

Richard Redfern, M.Sc., a qualified person as defined by NI-43-101, has provided the Company with a NI-43-101 Technical Report on the Mill Creek Gold Property. Investors are encouraged to read the complete report for a comprehensive view of this early stage gold project which is available on the SEDAR website http://www.sedar.com.

The Company has completed an extensive permitting process for the Mill Creek (Goat Window) Property which has resulted in approval of a Plan of Operations Permit. The permit will facilitate the testing of the targets described in the technical report. X-Cal will consider joint venture partners for funding of continued work on this property.

X-Cal has two gold projects in the CORTEZ AREA as pictured below. Both of the properties are located on lower plate windows.

The phrase “lower plate window” refers to areas on the Battle Mountain and Carlin Trends, where normally deeper rocks have been thrust to surface or near surface. Many of the most productive gold deposits on these trends occur in the lower plate rocks.

Reese River and Mill Creek Properties are along the Battle Mountain-Eureka mineral belt which includes numerous gold deposits. The map base is the USGS Gravity map dated 1997.

A Plan of Operations Permit that will facilitate continued exploration of the Lower Plate Window at X-Cal’s 100% owned Mill Creek/Goat Window property has been approved.

This Figure shows the recommended drill pattern for testing of the Mill Creek (Goat Window) Gold Property.