Can-Cal objects to Miner’s comments

We have read your comments in the “Query” column responding to a letter regarding Can-Cal Resources Ltd. We regret to say that your comments are factually incorrect and, as a result, your negative references to Can-Cal are wholly inappropriate and misleading.

Can-Cal has done, and continues to do, its utmost to obtain independent analyses of samples taken from its Pisgah property and has had testing done by independent and well-known laboratories.

For example, rock samples from the Pisgah property were sent to Natural Resources Canada (Canada Centre for Mineral and Energy Technology) in June 1999. Dr. Louis Cabri was contracted to conduct an orientation study of the precious metal mineralogy and associations. Utilizing scanning electron microscope (SEM) and optical microscopy equipped with an energy disperse system (EDS) to characterize grain compositions, the study identified alloys and native metals, plus gold and silver. The confirmation (as reported in Can-Cal’s press release of Aug. 26, 1999) gave the Can-Cal Board the analytical data to proceed with extractive metallurgical testing of Pisgah volcanic cinders. Can-Cal retained Prof. Jacques Jedwab, Universite Libre de Bruxelles, an international expert in precious metals, to perform a mineralogical study, which identified and documented native elements and alloys of silver, gold-silver, and mineral species containing platinum and palladium in Pisgah volcanic cinder material (as reported in Can-Cal’s release of Aug. 17, 2000).

Can-Cal’s previous literature also identified a geological setting similar to Pisgah in Kamchatka. The Russian Academy of Sciences, Institute of Volcanology, reported native metals and intermetallic compounds in eruptive material taken from a cone developed in 1975 and 1976. A geologic setting similar to Pisgah, and which contains alloys, silver and gold, is found in the U.S. Virgin Islands, as reported by the U.S. Geological Survey in 1994.

Although, in the past, Can-Cal tested reduction fusion and plasma furnace methodology, the company abandoned this technology and moved forward in 2000 with additional testing of more favourable extraction processes. The fact is that every major platinum group element extraction and refining company in the world closely guards its intellectual property and confidential process technologies.

The pretreatment of most platinum group metal ores has been a historic necessity, either for assay data or successful extraction methodology. Recent successful testing in pretreatment process technology has provided Can-Cal’s board of directors with the confidence to exercise Can-Cal’s option to acquire this technology. Can-Cal intends to utilize this technology to implement the production of precious metals. Can-Cal wishes to re-emphasize that the dore products produced and shipped to independent certified laboratories are produced directly from the volcanic cinder samples. The company’s “secure sampling and custody program” ensures that the certified assay data reported by the independent laboratories are derived from the precious metal content of the Pisgah test sample material and nothing else. Can-Cal stands by the integrity of its testing programs.

With respect to the joint-venture property at Owl Canyon, The Northern Miner writer failed to address the reported independent geochemical analysis and assay data reported in company press releases (June 1999 to March 2000). The “in-house” Owl Canyon assays guided the recent exploration program where hundreds of rock samples were collected and shipped for preparation and analysis by ISO 9000 certified laboratories, namely, Acme Laboratories and Activation Laboratories in Canada. The analytical data provided by these laboratories confirmed the “in-house” assays and established the presence of gold and silver mineralization at Owl Canyon. The inference by The Northern Miner writer that Can-Cal used non-conventional analytical methods at Owl Canyon is both disturbing and false.

It should be recognized that, in early June 2000, the reporting staff of The Northern Miner was given the opportunity for full and frank disclosure discussions with Can-Cal concerning company procedures and developments. No representative of The Northern Miner has ever contacted Can-Cal. Had The Northern Miner done so, as it should have before publishing an article replete with errors, we are confident that The Northern Miner would never have written such an article. Can-Cal Resources firmly believes that our past successful scientific research and testing and our continued full disclosure of the company’s test results will enable any independent observer to evaluate our progress in a professional manner. The Can-Cal board of directors would like to once again extend an invitation to any representative of The Northern Miner to observe the company’s testing procedures by visiting a Can-Cal operation.

Ronald Sloan, President

Can-Cal Resources

Las Vegas, Nev.