| x | Quarterly                  Report pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934For                  the fiscal quarter ended March 31,                  2007 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | Transition                  Report under Section 13 or 15(d) of the Securities Exchange Act                  of                  1934.For                  the transition period from _____ to                  _____. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Nevada                                                                                          |   | 88-0336988                                            |
|-------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization) |   | (I.R.S.                  Employer Identification No.) |

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| Class                                           |   | Outstanding                  on May 10, 2007, |
|-------------------------------------------------|--------|-----------------------------------------------|
| Common                  Stock, Par Value $.001. |   | 24,138,016                                    |

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|  | · | Balance                  Sheet within item 1 of Part I, as well as, all related footnotes                  and                  references thereto, in order to restate the correction of an error                  as                  explained in Note 2 of the Notes to the Financial Statements. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Item                  3 of Part I to revise the wording concerning management’s evaluation and                  attestation over the Company’s disclosure controls. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Exhibit                  31 to revise the format of the Officer’s certification as required by                  601(b)(31) of Regulation S-B.   |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| CONTENTS                  |                                                                                                                    | PAGE                  NO.  |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------|----------------------------|
|                      |                                                                                                                    |                       |
| PART                  I.  | FINANCIAL                  INFORMATION                                                                                  |                       |
|                      |                                                                                                                    |                       |
| ITEM                  1.  | FINANCIAL                  STATEMENTS                                                                                   |                       |
|                      |                                                                                                                    |                       |
|                      | Condensed                  Balance Sheet (unaudited)                                                                    | F-2                        |
|                      |                                                                                                                    |                       |
|                      | Condensed                  Statements of Operations (unaudited)                                                         | F-3                        |
|                      |                                                                                                                    |                       |
|                      | Condensed                  Statements of Cash Flows (unaudited)                                                         | F-4                        |
|                      |                                                                                                                    |                       |
|                      | Notes                  to Condensed Financial Statements (unaudited)                                                    | F-5                  - F-7 |
|                      |                                                                                                                    |                       |
| ITEM                  2.  | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations | 2                          |
|                      |                                                                                                                    |                       |
| ITEM                  3.  | Controls                  and Procedures                                                                                | 4                          |
|                      |                                                                                                                    |                       |
| PART                  II. | OTHER                  INFORMATION                                                                                      |                       |
|                      |                                                                                                                    |                       |
| ITEM                  1.  | Legal                  Proceedings                                                                                      | 5                          |
|                      |                                                                                                                    |                       |
| ITEM                  2.  | Changes                  in Securities                                                                                  | 5                          |
|                      |                                                                                                                    |                       |
| ITEM                  3.  | Defaults                  Upon Senior Securities                                                                        | 5                          |
|                      |                                                                                                                    |                       |
| ITEM                  4.  | Submission                  of Matters to a Vote of Security Holders                                                    | 5                          |
|                      |                                                                                                                    |                       |
| ITEM                  5.  | Other                  information                                                                                      | 5                          |
|                      |                                                                                                                    |                       |
| ITEM                  6.  | Exhibits                  and Reports on Form 8-K                                                                       | 5                          |
|                      |                                                                                                                    |                       |
|                      | Signatures                                                                                                              | 5                          |
|                      |                                                                                                                    |                       |
|                      | Certifications                                                                                                          |                       |

----

----

|                                                                                                                                                       |   | March 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|
|                                                                                                                                                       |   | 2007           |       |
| ASSETS                                                                                                                                                     |   |           |       |   |
|                                                                                                                                                       |   |           |       |   |
| Current                  assets                                                                                                                            |   |           |       |   |
| Cash                                                                                                                                                       |   | $              | 473,761    |   |
| Total                  current assets                                                                                                                      |   |           | 473,761    |   |
|                                                                                                                                                       |   |           |       |   |
| Fixed                  assets, net                                                                                                                         |   |           | 36,795     |   |
|                                                                                                                                                       |   |           |       |   |
| Other                  assets, net                                                                                                                         |   |           | 430,634    |   |
|                                                                                                                                                       |   |           |       |   |
| Total                  assets                                                                                                                              |   | $              | 941,190    |   |
|                                                                                                                                                       |   |           |       |   |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIT                                                                                                     |   |           |       |   |
|                                                                                                                                                       |   |           |       |   |
| Current                  liabilities                                                                                                                       |   |           |       |   |
| Accrued                  interest                                                                                                                          |   | $              | 273,466    |   |
| Accrued                  officer salary                                                                                                                    |   |           | 237,118    |   |
| Accrued                  payroll taxes                                                                                                                     |   |           | 107,471    |   |
| Accounts                  payable                                                                                                                          |   |           | 25,611     |   |
| Notes                  payable-related parties                                                                                                             |   |           | 380,303    |   |
| Unearned                  Revenues                                                                                                                         |   |           | 3,750      |   |
| Total                  current liabilities                                                                                                                 |   |           | 1,027,719  |   |
|                                                                                                                                                       |   |           |       |   |
| Stockholders'                  deficit                                                                                                                     |   |           |       |   |
| Preferred                  stock; $0.001 par value; 10,000,000 shares authorized, no shares                  issued                  and outstanding       |   |           | -          |   |
| Common                  stock; $0.001 par value; 100,000,000 shares authorized, 24,008,316                  shares                  issued and outstanding |   |           | 24,008     |   |
| Additional                  paid-in capital                                                                                                                |   |           | 7,488,747  |   |
| Subscription                  payable                                                                                                                      |   |           | 1,000      |   |
| Accumulated                  deficit                                                                                                                       |   |           | (7,600,284 | ) |
| Total                  stockholders' deficit                                                                                                               |   |           | (86,529    | ) |
|                                                                                                                                                       |   |           |            |   |
| Total                  liabilities and stockholders' deficit                                                                                               |   | $              | 941,190    |   |

----

|                                                                            |   | For the Three Months Ended |       |
|---------------------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                                            |   | March                    31,                   |       |
|                                                                            |   | 2007                                           |       | 2006 |   |
|                                                                            |   |                                           |       |   |   |
| Material                    sales                                               |   | $                                              | -          |   | $ | - |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Cost                    of sales                                                |   |                                           | -          |   |   | - |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Gross                    profit                                                 |   |                                           | -          |   |   | - |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Expenses                                                                        |   |                                           |       |   |   |   |   |
| Beneficial                    conversion discount                               |   |                                           | -          |   |   | 8,400 |   |
| Exploration                    costs                                            |   |                                           | 47,308     |   |   | 8,900 |   |
| Depreciation                                                                    |   |                                           | 2,205      |   |   | 1,700 |   |
| General                    and administrative expenses                          |   |                                           | 48,494     |   |   | 46,500 |   |
| General                    and administrative expenses - related party          |   |                                           | 31,166     |   |   | 15,000 |   |
|  Total                    operating expenses                               |   |                                           | 129,173    |   |   | 80,500 |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Loss                    from operations                                         |   |                                           | (129,173   | ) |   | (80,500 | ) |
|                                                                            |   |                                           |       |   |   |   |   |
| Other                    income (expense)                                       |   |                                           |       |   |   |   |   |
| Interest                    income                                              |   |                                           | 3,454      |   |   | 100 |   |
| Other                    income                                                 |   |                                           | -          |   |   | 2,000 |   |
| Rental                    revenue                                               |   |                                           | 5,625      |   |   | 13,100 |   |
| Interest                    expense                                             |   |                                           | (14,580    | ) |   | (20,400 | ) |
|  Total                    other income (expense)                           |   |                                           | (5,501     | ) |   | (5,200 | ) |
|                                                                            |   |                                           |       |   |   |   |   |
| Loss                    before provision for income taxes                       |   |                                           | (134,674   | ) |   | (85,700 | ) |
|                                                                            |   |                                           |       |   |   |   |   |
| Provision                    for income taxes                                   |   |                                           | -          |   |   | - |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Net                    loss                                                     |   | $                                              | (134,674   | ) | $ | (85,700 | ) |
|                                                                            |   |                                           |       |   |   |   |   |
| Basic                    and diluted weighted average common shares outstanding |   |                                           | 23,683,895 |   |   | 19,288,571 |   |
|                                                                            |   |                                           |       |   |   |   |   |
| Basic                    and diluted loss per common share                      |   | $                                              | (0.01      | ) | $ | (0.00 | ) |

----

|                                                                                                              |   | For the Three Months Ended |     |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|----------|
|                                                                                                              |   | March 31,                            |     |
|                                                                                                              |   | 2007                                           |     | 2006 |   |
| Cash                    flows from operating activities:                                                          |   |                                           |     |   |   |   |   |
| Net                    loss                                                                                       |   | $                                              | (134,675 | ) | $ | (85,700 | ) |
| Adjustments                    to reconcile net loss to net cash used by operating                    activities: |   |                                           |     |   |   |   |   |
| Stock                    based compensation                                                                       |   |                                           | -        |   |   | 900 |   |
| Depreciation                    and amortization                                                                  |   |                                           | 2,205    |   |   | 1,700 |   |
| Beneficial                    conversion feature on convertible debenture                                         |   |                                           | -        |   |   | 23,200 |   |
| Changes                    in operating assets and liabilities:                                                   |   |                                           |     |   |   |   |   |
| Accounts                    receivable                                                                            |   |                                           | 3,649    |   |   | (16,000 | ) |
| Accounts                    payable                                                                               |   |                                           | (8,627   | ) |   | 3,700 |   |
| Accrued                    interest                                                                               |   |                                           | 13,793   |   |   | 11,600 |   |
| Accrued                    officer salary payable                                                                 |   |                                           | (5,206   | ) |   | 15,000 |   |
| Accrued                    Payroll Taxes                                                                          |   |                                           | (186     | ) |   | - |   |
| Unearned                    revenues                                                                              |   |                                           | (5,625   | ) |   | 10,900 |   |
| Other                    current assets                                                                           |   |                                           | -        |   |   | (8,000 | ) |
| Other                    assets                                                                                   |   |                                           | (381,534 | ) |   | (1,900 | ) |
| Net                    cash used by operating activities                                                          |   |                                           | (516,206 | ) |   | (44,600 | ) |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Cash                    flows from investing activities:                                                          |   |                                           |     |   |   |   |   |
| Purchase                    of fixed assets                                                                       |   |                                           | (20,000  | ) |   | - |   |
| Net                    cash used in investing activities                                                          |   |                                           | (20,000  | ) |   | - |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Cash                    flows from financing activities:                                                          |   |                                           |     |   |   |   |   |
| Payment                    due to stockholder                                                                     |   |                                           | -        |   |   | (400 | ) |
| Preceeds                    from convertible debenture                                                            |   |                                           | -        |   |   | 40,000 |   |
| Proceeds                    from the exercise of warrants                                                         |   |                                           | 151,843  |   |   | - |   |
| Proceeds                    from subscritions payable                                                             |   |                                           | 1,000    |   |   | - |   |
| Proceeds                    from issuance of common stock                                                         |   |                                           | 59,900   |   |   | 62,800 |   |
| Principal                    payments on notes payable - related parties                                          |   |                                           | (3,976   | ) |   | (5,500 | ) |
| Net                    cash provided by financing activities                                                      |   |                                           | 208,767  |   |   | 96,900 |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Net                    increase (decrease) in cash                                                                |   |                                           | (327,439 | ) |   | 52,300 |   |
| Cash,                    beginning of period                                                                      |   |                                           | 419,700  |   |   | 17,000 |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Cash,                    end of period                                                                            |   | $                                              | 92,261   |   | $ | 69,300 |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Supplemental                    disclosure of cash flow information:                                              |   |                                           |     |   |   |   |   |
| Cash                    paid for income taxes                                                                     |   | $                                              | -        |   | $ | - |   |
| Cash                    paid for interest                                                                         |   | $                                              | -        |   | $ | - |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
|                                                                                                              |   |                                           |     |   |   |   |   |
| Accrued                    interest added to principle on notes payable                                           |   | $                                              | 2,969    |   | $ | 2,600 |   |

----

| 1. | BASIS                  OF PRESENTATION |
|----|----------------------------------------|

| 2 | CORRECTION                  OF ERROR - ERROR RELATES TO A YEAR NOT PRESENTED IN THE COMPARATIVE                  FINANCIAL STATEMENTS |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

| Increase                  of previously reported other assets:                                        |   |   |    |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| - unrecorded                  value of mineral rights acquired                                   |   | $      | 381,500 |   |
|                                                                                                  |   |   |    |   |
| Increase                  of previously reported additional paid in capital:                          |   |   |    |   |
| -                  unrecorded amount of additional paid in capital on stock                  issuance |   | $      | 381,500 |   |

----

*Consolidated        Balance Sheet as of March 31, 2007 *

|                                                  |   | *Previously**Reported* |       | *Net**Change* |   |  *Restated* |   |
|-------------------------------------------------------|--------|------------------------|------------|---------------|--------|------------------|--------|
| Assets                                                |   |                   |       |          |   |             |   |   |   |   |
| Current                  assets                       |   |                   |       |          |   |             |   |   |   |   |
| Cash                                                  |   | $                      | 473,761    |          | $      | -                |   | $ | 473,761 |   |
| Total                  current assets                 |   |                   | 473,761    |          |   | -                |   |   | 473,761 |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
| Fixed                  assets, net                    |   |                   | 36,795     |          |   | -                |   |   | 36,795 |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
| Other                  assets, net                    |   |                   | 49,134     |          |   | 381,500          |   |   | 430,634 |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
|                                                  |   | $                      | 559,690    |          | $      | 381,500          |   | $ | 941,190 |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
| Current                  liabilities                  |   |                   |       |          |   |             |   |   |   |   |
| Accrued                  interest                     |   | $                      | 273,466    |          | $      | -                |   | $ | 273,466 |   |
| Accrued                  officer salary               |   |                   | 237,118    |          |   | -                |   |   | 237,118 |   |
| Accrued                  payroll taxes                |   |                   | 107,471    |          |   | -                |   |   | 107,471 |   |
| Accounts                  payable                     |   |                   | 25,611     |          |   | -                |   |   | 25,611 |   |
| Notes                  payable - related parties |   |                   | 380,303    |          |   | -                |   |   | 380,303 |   |
| Unearned                  revenues                    |   |                   | 3,750      |          |   | -                |   |   | 3,750 |   |
| Total                  current liabilities            |   |                   | 1,027,719  |          |   | -                |   |   | 1,027,719 |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
| Commitments                  and contingencies        |   |                   | -          |          |   | -                |   |   | - |   |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
| Stockholders’                  deficit          |   |                   |       |          |   |             |   |   |   |   |
| Preferred                  stock                      |   |                   | -          |          |   | -                |   |   | - |   |
| Common                  stock                         |   |                   | 24,008     |          |   | -                |   |   | 24,008 |   |
| Additional                  paid-in capital           |   |                   | 7,107,247  |          |   | 381,500          |   |   | 7,488,747 |   |
| Accumulated                  deficit                  |   |                   | (7,600,284 | )             |   | -                |   |   | (7,600,284 | ) |
| Total                  stockholders’ deficit    |   |                   | (468,029   | )             |   | 381,500          |   |   | (86,529 | ) |
|                                                  |   |                   |       |          |   |             |   |   |   |   |
|                                                  |   | $                      | 559,690    |          | $      | 381,500          |   | $ | 941,190 |   |

| 3. | NOTES                  PAYABLE-RELATED PARTIES |
|----|------------------------------------------------|

| Note                    payable to a stockholder, secured by real property, bearing interest                    at                    16.0% per annum, interest only payments payable in semi-annual                    payments,                    matured November 2005 (Note:                    The Company is in default of principal and interest payments                    totaling                    $556,000 but is currently negotiating forbearance on collection                    of the                    interest) |   | $      | 300,000 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |
| Note                  payable to a stockholder, secured by real property, bearing interest                  at                  8.0% per annum, maturing August 2007                                                                                                                                                                                                                                                                                                                                                                    |   |   | 36,878  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |
| Note                  payable to a stockholder, secured by real property, bearing interest                  at                  8.0% per annum, maturing July 2007                                                                                                                                                                                                                                                                                                                                                                      |   |   | 34,051  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |
| Note                  payable to a stockholder , secured by real property, bearing interest                  at                  8.0% per annum, maturing May 2007                                                                                                                                                                                                                                                                                                                                                                      |   |   | 9,374   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |
| Current                  portion (amounts due within one year)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 380,303 |   |

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| 4. | CHANGES                  IN STOCKHOLDERS' DEFICIT |
|----|---------------------------------------------------|

| 5. | COMMITMENTS                  AND CONTINGENCIES |
|----|------------------------------------------------|

| 6. | GOING                  CONCERN |
|----|--------------------------------|

| 7. | SUBSEQUENT                  EVENTS |
|----|------------------------------------|

----

|  | 1. | E.R.S.                  will pay 100% for all costs incurred in connection with, and all                  associated costs relating to the mining, processing and production                  of any                  metals extracted for the Pisgah crater. This includes all costs                  of                  obtaining additional permits, costs of all equipment, mining costs,                  production costs, refining costs, transportation costs, assaying                  costs,                  sales costs, working capital, labor, overhead, and any and all                  related                  costs. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | The                  Company will receive a net profit interest of between 12.5% and                  15% of any                  net profits realized from the production and sale of any metals                  recovered,                  depending on the metals produced and the grade of the recovery                  of such                  metals. Net profit will mean the amount of revenue received from                  any                  purchaser of metals sold, less costs paid by                  E.R.S. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | - | Interest                  expenses decreased by $5,820 due to having no convertible debenture. |
|--|---|------------------------------------------------------------------------------------------------|

|  | - | Beneficial                  conversion discount expense decreased by $8,400 due to having no                  convertible debenture. |
|--|---|--------------------------------------------------------------------------------------------------------------------------------------|

|  | - | General                  office and administration expenses increased by $1,994 due to increased                  activity on the U.S. properties. |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Officer                  salary expenses increased by $16,166 due to an increase in salary                  for                  Ronald Sloan. |
|--|---|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | - | Exploration                  costs increased by $38,408 due to increased activity on US                  properties. |
|--|---|----------------------------------------------------------------------------------------------------------------------|

|  | - | Depreciation                  expenses increased by $505 due to the purchase of fixed                  assets. |
|--|---|----------------------------------------------------------------------------------------------------------------|

----

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|                                | CAN-CAL RESOURCES LTD.                          |
|-------------------------------------|-----------------------------------------------------------|
|                                | (REGISTRANT)                                              |
|                                |                                                      |
| Date:                  May 14, 2007 | By:                                                       | /s/                  Ronald D. Sloan |
|                                | RONALD                  D. SLOAN,                         |
|                                | Chief Executive Officer and President |

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