UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                 FORM 10-QSB

  [X] Quarterly  Report  pursuant  to  Section  13  or  15(d) of the Securities
      Exchange Act of 1934

  For the fiscal quarter ended September 30, 2006

  Transition  Report under Section 13 or 15(d) of the  Securities  Exchange
  Act of 1934.

  For the transition period from _____ to _____.

  Commission File No. 0-26669

                            Can-Cal Resources Ltd.
		----------------------------------------------
                (Name of Small Business Issuer in its charter)

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

                  2500 Vista Mar Drive, Las Vegas, NV  89128
		  ------------------------------------------
                   (Address of principal executive offices)

                                (702)  243-1849
			  ---------------------------
                          (Issuer's telephone number)

                                      N/A
(Former name, former  address  and  former  fiscal  year, if changed since last
                                    report)

Check whether the issuer (1) filed all reports required  to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months  (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
                                                        Yes  [X]      No [ ]


APPLICABLE ONLY TO CORPORATE ISSUERS

State  the  number  of  shares  outstanding of each of the issuer's classes  of
common equity, as of the latest practicable date:

                Class                         Outstanding on November , 2006
   ------------------------------	      ------------------------------
   Common Stock, Par Value $.001.                       21,017,603

Transitional Small Business Disclosure  Format  (Check one): Yes [ ]  No   [X]






CONTENTS



                                                                       PAGE NO.

PART I.     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

            Condensed Balance Sheet (unaudited)				F-1

            Condensed Statements of Operations (unaudited)		F-2

            Condensed Statements of Cash Flows (unaudited)		F-3

            Notes to Condensed Financial Statements (unaudited)		F4-F5

ITEM 2.     Management's Discussion and Analysis of
            Financial Condition and Results of Operations 		3-4

ITEM 3.     Controls and Procedures  					5

PART II.    OTHER INFORMATION

ITEM 1.     Legal Proceedings 						6

ITEM 2.     Changes in Securities 					6

ITEM 3.     Defaults Upon Senior Securities				7

ITEM 4.     Submission of Matters to a Vote of Security Holders		7

ITEM 5.     Other information						7

ITEM 6.     Exhibits and Reports on Form 8-K				7

Signatures								8

Certifications






FORWARD LOOKING STATEMENTS


      Section  27A  of  the  Securities  Act of 1933 and  Section  21E  of  the
Securities Exchange Act of 1934 provide a  "safe  harbor"  for  forward looking
statements  that are based on current expectations, estimates and  projections,
and management's beliefs and assumptions.  Words such as "believes," "expects,"
"intends," "plans," "estimates," "may," "attempt," "will," "goal," "promising,"
or variations  of  such  words and similar expressions are intended to identify
such forward-looking statements.  These statements are not guarantees of future
performance and involve certain risks  and uncertainties which are difficult or
impossible  to predict.  Therefore, actual  outcomes  and  results  may  differ
materially from  what  is  expressed  or  forecasted  in  such  forward-looking
statements.  The  Company  undertakes  no  obligation  to  update publicly  any
forward-looking statement whether as a result of new information, future events
or otherwise.

      Such  risks  and  uncertainties  include,  but  are not limited  to,  the
availability  of   metal  ore;  negative  or  inconsistent  test  results,  the
existence of precious metals in the  metal ore available to the  Company  in an
amount  which  permits  their  production  on  an economic basis; the Company's
ability to drill holes and properly test and assay  samples, and its ability to
locate  and  acquire  mineral  properties  which contain sufficient  grades  of
precious metals and/or minerals; the Company's ability to sell a portion or all
of  any  of  its  properties  to  larger mining companies,  or  to  enter  into
agreements with larger mining companies  to  explore  and  possibly develop its
properties;  to produce precious metals on a commercial basis,  the  prices  of
precious metals;  obtaining a mill or refinery to extract precious metals on an
economic basis; the  ability  to maintain the facilities it currently utilizes;
obtain permitting requirements  for  any  mining and milling operations and pay
the costs thereof; have good title to claims  and  equipment; and the Company's
ability to obtain financing necessary to maintain its operations.




PART I.     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS



<TABLE>
<CAPTION


			 CAN-CAL RESOURCES LTD
			     BALANCE SHEET
			      (UNAUDITED)


								 As Of
							     September 30,
								 2006
							     ------------
<S>								<C>

ASSETS

Current assets
   Cash			 				     $	  343,600
							     ------------
     Total current assets		 			  343,600

Fixed assets, net						   20,800

Other assets, net						  422,000
							     ------------
Total assets				 		     $	  786,400
							     ============
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
   Accrued interest			 		     $	  248,900
   Accrued officer salary payable				  241,100
   Accrued payroll taxes					  109,500
   Accounts payable						   39,600
   Notes payable-related parties				  381,000
   Unearned revenues						   15,000
							     ------------
     Total current liabilities		 			1,035,100
							     ------------

Total liabilities				 		1,035,100


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,  22,658,873 shares issued and outstanding 	   22,700
   Additional paid-in capital					7,096,600
   Accumulated deficit			 		       (7,368,000)
							     ------------
     Total stockholders' deficit		 		 (248,700)
							     ------------
Total liabilities and stockholders' deficit		     $	  786,400
							     ============

See Accompanying Notes to Financial Statements.

</TABLE>

<PAGE>		F-1

<TABLE>
<CAPTION>


						CAN-CAL RESOURCES LTD
 					       STATEMENTS OF OPERATIONS
						     (UNAUDITED)


				 		Three Months Ended September 30 	Nine Months Ended September 30
						-------------------------------		------------------------------
						    2006	       2005		    2006	      2005
						------------	   ------------		------------	 -------------
<S>						<C>			<C>		<C>			<C>

Material sales				 	$	   - 	   $	      -   	$	   - 	 $	11,400

Cost of sales				 		   - 		     50 	 	   - 	 	 9,400
						------------	   ------------		------------	 -------------
   Gross profit			 			   - 	 	    (50)	 	   - 	 	 2,000

Expenses
   Exploration costs			 	      12,100 	 	  1,500 	      22,800 	 	10,600
   Depreciation			 		       1,700 		  1,100 	       4,800 	 	 3,500
   General and administrative expenses		      79,000 		 42,500 	     167,200	       241,500
   General and administrative expenses-
     related party			 	      97,800 	 	 15,800 	     272,100 	       104,000
						------------	   ------------		------------	 -------------

Loss from operations				    (190,600)	 	(60,950)	    (466,900)	      (357,600)

Other income (expense)
   Confessional judgement			 	   - 		      			   - 		26,500
   Beneficial conversion discount		      (4,200)	 	      - 	     (25,200)	 	     -
   Interest income			 		   - 	 	      - 	 	 100 	 	     -
   Other income			 			   - 	 	      - 	 	   - 	 	     -
   Rental revenue				       5,600 		 10,625 	      42,900 		21,800
   Interest expense			 	     (26,900)	 	(15,300)	     (74,100)	       (45,700)
						------------	   ------------		------------	 -------------
Loss before provision for income taxes		    (216,100)	 	(65,625)	    (523,200)	      (355,000)

Provision for income taxes				   - 	 	      - 	 	   - 	 	     -

Net loss				 	$   (216,100)	   $	(65,625)	$   (523,200)	 $    (355,000)
						------------	   ------------		------------	 -------------
Basic and diluted loss per common share		$      (0.01)	   $	  (0.00)	$      (0.03)	 $ 	 (0.02)
						============	   ============		============	 =============
Basic and diluted weighted average
     common shares outstanding			  20,495,337 	     18,972,071 	  20,389,937 	    18,972,071
						============	   ============		============	 =============


See Accompanying Notes to Financial Statements.

</TABLE>

<PAGE>		F-2

<TABLE>
<CAPTION>


				CAN-CAL RESOURCES LTD
 			      STATEMENTS OF CASH FLOWS
				     (UNAUDITED)


					 			Nine Months Ended September 30,
								-------------------------------
								      2006	       2005
								-------------	  -------------
<S>								<C>			<C>


Cash flows from operating activities:
  Net loss				 			$    (523,200)	  $    (355,000)
  Adjustments to reconcile net loss to net
    cash used by operating activities:
     Stock based compensation			 		       72,600	 	 77,500
     Options granted officers and consultants			      123,500 	 	      -
     Depreciation and amortization			 	        4,800	  	  3,500
     Beneficial conversion feature on convertible debenture	       25,200 	 	      -
  Changes in operating assets and liabilities:
     Accounts receivable			 			    -   	  5,800
     Accounts payable			 			       18,300	 	 16,100
     Accrued interest			 			       46,200 	 	 34,100
     Accrued officer salary payable			 	       53,300 	 	 71,300
     Accrued Payroll Taxes			 		       (2,000)	 	      -
     Unearned revenues			 				5,600	 	 (5,600)
     Other current assets			 			8,600	  	  2,500
     Other assets			 				    -   	 (1,200)
								-------------	  -------------
	Net cash used by operating activities			     (142,700)	       (151,000)
								-------------	  -------------

Cash flows from investing activities
   Purchase of fixed assets				 	       (5,800)	 	      -
   Purchase of mining claims				 	      (19,600)	 	      -
								-------------	  -------------
	Net cash used in invvesting activties		 	      (25,400)	 	      -
								-------------	  -------------
Cash flows from financing activities:
   Payment due to stockholder				 	      (11,500)		   (500)
   Preceeds from convertible debenture				            -	 	      -
   Proceeds from issuance of common stock			      506,200 	 	153,600
   Principal payments on notes payable - related parties	       		        (10,000)
								-------------	  -------------
	Net cash provided by financing activities 		      497,700 	 	143,100
								-------------	  -------------
Net increase (decrease) in cash					      326,600	 	 (7,900)

Cash, beginning of period					       17,000 	 	 68,600
								-------------	  -------------
Cash, end of period					 	$     343,600 	 $	 60,700
								=============	 ==============
Supplemental disclosure of cash flow information:
   Cash paid for income taxes				 		    -    $	      -
								=============	 ==============
   Cash paid for interest				 	$	    - 	 $	 30,354
								=============	 ==============
   Warrants issued for services					$      67,603	 $	      -
								=============	 ==============
   Issuance of common stock for services			$	5,000 	 $	 77,500
								=============	 ==============
   Accrued interest added to principle on notes payable		$	5,900 	 $	  5,000
								=============	 ==============

See Accompanying Notes to Financial Statements.

</TABLE>


<PAGE>		F-3




                             CAN-CAL RESOURCES LTD
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)




1.   BASIS OF PRESENTATION

The   accompanying   unaudited  financial  statements  have  been  prepared  in
accordance with Securities  and  Exchange  Commission  requirements for interim
financial statements. Therefore, they do not include all of the information and
footnotes required by accounting principles generally accepted  in  the  United
States  for  complete financial statements. The financial statements should  be
read in conjunction  with  the Form 10-KSB for the year ended December 31, 2005
of Can-Cal Resources Ltd ("the Company").

The interim financial statements  present  the  balance  sheet,  statements  of
operations,  and cash flows of Can-Cal Resources Ltd.  The financial statements
have been prepared  in accordance with accounting principles generally accepted
in the United States.

The interim financial  information is unaudited.  In the opinion of management,
all adjustments necessary  to  present  fairly  the  financial  position  as of
September  30,  2006  and  the  results  of operations and cash flows presented
herein have been included in the financial statements.  Interim results are not
necessarily indicative of results of operations for the full year.

The  preparation  of  financial  statements  in   conformity   with  accounting
principles generally accepted in the United States requires management  to make
estimates  and  assumptions  that  affect  the  reported  amounts of assets and
liabilities and disclosure of contingent assets and liabilities  at the date of
the  financial  statements  and  the reported amounts of revenues and  expenses
during the reporting period. Actual results could differ from those estimates.


2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Presentation of Financial Statements  -  The  Company rounds the figures on the
financial statements to the nearest hundred.


3.   NOTES PAYABLE-RELATED PARTIES

   Notes payable consisted of the following as of September 30, 2006:

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  $232,000  but  is  currently   negotiating
    forbearance on collection of the interest)                         $300,000

    Note payable to a stockholder, unsecured, bearing interest at
    7.5% per annum, maturing June 2007                  		  3,800

    Note  payable  to  a  stockholder,  secured by real property,
    bearing interest at 8.0% per annum, maturing February 2007		 35,500

    Note payable to a  stockholder,  secured  by  real  property,
    bearing interest at 8.0% per annum, maturing January 2007		 32,700

    Note payable to a  stockholder,  secured  by  real  property,
    bearing interest at 8.0% per annum, maturing November 2006		  9,000
								       --------
    Current portion (amounts due within one year)    		       $381,000
								       ========


The Company is in default of its semi-annual interest payments of $ 232,000 for
the years ended 2002, 2003, 2004, 2005 and the  nine months ended September 30,
2006  on  a  note payable of $300,000.  The Company  is  currently  negotiating
forbearance on collection of the principle and interest.


4.   STOCKHOLDERS' DEFICIT

During the nine  months  ended September 30, 2006, we sold 1,989,000 restricted
common shares to 55 Canadian  residents, 8 US residents and 5 Israeli Nationals
for a total of $506,225, and issued  warrants  to purchase 1,889,000 restricted
common shares, exercisable between $0.25 to $.45  per  share.  These securities
were issued in private transactions, with respect to the Canadian residents, in
reliance on the exemption from registration with the SEC provided by Regulation
S, and with respect to the U.S. citizen, in reliance on the exemption available
under Section 4(2) of the 1933 Act.

We also issued, for services, 8,500 restricted common shares for  a total value
of $2,325 and these securities were issued to 1 U.S.    resident in reliance on
the exemption provided by Section 4(2) of the 1933 Act.

On July 3, 2006, the Company issued 2,200 shares of its par value common  stock
for  services  received by an individual. As of September 30, 2006, the Company
recorded consulting expense in the amount of $462, the fair value of the shares
issued on the date  of  grant.  Additionally,  the Company granted a warrant to
purchase 2,200 shares of the Company's common stock  at  an  exercise  price of
$0.25 for a period of 2 years. The Company recorded an expense in the amount of
$373,  the  fair  value  of  the  warrant  on the date of grant. Fair value was
determined using the Black Scholes option pricing  model based on the following
assumptions:  expected dividends: $-0-; volatility: 187%;  risk  free  interest
rate: 5.12%.

On July 3, 2006,  the Company issued 8,800 shares of its par value common stock
for services received from an individual. As of September 30, 2006, the Company
recorded consulting  expense  in  the  amount  of $2,200, the fair value of the
shares issued on the date of grant. Additionally, the Company granted a warrant
to purchase up to 8,800 shares of the Company's  common  stock  at  an exercise
price of $0.25 for a period of 2 years. The Company recorded an expense  in the
amount  of  $1,812,  the  fair  value of the warrant on the date of grant. Fair
value was determined using the Black  Scholes option pricing model based on the
following assumptions: expected dividends:  $-0-;  volatility:  187%; risk free
interest rate: 5.12%.

On  July  3,  2006,  an officer of the Company elected to convert half  of  his
accrued salary in exchange  for  385,714  shares  of  common  stock  valued  at
$81,000,   the  fair  value  of  the  shares  issued  on  the  date  of  grant.
Additionally, the Company granted a warrant to purchase up to 385,714 shares of
the Company's  common  stock  at  an  exercise price of $0.25 for a period of 2
years. The Company recorded an expense in the amount of $65,418, the fair value
of the warrant on the date of grant. Fair  value was determined using the Black
Scholes  option  pricing  model  based on the following  assumptions:  expected
dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On July 3, 2006, the Company issued  56,821  shares  of  its  common  stock for
conversion  of  a  note  in  the  amount  of  $11,732 from a shareholder of the
Company. Additionally, the Company granted a warrant  to  purchase up to 56,821
shares of the Company's common stock at an exercise price of $0.25 for a period
of 2 years. The Company recorded an expense in the amount of  $9,637,  the fair
value of the warrant on the date of grant. Fair value was determined using  the
Black Scholes option pricing model based on the following assumptions: expected
dividends: $-0-; volatility: 187%; risk free interest rate: 5.12%.

On  July  11,  2006,  the Company issued 206,767 shares of its par value common
stock pursuant to the convertible  debenture  agreement entered into on January
24, 2006 whereby the Company received a $40,000  convertible at a rate of $0.20
per share baring interest of 10% per annum. Additionally, the Company granted a
warrant to purchase up to 160,000 shares of the Company's  common  stock  at an
exercise  price  of  $0.25  for  a period of 1 year. The note holder elected to
convert all accrued interest totaling $1,895 into 6,767 shares of the Company's
par value common stock.

On August 22, 2006, the Company entered  into  an  agreement to purchase mining
claims located in Mohave County, Arizona in exchange  for  1,000,000  shares of
the  Company's par value restricted common stock. The Company recorded an asset
totaling $400,000, the fair value of the common stock on the date of agreement.


<PAGE>		F-4

5.   COMMITMENTS AND CONTINGENCIES

Operating lease - The Company operates from a leased facility in Nevada under a
month to month basis.  The lease calls  for  monthly base rent of approximately
$1,500.

6.   CONVERTIBLE DEBENTURE

On January 24, 2006 the Company issued a $40,000  convertible  debenture  to an
individual.  The  Company  has  determined  the  debenture to have a beneficial
conversion  feature totaling $25,196.  The beneficial  conversion  feature  has
been recorded  as  a  debt  discount which will be amortized on a straight line
basis over the life of the loan.   The  beneficial  conversion was valued under
the  Black-Scholes  option pricing model using the following  assumptions:  (1)
stock price of $0.20; estimated life of 6 months; historical volatility rate of
120% and debt discount  rate  of  4.88%.  The investor shall have one year from
January 24, 2006 to exercise 160,000 warrants.   The warrant strike price shall
be $0.25 per share of restricted stock.

On July 11, 2006, the Company issued 206,767 shares  of  its  par  value common
stock  pursuant to the convertible debenture agreement entered into on  January
24, 2006  whereby the Company received a $40,000 investment from a  note holder
convertible at a rate of $0.20 per share bearing interest of 10% per annum. The
note holder elected to convert all accrued  interest on July 10, 2006  totaling
$1,895 into 6,767 shares of the Company's par value common  stock.  The Company
expensed the debt discount of $1,700 and $25,200  for the three and nine months
ended September 30, 2006.

7. OPTIONS GRANTED FOR EMPLOYEE AND CONSULTING SERVICES

For  the  six  months  ended  June 30, 2006, the Company granted options to buy
750,000 shares of   the Company's  common  stock  at an exercise price of $0.20
with terms ranging from two to five years from the  date  of  issuance  to  the
Directors  of  the  Company.   Additionally,  the  Company  granted  options to
purchase  250,000 shares of the Company's common stock at an exercise price  of
$0.20 with  a  term  of  three  years from the date of issuance to an unrelated
consultant.

In accordance with FASB 123R (revised  2004) "Share-based Payment", the Company
recognized the fair value of the options  in the statement of operations on the
date  of  grant.   Fair value was determined using  the  Black  Scholes  option
pricing model based  on  the  following  assumptions: expected dividends: $-0-;
volatility: 86%; risk free interest rate:  4.92% to 5.16%.  The determined fair
value recognized in the current period was $123,475


8.   GOING CONCERN

The Company incurred a net loss  of  approximately $523,200 for the nine months
ended September 30, 2006.  The Company's current liabilities exceed its current
assets  by approximately $691,500 as of  September  30,  2006.   These  factors
create substantial  doubt  about  the  Company's ability to continue as a going
concern.  The Company's management plans  to continue to fund its operations in
the short term with a combination of debt and  equity  financing,  as  well  as
revenue from operations in the long term.

The  ability  of  the  Company  to  continue as a going concern is dependent on
additional sources of capital and the  success  of  the  Company's  plan.   The
financial  statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern.


9.   SUBSEQUENT EVENTS

From  October  1,  2006  through  the  date  of this report, the Company issued
93,214  shares of  the  Company's  restricted  common  stock and  warrants to 7
Canadian individuals and 1 Swiss individuals to purchase 8,214 of the Company's
restricted common stock for cash  totaling  $24,125.  The  warrants  are  fully
vested  upon  grant, expire  in  two years and have an exercise  price of $0.45
per share.  The  shares  and  warrants  were  granted  with respect to Canadian
residents, in reliance on the exemption from registration with the SEC provided
by  Regulation  S,  and  with  respect  to the U.S. citizen, in reliance on the
exemption available under Section 4(2) of the 1933 Act.

<PAGE>		F-5


ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

(A)    PLAN OF OPERATION.

   Can-Cal  Resources  Ltd.  is a public  company  engaged  in  the acquisition
and exploration of precious metals  mineral  properties.  The Company initiated
the re-evaluation of its North American properties, which began the 2nd quarter
of 2005, through in-house and independent analysis.

   On June 26, 2006, the Company signed a letter of intent with E.R.S. Ltd., an
Israeli owned Cyprus corporation with offices located in Tel  Aviv.  The letter
of intent is for further testing on material from its Pisgah property.

   In  early  2006,  the  Company furnished material from its Pisgah crater  to
E.R.S. to perform tests and obtain analysis.  In June 2006, E.R.S. notified the
Company that it desired to perform additional and more comprehensive testing to
determine the metal values  in the material by conducting an extensive sampling
program  on the 3,500,000 tons  screened  stockpile.   E.R.S.  will  also  test
additional  areas  of  the property. Before commencing such additional testing,
E.R.S. wanted to be assured  that  if it determined to pursue the extraction of
any metals that the Company would enter into a production agreement with E.R.S.

   The  letter of intent provides that  during  the  period  of  three  months,
beginning  June  26,  2006,  E.R.S.  will  perform  tests  and  analysis on the
Company's  material with principal initial testing taking place in  Israel  and
Europe.  Any metal extracted will be sent to laboratories in Italy and possibly
Belgium for analysis.  All testing and analysis will be paid for by E.R.S.

      On September  20,  2006,  E.R.S.  requested a ninety-day extension to the
letter of intent extending the period to  December  26,  2006,  for  additional
comprehensive  testing.   Five  tons  of  material  from the Pisgah and Wikieup
properties was shipped to Italy for bulk testing.  The  extension to the letter
of  intent  was  granted  due  to  delays encountered because of  the  Lebanese
conflict.

   If E.R.S. desires to enter into a  formal  agreement  for  the production of
metals from that material it will notify the Company in writing and furnish the
Company with all analysis and assays.  The formal agreement, if  entered  into,
will then provide that:

   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.

   The Company will  cooperate  with  E.R.S. in obtaining any necessary permits
and export permits required for material shipped out of the country by E.R.S.

   In  April,  June,  July  and September  2006,  the Company conducted further
surface  sampling  and  rock  wall sampling on its Wikieup,  Arizona  property.
These samples were shipped to ALS Chemex, an internationally recognized assayer
for  fire  assays  and  I.C.P.  tests.   The  preliminary  assay  results  were
encouraging and the Company will  continue  with  further surface sampling from
various areas of the approximate six square miles of claimed land.

    In  May and June 2006, Can-Cal  acquired  an  additional  66  20-acre  load
claims for the  filing  cost  of $1,200.  This increased the Company's property
holding to 1900 acres or 2.969 square miles of 95 lode clams.

    On  August  28, 2006, Can-Cal  acquired  an additional 1,800 acres form the
Rose Trust in exchange for 1,000,000  restricted  shares  of  its common stock.
This increases the Company's property holding on its Wikieup, Arizona  property
to approximately six square miles. The area is accessed by gravel road just off
highway 93 approximately eight miles from the town of Wikieup, Arizona.

    Audits,  tunnels and open pit locations following what may be a trend  or
vein structure over  a large region have been found on the property. The legacy
of previous mining activity  including; abandoned equipment, stone built homes,
a cement water reservoir and numerous  tailings piles, can be seen from various
locations.

    Upon  receipt of the recent surface  sample  assay  results from ALS Chemex
(up  to  Au 1.27 O.P.T , Ag - 32.52  O.P.T  and  Zn  25.1  %)  the  Company  is
attempting to follow what may be a trend or vein structure and has subsequently
claimed the additional 1,320 acres.

    The  geology  of  the  Wikieup  area  claims is  comprised  of  Precambrian
granoids  and gneiss.  Outcrop is extensive on  the  property  and  rock  units
include diorite, gabbro and granitic dikes.

    The  Company  is  continuing the surface sampling program and plans to hire
an independent geologist for continued exploration.

    The  Company  presently  has  gold  exploration projects located in Mexico,
California and Arizona.   In  September 2003, the Company incorporated a wholly
owned Mexican subsidiary, Sierra  Madre Resources S. A. de C. V. ("SMR"), which
is the Company's principal vehicle for acquisitions in Mexico.

    In  2004, the  Company  acquired  a  100% interest in a gold-silver mineral
concession, referred to as the Arco Project.    In  2006,  upon  request of the
Mexican concessionaire, the Company was asked to relinquish its interest in the
Arco  #1  property.  As Can-Cal's major interests are now focused on  the  U.S.
properties,  the  Company  has  agreed to the request; however, will retain the
Arco  #  2 property.  At the present  time  the  Board  of  Directors  are  re-
evaluating the Company's interests in Mexico.

    The Company plans to expand its U.S. property holdings in 2006.

    The  Company has discontinued industrial sales of  the  volcanic  materials
located on the  Pisgah  property until the small-scale in-house and independent
analysis of the Pisgah material is complete.

    The  Company  presently  has  one  full-time  employee and will continue to
rely on outside consultants and agents, in  the  near-term,  to perform various
administrative, legal and technical functions, as required.

<PAGE>		3

(B)    LIQUIDITY AND CAPITAL RESOURCES AND RESULTS OF OPERATIONS

    As  of  September  30, 2006, the Company had a working capital  deficit  of
$691,500  and  approximately $343,600 cash was available to sustain operations,
which would cover  the Company's planned activities through December 2006, at a
minimum.  The working  capital  deficit  as of December 31, 2005 was $1,040,900
and approximately $17,000 cash was available.   We  may seek additional capital
from  the  sale  of  restricted  shares  of common stock in  private  placement
transactions in Canada, loans from directors,  or  possible  funding  or  joint
venture arrangements with other mining companies.

    The  Company  did  not have sales of cinder materials during the nine-month
period  ended  September  30,  2006,  compared  with sales of $11,400 and gross
profit  of  $2,000 for the nine-month period ended  September  30,  2005.   The
Company sustained  a  net  loss  of  $523,200  for  the nine-month period ended
September  30,  2006,  compared to a net loss of $355,000  for  the  nine-month
period ended September 30,  2005,  representing  an  increase  of $168,200. The
aforementioned change is principally due to the transactions outlined below:

    The  decrease  in  gross  profit  during  the   nine-month   period   ended
September  30,  2006  compared  to  the  same  period  in 2005 were due to  the
transactions outlined below:

       - Revenue decreased by $11,400 due to no sales of cinder material during
	 2006.

       - Cost of sales decreased by $9,500 due to no sales of  cinder  material
	 during 2006.

    The   change  in  other  income  during   the   nine-month   period   ended
September  30, 2006 compared to the  same  period  in  2005  were  due  to  the
transactions outlined below:

       - Revenue decreased by $26,500 due to no  confessional judgment received
	 during 2006.

       - Revenue  increased  by  $21,000  due to additional rental  income from
	 Pisgah Mt. received during 2006.


    The  decreases  in  general and administrative expenses  during  the  nine-
month  period ended September 30, 2006 compared to the same period in 2005 were
as follows:

       - Legal  and  accounting  decreased by $4,700, due to less  activity  on
         the Mexican properties.

       - Payroll taxes decreased by $4,800, due to the  resignation  of Anthony
         Ciali.

       - Office rent decreased by  $6,200,  due  to  the  closing  of  the  New
         Jersey branch office.

       - Vehicle  lease  expenses decreased by $1,400 due to the resignation of
         Anthony Ciali.

       - Vehicle  expenses  decreased by $700 due to the resignation of Anthony
         Ciali.

       - Travel  expenses  decreased  by  $10,800  due  to  less  international
         travel.

       - General  office  expenses and utilities decreased  by  $700 due to the
         closing of the New Jersey branch office.

       - Consultant  and  subcontractor  expenses  decreased by $6,200  due  to
         less activity on the Mexican properties.


    The  increases  in  general  and  administrative expenses  during the nine-
month period ended September 30, 2006 compared  to the same period in 2005 were
as follows:

       - Interest  expenses  increased  by $28,400  due  to   the   convertible
         debenture and the conversion of debt.

       - Beneficial  conversion  discount expense  increased  by $25,200 due to
         the convertible debenture.

       - Production  and  assay  report  expenses increased by $12,000  due  to
         increased activity on US properties.

       - Officer   and   consultant   and  stock  based  compensation  expenses
         increased by $53,200 due to the  granting  of  Options  in  accordance
	 with  FASB  123R  (revised 2004) "Share-based  Payment",  the  Company
	 recognized  the  fair  value  of  the  options  in  the  statement  of
	 operations on the date of  grant.   Fair  value  was determined  using
	 the  Black  Scholes  option  pricing  model  based  on  the  following
	 assumptions: expected  dividends: $- 0-;  volatility:  86%;  risk free
	 interest rate: 4.92% to 5.16%.

       - Officer  salary  expenses  increased  by $43,800 due to an increase in
         salary for Ronald  Sloan  and due to warrants  granted  to  Mr.  Sloan
         associated with the conversion of accrued salary to stock.

       - Advertising,  stock  house  and  press  release  expenses increased by
         $23,400 due to increased activity on US properties.

       - Web  maintenance  and  report  expenses  increased  by  $4,000  due to
	 increased activity on US properties.

       - Meals   and   entertainment   expenses  increased  by  $3,300  due  to
         increased fund raising activities for US properties.

       - Depreciation  expenses  increased  by  $1,400 due to purchase of fixed
         assets.

       - Officer  medical  insurance and expenses  increased  by $800 due to an
         increase in insurance rates.

       - Property taxes increased by $800 due to an increase in taxes.

      Net   cash  used   by  operating  activities  amounted  to  approximately
$142,700  for  the  nine-month  period ended September 30, 2006, compared  with
approximately $151,000 for the same  period in 2005, principally reflecting the
increased level of general and administrative  expenses.   The Company financed
its activities principally through the issuance of restricted  shares of common
stock, which amounted to approximately $506,200 for the nine-month period ended
September  30, 2006 compared to approximately $153,600 for the same  period  in
2005.

      Unless  the  Company  is able to establish the economic viability of  its
mining properties, the Company  will  continue  writing  off  its  expenses  of
exploration  and  testing  of  its  properties. Therefore, losses will continue
unless  the  Company  sells  one or more  of  its  properties  or  locates  and
delineates reserves and initiates  mining  operations.   If  that  occurs,  the
Company may capitalize certain of those expenses.

      The  Company  has no  material commitments for capital expenditures other
than expenditures it chooses to make with respect to testing and or exploration
of its mineral properties.

<PAGE>		4

ITEM 3.     CONTROLS AND PROCEDURES

      In the 90 day period before the filing  of  this  report,  the certifying
officer  of  the  Company  has  evaluated  the  effectiveness  of the company's
disclosure  controls and procedures.  These disclosure controls and  procedures
are those controls  and  other  procedures  we  maintain, which are designed to
insure that all of the information required to be  disclosed  by the company in
all its periodic reports filed with the SEC is recorded, processed,  summarized
and  reported, within the time periods specified in the SEC's rules and  forms.
Disclosure  controls  and  procedures include, without limitation, controls and
procedures designed to ensure  that information required to be disclosed by the
company in its reports filed or  submitted under the Securities Exchange Act of
1934 is accumulated and communicated  to  company management, as appropriate to
allow management to make timely decisions regarding required disclosure.

            As of the end of the period covered  by  this  report,  the Company
conducted  an  evaluation, under the supervision and with the participation  of
the Chief Executive  Officer  and  Chief  Financial  Officer,  of the Company's
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the 1934 Act. Based on this evaluation, the Chief Executive  Officer  and
Chief  Financial Officer concluded that there was a deficiency in the Company's
disclosure  controls and procedures relating to the reporting and disclosure of
shares of common  stock  and  options  issued  for services rendered during the
quarter ended June 30, 2006. This deficiency was  communicated to the Company's
independent  registered public accountants. The Company  determined  that  this
deficiency did  not  result in any omission of disclosures in, or misstatements
to, the Company's financial statements for any prior periods or for the quarter
ended  June 30, 2006. The  Company  also  performed  additional  procedures  in
completing  these  financial  statements for the quarter ended June 30, 2006 to
ensure that the amounts and disclosures  included  were fairly presented in all
material respects in accordance with GAAP.

      Subsequent  to  the  identification of the deficiency  in  the  Company's
disclosure controls and procedures  as  described  above, the Company performed
and  implemented a variety of additional procedures,  including  utilizing  the
services of a  consultant to serve in a review capacity on an ongoing basis, in
order  to  remediate  the  above  described  deficiency.  As  a  result  of the
implementation  of  these  additional procedures, the Company believes that its
disclosure controls and procedures  are  effective  to  ensure that information
required  to be disclosed by the Company in reports that it  files  or  submits
under the 1934  Act  is recorded, processed, summarized and reported within the
time periods specified in Securities and Exchange Commission rules and forms.

      Other than as described  above,  there  was  no  change  in the Company's
internal  control  over financial reporting during the Company's most  recently
completed fiscal quarter  that has materially affected, or is reasonably likely
to materially affect, the Company's internal control over financial reporting.

<PAGE>		5
PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

 None.

ITEM 2.  CHANGES IN SECURITIES.

       For the 90 day period  ended  September  30,  2006,   the Company issued
   equity  securities, as described below, with respect to foreign   residents,
   in reliance  on  the  exemption  from  registration with the SEC provided by
   Regulation S, and with respect to United States citizens, in reliance on the
   exemption available under Section 4(2) of the 1933 Act.


      On  July 3, 2006, the Company issued 2,200    restricted  shares  of  its
   common stock  for  services  received  by a  US  citizen.  Additionally, the
   Company granted a warrant to purchase 2,200  shares  of the Company's common
   stock at an exercise price of $0.25 for a period of 2 years.

   On July 3, 2006, the Company issued 8,800 shares of its   restricted  common
   stock  for  services   received  from   a    US  citizen. Additionally,  the
   Company granted a warrant to purchase up to 8,800 shares  of  the  Company's
   common stock at an exercise price of $0.25 for a period of 2 years.

      On July 3, 2006, Ronald Sloan, CEO of the Company and a Canadian citizen,
   elected to convert half of his accrued salary in exchange for 385,714 shares
   of  restricted common stock valued at $81,000, the fair value of the  shares
   issued on the date of grant. Additionally, the Company granted a warrant  to
   Mr.  Sloan  to  purchase  up  to 385,714 shares of the Company's  restricted
   common stock at an exercise price of $0.25 for a period of two years

      On July 3, 2006, the Company issued 56,821 shares of its common stock for
   conversion of a note in the amount  of  $11,732  from  a  US  noteholder  of
   the Company. Additionally, the Company granted  a  warrant to purchase up to
   56,821 shares of the Company's common stock at an exercise  price  of  $0.25
   for a period of 2 years.

      On  July  11,  2006,  the Company issued 206,767 shares of its restricted
   common stock pursuant to a  convertible  debenture agreement entered into on
   January  24,  2006 with a US  citizen  and noteholder  whereby  the  Company
   received a $40,000  investment from this note holder convertible   at a rate
   of $0.20 per share baring  interest  of  10%  per  annum.  Additionally, the
   Company granted a warrant to the noteholder to purchase up to 160,000 shares
   of the Company's  restricted common stock at an exercise price  of $0.25 for
   a  period  of  1 year. The note holder  also elected to convert all  accrued
   interest totaling  $1,895  into  6,767  shares  of  the  Company's par value
   restricted common stock.

      On  August  22, 2006, the Company entered into an agreement  to  purchase
   mining claims located  in  Mohave  County, Arizona in exchange for 1,000,000
   restricted  shares of the Company's  par  value  common  stock.  The Company
   recorded an asset totaling $400,000, the fair value of the common  stock  on
   the date of agreement.

      From  October 1, 2006 through the date of this report, the Company issued
   93,214 shares  of  the Company's common stock and warrants to purchase 8,214
   of the Company's common  stock  to  7   Swiss  individuals  and  to  one  US
   individuals   for cash totaling $24,125.  The warrants are fully vested upon
   grant, expire in two years and have an exercise price of $0.45 per share.

      No commissions were paid in connection with these transactions

<PAGE>		6

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

The Company is in default of its semi-annual interest payment of $ 232,000 for
2002, 2003, 2004 2005 and 2006 on a note payable of $300,000, but is currently
negotiating forbearance on collection of the principle and interest.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

  N/A


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

None

<PAGE>		7

SIGNATURES

      In accordance  with  the requirements of the Exchange Act, the registrant
caused this report to be signed  on  its  behalf  by the undersigned, thereunto
duly authorized.


                                        CAN-CAL RESOURCES LTD.
                                        (REGISTRANT)


Date:  November 20, 2006		By:  /s/  Ronald D. Sloan
					-------------------------------------
					RONALD D. SLOAN,
					Chief Executive Officer and President

<PAGE>		8