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 June 30, 2007

      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 August 10, 2007
   ------------------------------	      ------------------------------
   Common Stock, Par Value $.001.                       24,350,538


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)....................	2
            Condensed Statements of Operations (unaudited).........	3
            Condensed Statements of Cash Flows (unaudited).........	4
            Notes to Condensed Financial Statements (unaudited)....	5

ITEM 2.     Management's Discussion and Analysis of
            Financial Condition and Results of Operations..........	7

ITEM 3.     Controls and Procedures................................	13


PART II.    OTHER INFORMATION

ITEM 1.     Legal Proceedings......................................	13

ITEM 2.     Changes in Securities..................................	13

ITEM 3.     Defaults Upon Senior Securities........................	14

ITEM 4.     Submission of Matters to a Vote of Security Holders....	14

ITEM 5.     Other information......................................	14

ITEM 6.     Exhibits and Reports on Form 8-K.......................	15

            Signatures.............................................	15

            Certifications

<PAGE>




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>

<S>				<C>		<C>


		     CAN-CAL RESOURCES LTD
 			 BALANCE SHEET
			  (UNAUDITED)


 ASSETS

				 		    June 30,
						      2007
						---------------
Current assets
   Cash						$	359,719
						---------------
	Total current assets			 	359,719

Fixed assets, net					 61,468

Other assets, net					 49,134
						---------------
Total assets					$	470,321
						===============
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
   Accounts payable				$	 22,630
   Accrued interest				 	286,731
   Accrued officer salary payable			127,010
   Accrued payroll taxes				 70,089
   Notes payable, related parties			358,184
   Unearned Revenues				 	 20,625
						---------------
	Total current liabilities			885,269
						---------------
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,
     24,275,595 shares issued and
     outstanding 			 		 24,276
   Additional paid-in capital			      7,313,114
   Accumulated deficit				     (7,752,338)
						---------------
	Total stockholders' deficit		       (414,948)
						---------------
Total liabilities and stockholders' deficit	$	470,321
						===============

See Accompanying Notes to Financial Statements

			2

<PAGE>

</TABLE>

<TABLE>
<CAPTION>

<S>				<C>		<C>


					CAN-CAL RESOURCES LTD
 		      		       STATEMENTS OF OPERATIONS
			     		     (UNAUDITED)


					 For the Three Months Ended	 For the Six Months Ended
			 			  June 30, 			  June 30,
					---------------------------	---------------------------
					    2007	    2006	    2007	    2006
					-----------	-----------	-----------	-----------
Material sales				$	  -   	$	  -   	$	  -   	$	  -

Cost of sales				 	  -   		  -   		  -   		  -
					-----------	-----------	-----------	-----------
   Gross profit			 		  -   		  -   		  -   		  -
					-----------	-----------	-----------	-----------
Expenses
   Beneficial conversion discount		  -   	     12,600 		  -    	     21,000
   Exploration costs			     55,635 	      1,800 	    102,943 	     10,700
   Depreciation			 	      3,816 	      1,600 	      6,021 	      3,300
   General and administrative expenses	     58,251 	     42,700 	    106,745	     89,200
   General and administrative expenses
		       - related party	     32,886 	    158,300 	     64,052 	    173,300
					-----------	-----------	-----------	-----------
	Total operating expenses	    150,588 	    217,000 	    279,761 	    297,500
					-----------	-----------	-----------	-----------
Loss from operations			   (150,588)	   (217,000)	   (279,761)	   (297,500)
					-----------	-----------	-----------	-----------
Other income (expense)
   Interest income			      3,505 		  -   	      6,959 		100
   Other income			 		  -   		  -   		  -   	      2,000
   Gain on disposal of fixed assets	      3,701 		  -   	      3,701 		  -
   Rental revenue			      5,625 	     22,100 	     11,250 	     35,200
   Interest expense			    (14,307)	    (26,800)	    (28,887)	    (47,200)
					-----------	-----------	-----------	-----------
	Total other income (expense)	     (1,476)	     (4,700)	     (6,977)	     (9,900)
					-----------	-----------	-----------	-----------
Loss before provision for income taxes	   (152,064)	   (221,700) 	   (286,738)	   (307,400)

Provision for income taxes			  -   		  -   		  -   		  -
					-----------	-----------	-----------	-----------
Net loss				$  (152,064)	$  (221,700)	$  (286,738)	$  (307,400)
					===========	===========	===========	===========
Basic and diluted weighted average
    common shares outstanding	 	 24,157,828 	 19,413,570 	 23,922,171 	 19,255,320
					===========	===========	===========	===========
Basic and diluted loss per common share	$     (0.01)	$     (0.01)	$     (0.01)	$     (0.02)
					===========	===========	===========	===========

See Accompanying Notes to Financial Statements

			3
<PAGE>

</TABLE>

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



								For the Six Months Ended
					 				 June 30,
								-------------------------
								   2007		   2006
								---------	---------
Cash flows from operating activities:
   Net loss							$(286,738)	$(307,400)
   Adjustments to reconcile net loss to net
	cash used by operating activities:
   Depreciation and amortization				    6,021 	    3,200
   Gain on disposal of fixed assets				   (3,701)		-
   Stock based compensation				 	    2,000 	      900
   Stock options granted to officers and consultants		        - 	  123,500
   Beneficial conversion feature on convertible debt		        - 	   35,800
   Common stock issued for accrued wages, related party		   22,000 		-
   Decrease (increase) in assets:
	Accounts receivable					    3,600 		-
	Other assets			 			      (34)	   (3,400)
   Increase (decrease) in liabilities:
	Accounts payable			 		  (11,570)	  (18,900)
	Accrued interest			 		   24,231 	   25,600
	Accrued officer salary			 		  (51,256)	   41,100
	Unearned revenues					   11,225 	   11,200
								---------	---------
	Net cash used in operating activities			 (284,222)	  (88,400)
								---------	---------
Cash flows from investing activities:
   Purchase of fixed assets					  (51,788)		-
   Proceeds from sale of fixed assets				    7,000 		-
								---------	---------
	Net cash used in investing activities			  (44,788)		-
								---------	---------
Cash flows from financing activities:
   Payment due to stockholder					        - 	     (500)
   Proceeds from convertible debenture				        - 	   40,000
   Principal payments on notes payable, related parties		  (23,116)	   (7,700)
   Proceeds from issuance of common stock			  114,040 	  112,800
   Proceeds from the exercise of warrants			  178,105 		-
								---------	---------
	Net cash provided by financing activities 		  269,029 	  144,600
								---------	---------
Net increase (decrease) in cash					  (59,981)	   56,200
   Cash, beginning of period					  419,700 	   17,000
								---------	---------
   Cash, end of period						$ 359,719 	$  73,200
								=========	=========
Supplemental disclosure of cash flow information:
   Cash paid for income taxes					$	- 	$ 	-
								=========	=========
   Cash paid for interest					$	- 	$ 	-
								=========	=========

See Accompanying Notes to Financial Statements

			4
<PAGE>

</TABLE>


                             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, 2006 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  (which  include normal recurring adjustments)
   necessary to present fairly the financial  position  as of June 30, 2007 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. NOTES PAYABLE, RELATED PARTIES

   Notes payable consisted of the following as of June 30, 2007:

   Note payable to a stockholder, secured by real property, bearing
   interest at 16.0% per annum, semi-annual interest only payments,
   matured November 2005                            		    $   300,000

   Note payable to a stockholder, secured by real property,
   bearing interest at 8.0% per annum, maturing August 2007		 24,133

   Note payable to a stockholder, secured by real property,
   bearing interest at 8.0% per annum, maturing July 2007		 34,051

   Current portion (amounts due within one year)    		    $   358,184


   The Company is in default of its semi-annual interest  payments  of $268,000
   for the years ended 2002, 2003, 2004, 2005, 2006 and  the  six  months ended
   June 30, 2007 on a note  payable  of $300,000.   The  Company  is  currently
   negotiating forbearance on collection of the principal and interest.


3. CHANGES IN SECURITIES

  During the  six  months  ended  June  30,  2007,  the  Company  sold  246,137
  restricted  shares  of  common  stock  to  various accredited Canadian and US
  investors for a total of $114,052, and issued  warrants  to  purchase 246,137
  restricted  common shares, exercisable between $.45 and $.65 per  share.  The
  Company also  redeemed  712,372  restricted  common stock warrants to various
  accredited investors for a total of $178,093. 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.

  During the six months ended June  30,  2007,  the  Company also issued 50,000
  shares of restricted common stock as part of  a settlement  agreement  with a
  former  officer  of  the  Company  for  compensation of accrued salaries. The
  common stock was rendered to a U.S. citizen,  in  reliance  on  the exemption
  available  under  Section 4(2) of the 1933 Act. The shares were valued  at  a
  total of $22,000 on  April  30, 2007. In addition to monthly cash payments of
  $3,500 per month for twelve (12)  consecutive  months  beginning January 2007
  and terminating December 2007, the Company has recorded  debt  forgiveness of
  $101,745 in accordance with the terms of the settlement agreement. Due to the
  related  party  nature  of  the  transaction  the  gain has been recorded  to
  additional  paid  in  capital,  therefore there has been  no  impact  on  the
  Company's net loss.

  On June 29, 2007, the Company also  issued  4,000 shares of restricted common
  stock for services rendered to a U.S. citizen,  in  reliance on the exemption
  available under Section 4(2) of the 1933 Act. The shares  were  valued  at  a
  total of $2,000.

			5
<PAGE>


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. GOING CONCERN

   The  Company  incurred  a net loss of $286,738 for the six months ended June
   30, 2007.  The Company's  current  liabilities  exceed its current assets by
   approximately  $525,550  as  of  June  30,  2007.   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.


7. SUBSEQUENT EVENTS

   On July 7, 2007  the Company issued 4,000 shares of common stock at $.50 per
   share  and  an equal amount of warrants at $.65 per share to  an  individual
   investor.

   On July 10, 2007   the  Company issued 11,000 shares of common stock at $.50
   per share and an equal amount of warrants at $.65 per share in total to five
   different investors.

			6
<PAGE>



ITEM 2.     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 was to expand testing by E.R.S.  on  material  from  Can-Cal's Pisgah
property.  As  of  June 30, 2007, the Company was unable to reach a  definitive
agreement with E.R.S.;  therefore,  the Board of Directors voted unanimously to
discontinue further negotiations.

      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  lode
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 claims.

      On August 28, 2006, Can-Cal  acquired  an additional 1,800 acres from 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.

      Adits,  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.  Outcrops are 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 plans to expand its U.S. property holdings in 2007.

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

(B)   RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND 2006.

      The  following  table summarizes selected items  from  the  statement  of
operations for the three months ended June 30, 2007 compared to June 30, 2006.

			7
<PAGE>


EXPENSES:

<TABLE>
<CAPTION>
<S>								<C>			<C>
                                                                Three Months Ended
                                                                      June 30,
							      ---------------------
                                                                  2007       2006     Increase/(Decrease)
							      ----------- ---------  ---------- --------
                                                                 Amount     Amount       $         %
							      ----------  ---------  ---------- --------
Expenses:
  Beneficial conversion discount                              $        -  $  12,600  $  (12,600)   (100%)
  Exploration costs                                               55,635      1,800      53,835   2,991%
  Depreciation                                                     3,816      1,600       2,216     139%
  General & administrative expenses                               58,251     42,700      15,551      36%
  General & administrative expenses - related party          	  32,886    158,300    (125,414)    (79%)
							      ----------  ---------
   Total operating expenses                                      150,588    217,000     (66,412)    (31%)
							      ----------  ---------
Loss from operations                                            (150,588)  (217,000)    (66,412)    (31%)

Other income (expense):
  Interest income                                                  3,505          -        3505     100%
  Gain on disposal of fixed assets                                 3,701          -       3,701     100%
  Rental revenue                                                   5,625     22,100     (16,475)    (75%)
  Interest expense                                               (14,307)   (26,800)    (12,493)    (47%)
							      ----------  ---------
Net loss                                                      $ (152,064) $(221,700) $  (69,636)    (31%)
							      ==========  =========
</TABLE>

BENEFICIAL CONVERSION DISCOUNT

     During  the  three months  ended  June  30,  2006,  beneficial  conversion
discount in the amount  of  $12,600  relates  to  a  convertible feature of the
Company's long term debt.

EXPLORATION COSTS

      Exploration costs for the three months ended June  30,  2007 increased by
$53,835  or  2,991%  from  $1,800 for the three months ended June 30,  2006  to
$55,635 for the three months  ended  June 30, 2007. The increase is a result of
increased exploration of US properties  in order to extract precious metals for
testing purposes.

      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.

			8
<PAGE>


DEPRECIATION

     Depreciation for  the three months ended June 30, 2007 increased by $2,216
or 139% from $1,600 for  the three months ended June 30, 2006 to $3,816 for the
three months ended June 30,  2007.  The  increase  is  principally  due  to the
additional depreciation of assets purchased in April of 2007.

GENERAL AND ADMINISTRATIVE EXPENSES

     General  and  administrative  expenses for the three months ended June 30,
2007 increased by $15,551 or 36% from  $42,700  for the three months ended June
30, 2006 to $58,251 for the three months ended June  30,  2007. The increase is
principally  due  to  increased legal and accounting fees surrounding  our  SEC
regulatory requirements.

GENERAL AND ADMINISTRATIVE EXPENSES - RELATED PARTY

     General and administrative  expenses  - related party for the three months
ended June 30, 2007 decreased by $125,414 or  79%  from  $158,300 for the three
months ended June 30, 2006 to $32,886 for the three months ended June 30, 2007.
The  decrease  is  principally due to the one time charge in  2006  related  to
options that were issued  to  an  Officer  of the Company. No such options were
issued in 2007.

TOTAL OPERATING EXPENSES

      Total  operating  expenses  for the three  months  ended  June  30,  2007
decreased by $66,412 or 31% from $217,000  for  the three months ended June 30,
2006 to $150,588 for the three months ended June  30,  2007.   The  decrease in
total operating expenses was mainly a result of management's efforts to control
overhead  costs.  During  the  prior  year,  we experienced non-recurring costs
required  to  support  certain debt financing activities,  as  well  as,  costs
associated with the issuance of options to an Officer of the Company.

OTHER INCOME (EXPENSE)

      During the three months  ended  June  30,  2007,  interest  income in the
amount  of  $3,505  relates to interest earned on cash received as a result  of
financing activities,  and  gain  on  disposal of fixed assets in the amount of
$3,701 was derived from the sale of two vehicles.

      Rental revenue for the three months  ended  June  30,  2007  decreased by
$16,475  or 75% from $22,100 for the three months ended June 30, 2006  compared
to $5,625  for  the three months ended June 30, 2007.  The significant decrease
is due to a one time charge in 2006 related to the rental of the Company's land
to a movie production company.

      Interest expense  for  the  three months ended June 30, 2007 decreased by
$12,493 or 47% from $26,800 for the  three  months ended June 30, 2006 compared
to $14,307 for the three months ended June 30,  2007.  The significant decrease
is due to the repayment of certain long term debts  that  were  paid  with  the
Company's common stock at the end of 2006.

NET LOSS

      Our  net  loss  was  $152,064  for  the  three months ended June 30, 2007
compared to a net loss of $221,700 for the three  months  ended  June 30, 2006.
We  expect  to  improve  our  results  of operations through the attainment  of
sufficient  working  capital  and  a  focus on  generating  revenues  from  the
subcontracting  of  mining  activities,  and   a   reduction   of  general  and
administrative expenses.

(C)   RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006.

      The  following  table  summarizes  selected  items from the statement  of
operations for the six months ended June 30, 2007 compared to June 30, 2006.

			9
<PAGE>


EXPENSES:

<TABLE>
<CAPTION>
<S>									<C>		<C>
                                                                  SIX MONTHS ENDED
                                                                      JUNE 30,
							     ------------------------
                                                                 2007         2006     INCREASE/(DECREASE)
                                                                AMOUNT       AMOUNT        $         %
							     ------------ -----------  ---------- --------
Expenses:
  Beneficial conversion discount                             $          - $    21,000  $  (21,000)   (100%)
  Exploration costs                                               102,943      10,700      92,243     862%
  Depreciation                                                      6,021       3,300       2,721      82%
  General & administrative expenses                               106,745      89,200      17,545      20%
  General & administrative expenses - related party                64,052     173,300    (109,248)    (63%)
							     ------------ -----------
   Total expenses                                                 279,761     297,500     (17,739)     (6%)
							     ------------ -----------
Net operating loss                                               (279,761)   (297,500)    (17,739)     (6%)

Other income (expense):
  Interest income                                                   6,959         100       6,859   6,859%
  Gain on disposal of fixed asset                                   3,701           -       3,701     100%
  Rental revenue                                                   11,250      37,200     (25,950)    (70%)
  Interest expense                                                (28,887)    (47,200)    (18,313)    (39%)
							     ------------ -----------
Net loss                                                     $   (286,738)$  (307,400)  $ (20,662)     (7%)
							     ============ ===========
</TABLE>

BENEFICIAL CONVERSION DISCOUNT

     During the six months ended June 30, 2006, beneficial  conversion discount
in the amount of $21,000 relates to a convertible feature of the Company's long
term debt.

EXPLORATION COSTS

      Exploration  costs  for the six months ended June 30, 2007  increased  by
$92,243 or 862% from $10,700 for the six months ended June 30, 2006 to $102,943
for the six months ended June  30,  2007. The increase is a result of increased
exploration of US properties in order  to  extract  precious metals for testing
purposes.

      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.


			10
<PAGE>


DEPRECIATION

     Depreciation for the six months ended June 30, 2007 increased by $2,721 or
82% from $3,300 for the  six  months  ended June 30, 2006 to $6,021 for the six
months ended June 30, 2007. The increase  is  principally due to the additional
depreciation of assets purchased in April of 2007.

GENERAL AND ADMINISTRATIVE EXPENSES

     General and administrative expenses for the six months ended June 30, 2007
increased by $17,545 or 20% from $89,200 for the six months ended June 30, 2006
to $106,745 for the six months ended June 30, 2007. The increase is principally
due  to  increased  legal and accounting fees surrounding  our  SEC  regulatory
requirements.

GENERAL AND ADMINISTRATIVE EXPENSES - RELATED PARTY

     General and administrative  expenses  -  related  party for the six months
ended  June  30, 2007 decreased by $109,248 or 63% from $173,300  for  the  six
months ended June  30,  2006 to $64,052 for the six months ended June 30, 2007.
The decrease is principally  due  to  the  one  time  charge in 2006 related to
options that were issued to an Officer of the Company.  No  such  options  were
issued in 2007.

TOTAL OPERATING EXPENSES

      Total operating expenses for the six months ended June 30, 2007 decreased
by  $17,739  or  6%  from  $297,500  for  the six months ended June 30, 2006 to
$279,761  for  the  six  months ended June 30,  2007.  The  decrease  in  total
operating expenses was mainly  a  result  of  management's  efforts  to control
overhead  costs.  During  the  prior  year,  we experienced non-recurring costs
required  to  support  certain debt financing activities,  as  well  as,  costs
associated with the issuance of options to an Officer of the Company.

OTHER INCOME (EXPENSE)

      Interest income for  the  six  months  ended  June  30, 2007 increased by
$6,859 or 6,859% from $100 for the six months ended June 30, 2006 to $6,959 for
the six months ended June 30, 2007. The increase is principally due to interest
earned  on a money market account that was opened in 2007 using  proceeds  from
financing activities.

      During  the six months ended June 30, 2007, the Company recognized a gain
on disposal of  fixed  assets  in  the  amount  of  $3,701 from the sale of two
vehicles.

      Rental  revenue  for  the  six months ended June 30,  2007  decreased  by
$25,950 or 70% from $37,200 for the  six months ended June 30, 2006 compared to
$11,250 for the six months ended June  30,  2007.   The significant decrease is
due to a one time charge in 2006 related to the rental of the Company's land to
a movie production company.

      Interest  expense for the six months ended June  30,  2007  decreased  by
$18,313 or 39% from  $47,200 for the six months ended June 30, 2006 compared to
$28,887 for the six months  ended  June  30, 2007.  The significant decrease is
due  to  the repayment of certain long term  debts  that  were  paid  with  the
Company's common stock at the end of 2006.

NET LOSS

      Our net loss was $286,738 for the six months ended June 30, 2007 compared
to a net loss of $307,400 for the six months ended June 30, 2006.  We expect to
improve our  results of operations through the attainment of sufficient working
capital and a  focus  on  generating revenues from the subcontracting of mining
activities, and a reduction of general and administrative expenses.


			11
<PAGE>


(D)   LIQUIDITY AND CAPITAL RESOURCES AND RESULTS OF OPERATIONS

      The  following  table summarizes  total  current  assets,  total  current
liabilities and working capital at June 30, 2007 compared to December 31, 2006.


                           June 30,     December 31,     INCREASE/(DECREASE)
			  ----------	-----------	--------------------
			     2007          2006		     $        %
			  ----------	-----------	----------  --------
Current Assets            $  359,719 	$   423,300  	$  (63,581)     (15%)
			  ==========	===========
Current Liabilities       $  885,269	$ 1,037,500 	$ (152,231)     (15%)
			  ==========	===========
Working Capital (deficit) $ (525,550)	$  (614,200)	$  (88,650)     (14%)
			  ==========	===========

Internal and External Sources of Liquidity

      During the six months  ended  June  30, 2007, our operating and investing
activities used cash of $284,222 and $44,788, respectively, while our financing
activities provided cash of $269,029. The cash used in operating activities was
principally a result of the net loss we incurred.

      Cash  Flow. Since inception, we have primarily  financed  our  cash  flow
requirements  through  the  issuance of common stock and the issuance of notes.
With the growth of our current  business  we  may,  during our normal course of
business, experience net negative cash flows from operations  until some of our
mining  activities  begin to produce revenues. Further, we may be  required  to
obtain financing to fund  operations  through additional common stock offerings
and  bank  or other debt borrowings, to the  extent  available,  or  to  obtain
additional financing  to  the extent necessary to augment our available working
capital.

SATISFACTION OF OUR CASH OBLIGATIONS FOR THE NEXT TWELVE MONTHS.

      As  of June 30, 2007,  our  cash  balance  was  $359,719.  Our  plan  for
satisfying  our  cash  requirements  for  the  next  twelve  months  is through
additional equity, third party financing, and/or debt financing.  We anticipate
our  current  cash  reserves  will  be sufficient to support operations through
December  31,  2007, but do not anticipate  generating  sufficient  amounts  of
positive cash flow  to  meet our working capital requirements. Consequently, we
intend to make appropriate plans to insure sources of additional capital in the
future to fund growth and expansion through additional equity or debt financing
or credit facilities. We  also  are  considering possible funding through joint
venture arrangements with other mining companies.

      As we expand operational activities,  we  may  continue to experience net
negative  cash  flows from operations, pending receipt of  sales  and  will  be
required to obtain additional financing to fund operations through common stock
offerings and debt  borrowings  to  the  extent  necessary  to  provide working
capital.

      We anticipate incurring operating losses until we build our capital base.
Our  recent  operating  history  makes predictions of future operating  results
difficult to ascertain. In addition,  since our cash position has fallen we are
finding  it  increasingly  difficult  to  expand  our  operations.   Thus,  our
prospects must be considered in light of the  risks,  expenses and difficulties
frequently  encountered  by  companies  in  their  early stages  of  commercial
viability,  particularly  companies in rapidly evolving  energy  markets.  Such
risks include, but are not  limited  to, an evolving and unpredictable business
model and the management of growth. To address these risks we must, among other
things, implement and successfully execute our business and marketing strategy,
continue to develop and upgrade technology and products, respond to competitive
developments, and continue to attract, retain and motivate qualified personnel.
There can be no assurance that we will  be successful in addressing such risks,
and the failure to do so can have a material  adverse  effect  on  our business
prospects, financial condition and results of operations.


			12
<PAGE>


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
ensure 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.

      Subsequent  to  the date when the disclosure controls and procedures were
evaluated,  there have not  been  any  significant  changes  in  the  company's
disclosure controls  or procedures or in other factors that could significantly
affect such controls or  procedures.   No  significant deficiencies or material
weaknesses  in  the  controls or procedures were  detected,  so  no  corrective
actions needed to be taken.


PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

   None.

ITEM 2.  CHANGES IN SECURITIES.

   During  the six months  ended  June  30,  2007,  the  Company  sold  246,137
   restricted  shares  of  common  stock  to various accredited Canadian and US
   investors for a total of $114,052, and issued  warrants  to purchase 246,137
   restricted common shares, exercisable between $.45 and $.65  per  share. The
   Company  also  redeemed  712,372 restricted common stock warrants to various
   accredited investors for a  total  of $178,093. 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.

			13
<PAGE>

   During the six months ended June 30, 2007, the Company  also  issued  50,000
   shares of restricted common stock as part of  a settlement agreement with  a
   former  officer  of  the  Company  for compensation of accrued salaries. The
   common stock was rendered to a U.S.  citizen,  in  reliance on the exemption
   available under Section 4(2) of the 1933 Act. The shares  were  valued  at a
   total of $22,000 on April 30, 2007. In addition to monthly cash payments  of
   $3,500  per  month for twelve (12) consecutive months beginning January 2007
   and terminating  December 2007, the Company has recorded debt forgiveness of
   $101,745 in accordance  with  the  terms of the settlement agreement. Due to
   the related party nature of the transaction,  the  gain has been recorded to
   additional  paid  in  capital, therefore there has been  no  impact  on  the
   Company's net loss.

   On June 29, 2007, the Company  also issued 4,000 shares of restricted common
   stock for services rendered to a  U.S. citizen, in reliance on the exemption
   available under Section 4(2) of the  1933  Act.  The shares were valued at a
   total of $2,000.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES


   The Company is in default of its semi-annual interest  payments  of $268,000
   for  the  years ended 2002, 2003, 2004, 2005, 2006 and the six months  ended
   June 30, 2007  on  a  note  payable  of  $300,000.  The Company is currently
   negotiating forbearance on collection of the principal and interest.

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

   None.

ITEM 5. OTHER INFORMATION

   N/A

			14
<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

   NONE.

                                  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:  August 13, 2007                 By:/s/Ronald D. Sloan
					  --------------------
                                          RONALD D. SLOAN,
                                          Chief Executive Officer and
					  President




			15

<PAGE>