FORM 10-QSB
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

X     Quarterly  Report  pursuant  to  Section  13 or  15(d)  of the
      Securities  Exchange Act of 1934 for the fiscal  quarter ended
      March 31, 2001

[ ]   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)

  8221 Cretan Blue Lane, Las Vegas, NV                  89128
----------------------------------------     -----------------------------------
(Address of principal executive offices)             (Zip Code)

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

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                         DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the  distribution of
securities under a plan by a court.
                                                               Yes_____  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 March 31, 2001
---------------------------------------     ------------------------------------
    Common Stock, Par Value $.001                         9,372,791

Transitional Small Business Disclosure Format (Check one): Yes_____  No   X  .
                                                                       ------


                                        1

<PAGE>



                             CAN-CAL RESOURCES, LTD.

               FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000



                                    CONTENTS



                                                                          PAGE

INDEPENDENT ACCOUNTANTS' REPORT                                              3

FINANCIAL STATEMENTS:
    Interim balance sheets                                                   4
    Interim statements of operations                                         5
    Interim statements of changes in stockholders' deficit                   6
    Interim statements of cash flows                                         7
    Notes to interim financial statements                                 8-11

SUPPLEMENTARY SCHEDULE:
    Supplemental schedule I --
      Operating, general and administrative expenses                        12




                                        2

<PAGE>








                         INDEPENDENT ACCOUNTANTS' REPORT


To the Board of Directors and Stockholders
Can-Cal Resources, Ltd.
Las Vegas, Nevada

We have reviewed the accompanying  condensed balance sheet of Can-Cal Resources,
Ltd., as of March 31, 2001,  and the condensed  statements of operations for the
three months ended March 31, 2001 and 2000,  the  condensed  statements  of cash
flows for the three  months  ended  March 31, 2001 and 2000,  and the  condensed
statement  of changes in  stockholders'  equity for the three months ended March
31, 2001.  These financial  statements are the  responsibility  of the company's
management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material  modifications that should
be made to the  accompanying  financial  statements for them to be in conformity
with generally accepted accounting principles.

We previously audited, in accordance with generally accepted auditing standards,
the balance sheet as of December 31, 2000, and the related  statement of changes
in stockholders' equity (deficit), and cash flows, and the related statements of
operations  for the year then ended (not  presented  herein);  and in our report
dated February 18, 2001, we expressed an unqualified  opinion on those financial
statements.  In our  opinion,  the  information  set  forth in the  accompanying
condensed  balance sheet as of December 31, 2000 and the condensed  statement of
changes in stockholders' equity for the year then ended, is fairly stated in all
material  respects in relation to the balance  sheet and statement of changes in
stockholders' equity (deficit) from which they have been derived.



/s/ Murphy, Bennington & Co.


Las Vegas, NV
May 6, 2001


                                        3

<PAGE>



CAN-CAL RESOURCES, LTD.

BALANCE SHEETS

MARCH 31, 2001
(Rounded to the nearest hundred, except share data)
<TABLE>
<CAPTION>

                                                                        MARCH 31,   DECEMBER 31,
                                                                          2001          2000
                                                                     -------------  -------------
                                                                       (UNAUDITED)
ASSETS

CURRENT ASSETS:
<S>                                                                  <C>            <C>
     Cash                                                            $    293,100   $    510,800
     Notes receivable, related parties (note 2)                            54,000         48,100
     Note receivable                                                       53,000         53,000
                                                                     ------------   ------------
         Total current assets                                             400,100        611,900

PROPERTY AND EQUIPMENT, NET (NOTE 3)                                       68,500         72,400

OTHER ASSETS (NOTE 4)                                                      53,700         53,700

LONG-TERM INVESTMENTS (NOTE 5)                                            586,100        586,100
                                                                     ------------   ------------
                                                                     $  1,108,400   $  1,324,100
                                                                     ============   ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
     Accounts payable                                                $     17,500   $     51,300
     Accrued expenses                                                      41,200         26,300
     Checks written against future deposits                                    --         14,200
     Note payable, current portion (note 6)                                32,500         32,500
                                                                     ------------   ------------
         Total current liabilities                                         91,200       124,300

NOTE PAYABLE, NET OF CURRENT PORTION (NOTE 6)                             300,000        300,000

NOTES PAYABLE, RELATED PARTIES (NOTE 7)                                   117,200        119,200
                                                                     ------------   ------------
                                                                          508,400        543,500
                                                                     ------------   ------------
STOCKHOLDERS' DEFICIT:
     Common stock, $.001 par value; authorized, 15,000,000
         shares; issued and outstanding, 9,372,791 shares                   9,400          9,400
     Preferred stock, $.001 par value; authorized, 10,000,000
         shares; none issued or outstanding                                    --             --
     Additional paid-in-capital                                         3,408,600      3,408,600
     Accumulated deficit                                               (2,818,000)    (2,637,400)
                                                                     ------------   ------------
                                                                          600,000        780,600
                                                                     ------------   ------------
                                                                     $  1,108,400   $  1,324,100
                                                                     ============   ============

</TABLE>



                                        4

<PAGE>



CAN-CAL RESOURCES, LTD.

STATEMENTS OF OPERATIONS

THREE  MONTHS  ENDED  MARCH 31, 2001 AND 2000
(Rounded to the nearest  hundred, except share data)

<TABLE>
<CAPTION>



                                                                                    THREE MONTHS ENDED
                                                                              -----------------------------
                                                                                 MARCH 31,       MARCH 31,
                                                                                   2001            2000
                                                                              -------------    ------------
                                                                               (UNAUDITED)     (UNAUDITED)
<S>                                                                           <C>              <C>
SALES                                                                         $      --        $      --

COST OF GOODS SOLD                                                                   --               --
                                                                              -----------      -----------
GROSS PROFIT                                                                         --               --
OPERATING EXPENSES,
GENERAL AND ADMINISTRATIVE                                                        171,700          103,400
                                                                              -----------      -----------
LOSS FROM OPERATIONS                                                             (171,700)        (103,400)
OTHER INCOME (EXPENSES):
     Other income                                                                     800            5,200
     Interest income                                                                5,200            1,000
     Interest expense                                                             (14,900)          (1,700)
                                                                              -----------      -----------
INCOME(LOSS) FROM CONTINUING OPERATIONS                                          (180,600)         (98,900)
                                                                              -----------      -----------

PROVISION FOR INCOME TAXES                                                           --               --
                                                                              -----------      -----------

NET INCOME (LOSS)                                                             $  (180,600)     $   (98,900)
                                                                              ===========      ===========
<CAPTION>

NET INCOME (LOSS) PER SHARE OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:

BASIC EPS
<S>                                                                           <C>              <C>
     Net loss from continuing operations                                      $     (0.02)     $     (0.01)
                                                                              ===========      ===========
     Weighted average shares outstanding                                        9,372,791        8,308,727
                                                                              ===========      ===========

DILUTED EPS
     Net loss from continuing operations                                      $     (0.02)     $     (0.01)
                                                                              ===========      ===========
     Weighted average shares outstanding                                        9,372,971        8,308,727
                                                                              ===========      ===========
</TABLE>



                                        5

<PAGE>



CAN-CAL RESOURCES, LTD.

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

THREE MONTHS ENDED MARCH 31, 2001

(UNAUDITED)
(Rounded to the nearest hundred, except share data)
<TABLE>
<CAPTION>


                                                                            ADDITIONAL                   CUMULATIVE       TOTAL
                                                                             PAID-IN      ACCUMULATED    TRANSLATION   STOCKHOLDERS'
                                                      COMMON STOCK           CAPITAL       DEFICIT       ADJUSTMENT       EQUITY
                                                 -----------------------   -----------   ------------   ------------   ------------
                                                  SHARES        AMOUNT
                                                 ---------   -----------

<S>                                              <C>         <C>           <C>           <C>            <C>            <C>
BALANCE, DECEMBER 31, 1998                       7,005,161   $     7,000   $ 1,887,600   $(1,397,800)   $     8,500    $   505,300
  Issuance of common stock                       1,248,621         1,200       572,600          --             --          573,800
  Foreign currency translation adjustment             --            --            --            --          (11,800)       (11,800)
  Realized foreign currency translation loss          --            --            --            --            3,300          3,300
  Net income (loss) for the year                      --            --            --        (322,100)          --         (322,100)
                                               -----------   -----------   -----------   -----------    -----------    -----------
BALANCE, DECEMBER 31, 1999                       8,253,782         8,200     2,460,200    (1,719,900)          --          748,500
  Issuance of common stock                       1,119,009         1,200       948,400          --             --          949,600
  Net income (loss) for the year                      --            --            --        (917,500)          --         (917,500)
                                               -----------   -----------   -----------   -----------    -----------    -----------
BALANCE, DECEMBER 31, 2000                       9,372,791         9,400     3,408,600    (2,637,400)          --          780,600
  Net income (loss) for the period                    --            --            --        (180,600)          --         (180,600)
                                               -----------   -----------   -----------   -----------    -----------    -----------
BALANCE, MARCH 31, 2001                          9,372,791   $     9,400   $ 3,408,600   $(2,818,000)   $      --      $   600,000
                                               ===========   ===========   ===========   ===========    ===========    ===========
</TABLE>




                                        6

<PAGE>



CAN-CAL RESOURCES, LTD.

STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2001 AND 2000
(Rounded to the nearest hundred)


<TABLE>
<CAPTION>

                                                                    THREE MONTHS ENDED
                                                                --------------------------
                                                                 MARCH 31,      MARCH 31,
                                                                   2001           2000
                                                                -----------    -----------
                                                                (UNAUDITED)    (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                             <C>            <C>
NET INCOME (LOSS)                                               $(180,600)     $ (98,900)
     Adjustments to reconcile net income to net cash
         provided by operating activities:
           Depreciation                                             6,400          5,900
           Changes in operating assets and liabilities:
              (Increase) decrease in prepaid expenses                --           (2,000)
              (Increase) decrease in other assets                    --           (2,800)
              Increase (decrease) in accounts payable and
                other current liabilities                         (33,100)         1,400
                                                                ---------      ---------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                 (207,300)       (96,400)
                                                                ---------      ---------
CASH FLOW FROM INVESTING ACTIVITIES:
     Purchase of property and equipment                            (2,500)          --

                                                                ---------      ---------
NET CASH PROVIDED BY INVESTING ACTIVITIES                          (2,500)          --
                                                                ---------      ---------
CASH FLOW FROM FINANCING ACTIVITIES:
     Increase (decrease) in related party debt                     (2,000)        29,200
     Proceeds from issuance of common stock                          --          375,000
     Issuance of note receivable                                   (5,900)        (5,900)
                                                                ---------      ---------
NET CASH USED BY FINANCING ACTIVITIES                              (7,900)       398,300
                                                                ---------      ---------

NET INCREASE (DECREASE) IN CASH                                  (217,700)       301,900
CASH AT BEGINNING OF PERIOD                                       510,800         51,800
                                                                ---------      ---------
CASH AT END OF PERIOD                                           $ 293,100      $ 353,700
                                                                =========      =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID DURING THE YEAR FOR:
     Interest                                                   $    --        $    --
                                                                =========      =========
     Income taxes                                               $    --        $    --
                                                                =========      =========
</TABLE>




                                        7

<PAGE>



CAN-CAL RESOURCES, LTD.

NOTES TO FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2001 AND 2000

1.     BASIS OF PRESENTATION OF FINANCIAL STATEMENTS:

       These unaudited interim financial  statements of Can-Cal  Resources,  Ltd
       have been prepared in accordance  with the rules and  regulations  of the
       Securities and Exchange Commission.  Such rules and regulations allow the
       omission  of  certain  information  and  footnote   disclosures  normally
       included in financial  statements  prepared in accordance  with generally
       accepted  accounting  principles  as  long  as  the  statements  are  not
       misleading.

       In the  opinion  of  management,  all  adjustments  necessary  for a fair
       presentation of these interim  statements have been included and are of a
       normal recurring  nature.  These interim  financial  statements should be
       read in conjunction with the financial statements of the Company included
       in its  2000  Annual  Report  on Form  10-KSB.  Interim  results  are not
       necessarily indicative of results for a full year.

       In the course of its  activities,  the company has  sustained  continuing
       operating  losses and expects such losses to continue for the foreseeable
       future.  The company  plans to continue  to finance its  operations  with
       stock sales and, in the longer term,  revenues from sales.  The company's
       ability to continue as a going  concern is  dependent  upon future  stock
       sales and ultimately upon achieving profitable operations.

2.     NOTES RECEIVABLE (RELATED PARTIES):

       Notes  receivable,  related  parties,  at March 31, 2001 consisted of the
       following:

<TABLE>
      <S>                                                                           <C>
       Note receivable from S&S Mining, Inc., a joint venture partner, unsecured,
         interest imputed at 8%, due on demand                                      $   27,800
       Note receivable from an individual, unsecured, interest imputed
         at 8%, due on demand                                                            12,000
       Note receivable from an individual, unsecured, interest imputed
         at 6%, due on demand                                                             5,000
       Accrued interest receivable                                                       14,800
                                                                                    -----------
                                                                                         59,600
       Allowance for uncollectible accounts                                              (5,600)
                                                                                    -----------
                                                                                    $    65,200
                                                                                    ===========
</TABLE>



                                        8

<PAGE>



CAN-CAL RESOURCES, LTD.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

THREE MONTHS ENDED MARCH 31, 2001 AND 2000


3.     PROPERTY AND EQUIPMENT:

       Property and equipment at March 31, 2001 consisted of the following:


<TABLE>
<S>                                                                                 <C>
       Machinery and equipment                                                      $   97,600
       Transportation equipment                                                         18,400
       Office equipment and furniture                                                   14,200
                                                                                    -----------
                                                                                       130,200
       Less accumulated depreciation                                                   (61,700)
                                                                                    -----------
                                                                                    $   68,500
                                                                                    ===========
<FN>
       Depreciation  expense for the three months ended March 31,2001  totaled $6,400.
</FN>
</TABLE>

4.     OTHER ASSETS:

       Other assets at March 31, 2001 consisted of the following:


<TABLE>
       <S>                                                                           <C>
       Note receivable from Tyro, Inc., and principals, a corporation, secured
         by equipment,  interest accrued at 6% per annum, due on demand              $    53,300
       Deposits                                                                            6,800
       Non-destructive testing supplies                                                   10,500
       Mining claims                                                                      36,400
                                                                                     ------------
                                                                                         107,000
       Allowance for uncollectible notes                                                 (53,300)
                                                                                     ------------
                                                                                     $    53,700
                                                                                     ============
</TABLE>

5.     LONG-TERM INVESTMENTS:
       Long-term investments at March 31, 2001 consisted of the following:
<TABLE>


<S>                                                                                 <C>
Pisgah property                                                                     $    567,100
Investment in S&S Mining joint venture                                                    19,000
                                                                                    -------------
                                                                                    $    586,100
                                                                                    =============
</TABLE>




                                        9

<PAGE>



CAN-CAL RESOURCES, LTD.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

THREE MONTHS ENDED MARCH 31, 2001 AND 2000

6.     NOTES PAYABLE:

       Note payable at March 31, 2001 consisted of the following:

<TABLE>

<S>                                                                                <C>
       Note payable to lender; secured by 1st deed of trust;                       $ 32,500
         interest at 8.00% per annum, matures July 31, 2001

       Note payable to lender; secured by 2nd deed of trust;
         interest at 16.00% per annum; matures November 24, 2005                     300,000
                                                                                   ---------
                                                                                     332,500
       Less current portion                                                          (32,500)
                                                                                   ---------
                                                                                   $ 300,000
                                                                                   =========
</TABLE>

7.     NOTE PAYABLE, RELATED PARTIES:

       Note  payable,  related  parties,  at March  31,  2001  consisted  of the
following:

<TABLE>

       <S>                                                                         <C>
       Note payable to shareholder; unsecured; interest
         at prime plus 1.00% per annum, due on demand                              $ 112,700

       Note payable to shareholder; unsecured; interest at
         prime plus 1.00% per annum, due on demand                                     4,500
                                                                                   ---------
                                                                                   $ 117,200
                                                                                   =========
</TABLE>

8.     FAIR VALUE OF FINANCIAL INSTRUMENTS:

       The following  table  presents the carrying  amounts and  estimated  fair
       value of the Company's financial instruments at March 31, 2001:
<TABLE>
<CAPTION>
                                                                     CARRYING          FAIR
                                                                      AMOUNT           VALUE
                                                                    ----------      ----------
       Financial assets:
<S>                                                                 <C>             <C>
          Note receivable-related party                             $   54,000      $   54,000
          Note receivable                                               53,000          53,000
          Property and equipment                                        68,500          68,500
          Other assets                                                  53,700          53,700
          Long-term investments                                        586,100         586,100
       Financial liabilities:
          Notes payable, related parties                               117,200         117,200
          Notes payable                                                332,500         332,500


</TABLE>

                                       10

<PAGE>



CAN-CAL RESOURCES, LTD.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

THREE MONTHS ENDED MARCH 31, 2001 AND 2000


8.     FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED):

       The carrying  amounts of cash,  prepaid  expenses,  accounts  payable and
       accrued expenses  approximate fair value because of the short maturity of
       those instruments.

       The fair  value of  notes  payable  is  based  upon the  borrowing  rates
       currently  available to the Company for bank loans with similar terms and
       average maturities.


                                       11

<PAGE>



CAN-CAL RESOURCES, LTD.

SUPPLEMENTAL SCHEDULE I --
OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES

THREE MONTHS  ENDED MARCH 31, 2001 AND 2000
(UNAUDITED)
(Rounded to the nearest hundred)




<TABLE>
<CAPTION>
                                                       THREE MONTHS    THREE MONTHS
                                                       ENDED MARCH     ENDED MARCH
                                                         31, 2001        31, 2000
                                                       ------------    -------------
OPERATING, GENERAL AND ADMINISTRATIVE EXPENSES:
<S>                                                     <C>             <C>
Mine exploration                                        $ 59,300        $ 30,100
Consulting                                                33,400           5,500
Travel and entertainment                                  23,600           8,200
Office expense                                            18,400           3,500
Insurance                                                  8,000          15,700
Office rent                                                7,900           9,200
Depreciation and amortization                              6,400           5,900
Accounting and legal                                       3,000          17,200
Repairs and maintenance                                    2,900            --
Telephone                                                  2,700           1,800
Miscellaneous                                              1,700           2,400
Equipment rental                                           1,600           2,600
Utilities                                                  1,500             300
Advertising and promotion                                  1,200             800
Bank charges                                                 100             200
                                                        --------        --------
                                                        $171,700        $103,400
                                                        ========        ========
</TABLE>


                                       12

<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 ore, negative test results,  the existence of precious metals in
the 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,  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  Company's  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.




                                       13

<PAGE>



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

(a)      Plan of Operation.

         During the quarter ended March 31, 2001 and continuing thereafter,  the
Company continued to expand its precious metal extractive techniques, procedures
and  methodology  program of testing  volcanic cinder material from its patented
mineral claims at Pisgah, California. It had dedicated virtually all its efforts
to this  testing.  It conducts  its  operations  at the  facility in Nye County,
Nevada, which it leases. The purpose of the extractive  metallurgical program is
to determine the nature and extent of precious metals  contained in the volcanic
cinder  material and to determine  and verify the  feasibility  and the possible
commercial viability of the various extractive technologies developed to date.

         The  Company  intends  to  continue  its  batch  testing   programs  of
extractive  testing  volcanic  cinders from its property at Pisgah,  California.
However,  there is no  assurance  that  precious  metals  exist in the  volcanic
cinders in  commercial  quantities  or, if they do, that they can be  profitably
extracted.  The  Company  has no present  plans to  conduct  any  activities  or
operations on any of its other properties.

         It is not  anticipated  that the Company  will  purchase  (or sell) any
significant  amount of equipment or other assets,  or experience any significant
change in the number of personnel who perform  services for the Company,  during
the 12 months ending March 2002. However, this depends on results of its ongoing
testing programs and financing available to it.


(b)      Liquidity and Capital Resources and Results of Operations

         As of March 31,  2001,  the  Company's  working  capital was  $308,900.
Working capital as of December 31, 2000, was $487,600.

         The  Company  had no  operating  income or cash  flow from its  mineral
operations  for the three  months ended March 31, 2001 or the three months ended
March 31, 2000. The Company sustained a loss from operations of $180,600 for the
three month period  ended March 31, 2001,  compared to a loss of $98,900 for the
three period ended March 31, 2000.  The  increased  loss  reflects the company's
expanded testing program.

         During the three month period ended March 31,  2001,  mine  exploration
costs  increased from $30,100 for the three month period ended March 31, 2000 to
$59,300 and  consulting  costs  increased  from $5,500 to $33,400,  largely as a
result of the accelerated  testing program on the volcanic  cinders,  consulting
fees  paid to  Bruce  Ballantyne  and  other  consultants,  and  assay  expenses
associated with the testing program. Travel and entertainment costs increased to
$23,600  from  $8,200.  Those costs  include  increased  travel  relating to the
testing program on the volcanic cinders. Office expense increased from $3,500 to
$18,400 as a result of an additional  office and increased  activity.  Insurance
costs decreased from $15,700 to $8,000.  Accounting and legal expenses decreased
to $3,000 from $17,200.


                                       14

<PAGE>



         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 locates and delineates reserves.  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.

         As a result of the Company's  greatly expanded and accelerated  program
for testing its volcanic  cinders  material  during the quarter  ended March 31,
2001, and continuing thereafter,  the Company has expended its funds faster than
it had anticipated.  The Company  anticipates that, as long as results appear to
warrant it, it will  continue its current  level of testing and assaying and, if
results warrant it, seek to obtain equipment to produce precious metals from its
volcanic cinders  material.  The Company estimates that its cash will last until
about August or September 2001. It will require additional funds to continue its
operations.  It is currently exploring various financing  alternatives including
borrowing  additional  funds  using its  Pisgah  volcanic  cinders  property  as
collateral or a private placement of its securities.  No financing  arrangements
or facilities are in place as of this time.


                           PART II - OTHER INFORMATION

ITEM 5.  OTHER INFORMATION

         On April 2, 2001 Josef  Reschreiter  resigned as a director and officer
of the Company.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits.

                  No.      Description                                Page No.
                  ---      -----------                                -------

                  23       Consent of Independent Accountants..............17


         (b)      Reports on Form 8-K. There were no reports filed by the
                  Company on Form 8-K during the quarter ended March 31, 2001.




                                       15

<PAGE>


                                   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:  May 11, 2001           By:          / s /       Ronald D. Sloan
                                           -------------------------------------
                                           RONALD D. SLOAN, President


                                  16

<PAGE>