On February 6, 2019, Mr. Casey Douglass, Mr. Gary Oosterhoff and Mr. Cornelus (Case) Korver provided notice to the Board of Directors of Can-Cal Resources Ltd. of their resignations from the Board of Directors effective at a future date, upon the appointment of Casey Douglass as designee by the Defendants and upon the appointment of a Board of Director’s designee by the plaintiffs in the shareholder derivative lawsuit in the District Court, Clark County, Nevada (Case No.: A-14-701465-b, Dept. No.: XI)(the “Lawsuit”) and the appointment of a third member of the Board of Directors consistent with the “Stipulation and Agreement of Settlement” entered into in connection with the Lawsuit (the “Settlement”). As previously reported in the Current Report on Form 8-K filed on November 13, 2018, pursuant to the Settlement, Mr. Casey Douglass, Mr. Gary Oosterhoff and Mr. Cornelus (Case) Korver must resign from the Board of Directors of the Company and two new members of the Board of Directors must be appointed, one from the plaintiffs in the Lawsuit, and one mutually appointed by the defendant and the plaintiffs in the Lawsuit. On February 6, 2019, the Company held a Board of Directors meeting for the above stated purpose. The meeting was attended by the current members of the Board of Directors (Mr. Casey Douglass, Mr. Gary Oosterhoff and Mr. Cornelus (Case) Korver), with Mr. Hugo Bondi attending telephonically as Board appointee of the plaintiffs. Mr. Douglass, as Chairman, advised that the conditional resignations of Mr. Casey Douglass, Mr. Gary Oosterhoff and Mr. Cornelus (Case) Korver were presented to the Board of Directors and that such resignations were conditioned upon Mr. Bondi (as appointee of the plaintiffs in the Lawsuit) and Mr. Douglass (as appointee of the defendants in the Lawsuit) agreeing on a third director appointee, with all three to be the “replacement directors” of the Company as per the Settlement, before the Resignations could be considered to be tendered and accepted. Mr. Bondi and Mr. Douglass were unable to mutually agree on a third member of the Board of Directors to be appointed pursuant to the requirements of the Settlement at the meeting. As such, the Resignations are not yet effective and Mr. Casey Douglass, Mr. Gary Oosterhoff and Mr. Cornelus (Case) Korver continue to serve as the sole members of the Board of Directors. Notwithstanding the above, the Company has become aware that, since the meeting, Mr. Bondi has held himself out as a member of the Board of Directors and as Secretary of the Company (notwithstanding the fact that the Board has never appointed him to such position).