Mr. Lorne Torhjelm reports

CARDIFF ENERGY CORP. PERMITS 10 WELLS

Cardiff Energy Corp. has released a plan of action outlining near-term and midterm plans for developing its oil and gas assets in Runnels county, Texas. The recently purchased 468-acre oil and gas lease will be the focal point. This lease, offsetting the company's recently drilled Bearcat No. 4 well, has multizone potential and a number of well bores that will be explored as re-entry prospects. Applying new technology such as horizontal radial drilling to zones not previously produced in the re-entry wells can open up significant reserves and production rates. Permitting is under way for a combination of new drilling both vertical and horizontal. Ten permits are being applied for with the initial first three wells to be vertical tests through the Gardner lime. These are planned to be drilled and completed by the end of 2014.

In early 2015 Cardiff plans to begin phase two consisting of a seven-well program combining horizontal as well as radial re-entry in existing well bores.

A further update on the completion of the Bearcat No. 4 well

The pump jack and production equipment are being installed and will be operational on Friday, Oct. 24, 2014.

We seek Safe Harbor.