Mr. Lorne Torhjelm reports

CARDIFF ENERGY CORP. ACQUIRES 700 ACRE LEASE IN RUNNELS COUNTY AND SIGNS SIGNIFICANT AMI AGREEMENT

Cardiff Energy Corp. has signed a definitive agreement with Murphree Oil LLC to acquire an additional 700-acre lease in Runnels county, Texas. The geological report on the new 700-acre parcel indicates there are multizone features with oil and gas development potential. The zones of interest include Gardner lime, Capps lime, Palo Pinto lime, Jennings sand and Dog Bend lime. These zones are also present in the lease that the company currently owns and where the Clayton No. 1H is being drilled.

The company now controls close to 1,200 acres of land for drill-ready exploration in Runnels county. The full development of the 1,200 acres will include both horizontal and vertical drilling as well as re-entry to zones in existing well bores not previously produced. The geological study indicates there are more than 15 to 20 targets to be drilled to develop both properties to their full potential.

The company has signed a significant five-year AMI (area of mutual interest) agreement with Murphree for lands surrounding the 700-acre lease. This agreement allows the company to have first right on any lands in the AMI to do its own geological study and if it fits the goals of the company, purchase the lease (or leases) from Murphree.

Jack Bal, president, states with leases secured and a significant AMI agreement in place for future development the company is positioned for an exciting oil and gas drilling and production program.

To update shareholders on the status of the Clayton No. 1H, the drilling phase continues and the Clayton No. 1H will be completed in the Gardner lime as a horizontal well. The company's previous new release anticipated completion of the drilling of the Clayton No. 1H by now. However, due to complications during the drilling process the time line has been extended. Upon completion and testing of the Clayton No. 1H a flow rate will be reported.

To learn more about the company and the drilling of the Clayton No. 1H horizontal well please visit the company's website.

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