Mr. Jack Bal reports

CARDIFF ENERGY CORP. PROVIDES CLAYTON #1H FLOW TEST UPDATE

Cardiff Energy Corp. is providing a follow-up to its Nov. 30, 2015, news release. Eastern Shelf Operating LLC, operator of the Clayton No. 1H, swabbed the well for three days with the objective of unloading the completion fluid from water jetting that was used to clean the Gardner Lime formation. The swabbing operation was successful in recovering a large amount of completion fluid with significant oil and gas shows. With these positive results, the operator decided to install a Moyno production pump, which required the installation of 3,200 feet of new production tubing to accelerate the removal of the completion fluid. The pump was installed on Saturday, Dec. 5, 2015, and began pumping completion fluid out of the formation. Continuous pumping of the well has demonstrated that the Gardner has strong inflow and is flowing completion fluid along with good gas flow and increasing oil showings. Additional tubing is being installed today to allow the production pump to extract from the 4,200-foot level, which is the beginning of the lateral. The company expects the completion fluid to decrease and hydrocarbons to be the dominant flow. Once the completion fluid is depleted, the operator will commence flow testing of the Clayton No. 1H well.

Derek Stonehouse, vice-president, exploration, for Cardiff Energy, stated: "We are very pleased with the well results to date. The Gardner Lime formation is responding well, and hydrocarbon shows are increasing as completion fluid is being removed. We expect the flow test to be completed within a few days."

We seek Safe Harbor.