Mr. Jack Bal reports

CARDIFF ENERGY CORP. ANNOUNCES CLAYTON #1H INITIAL FLOW RATE RESULTS

Cardiff Energy Corp.'s operator, Eastern Shelf Operating LLC, has completed an initial flow test on the Clayton No. 1H well reporting an initial flow rate of 275 barrels of oil per day without any stimulation to the formation. Furthermore, early in the new year the company has plans to apply an acid treatment to the Clayton No. 1H well which has the potential to substantially increase the flow rate.

With this exciting news in hand the company has pioneered the first Gardiner lime horizontal well in Runnels county, Texas. Based on the initial flow test the Clayton No. 1H well has met the company's expectations and will transition the company in short order from a junior explorer to a junior producer in Texas.

Jack Bal, president and chief executive officer of Cardiff Energy, stated: "All along we believed that the Clayton No. 1H would be a huge success. We stuck to our business plan and have provided the necessary proof to support the next phase of our growth. With multizone opportunities on the company's current leases, additional leases in the surrounding vicinity being secured and a follow-up drilling program being finalized the company is set to enter a significant growth phase."

The company holds a 70-per-cent working interest in the Clayton No. 1H well and its JV partner Equitorial Exploration Corp. holds a 30-per-cent WI. The company holds a 100-per-cent WI in the Bearcat No. 4.

We seek Safe Harbor.