Mr. Jack Bal reports

Cardiff Energy Corp. has secured a $250,000 line of credit which will be used to finance the acid treatment on the Clayton No. 1H and to put the well into production. The acid treatment will use in excess of 20,000 gallons of 15 per cent HCL acid and will selectively stimulate the areas of the wellbore that had the most significant hydrocarbon shows during drilling. The treatment is scheduled to begin during the week of Feb. 15, 2016.

Jack Bal, president and chief executive officer of Cardiff Energy, states: "With the loan secured, we have now engaged a completion team to oversee the acid treatment of the Clayton No. 1H. Our geologist and team have reviewed the proposal and are confident that the plan will be a great success. Cardiff is now selecting the location of the next two wells and believes with the knowledge gained by drilling the Clayton No. 1H the next wells will be drilled much cheaper and move faster to the production stage."

Additionally, the company has agreed to issue up to six million units at five cents per unit, each unit consisting of one common share and one transferable share purchase warrant. One warrant will be exercisable for one additional common share at 7.5 cents per share during the next two years. The proceeds derived from the total six-million-unit private placement will be used for the Clayton No. 1H and for general working capital purposes. Insiders of the company will subscribe for a minimum of two million units of the financing. This transaction is subject to TSX Venture Exchange approval.

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

The company holds a 70-per-cent working interest in the Clayton No. 1H and its joint venture 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.