June 11, 2015

Research #10Lithium, Oil & Gas

Cardiff Energy acquires more ground with unsampled pegmatite outcrops in the James Bay Lithium District

Today, Cardiff Energy Corp. announced the acquisition of more lithium prospective properties around the James Bay Deposit from Galaxy Resources Ltd. in the Eastmain River area of Québec. This is a world-class lithium district, where the “Lithium Triad” (Galaxy, Nemaska and Critical Elements) control some of the world’s most valuable real estate. Most recently, the past producing Quebec Lithium Mine, which contained a resource of 33 million t @ 1.18% Li2O, sold to Jilin Jien Nickel for an unreported amount (estimated at $350 million). In contrast to lithium brine deposits, hard-rock deposits offer certainty of simplicity and size. On top of that, pegmatites can be moved from an exploration to development project extremely quickly, given the simplicity of a spodumene pegmatite and the volumes of historic information on the methods to process these ore bodies. Cardiff managed to acquire prospective ground in one of the world’s best (undeveloped) lithium districts, including outcropping pegmatites never sampled or drilled before. The upcoming exploration program may verify these outcrops as lithium-bearing spodumene-rich pegmatite dikes.

Company Details

Cardiff Energy Corp.3920 Delbrook AvenueNorth Vancouver, BC, Canada V7N 3Z8Phone: +1 604 505 4380 Email: info@cardiffenergy.com www.cardiffenergy.comShares Issued & Outstanding: 66,959,611

Canadian Symbol (TSX.V): CRSCurrent Price: $0.04 CAD (July 8, 2016)Market Capitalization: $3 million CAD

German Symbol / WKN: C2Z / A119FMCurrent Price: €0.02 EUR (July 8, 2016)Market Capitalization: €1 million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

Outcrops of lithium-bearing spodumene pegmatites on Galaxy Resources‘ property (source)

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ollowing the acquisition of the Eastmain River Lithium Project (see here), Cardiff today an-

nounced the acquisition of additional 21 mineral claims covering 2 blocks (1,109 hectares). The eastern claim block is lo-cated approximately 7 km east of Gal-axy’s James Bay Deposit and includes a white pegmatite potentially rich in lith-ium-bearing spodumene.

The eastern claim block (see map) was acquired in order to cover this 1.8 km long pegmatite outcrop, which was identified in a regional mapping program by Franconi in 1976. This outcrop is located at the periphery of the Kapiwak Pluton and adjacent to the Lower Eastmain Greenstone Belt; a geological setting which is reported to offer great potential for rare metal-bearing pegmatites (Moukhsil et al, 2003). The outcrop has apparently not been mapped in detail or explored for lithium by historic exploration campaigns.

The James Bay Lithium Deposit and the Cyr-2 Lithium Showing form an ~4 km long corridor of spodumene-bearing peg-matites that are roughly parallel to the trend of the regional bedrock geology. The pegmatite outcrop of Cardiff’s east-ern claim block is located approximately 4.5 km southeast of the Cyr-2 Lithium Showing in a direction that is roughly on strike to the regional bedrock geology.

Jack Bal, President and CEO of Cardiff, commented today:

“We are excited to have acquired the additional claims near our Eastmain River Lithium Project located in the James Bay area of Quebec. The James Bay area is a world class lithium exploration ground and is being actively explored by Galaxy Resources Ltd, Nemaska Lithium Inc., and Critical Elements Corp. The Company is in the process of putting together it’s exploration team.”

Rockstone is looking forward to the upcoming exploration program which is expected to include ground prospecting, geological mapping and sampling of outcropping pegmatites, potentially with lithium grades similar to Galaxy’s nearby James Bay Deposit.

Joe Lowry, lithium expert and market veteran, recently noted:

“The addition of several new spodumene players (Mt Cattlin, Mt Marion, Pilbara and at least one new player in Quebec) by the end of the decade will continue to increase the hard rock share of the market over the next few years. This is probably a good time to mention a “mini myth” – let’s call it a “sub myth”: brine based lithium is the “best” source of lithium.

Yes, lithium chemicals produced from world class brine are lower cost than hard rock based production; however, it is clear that the advantages of spodumene have greatly exceeded the cost disadvantages in recent years. It has been the growth of “high cost” spodumene capacity that has kept lithium supply in balance with demand over the past few years and will keep it in balance with demand over the past few years and will keep it in balance for at least the next three years.”

Research #10 | Cardiff Energy Corp.

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Above: Satellite photo of Galaxy’s property including several white pegmatite outrcops (Map data © 2015 Google, Image 2015 DigitalGlobe)Below: Satellite photo of Cardiff’s property including several white pegmatite outrcops (Map data © 2015 Google, Image 2015 DigitalGlobe)

3 Research #10 | Cardiff Energy Corp.

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Cardiff’s Eastmain River Project is located in a region of Québec that boasts sever-al significant lithium deposits and high-grade spodumene pegmatites. This es-tablished (undeveloped) lithium district has been gaining momentum in explora-tion and development recently, hand in hand with increased investors’ interest.

According to J. Terrence Flanagan in ‘Lith-ium Deposits and Potential of Quebec and Atlantic Provinces, Canada’ (1977): “Eastmain River Deposit: Approximate-ly twenty dikes of spodumene pegma-tite occur near kilometer 384 on the road from Matagami, Quebec, to the LG-2 hydroelectric power site... The de-posits are mostly irregular cross-cutting dikes or lenses up to 60 m wide and over 100 m long, within a zone about 4 km long by 300 m wide. 277 samples, representing about one-third of the out-cropping pegmatites, had an average Li2O content of 1.7%. The total area of outcropping spodumene pegmatite de-lineated to date is 45,000 m2, equiva-lent to 121,000 tonnes per vertical me-ter without allowing for extrapolation between outcrops. No drilling has yet been done these deposits, so their ver-tical extent is not known (Pelletier).”

Flanagan’s report from 1977 describes today’s James Bay Deposit, which was known at one time as the Cyr Deposit, and before that as the Eastmain River Deposit. All 20 dikes that he describes are part of the Eastmain/Cyr/James Bay De-posit. The way he reports could give the impression as he was discribing the ‘dis-trict’, as opposed to one deposit. The East-main/Cyr/James Bay Deposit is a series of multiple parallel pegmatites all contained within the relatively small area as can be seen on the satellite photo on top of page 3. Pelletier describes these pegma-tites as having not yet been drilled, which is true as of 1977; but these have now been drilled extensively by Galaxy over the last years and a new lithium ‘district’ emerged, with several other exploration and development projects, e.g. Rose Pro-ject (Critical Elements), Whabouchi Pro-ject (Nemaska), Lemare Project (Critical Elements, optioned to Platypus Minerals) on strike with Whabouchi, Pontax Project (Stria Lithium), and Moblan Project (Per-ilya) farther to the south.

All of this highlights Québec being an ex-cellent place to be, whereas in the James Bay District several world-class lithium deposits occur. Despite being relatively

remote, the projects are close to roads and power lines, a fact that makes the po-tential CAPEX/OPEX viable for develop-ment, as being the case with Whabouchi.

Research #10 | Cardiff Energy Corp.

Location of known lithium deposits and showings in the James Bay area of Québec (according to Québec Ministry of Natural Resources and Fauna, 2011; source).

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be considered forward-looking statements. Much of this report is comprised of state-ments of projection. Statements in this re-port that are forward looking include that uranium and metal prices are expected to rebound; that Cardiff Energy Corp. or its partner(s) can and will start exploring fur-ther; that exploration has or will discover a mineable deposit; that the company can raise sufficient funds for exploration or development; that any of the mentioned mineralization indications or estimates are valid or economic. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-look-ing statements. Risks and uncertainties respecting mineral exploration and mining companies are generally disclosed in the annual financial or other filing documents of Cardiff Energy Corp. and similar com-panies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to Cardiff Energy Corp., a number of risks relate to any statement of pro-jection or forward statements, including among other risks: the receipt of all neces-sary approvals and permits; the ability to conclude a transaction to start or continue development; uncertainty of future uran-ium and metal prices, capital expenditures and other costs; financings and additional capital requirements for exploration, de-velopment, construction, and operating of a mine; the receipt in a timely fashion of further permitting for its legislative, polit-ical, social or economic developments in the jurisdictions in which Cardiff Energy Corp. carries on business; operating or technical difficulties in connection with mining or development activities; the abil-ity to keep key employees, joint-venture partner(s), and operations financed. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking infor-mation. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.

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Analyst Profile & Contact:

Stephan Bogner (Dipl. Kfm., FH)Mining Analyst Rockstone Research 8050 Zurich, SwitzerlandPhone: +41-44-5862323Email: sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London,

UK) and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller (“Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

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Research #10 | Cardiff Energy Corp.