June 21, 2015

Research #9Lithium, Oil & Gas

Cardiff Energy acquires hard-rock lithium project in QuebecToday, Cardiff Energy Corp. announced the acquisition of the Eastmain River Lithium Project in Quebec, just 8 km north of the James Bay Lithium Project from Galaxy Resources Ltd. The Eastmain River area is home to a 4 km zone of irregular cross-cutting dikes of spodumene pegmatites, up to 60 m wide and over 100 m long. As reported by Pelletier in 1977, a total of 277 samples (one third of the outcropping pegmatites) were taken in the Eastmain River area yielding an average historic grade of 1.7% Li2O (Galaxy’s current indicated resource hosts 12 million t grading 1.3% Li2O). No drilling has been done on Cardiff’s property to date, despite extraordinary outcrop exposure in the area with pegmatites cross-cutting at surface. The pegamatites in the Eastmain River area are almost always spodumene bearing and enriched in light elements such as lithium, beryllium, sodium, and boron. Some crystals exceed one meter in length. Slow cooling crystallization of magmatic fluids is the cause for the megacrystic nature of the pegmatites, which makes this area one of the most prospective lithium grounds in all of Canada.

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: 65,959,611

Canadian Symbol (TSX.V): CRSCurrent Price: $0.04 CAD (June 21, 2016)Market capitalization: $3 million CAD

German Symbol / WKN: C2Z / A119FMCurrent Price: €0.018 EUR (June 21, 2016)Market capitalization: €1 million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

Drill core with spodumene lithium mineralization from the James Bay Deposit in Quebec (source: Galaxy Resources Ltd.)

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he Eastmain River Lithium Property is located in a region of Quebec that boasts several

significant lithium deposits and high-grade spodumene pegmatites. Cardiff’s Eastmain River Property is located in an established lithium district that has been gaining momentum in exploration and development recently, hand in hand with increased investors’ interest.

Property Size: 1,157 hectares (22 claims)

Location & Access: Near kilometer 386 on the road from Matagami, Quebec. The property is easily accessed by a paved highway 2.5 km away or by air from the Opinaca Airport 30 km away.

Power & Infrastructure: The LG-2 hydro-electric reservoir is 31 km to the east. There is a gas station, accommodations, and helicopter support located 8 km to the south west.

Historic exploration: According to J. Ter-rence Flanagan in “Lithium Deposits and Potential of Quebec and Atlantic Prov-inces, Canada” (1977): “Eastmain River Deposit: Approximately twenty dikes of spodumene pegmatite occur near kilometer 384 on the road from Mata-gami, Quebec, to the LG-2 hydroelectric power site. These intrude mainly biotite schists of the Eastmain River greenstone belt. The deposits 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 outcropping pegmatites, had an average Li2O content of 1.7%. The total area of outcropping spodumene peg-matite delineated to date is 45,000 m2, equivalent to 121,000 tonnes per verti-cal meter without allowing for extrapo-lation between outcrops. No drilling has yet been done these deposits, so their vertical extent is not known (Pelletier).”

Geology & Mineralization: The Eastmain River Li Project is situated in the lower Eastmain greenstone belt, part of the northeastern portion of the superior province. Rock types mainly consist of amphibolite facies, felsic metavolcanics and metasedimentary rocks. Outcrop exposure is extraordinary in the area with

pegmatites crosscutting at surface. The pegamatites of the Eastmain River area are almost always spodumene bearing and enriched in light elements such as lithium, berryllium, sodium and boron. Some crystals exceed 1 m in length (slow cooling crystallization of magmatic fluids is the cause for the megacrystic nature of the pegmatites).

Other Lithium Projects in the James Bay area of Quebec

The James Bay Lithium Project (Galaxy Resources Ltd.; $673 million AUD mar-ket capitalization) is located 8 km to the south of Cardiff’s property, occurs at sur-face and resource modelling indicates that the resource is amenable to open pit extraction. According to Galaxy, there is excellent potential to increase the resources through additional delinea-tion of the pegmatite dikes along strike and at depth and potential to increase grade through infill drilling. Lithium mineralisation at James Bay is associat-ed with spodumene-bearing pegmatite dike swarms, which vary in width from 60-100 m. The dikes generally outcrop

at surface, and form a dis-continuous corridor over a strike length of 4 km. Al-most all the pegmatites at James Bay are known to be spodumene-bearing, with relatively coarse crystals (usually more than 5 cm, sometimes exceeding 1 m). The coarse grained spodumene min-eralisation is likely to respond very well to conventional processing.

Indicated: 11.75 million t @ 1.3% Li2O Inferred: 10.47 million t @ 1.2% Li2O

The Whabouchi Deposit (Nemaska Lithium Inc.; $342 million CAD market capitalization) has a feasibility study for the deposit and a hydromet plant, revised in January 2016:

Measured: 13 million t @ 1.6% Li2O Indicated: 15 million t @ 1.54% Li2OInferred: 4.7 million t @ 1.51% Li2O

The Rose Lithium-Tantalum Deposit (Critical Elements Corp.; $82 million CAD market capitalization):

Indicated: 26.5 million t @ 1.3% Li2OInferred: 10.7 million t @ 1.14% Li2O

Research #9 | Cardiff Energy Corp.

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According to J. Terrence Flanagan in “Lithium Deposits and Potential of Quebec and Atlantic Provinces, Canada” (1977):

“Quebec was an important lithium producer from 1955 to 1965 and could regain this status when adequate markets are available. Most of the known lithium deposits are spodumene-bearing pegmatites in the Superior structural province of the Canadian Precambrian Shield. Although very little systematic exploration has been carried out, spodumene dikes have been found in every major greenstone belt between latitudes 47 and 53N. They usually occur near the upper contacts between late-stage granitic intrusive masses and metamorphosed volcanic and sedimentary rocks, and appear to represent a normal stage in the metallogenic evolution of this area.

The potential of the known Quebec deposits and their possible extensions laterally and at depth is amost 1 million tonnes of contained lithium. Several recent discoveries, made while prospecting for other minerals, support the view that many additional deposits remain to be found. These can contribute substantially to the assurance of an adequate supply to support the energy options which depend on lithium.

Known lithium deposits in Eastern Canada are all of the pegmatite type. Quebec was an important producer of spodumene concentrate from 1955 to 1959 and

of lithium carbonate and hydroxide from 1960 to 1965, both from the Quebec Lithium Corporation property in Lacorne Township. There has been no lithium production in Quebec since 1965 but numerous lithium-bearing pegmatites have been identified; many of these are still undeveloped.”

Research #9 | Cardiff Energy Corp.

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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 #9 | Cardiff Energy Corp.