California Gold Announces More Successful Drill Results at the Fremont Project

Toronto, Ontario (FSCwire) - California Gold Mining Inc. (“California Gold” or the “Company”) announced new assay results from the Company’s ongoing Phase III drill program at its flagship Fremont Project (the “Project”) in Mariposa County, California. The Phase III drill program commenced on September 11, 2015 with the objective of drilling 35 to 40 HQ-sized (2.5” diameter) diamond drill holes totalling 30,000 to 35,000 feet (9,144 to 10,668 metres). Currently, there are four diamond drill rigs operating on-site. A total of 33 diamond holes, and 30,052 feet (9,160 metres) of drilling have been completed in the Phase III drill program to-date.

This press release discusses the assay results and corresponding geological interpretation for three holes of the current drill program, namely DD-15-026, 028 and 031. Highlights from these three holes are displayed in the following table. The plan-view collar locations and interpreted geological cross-sections for all three holes can be viewed in Appendices A and B of this press release, respectively. Today’s announcement brings the total number of Phase III drill holes for which assay results have been publicly released to 11. Assay results for the other eight drill holes were released on November 9, 2015, November 23, 2015, and December 15, 2015. Further assay results from Phase III drill holes will continue to be released as they become available.

Notes: Composite grades are length weighted to interval width. Composite true width for DD-15-026 is estimated at 92% of the reported interval. Composite true width for DD-15-028 is estimated at 91% of the reported interval. Composite true width for DD-15-031 is estimated at 91% of the reported interval.

Vishal Gupta, California Gold’s President and CEO, said, “These are welcome results that compare favourably to results from previous drill campaigns. Our drill program continues to demonstrate a compelling foundation for our soon to be completed maiden resource estimate. As the results of the infill component of the program conclude, we are eager to determine the results of the drilling in new zones which has the potential to dramatically change the character of the Project.”

The main objectives of the Phase III drill program include:

• Generation of a maiden resource estimate for the Project covering the main Pine Tree-Josephine mineralized zone;

• Testing the down-dip extension of the shear zone in the main Pine Tree-Josephine mineralized zone to a depth of up to 3,000 feet (roughly 1,000 metres) below surface; and

• Testing the mineralization potential of the five recently discovered mineralized zones on surface, namely Golden Chain, Vermont Slab, Golden Slope, Race Track Meadow and Ogle Canyon originally discussed in the Company’s December 4, 2014 press release.

Discussion of the Phase III Drill Holes

The three holes discussed in this press release are part of the infill drilling segment of the Phase III drill program, focused on providing greater confidence in the geological continuity of the main Pine Tree-Josephine mineralized zone, in order to help generate a maiden resource estimate for the Project.

The results from all currently analyzed Phase III drill holes show strong correlation with the geology documented during the recent Phase I and II diamond, and historic RC, drilling campaigns, and geological analysis of the Pine Tree-Josephine deposit.

A descriptive overview of the geological setting and the various styles of mineralization prevalent at the Project is provided in the Company’s news release dated November 9, 2015.

DD-15-026

Drill hole DD-15-026 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 190.0m.

This hole intersected two important mineralized zones with gold values exceeding 1.4 g/t. A 8.1m (26.5ft) interval with an average of 1.49 g/t Au was intersected between 35.7m and 43.8m. The interval is located within the overlying mafic volcanic and volcaniclastic sequence, and is characterized by coarse disseminated sulfide mineralization, however, the presence of an interval of foliated and serpentinized ultramafic rocks indicates that this interval is associated with a splay of the main Melones shear zone.  A 4.6m (15.0ft) interval with an average grade of 7.25 g/t Au was intersected between 105.6m and 110.2m, and is associated with the quartz veins including the Pine Tree Lode, fault breccia, and arsenopyrite mineralization within the tectonic melange. This interval includes intersections of 1.1m (3.5ft) with an average grade of 9.33 g/t Au (105.6m to 106.7m); and 1.1m (3.5ft) with an average grade of 18.41 g/t Au (109.1m to 110.2m).

DD-15-028

Drill hole DD-15-028 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 167.6m.

This hole intersected one important mineralized zone with gold values exceeding 1.9 g/t. A 21.5m (70.5ft) interval with an average of 1.96 g/t Au was intersected between 133.3m and 154.8m. This interval is located at and below the basal contact of the tectonic melange with the underlying Mariposa Formation sedimentary rocks. The interval is associated with disseminated sulfides and ribboned quartz, and sporadic massive quartz veins up to 0.61m (2.0ft) wide. This interval includes intersections of 3.2m (10.5ft) with an average grade of 3.30 g/t Au (133.3m to 136.5m); and 3.0m (10.0ft) with an average grade of 3.55 g/t Au (146.3m to 149.3m).

DD-15-031

Drill hole DD-15-031 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 199.0m.

This hole intersected one important mineralized zone. A 3.0m (10.0ft) interval with an average of 4.40 g/t Au was intersected between 172.8m and 175.8m. The zone is associated with ribboned quartz veinlets, and disseminated sulfide mineralization located at the contact of the tectonic melange with the underlying Mariposa Formation. The interval includes an intersection of 1.2m (4.0ft) with an average grade of 8.19 g/t Au (172.8m to 174.0m).

The Company anticipates completing the Phase III drilling by mid-February, 2016. Final assay results are expected to be released by the end of March, 2016.

The Company has retained the services of SRK Consulting (Canada) Inc., an internationally recognized, independent resource consulting firm, to advise the Company’s technical team on overall geological interpretation and to act as an independent umpire on assay results.

Description of Quality Assurance & Quality Control (QA/QC) Procedures

The laboratory being used for assay analyses is American Assay Laboratories Inc. (“AAL”) based in Sparks, Nevada (ISO/IEC 17025:2005 Certified).

Prior to transportation of core samples to AAL, all core processing is conducted at the Project site in an enclosed 6,000 sq. ft. office facility. All diamond drill core is logged, photographed and split using core saws. Core from entire holes is being sampled every five feet to compare with the historic RC hole assay intervals. Additionally, sub-samples are being collected within the planned five foot intervals where important geological or mineralization contacts occur to allow better discrimination within the geological model. The minimum sample interval is 1.5 feet.

One half of the split core is transported to AAL by Company employees for prep and analysis. The other half of the core is stored at the Company core storage facility for future inspection and assay verification. All gold analyses of strongly mineralized samples utilize the screened metallics fire (SMF) assay method with a gravimetric finish. At the laboratory, the entire sample is crushed to 90 percent minus ten-mesh. A rotary splitter is used to obtain a 500 gram sample for pulverising. The screened metallics are collected as the plus fraction from a 150-mesh screen at the lab. The plus 150-mesh fraction is fire assayed in its entirety. Two separate one-assay ton fire (1ATF) analyses of the minus 150-mesh fraction are performed and arithmetically averaged. The minus and plus 150-mesh results are then combined for a total screened metallics fire assay.

A full QA/QC program, involving insertion of appropriate blanks and standards is being employed with acceptable results. Generation of QA/QC control charts, and overall independent umpiring of assay results is being conducted by SRK Consulting (Canada) Inc.

Mr. Vishal Gupta, the Company's President & CEO has reviewed and approved this press release. Mr. Gupta is a P.Geo. registered with the Association of Professional Geoscientists of Ontario (APGO), and a Qualified Person (QP) as defined under National Instrument 43-101. The exploration program at Fremont is being conducted under Mr. Gupta’s supervision.

About California Gold Mining Inc.

California Gold Mining Inc. is focused on developing its flagship Fremont gold project in Mariposa County, California. The project consists of a land package totaling 3,351 acres of historically producing gold mines. The Fremont Property lies within California’s prolific Mother Lode Gold Belt that has produced over 50 million oz of gold historically. The Company purchased the property in March 2013.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of California Gold contains statements that constitute “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause California Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements in this document include statements regarding planned exploration work on the Company’s Fremont Property including the anticipated results and timing thereof. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward looking statements. Any factor could cause actual results to differ materially from California Gold's expectations. California Gold undertakes no obligation to update these forward looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, unless otherwise required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information contact:

Vishal Gupta

President & CEO

647-977-9267 x333

Website:                www.caligold.ca

Appendix A

Orthophoto of the Pine Tree-Josephine Deposit Showing Locations of Completed and Planned Phase III Drill Holes, and Historic Drill Holes

To view the graphic in its original size, please click here

Appendix B

Interpreted Geological Cross-Sections Depicting Down-Hole Traces

For Completed Phase III Drill Holes, and Historic Drill Holes

DD-15-026

To view the graphic in its original size, please click here

DD-15-028

To view the graphic in its original size, please click here

DD-15-031

To view the graphic in its original size, please click here

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