California Gold Intersects 12.9 m of 6.63 g/t, 5.2 m of 3.72 g/t, and 7.6 m of 2.67 g/t Au at its Fremont Gold 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. At present, there are four diamond drill rigs operating on-site. A total of 39 diamond holes, and 36,949 feet (11,262 metres) of drilling have been completed in the current program.

This press release discusses the assay results and corresponding geological interpretation for six holes of the current drill program, namely DD-15-032, 033, 034, 036, 037 and 038. Highlights from these six holes are displayed in the following table. The plan-view collar locations and interpreted geological cross-sections for all six 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 17. Assay results for the other 11 drill holes were released on November 9, 2015, November 23, 2015, December 15, 2015, and January 18, 2016. Further assay results will continue to be released as they become available.

**Notes: Composite grades are length weighted to interval width. Composite true width for DD-15-032 is estimated at 91%, for DD-15-033 it is estimated at 86%, for DD-15-034 it is estimated at 93%, for DD-15-036 it is estimated at 91%, for DD-15-037 it is estimated at 83%, and for DD-15-038 it is estimated at 77% of the reported interval.

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). 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 six 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-15-032

Drill hole DD-15-032 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 229.5m.

This hole intersected three important mineralized zones with gold values exceeding 1.1 g/t. A 5.7m (18.8ft) interval with an average of 1.12 g/t Au was intersected between 112.2m and 117.9m and is associated with a disseminated sulfide mineralization, and carbonate/talc alteration near the hanging wall contact of the tectonic melange. A 1.5m (5.0ft) interval with an average of 3.43 g/t Au was intersected between 195.1m and 196.6m. This interval is associated with quartz vein hosted, disseminated sulfide mineralization within the serpentinized rocks of the tectonic melange. At the footwall contact of the tectonic melange and within the Mariposa Formation sedimentary rocks a 6.9m (22.7ft) interval with an average grade of 1.16 g/t Au was intersected between 209.0m and 215.9m. This interval is associated with fine-grained, sulphide replacement mineralization, albite/carbonate/graphite alteration, and a quartz vein array.

DD-15-033

Drill hole DD-15-033 was drilled with an azimuth of 240° and an inclination of -60° to a depth of 140.5m.

This hole intersected two important mineralized zones with gold values exceeding 2.5 g/t. A 0.9m (3.0ft) interval with an average of 7.14 g/t Au was intersected between 77.1m and 78.0m and is associated with the quartz veins including the Pine Tree Lode, fault breccia, and arsenopyrite mineralization. At the footwall contact of the tectonic melange and within the Mariposa Formation sedimentary rocks a 7.6m (25.0ft) interval with an average grade of 2.67 g/t Au was intersected between 128.0m and 135.6m. This is likely a zone of fine-grained, sulphide replacement mineralization that has been observed in a similar position in previously analyzed boreholes. This interval includes intersections of 1.7m (5.5ft) with an average grade of 3.40 g/t Au between 128.0m and 129.7m; and 1.5m (5.0ft) with an average of 4.77 g/t Au between 132.6m and 134.1m.

DD-15-034

Drill hole DD-15-034 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 235.6m.

This hole intersected three important mineralized zones with gold values exceeding 1.2 g/t. A 3.0m (10.0ft) interval with an average of 1.34 g/t Au was intersected between 198.2m and 201.2m and is associated with a tensional quartz vein array, disseminate sulfide mineralization, and albite/carbonate alteration in the tectonic melange. A 1.8m (5.9ft) interval with an average of 3.79 g/t Au was intersected between 211.5m and 213.3m. This interval is associated with a 3.4m (11.0ft) wide fault zone within the serpentinized rocks of the tectonic melange. This interval includes an intersection of 0.9m (3.0ft) with an average grade of 4.73 g/t Au between 211.5m and 212.4m. At the footwall contact of the tectonic melange a 7.3m (24.0ft) interval with an average grade of 1.27 g/t Au was intersected between 218.8m and 226.2m. Similar mineralized intervals have been observed at the equivalent position in previously analyzed drill holes. This interval is associated with tensional quartz vein arrays, abundant disseminated pyrite mineralization, and graphitic and albite/carbonate alteration. This interval includes an intersection of 0.7m (2.2ft) with an average grade of 3.74 g/t Au between 225.5m and 226.2m.

DD-15-036

Drill hole DD-15-036 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 127.4m.

This hole intersected two important mineralized zones with gold values exceeding 1.4 g/t. A 6.1m (20.0ft) interval with an average of 1.46 g/t Au was intersected between 71.0m and 77.1m and is associated with massive quartz veins including the Pine Tree Lode, fault breccia, and pyrite mineralization. At the footwall contact of the tectonic melange, a 5.2m (17.2ft) interval with an average grade of 3.72 g/t Au was intersected between 95.6m and 100.9m. This is likely a zone of fine-grained, sulphide replacement mineralization, and tensional quartz veins that have been observed in a similar position in previously analysed boreholes. This interval includes an intersection of 1.0m (3.4ft) with an average grade of 11.04 g/t Au between 97.2m and 98.2m that is located directly at the sheared contact between the tectonic melange and Mariposa Formation sedimentary rocks.

DD-15-037

Drill hole DD-15-037 was drilled with an azimuth of 240° and an inclination of -65° to a depth of 200.3m.

This hole intersected four important mineralized zones with gold values exceeding 1.5 g/t. A 2.3m (7.6ft) interval with an average of 1.52 g/t Au was intersected between 151.3m and 153.6m and is associated with the massive quartz veins including the Pine Tree Lode, and fault breccia. A 1.8m (6.0ft) interval with an average of 2.35 g/t Au was intersected between 157.7m and 159.6m, and is associated with shearing of the tectonic melange and quartz-carbonate-albite veinlets. A 3.0m (10.0ft) interval with an average of 3.15 g/t Au was intersected between 171.0m and 174.0m, just below the footwall contact of the tectonic melange that is associated with shearing and quartz stockwork development. A 5.9m (19.5ft) interval with an average of 2.47 g/t Au was intersected between 182.4m and 188.4m, that is associated with shearing, quartz stockwork development, and abundant, coarse pyrite. This interval includes an intersection of 1.4m (4.5ft) with an average grade of 5.45 g/t Au between 182.4m and 183.8m.

DD-15-038

Drill hole DD-15-038 was drilled with an azimuth of 240° and an inclination of -75° to a depth of 137.8m.

This hole intersected one important mineralized zone. A 12.9m (42.2ft) interval with an average of 6.63 g/t Au was intersected between 87.5m and 100.3m. The zone is associated with a series of massive quartz veins that are associated with the Pine Tree Lode, fault breccia and gouge, and pyrite mineralization. The interval includes intersections of 1.8m (5.8ft) with an average grade of 18.02 g/t Au between 88.5m and 90.2m, and 1.1m (3.5ft) with an average grade of 36.58 g/t Au between 98.2m and 99.3m.

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-15-032

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

DD-15-033

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

DD-15-034

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

DD-15-036 and 038

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

DD-15-037

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

Maximum News Dissemination by FSCwire. http://www.fscwire.com

Copyright © 2016 Filing Services Canada Inc.