California Gold Intersects 3.0 m of 8.45 g/t, 1.1 m of 18.58 g/t, and 10.5 M of 2.31 g/t Au at its Fremont Gold Project**

Toronto, Ontario (FSCwire) - California Gold Mining Inc. (“California Gold” or the “Company”) announces new assay results from the Company’s recently completed Phase III drill program at its flagship Fremont Project (the “Project”) in Mariposa County, California. The drill campaign concluded on March 5, 2016. A total of 43 diamond holes, and 41,171 feet (12,549 metres) of drilling were completed during the Phase III program.

Vishal Gupta, California Gold’s President and CEO, said, “We continue to be pleased with the results of our first major drill program at the Project. The results continue to meet and exceed our expectations. We have reported assays now from almost half of the Phase III holes. The results to date, including today’s results, are part of the infill component of the drill program that is meant to demonstrate a 43-101 resource estimate expected to be released by the end of May, 2016. In the meantime, we are excited to see the results of our exploration holes, which should start appearing in a few weeks.”

This press release discusses the assay results and corresponding geological interpretation for three holes of the Phase III drill program, namely DD-15-035, 040 and 042. 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 20. Assay results for the other 17 drill holes were released on November 9, 2015, November 23, 2015, December 15, 2015, January 18, 2016, and February 17, 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-15-035 is estimated at 86% of the reported interval. Composite true width for DD-15-040 is estimated at 83% of the reported interval. Composite true width for DD-15-042 is estimated at 91% of the reported interval.

The Phase III drill program commenced on September 11, 2015. It is designed to achieve the following objectives:

• 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-15-035

Drill hole DD-15-035 was drilled with an azimuth of 244° and an inclination of -62° to a depth of 168.25m (552.0ft).

This hole intersected two important mineralized zones with gold values exceeding 8.0 g/t Au. A 1.1m (3.7ft) interval with an average of 18.58 g/t Au was intersected between 99.7m and 100.8m. This interval is associated with faulting and a quartz vein stockwork near the basal contact of a large fault. Near the base of the tectonic melange a 3.1m (10.0ft) interval with an average of 8.45 g/t Au was intersected between 134.7m and 137.8m. This interval is associated with sulfide replacement mineralization that has been observed in a similar position in previously analysed drill holes. This interval includes an intersection of 1.5m (5.0ft) with an average grade of 15.29 g/t Au (134.7m to 136.2m).

DD-15-040

Drill hole DD-15-040 was drilled with an azimuth of 240° and an inclination of -65° to a depth of 258.8m (849.0ft).

This hole intersected five important mineralized zones with gold values exceeding 1.0 g/t. A 5.5m (18.0ft) interval with an average of 1.01 g/t Au was intersected between 87.2m and 92.7m and is associated with sulphide replacement mineralization in the hanging wall mafic rocks, quartz ankerite veinlets, and minor arsenopyrite mineralization. Within the tectonic melange a 11.5m (37.7ft) interval with an average grade of 1.41 g/t Au was intersected between 155.3m and 166.8m. This interval is associated with massive quartz veins, fault gouge and breccia, and fine-grained, sulphide replacement mineralization that has been observed in a similar position in previously analysed drill holes. This interval includes intersections of 2.3m (7.4ft) with an average grade of 2.01 g/t Au (156.2m to 158.5m); 2.1m (7.0ft) with an average grade of 2.35 g/t Au (160.5m to 162.6m); and 2.0m (6.5ft) with an average grade of 1.87 g/t/ Au (164.8m to 166.8m).

At the footwall boundary of the tectonic melange a 10.5m (34.6ft) interval with an average of 2.31 g/t Au was intersected between 171.8m and 182.3m and is associated with a zone of brecciated quartz veins. This interval includes a 2.4m (8.0ft) intersection with an average grade of 3.89 g/t Au (173.0m to 175.4m). Within the Mariposa Formation sedimentary rocks a 2.6m (8.6ft) interval with an average grade of 4.31 g/t Au was intersected between 195.1m and 197.7m that is associated with an another zone of brecciated quartz veins. This interval includes a 0.9m (3.0ft) intersection with an average grade of 7.95 g/t Au (195.1m to 196.0m). A 1.7m (5.5ft) interval with an average grade of 1.74 g/t Au was intersected between 207.9m and 209.6m, and is associated with a massive quartz vein and minor arsenopyrite mineralization within the Mariposa Formation.

DD-15-042

Drill hole DD-15-042 was drilled with an azimuth of 240° and an inclination of -55° to a depth of 143.1m (469.5ft).

This hole intersected two important mineralized zones with gold values exceeding 1.5 g/t. A 1.5m (5.0ft) interval with an average of 1.70 g/t Au was intersected between 131.4m and 132.9m, and a 1.1m (3.5ft) interval with an average of 1.74 g/t Au was intersected between 142.0m and 143.1m. Both intervals are associated with faulting and cataclasite development in the tectonic melange. It should be noted that the interval between 142.0m and 143.1m was encountered at the end of the drill hole, and as such it is unknown whether elevated gold grades continue to greater depth.

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-15-035

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

DD-15-040

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

DD-15-042

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

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