UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q

(Mark One)

|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------



For the quarterly period ended July 31,
2012

OR

| ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------



For the transition period from _______ to
_______



Commission File Number: 000-54706



CALIFORNIA GOLD CORP.

(Exact Name of Registrant as Specified in
its Charter)



|Nevada                   | 83-483725                        
|------------------------ | ---------------------------------
|(State of Incorporation) | (IRS Employer Identification No.)



4515 Ocean View Blvd., Suite 305, La
Cañada, CA 91011

(818) 542-6891

(Address of principal executive offices
and telephone number)



Indicate whether the registrant (1) filed
all reports required to be filed by Section 13 or 15 (d) of the Exchange Act during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes x    No  ̈



Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes x   No  ̈



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions
of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2
of the Exchange Act. (Check One):



|Large accelerated filer          ̈ | Accelerated filer ̈ | Non-accelerated filer ̈                                | Smaller
reporting
companyx
|--------------------------------- | ------------------ | ----------------------------------------------------- | --------------------------
|                                  |                    | (Do not check if a smaller
        Reporting company) |                           



Indicate by a check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes  ̈    No x



There were 115,201,260 shares of common stock issued and outstanding
as of September 19, 2012.











CALIFORNIA GOLD CORP.



INDEX



|                                                                                       |                                                                                       |    | Page
|-------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | -- | ----
|Part I Financial Information                                                           |                                                                                       |   
|                                                                                       |                                                                                       |    |     
|Item 1                                                                                 | Financial Statements                                                                  |    | 3   
|                                                                                       |                                                                                       |    |     
|                                                                                       | Consolidated Balance Sheets (unaudited)                                               |    | 4   
|                                                                                       |                                                                                       |    |     
|                                                                                       | Consolidated Statements of Expenses (unaudited)                                       |    | 5   
|                                                                                       |                                                                                       |    |     
|                                                                                       | Consolidated Statements of Cash Flows (unaudited)                                     |    | 6   
|                                                                                       |                                                                                       |    |     
|                                                                                       | Notes to the Financial Statements (unaudited)                                         |    | 8   
|                                                                                       |                                                                                       |    |     
|Item 2                                                                                 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |    | 21  
|                                                                                       |                                                                                       |    |     
|Item 3                                                                                 | Quantitative and Qualitative Disclosures About Market Risk                            |    | 27  
|                                                                                       |                                                                                       |    |     
|Item 4                                                                                 | Controls and Procedures                                                               |    | 27  
|                                                                                       |                                                                                       |    |     
|Part II Other Information                                                              |                                                                                       |   
|                                                                                       |                                                                                       |    |     
|Item 1                                                                                 | Legal Proceedings                                                                     |    | 29  
|                                                                                       |                                                                                       |    |     
|Item 1A                                                                                | Risk Factors                                                                          |    | 29  
|                                                                                       |                                                                                       |    |     
|Item 2                                                                                 | Unregistered Sale of Equity Securities and Use of Proceeds                            |    | 29  
|                                                                                       |                                                                                       |    |     
|Item 3                                                                                 | Defaults Upon Senior Securities                                                       |    | 29  
|                                                                                       |                                                                                       |    |     
|Item 4                                                                                 | Mine Safety Disclosures                                                               |    | 30  
|                                                                                       |                                                                                       |    |     
|Item 5                                                                                 | Other Information                                                                     |    | 30  
|                                                                                       |                                                                                       |    |     
|Item 6                                                                                 | Exhibits                                                                              |    | 30  
|                                                                                       |                                                                                       |    |     
|Signatures                                                                             |                                                                                       | 32
|                                                                                       |                                                                                       |   
|Exhibit - Certification of Principal Executive Officer and Principal Financial Officer |                                                                                       |   
|                                                                                       |                                                                                       |   
|Exhibit - Certification of Chief Executive Officer and Chief Financial Officer         |                                                                                       |   



2







PART I

FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS



The financial statements of California
Gold Corp. (the “Company”) required to be filed with this Quarterly Report on Form 10-Q were prepared by management
and commence on the following page, together with the related Notes. In the opinion of management, these consolidated financial
statements fairly present the financial condition of the Company, but should be read in conjunction with the financial statements
of the Company for the period ended January 31, 2012, previously filed on Form 10-K with the Securities and Exchange Commission,
File No. 333-134549.



3







CALIFORNIA
GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS

(Unaudited)



|                                                                                                                                                                                       |  | July 31, 2012 |            |   | January 31, 2012 |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---------------- | -
|                                                                                                                                                                                       |  |               |            |   |                  |  
|ASSETS                                                                                                                                                                                 |  |               |            |   |                  |  
|                                                                                                                                                                                       |  |               |            |   |                  |  
|Current assets:                                                                                                                                                                        |  |               |            |   |                  |  
|Cash                                                                                                                                                                                   |  | $             | 537,979    |   |                  | $
|Other receivables                                                                                                                                                                      |  |               | -          |   |                  |  
|Prepaid expenses                                                                                                                                                                       |  |               | 29,660     |   |                  |  
|Total current assets                                                                                                                                                                   |  |               | 567,639    |   |                  |  
|                                                                                                                                                                                       |  |               |            |   |                  |  
|Property and equipment, net                                                                                                                                                            |  |               | 6,984      |   |                  |  
|Mining rights                                                                                                                                                                          |  |               | 47,500     |   |                  |  
|Total assets                                                                                                                                                                           |  | $             | 622,123    |   |                  | $
|                                                                                                                                                                                       |  |               |            |   |                  |  
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                         |  |               |            |   |                  |  
|                                                                                                                                                                                       |  |               |            |   |                  |  
|Current liabilities:                                                                                                                                                                   |  |               |            |   |                  |  
|Accounts payable                                                                                                                                                                       |  | $             | 83,395     |   |                  | $
|Accounts payable – related party                                                                                                                                                       |  |               | 68,146     |   |                  |  
|Derivative liabilities                                                                                                                                                                 |  |               | 237,087    |   |                  |  
|Other accrued liabilities – related party                                                                                                                                              |  |               | 29,500     |   |                  |  
|Total current liabilities                                                                                                                                                              |  |               | 418,128    |   |                  |  
|Total liabilities                                                                                                                                                                      |  |               | 418,128    |   |                  |  
|                                                                                                                                                                                       |  |               |            |   |                  |  
|Stockholders' equity (deficit):                                                                                                                                                        |  |               |            |   |                  |  
|Preferred stock, par value $0.001 per share, 22,000,000 shares authorized; 22,000,000 shares issued and outstanding                                                                    |  |               | 22,000     |   |                  |  
|Common stock, par value $0.001 per share, 300,000,000 shares authorized; 114,951,260 and 109,451,260 shares issued and outstanding at July 31, 2012 and January 31, 2012, respectively |  |               | 114,951    |   |                  |  
|Additional paid-in capital                                                                                                                                                             |  |               | 2,381,093  |   |                  |  
|Deficit accumulated during the exploration stage                                                                                                                                       |  |               | (2,314,049 | ) |                  |  
|Total stockholders' equity (deficit)                                                                                                                                                   |  |               | 203,995    |   |                  |  
|Total liabilities and stockholders' equity (deficit)                                                                                                                                   |  | $             | 622,123    |   |                  | $



The accompanying notes are an integral part of these unaudited
consolidated financial statements.



4







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

CONSOLIDATED STATEMENTS OF EXPENSES

(Unaudited)



|                                                                         |  | Three Months Ended |             |   | Six Months Ended |   |             | April 19, 2004 (Inception) | 
|------------------------------------------------------------------------ |  | ------------------ | ----------- | - | ---------------- | - | ----------- | -------------------------- | 
|                                                                         |  | July 31,           |             |   | July 31,         |   |             | to July 31,                | 
|                                                                         |  | 2012               |             |   | 2011             |   |             | 2012                       | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Expenses:                                                                |  |                    |             |   |                  |   |             |                            | 
|Mineral property expenses                                                |  | $                  | 119,882     |   |                  | $ | 64,234      |                            | 
|Bad debt expense                                                         |  |                    | -           |   |                  |   | -           |                            | 
|Depreciation expense                                                     |  |                    | 441         |   |                  |   | 63          |                            | 
|General and administrative expenses                                      |  |                    | 150,054     |   |                  |   | 449,167     |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Total operating expenses                                                 |  |                    | 270,377     |   |                  |   | 513,464     |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Loss from operations                                                     |  |                    | (270,377    | ) |                  |   | (513,464    | )                          | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Other income (expenses):                                                 |  |                    |             |   |                  |   |             |                            | 
|Interest income                                                          |  |                    | 305         |   |                  |   | 478         |                            | 
|Interest expense                                                         |  |                    | -           |   |                  |   | -           |                            | 
|Realized and unrealized gain   on derivatives, net                       |  |                    | 930,571     |   |                  |   | 826,978     |                            | 
|Amortization of debt discount                                            |  |                    | -           |   |                  |   | -           |                            | 
|Foreign currency exchange loss                                           |  |                    | -           |   |                  |   | -           |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Total other income (expenses)                                            |  |                    | 930,876     |   |                  |   | 827,456     |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Net income (loss)                                                        |  | $                  | 660,499     |   |                  | $ | 313,992     |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Income (loss) per common share:                                          |  |                    |             |   |                  |   |             |                            | 
|Income (loss) per common share - basic and diluted                       |  | $                  | 0.01        |   |                  | $ | 0.00        |                            | 
|                                                                         |  |                    |             |   |                  |   |             |                            | 
|Weighted average number of common shares outstanding - basic and diluted |  |                    | 114,962,130 |   |                  |   | 104,256,205 |                            | 



The accompanying notes are an integral part of these unaudited
consolidated financial statements.



5







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                                     |  | Six Months Ended |            |   | April 19, 2004
(Inception) |  
|------------------------------------------------------------------------------------ |  | ---------------- | ---------- | - | -------------------------- | -
|                                                                                     |  | July 31,         |            |   | to July 31,                |  
|                                                                                     |  | 2012             |            |   | 2011                       |  
|Cash flows from operating activities:                                                |  |                  |            |   |                            |  
|Net income (loss)                                                                    |  | $                | 807,872    |   |                            | $
|Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |                  |            |   |                            |  
|Depreciation expense                                                                 |  |                  | 881        |   |                            |  
|Stock-based compensation                                                             |  |                  | 125,000    |   |                            |  
|Stock-based compensation – related party                                             |  |                  | 157,782    |   |                            |  
|Amortization of debt discount                                                        |  |                  | -          |   |                            |  
|Unrealized and realized gain on derivatives, net                                     |  |                  | (1,681,998 | ) |                            |  
|Changes in operating assets and liabilities:                                         |  |                  |            |   |                            |  
|Other receivables                                                                    |  |                  | 5,907      |   |                            |  
|Prepaid expenses                                                                     |  |                  | (2,104     | ) |                            |  
|Prepaid expenses – related party                                                     |  |                  | -          |   |                            |  
|Accounts payable                                                                     |  |                  | 33,062     |   |                            |  
|Accounts payable – related party                                                     |  |                  | 68,146     |   |                            |  
|Other accrued expenses – related party                                               |  |                  | 27,000     |   |                            |  
|Interest accrued on notes payable from related party                                 |  |                  | -          |   |                            |  
|Net cash used in operating activities                                                |  |                  | (458,452   | ) |                            |  
|Cash flows from investing activities:                                                |  |                  |            |   |                            |  
|Purchase of property and equipment                                                   |  |                  | -          |   |                            |  
|Acquisition of mining rights                                                         |  |                  | -          |   |                            |  
|Net cash used in investing activities                                                |  |                  | -          |   |                            |  
|Cash flows from financing activities:                                                |  |                  |            |   |                            |  
|Proceeds from related party loans                                                    |  |                  | -          |   |                            |  
|Proceeds from common and preferred stock issued, net of offering costs               |  |                  | 168,250    |   |                            |  
|Payments from cancellation of common stock                                           |  |                  | -          |   |                            |  
|Net cash provided by financing activities                                            |  |                  | 168,250    |   |                            |  
|Net increase (decrease) in cash                                                      |  |                  | (290,202   | ) |                            |  
|Cash - beginning of period                                                           |  |                  | 828,181    |   |                            |  
|Cash - end of period                                                                 |  | $                | 537,979    |   |                            | $
|                                                                                     |  |                  |            |   |                            |  
|Noncash investing and financing activities:                                          |  |                  |            |   |                            |  
|Contributed capital - loss on extinguishment of debt owed to related party           |  | $                | -          |   |                            | $
|Debt discount due to derivative liabilities                                          |  | $                | -          |   |                            | $
|Contributed capital - payables settled by stockholder                                |  | $                | -          |   |                            | $
|Issuance of common stock for convertible notes                                       |  | $                | -          |   |                            | $
|Re-class of derivatives related to convertible notes                                 |  | $                | -          |   |                            | $
|Issuance of derivative warrant instruments                                           |  | $                | 101,985    |   |                            | $
|Related party note receivable write-off                                              |  | $                | -          |   |                            | $
|Common stock cancellation                                                            |  | $                | 50,000     |   |                            | $
|Issuance of common stock for acquisition of mining rights                            |  | $                | -          |   |                            | $



The accompanying
notes are an integral part of these unaudited consolidated financial statements.



6







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)





NOTE 1 – GENERAL ORGANIZATION AND
BUSINESS



California Gold Corp. (“California
Gold” or the “Company”) is a Nevada corporation whose principal focus is the identification, acquisition, and
development of rare and precious metals mining properties in the Americas. The Company is still in the exploration stage and has
not generated any revenues from its mining properties to date.



The Company was incorporated on April 19,
2004 under the name of Arbutus Resources, Inc. On August 9, 2007, the Company changed its name to US Uranium, Inc. On March 9,
2009, the Company changed its name to California Gold Corp.



NOTE 2 – BASIS OF PRESENTATION



The accompanying unaudited interim consolidated
financial statements as of July 31, 2012 and 2011 and for the three and six months then ended have been prepared in accordance
with accounting principles generally accepted in the United States of America for interim financial information, and pursuant to
the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission and on the same basis as
the annual audited consolidated financial statements. The consolidated financial statements as of and for the three and six months
ended July 31, 2012 and 2011 are unaudited. In the opinion of management, these consolidated financial statements include all adjustments,
which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position,
results of operations, and cash flows for the periods presented. The results for interim periods are not necessarily indicative
of results for the entire year. The balance sheet at January 31, 2012 has been derived from audited consolidated financial statements;
however, the notes to the consolidated financial statements do not include all of the information and notes required by accounting
principles generally accepted in the United States of America for complete financial statements. The accompanying unaudited interim
consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our
Annual Report on Form 10-K for the year ended January 31, 2012 as filed with the SEC.



NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES



Principles of Consolidation



The consolidated financial statements include
the accounts of the Company and its wholly owned subsidiary, CalGold de Mexico, S. de R.L. de C.V., formed to explore mining opportunities
in Mexico. Equity investments in which we exercise significant influence, but do not control and are not the primary beneficiary,
are accounted for using the equity method of accounting. Investments in which we do not exercise significant influence over the
investee are accounted for using the cost method of accounting. All material intercompany balances and transactions have been eliminated.



7









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Acquisition-Related Costs



For the three and six months ended July
31, 2012, the Company incurred certain costs associated with efforts to search for and establish mineral reserves in the AuroTellurio
property (as defined below in Note 4). Those costs included legal, valuation, travel, and other professional or consulting fees.
The Company accounted for those acquisition-related costs under FASB ASC Topic 805,Business Combinations. The costs were
recognized as mineral property expenses in the periods in which the costs were incurred and the services received. For the three
months ended July 31, 2012 and 2011, the Company recorded $119,882 and $64,234 of mineral expenses, respectively. For the six months
ended July 31, 2012 and 2011, the Company recorded $182,885 and $130,408 of mineral expenses, respectively.



Stock-Based Compensation



The Company accounts for its stock-based
compensation in which the Company obtains employee services in share-based payment transactions under FASB ASC Topic 718,Compensation
– Stock Compensation, which requires the Company to expense the cost of employee services received in exchange for an
award of equity instruments based on the grant date fair value of such instruments over the vesting period.



The Company also adopted FASB ASC Topic
505-50,Equity-Based Payments to Non-Employees, to account for equity instruments issued to parties other than employees
for acquiring goods or services. Such awards for services are recorded at either the fair value of the consideration received
or the fair value of the instruments issued in exchange for such services, whichever is more reliably measurable.



For the three months ended July 31, 2012
and 2011, the Company recorded $25,285 and $329,989 in stock-based compensation, respectively. For the six months ended July 31,
2012 and 2011, the Company recorded $282,782 and $340,544 in stock-based compensation, respectively. The Company’s stock-based
compensation was recorded as a component of general and administrative expenses.



New Accounting Pronouncements



The Company does not expect adoption of
the new accounting pronouncements will have a material effect on the Company’s consolidated financial statements.



NOTE 4 – MINING RIGHTS



On February 11, 2011, the Company entered
into a property option agreement (the “AuroTellurio Option Agreement”) with Mexivada Mining Corp. (“Mexivada”)
to acquire up to an 80% interest in Mexivada’s concessions comprising its AuroTellurio tellurium-gold-silver property (the
“La Viuda Concessions,” the “AuroTellurio Property” or the “Property”) in Mexico.



8









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Under the terms of the AuroTellurio Option
Agreement, the Company will acquire up to an 80% legal and beneficial ownership interest in the AuroTellurio Property by making
certain cash payments and share issuances to Mexivada and incurring certain exploration expenditures on the Property. See Note
10 for the Company’s commitments under the AuroTellurio Option Agreement.



Mexivada and its Mexican subsidiary hold
only the mineral rights in the AuroTellurio Property, which rights were granted by the government of Mexico. Neither Mexivada nor
its Mexican subsidiary owns the real property rights to the land underlying the La Viuda Concessions. Prior to the first closing
under the AuroTellurio Option Agreement on August 4, 2011, the Company obtained a surface rights agreement with the landowner on
whose property the La Viuda Concessions are located to conduct its mineral exploration program. The agreement became effective
June 17, 2011, runs for a term of 12 months and may be extended for two additional years under the same terms. The Company will
pay the land owner $14,400 for each year in which the Company carries out exploration work on this land. In June 2012, the agreement
was extended for an additional year.



On August 4, 2011, the Company conducted
the first closing under the AuroTellurio Option Agreement. The purchase price for the first closing was $30,000 in cash and 250,000
common shares, fair valued at $17,500 based on the market price on the date of issuance. The $30,000 in cash includes the $20,000
deposits paid to Mexivada in December 2010 in connection with signing the binding offer letter agreement, which provided the Company
with additional time to perform its due diligence, raise financing, and prepare a definite purchase agreement. At the closing,
the Company paid the remaining $10,000 cash and issued the 250,000 common shares.



In exchange, the Company received from
Mexivada four fully executed title deeds, each transferring to the Company a twenty percent (20%) interest in the La Viuda Concessions
comprising the AuroTellurio Property, to be held in escrow by the Company's counsel until fully vested in accordance with their
terms. If the Company defaults on its commitments under the AuroTellurio Option Agreement or otherwise determines not to proceed
with the acquisition of the AuroTellurio Property, all unvested interests and related title deeds in the AuroTellurio Property
will be returned to Mexivada.



On the first anniversary of the closing,
the first $750,000 requirement per year was reached by the Company and thus, Mexivada will grant the 20% vested interest in
the AuroTellurio Property as soon as the Company pays$40,000 and issue 250,000 shares of its common stock to Mexivada,
per the AuroTellurio Option Agreement (Note 10). The Company made a payment of $40,000 on August
10, 2012 and issued 250,000 shares on August 28, 2012, which were valued at $3,750, or $0.015 per share. Thus, having met all the
required conditions, the first 20% interest in the La Viuda Concessions has vested in the Company as of August 28, 2012.



9









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



NOTE 5 – RELATED PARTY TRANSACTIONS



Compensation of Officers and Directors



Officers and directors fees totaled $13,500
and $16,500 for the three months ended July 31, 2012 and 2011, respectively. Officers and directors fees totaled $27,000 and $36,500
for the six months ended July 31, 2012 and 2011, respectively. The total compensation of officers and directors was recorded as
a component of general and administrative expenses.



As of July 31, 2012 and January 31, 2012,
the Company owed its officers and directors $29,500 and $2,500, respectively, for January – July 2012 unpaid fees, which
were recorded as other accrued liabilities – related party in its consolidated balance sheets.



Legal Fees



Effective December 1, 2010, the Company
entered into a 12-month retainer agreement with a stockholder, pursuant to which the Company paid a monthly fee of $5,500 for providing
legal services relating to SEC regulatory compliance and reporting requirements. After the agreement expired in November 2011,
the stockholder continued to provide these legal services on a month-to-month basis. For the three and six months ended July 31,
2012, the Company incurred$18,500 and $40,500in legal fees relating
to these services, respectively.For the three and six months ended July 31, 2011, the Company incurred
$16,500 and $33,000 in legal fees under this agreement, respectively.



Additionally, the Company agreed to pay
a flat fee of $50,000 for legal representation relating to the acquisition of the AuroTellurio Property
fromMexivada. The Company reached the maximum payment of $50,000 per the addendum as of July 31, 2011.



The Company also
paid legal fees (calculated and billed on an hourly basis) up to a maximum of $50,000 for the preparation and filing of its resale
registration statement of the Form S-1 covering the shares of the Company’s common stock underlying the warrants contained
in the units sold in the 2010/2011 private placement offering.For the three and six months ended July 31, 2012, the Company
incurred$12,337 and $38,777in legal fees for preparation of its
registration statements of the Form S-1, respectively.For the three and six months ended July 31, 2011, the Company incurred
$0 and $7,600 in fees relating to these services, respectively.



For the three
months ended July 31, 2012 and 2011, the Company’s total professional legal fees to a stockholder were $41,067 and
$23,446, respectively. For the six months ended July 31, 2012 and 2011, the Company’s total
professional legal fees were $105,646 and $80,106, respectively. The legal fees primarily related to SEC filings and other general
corporate matters and were included as a component of general and administrative expenses and acquisition-related costs. A total
of $65,646 outstanding payable for legal services provided was included in the Company’s consolidated balance sheets as of
July 31, 2012, compared to $0 outstanding as of January 31, 2012.



10









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Consulting
and Other Professional Fees



In January 2011, the Company entered into
an administrative services agreement with Incorporated Communications Services (“ICS”), a California corporation. George
Duggan, the Company’s Chief Operations Officer, is the Vice President of ICS. Pursuant to the agreement with ICS, ICS will
make available its address in La Canada, California to serve as the Company’s corporate headquarters and communications office,
and provide the Company with basic administrative services, including coordinating and routing incoming telephone calls, handling
investor inquiries, assisting in the preparation of press releases, developing an informational website and coordinating with the
auditors and financial statement preparers. The Company pays ICS a monthly fee of $6,000 for these services. This agreement with
ICS became effective January 1, 2011, ran for 12 months and was extended for an additional 12 months beginning January 1, 2012.
The Company incurred $18,000 and $36,000 for the three and six months ended July 31, 2012 and
2011, respectively, which were included as a component of general and administrative expenses. Additionally, the Company reimbursed
ICS for the expenses related to the services provided of $3,346 and $9,139for the three and
six months ended July 31, 2012, respectively. The Company reimbursed ICS for the expenses related to the services provided of $2,620
and $6,353for the three and six months ended July 31, 2011, respectively. As of July 31, 2012 and January 31, 2012, the
Company had no outstanding payables to ICS.



On February 28, 2011, the Company issued
500,000 shares to a stockholder in consideration of consulting services rendered to the Company and recorded the $0 and $10,555
of stock-based compensation expense in the three and six months ended July 31, 2011. The stock-based compensation expense was included
as a component of general and administrative expenses in the Company’s consolidated statements of expenses.



On June 6, 2011,
the Company entered into a consulting agreement with another stockholder of the Company. The Company engaged the stockholder
to provide certain consulting services related to the Company’s business for the period through June 5, 2013, for a monthly
compensation fee of $6,000. Beginning February 6, 2012, the monthly consulting fee was reduced to $3,000
and then reversed back to $6,000 per month starting June 6, 2012. Additionally, in May 2012, the Company paid back the reduced
fees for the months of March 2012 through May 2012 to the stockholder.The Company incurred $24,000
and $36,000 in consulting fees related to this agreement for the three and six months ended July 31, 2012, respectively,
which were included as a component of general and administrative expenses. For the three and six months ended July 31, 2011, the
Company recorded $12,000 in consulting fees to this stockholder. As of July 31, 2012 and January 31, 2011, the Company recorded
payables to the stockholder in the amount of $2,500 and $0, respectively.



11









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



NOTE 6 – DERIVATIVE LIABILITIES



Derivative Warrant Instruments



In the December 2010 and January 2011 Unit
Offering, the Company incurred liabilities for the estimated fair value of derivative warrant instruments in the form of warrants. The
estimated fair value of the derivative warrant instruments was calculated using the Black-Scholes option pricing model and amounted
to $1,323,133 at the grant dates as of December 22, 2010 and January 13, 2011. These estimates were re-valued as being $137,866
and $1,383,475 at the balance sheet dates as of July 31, 2012 and January 31, 2012, respectively. The Company recorded a $710,567
and $1,245,609 change in value as unrealized gain in non-operating income for the three and six months ended July 31, 2012, respectively,
and a $754,137 and $502,498 change in value as unrealized gain in non-operating expense for the three and six months ended July
31, 2011, respectively.



The fair value of each warrant granted
in the private placement offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under
the following assumptions:



|Common stock issuable upon exercise of warrants                     |  |  |  |  |  |   | 30,739,129    |  
|------------------------------------------------------------------- |  |  |  |  |  | - | ------------- | -
|Market price of the Company’s common stock on the measurement dates |  |  |  |  |  | $ | 0.05 and 0.09 |  
|Exercise price                                                      |  |  |  |  |  | $ | 0.125         |  
|Risk free interest rate (1)                                         |  |  |  |  |  |   | 0.475         | %
|Dividend yield                                                      |  |  |  |  |  |   | 0.00          | %
|Volatility                                                          |  |  |  |  |  |   | 257.95        | %
|Expected exercise term in years                                     |  |  |  |  |  |   | 1.5           |  



| | (1) | The risk-free interest rate was determined by management using the average of 1- and 2-year Treasury
Bill yield as of the grant dates.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------



In April 2011, the Company added to the
Unit Offering an over-allotment option. As such, the Company incurred liabilities for the estimated fair value of derivative warrant
instruments in the form of warrants. The estimated fair value of the derivative warrant instruments was calculated using the
Black-Scholes option pricing model and amounted to $71,973, $131,077, and $88,824 at the grant dates of April 7, 2011, April 13,
2011, and April 30, 2011, respectively. The April 2011 grants were re-valued as being $36,993 and $211,117 at the balance sheet
date of July 31, 2012 and January 31, 2012, respectively. The Company recorded an $84,482 and $174,124 change in value as unrealized
gain in non-operating income for the three and six months ended July 31, 2012, respectively, and a $92,747 and $31,363 change in
value as unrealized gain in non-operating expense for the three and six months ended July 31, 2011, respectively.



The fair value of each warrant granted
in the private placement offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under
the following assumptions:



12









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



|Common stock issuable upon exercise of warrants                     |  |  |  |  |  |   | 4,000,000       |  
|------------------------------------------------------------------- |  |  |  |  |  | - | --------------- | -
|Market price of the Company’s common stock on the measurement dates |  |  |  |  |  | $ | 0.08 and 0.10   |  
|Exercise price                                                      |  |  |  |  |  | $ | 0.125           |  
|Risk free interest rate range (1)                                   |  |  |  |  |  |   | 0.61 – 0.81     |  
|Dividend yield                                                      |  |  |  |  |  |   | 0.00            | %
|Volatility range                                                    |  |  |  |  |  |   | 268.16 – 284.75 |  
|Expected exercise term in years                                     |  |  |  |  |  |   | 1.5             |  



| | (1) | The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as
of the grant dates.
| | --- | --------------------------------------------------------------------------------------------------------------------



In June and July 2011, the Company closed
its first and second over-allotment options. The Company incurred liabilities for the estimated fair value of derivative warrant
instruments in the form of warrants. The estimated fair value of the derivative warrant instruments was calculated using the Black-Scholes
option pricing model and amounted to $149,203 and $102,957 at the grant dates of June 15, 2011 and July 15, 2011, respectively.
The grants were re-valued as being $38,930 and $222,508 at the balance sheet date of July 31, 2012 and January 31, 2012. The
Company recorded an $86,968 and $183,578 change in value as unrealized gain in non-operating income for the three and six months
ended July 31, 2012,respectively, and a $19,906 changein value as unrealized loss in non-operating
expense for the three and six months ended July 31, 2011.



The fair value of each warrant granted
in the private placement offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under
the following assumptions:



|Common stock issuable upon exercise of warrants                     |  |  |  |  |  |   | 4,000,000       |  
|------------------------------------------------------------------- |  |  |  |  |  | - | --------------- | -
|Market price of the Company’s common stock on the measurement dates |  |  |  |  |  | $ | 0.07 and 0.08   |  
|Exercise price                                                      |  |  |  |  |  | $ | 0.125           |  
|Risk free interest rate range (1)                                   |  |  |  |  |  |   | 0.37 – 0.38     |  
|Dividend yield                                                      |  |  |  |  |  |   | 0.00            | %
|Volatility range                                                    |  |  |  |  |  |   | 257.60 – 259.63 |  
|Expected exercise term in years                                     |  |  |  |  |  |   | 1.5             |  



| | (1) | The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as
of the grant dates.
| | --- | --------------------------------------------------------------------------------------------------------------------



As of February 1, 2012, the Company amended
the terms of the warrants issued during the 2010/2011 private placement offerings (Note 8), such that (i) their term has been extended
by six months and (ii) one-half of the warrants (19,369,565) retain the exercise price of $0.125 per share and the other one-half
of the warrants (19,369,564) have an exercise price of $0.05 per share. The valuation of the warrants at July 31, 2012 reflects
the new terms.



13









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



In March 2012, pursuant to a private placement
offering, the Company issued 4,250,000 warrants to purchase 0.5 shares of common stock per unit. The Company recorded a derivativeliability upon issuance of the warrants. The estimated fair value of the derivative warrant instruments was calculated using the
Black-Scholes option pricing model and amounted to $101,985 at the grant date of March 16, 2012. The grants were re-valued as being
$23,299 at the balance sheet date of July 31, 2012. The Company recorded a $48,553 change in value as unrealized gain in non-operating
income for the three months ended July 31, 2012 and a $23,299 change in value as unrealized loss in non-operating income for the
six months ended July 31, 2012.



The fair value of each warrant granted
in the private placement offering has been estimated on the dates of grant using the Black-Scholes option pricing model, under
the following assumptions:



|Common stock issuable upon exercise of warrants                    |  |   | 2,125,000 |  
|------------------------------------------------------------------ |  | - | --------- | -
|Market price of the Company’s common stock on the measurement date |  | $ | 0.05      |  
|Exercise price                                                     |  | $ | 0.06      |  
|Risk free interest rate (1)                                        |  |   | 0.37      | %
|Dividend yield                                                     |  |   | 0.00      | %
|Volatility                                                         |  |   | 295.28    | %
|Expected exercise term in years                                    |  |   | 2.0       |  



| | (2) | The risk-free interest rate was determined by management using the 2-year Treasury Bill yield as
of the grant dates.
| | --- | --------------------------------------------------------------------------------------------------------------------



The following is a summary of the assumptions
used in the Black-Scholes option pricing model to estimate the fair value of the warrants as of balance sheet dates at July 31,
2012 and January 31, 2012, respectively:



|                                                                    |  | July 31, 2012 |                   |   | January 31, 2012 |  
|------------------------------------------------------------------- |  | ------------- | ----------------- | - | ---------------- | -
|                                                                    |  |               |                   |   |                  |  
|Common stock issuable upon exercise of warrants                     |  |               | 40,864,129        |   |                  |  
|Market price of the Company’s common stock on the measurement dates |  | $             | 0.012             |   |                  | $
|Exercise price                                                      |  |               | $ 0.05 – 0.125    |   |                  | $
|Risk free interest rate range (1)                                   |  |               | 0.14 - 0.23 %     |   |                  |  
|Dividend yield                                                      |  |               | 0.00              | % |                  |  
|Volatility range                                                    |  |               | 320.67 – 394.57 % |   |                  |  
|Expected exercise term in years                                     |  |               | 0.39-1.62         |   |                  |  



| | (1) | The risk-free interest rate was determined by management using the 6-month and 1- and 2-year Treasury
Bill yield as July 31, 2012 and the 6-month and 1-year Treasury Bill as of January 31, 2012.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



14







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



NOTE 7 – FAIR VALUE MEASUREMENTS



As defined in FASB ASC Topic 820, fair
value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. This Topic requires disclosure that establishes a framework for measuring fair value
and expands disclosure about fair value measurements. The statement requires fair value measurements be classified and disclosed
in one of the following categories:



Level 1: Unadjusted quoted prices in active
markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active
markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing
information on an ongoing basis.



Level 2: Pricing inputs other than quoted
market prices included in Level 1 that are based on observable market data and are directly or indirectly observable for substantially
the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices
for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such
as interest rate and yield curves, volatilities or default rates observable at commonly quoted intervals or inputs derived from
observable market data by correlation or other means.



Level 3: Pricing inputs that are unobservable
or less observable from objective sources. Unobservable inputs should only be used to the extent observable inputs are not available.
These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions
of other market participants. An entity should consider all market participant assumptions that are available without unreasonable
cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's
best estimate of the fair value when no observable market data is available.



Financial assets and liabilities are classified
based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance
of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets
and liabilities and their placement within the fair value hierarchy levels.



Certain assets and liabilities are reported
at fair value on a recurring or nonrecurring basis in the Company’s balance sheet. The following methods and assumptions
were used to estimate the fair values:



Cash, Other receivables, Prepaid expenses,
Mining rights, Accounts payable, Accounts payable – related party, and Other accrued liabilities – related party



The carrying amounts approximate fair value
because of the short-term nature or maturity of the instruments.



15









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



Derivative liabilities



The Company’s determination of fair
value of its derivative instruments incorporates various factors required under FASB Topic ASC 815. The fair values of the Company’s
derivatives are valued using less observable data from objective sources as inputs into internal valuation models. Therefore, the
Company considers the fair value of its derivatives to be Level 3 hierarchy. At July 31, 2012 and January 31, 2012, the aggregate
Level 3 fair value of the derivative liabilities was $237,087 and $1,817,100, respectively.



The following table sets forth a reconciliation
of changes in the fair value of financial liabilities classified as Level 3 in the fair value hierarchy:



|                                                                                                                          |  | Significant Unobservable Inputs (Level 3) |          
|------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------- | ---------
|                                                                                                                          |  | Three Months Ended                        |          
|                                                                                                                          |  | July 31,                                  |          
|                                                                                                                          |  | 2012                                      |          
|Balances as of April 30, 2012 and 2011 and January 31, 2012 and 2011                                                      |  | $                                         | 1,167,658
|Change in fair value                                                                                                      |  |                                           | (930,571 
|Additions                                                                                                                 |  |                                           | -        
|Ending balances as of July 31, 2012 and 2011                                                                              |  | $                                         | 237,087  
|                                                                                                                          |  |                                           |          
|Realized and unrealized gain (loss) on derivatives, net, included in earnings for the period ended  July31, 2012 and 2011 |  | $                                         | 930,571  



NOTE 8 – EQUITY



Private Placement
Offering



In July 2011,
the Company completed the final closing of the 2010/2011 Private Placement Offering, in which the Company sold an aggregate of
77,478,258 Units of its securities for gross proceeds of $1,936,956, at an offering price of $0.025 per Unit.The Company
incurred closing costs of $19,000, resulting in net proceeds from the Offering of $1,917,956. 55,478,258
of the units consisted of one share of its common stock and an 18-month warrant to purchase one-half of one share of its common
stock at an exercise price of $0.125 per whole share. The remaining 22,000,000 Units included the Company’s Series A Preferred
Stock instead of its common stock and warrants exercisable for its common stock. Effective February 1, 2012, the terms of these
warrants were amended such that (i) their term has been extended by six months and (ii) one half of them (19,369,565) retain the
exercise price of $0.125 per share and one half (19,369,564) have an exercise price of $0.05 per share.



16









CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



On March 16, 2012, the Company completed
the closing of a private placement offering pursuant to which the Company sold to various accredited investors and non-U.S. persons
4,250,000 Units of its securities for gross proceeds of $170,000, at an offering price of $0.04 per unit. The Company incurred
closing costs of $1,750, resulting in net proceeds from the Offering of $168,250. Each of these Units consisted of one share of
the Company’s common stock and a warrant to purchase one-half share of the Company’s common stock at an exercise price
of $0.06 per whole share. These warrants will be exercisable from issuance until twenty-four (24) months after the closing of this
offering.



As of July 31, 2012, cumulatively, the
Company has sold a total of 81,728,258 Units for a total price of $2,106,956. The Company incurred closing costs of $20,750, resulting
in net proceeds from the Offering of $2,086,206. The Company plans to apply the net proceeds of the closings primarily towards
the AuroTellurio Acquisition (Note 4) and for working capital purposes.



AuroTellurio Acquisition



On August 4, 2011, in connection with the
First Closing under the AuroTellurio Option Agreement, the Company issued to Mexivada 250,000 shares of its restricted common stock,
at $0.001 per share. The issued stock was fair valued at $17,500 based on the market price on the date of issuance.



On August 28, 2012, the Company issued
to Mexivada an additional 250,000 shares of its restricted common stock, at $0.015 per share. The issued stock was fair valued
at $3,750 based on the market price on the date of issuance.



NOTE 9 – STOCK-BASED COMPENSATION



Shares for Services



The Company recognized the total stock-based
compensation expense for services of $125,000 during the six months ended July 31, 2012,
and of $10,555 during the six months ended July 31, 2011.



On March 16, 2012, pursuant to the terms
of an agreement between the Company and an unrelated party, the Company shall issue 1,000,000 common shares in exchange for investor
and public relations consulting services. The shares were valued at $50,000, or $0.05 per share. The Company recorded $50,000 of
stock-based compensation expense related to consulting services under this agreement. In July 2012, the Company reversed the non-cash
issuance of 1,000,000 restricted shares of its common stock and a corresponding stock-based compensation expense of $50,000 due
to an agreement cancellation.



17













CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



On March 19, 2012, pursuant to the terms
of an agreement between the Company and an unrelated party, the Company issued 1,250,000 shares in exchange for geological consulting
services. The shares were valued at $125,000, or $0.10 per share. The Company recorded $125,000 of stock-based compensation expense
related to consulting services under this agreement.



Pursuant to a Consulting Services Agreement
as of January 18, 2011 between the Company and its stockholder, the Company agreed to issue 500,000 shares for future services
relating to business development and corporate finance. The 500,000 shares were valued at $12,500, or $0.025 per share, $1,945
of which was recorded during the year ended January 31, 2011 and the difference of $10,555 was recorded in February 2011.



The Company valued the issued shares based
on market value on the date of the agreements.



Stock Options



The Company has a stock-based compensation
plan known as the 2007 Stock Option Plan (the “Plan”). The Plan provides for the granting of incentive and non-qualified
stock options to acquire common shares in the capital of California Gold Corp. The number of shares authorized under the Plan
is 16,000,000. As of July 31, 2012, 5,666,667 shares remain available for future grants under the Plan.



On July 27, 2011, the Company granted options
to purchase 11,000,000 shares of its common stock to its employees and outside consultants. These options have a 10-year term and
were granted with an exercise price of $0.09. One-third of these options, or 3,666,667, vested on the date of the grant, with the
remaining two-thirds vesting on the first and second anniversaries of the date of grant. As of July 31, 2012, the total of 7,000,000
options vested, which included an additional 3,333,333 options vested on July 27, 2012, the first anniversary of the grant date.
All vested options are exercisable, in full or in part, at any time after vesting, until termination.



On May 4, 2012, one of the Company’s
directors resigned and therefore, all his 666,667 non-vested options terminated on that date and his vested but unexercised options
of 333,333 will expire on August 4, 2012. The Company recorded the stock-based compensation expense – related party attributable
to options of $75,284 and $157,782 during the three and six months ended July 31, 2012, respectively. The Company recorded the
stock-based compensation expense – related party attributable to options of $329,989 during the three and six months ended
July 31, 2011. As of July 31, 2012, there was approximately $299,990 of total unrecognized compensation cost related to non-vested
stock options, which is expected to be recognized over the next year.



Outstanding options had $0 intrinsic value
at July 31, 2012, due to the exercise price being greater than the value of the Company’s common stock at the reporting date.



18







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



The fair value of options granted in July
2011 was measured at the date of grant using the Black-Scholes option pricing model with the following assumptions:



|Market price of the Company’s common stock on grant date |  | $ | 0.09    |  
|-------------------------------------------------------- |  | - | ------- | -
|Risk free interest rate (1)                              |  |   | 3.01    | %
|Dividend yield                                           |  |   | 0.00    | %
|Volatility                                               |  |   | 259.13  | %
|Expected life                                            |  |   | 6 years |  
|Expected forfeiture rate                                 |  |   | 0.0     | %



| | (1) | The risk-free interest rate was determined by management using the 10-year Treasury Bill yield
as of the grant date.
| | --- | --------------------------------------------------------------------------------------------------------------------



NOTE 10 – COMMITMENTS AND CONTINGENCIES



In addition to a $30,000 cash payment and
250,000 stock issuance made at the First Closing under the AuroTellurio Option Agreement on August 4, 2011 (Note 4), assuming the
Company exercises its right to acquire each of the four, twenty percent (20%) interests in the AuroTellurio Property, the Company
will make the following cash payments and share issuances to Mexivada: (i) $40,000 and 250,000 shares on the first anniversary
of the Closing; (ii) $50,000 and 300,000 shares on the second anniversary of the Closing; (iii) $70,000 and 350,000 shares on the
third anniversary of the Closing; and (iv) $100,000 and 500,000 shares on the fourth anniversary of the Closing. In connection
with the AuroTellurio Option Agreement, the Company will pay an aggregate total of $290,000 in cash and 1,650,000 common shares.



Under the terms of the AuroTellurio Option
Agreement, the Company is also committed to incur $3,000,000 in cumulative exploration expenditures on the Property over a four-year
period at an investment rate of at least $750,000 per year. The Company will earn a 20% vested interest in the AuroTellurio Property
in the first year of the AuroTellurio Option Agreement by investing $750,000 in an exploration program and up to an additional
60% interest in the Property, in blocks of 20% each, by investing an additional $750,000 in the exploration program in each of
the following six years, or sooner, and meeting all of the other required terms of the AuroTellurio Option Agreement. Each 20%
interest will vest earlier if each year’s cash and stock payments to Mexivada and $750,000 exploration expenditure investment
are completed earlier than scheduled.



Under the terms of the Agreement, the Company
will act as “Operator,” exclusively responsible, in consultation with Mexivada, for carrying out and administering
exploration, development and mining work on the AuroTellurio Property. If costs of the exploration program exceed the agreed upon
$3,000,000 investment, the Company will share additional costs with Mexivada on a proportionate share basis. Once the Company has
earned its full 80% interest in the AuroTellurio Property, the Company will form a joint venture with Mexivada applicable to the
further development and commercialization of the AuroTellurio Property.



19







CALIFORNIA GOLD CORP.

(AN EXPLORATION STAGE COMPANY)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



The Company obtained a surface rights agreement,
with the landowner on whose property the La Viuda Concessions are located, to conduct its mineral exploration program, effective
June 17, 2011. The Company will pay the land owner $14,400 for each year in which the Company carries out exploration work on this
land. The Company has begun Phase 1 of its exploration program and has conducted mapping, trenching
and sampling programs at the AuroTellurio Property as well as gravity and magnetic geophysical surveys, including a helicopter-borne
magnetics and radiometric survey, in preparation for an initial 3,000-meter drilling program that is planned for implementation
later in 2012.



As of July 31, 2012, the Company incurred
$616,640 since inception in its exploration and development expenditures, which are expensed as incurred. In addition to the Company’s
mineral exploration expenditures, Mexivada accepted certain other Company’s expenses towards its minimum requirement of $750,000
per year such as a percentage of its accounting, legal and consulting fees, compensation of its officers and directors, and management
support services, which were included as a component of general and administrative expenses in the Company’s consolidated
statements of expenses. Mexivada accepted approximately $1,039,807 of total expenses as of June 30, 2012 (the date of the Company’s
expenses reviewed by Mexivada) and confirmed that the amounts over $750,000 will be applied towards the second year requirements.
Mexivada also confirmed that it will grant the 20% interest in the AutoTellurio project to the Company, after the Company makes
the $40,000 cash payment and issues 250,000 of its shares to Mexivada in connection with the AuroTellurio Option Agreement. The
$40,000 payment was made on August 10, 2012 and the 250,000 shares were issued to Mexivada on August 28, 2012.



NOTE 11 – SUBSEQUENT EVENTS



The Company made a payment to Mexivada
of $40,000 on August 10, 2012 and issued 250,000 shares of its restricted common stock to Mexivada on August 28, 2012. Having met
all the required conditions for the vesting of the first 20% interest in the La Viuda Concessions under the AuroTellurio Option
Agreement, including the required exploration program expenditure of $750,000, the first 20% interest in the La Viuda Concessions
vested in the Company as of August 28, 2012.



20







ITEM 2.     MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



This report contains forward-looking
statements. All statements other than statements of historical facts included in this Quarterly Report on Form 10-Q, including
without limitation, statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations
regarding our financial position, estimated working capital, business strategy, the plans and objectives of our management for
future operations and those statements preceded by, followed by or that otherwise include the words “believe”, “expects”,
“anticipates”, “intends”, “estimates”, “projects”, “target”, “goal”,
“plans”, “objective”, “should”, or similar expressions or variations on such expressions are
forward-looking statements. We can give no assurances that the assumptions upon which the forward-looking statements are based
will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other
important factors that could cause our actual results to differ materially from the forward-looking statements, including, but
not limited to, our ability to identify and successfully participate in any future acquisition, joint venture or other new business
initiative.



OVERVIEW



California Gold is an exploration stage
mining company whose principal focus is the identification, acquisition, and development of rare and precious metals mining properties
in the Americas.



Our primary focus is on the exploration
and development of the La Viuda Concessions south of Moctezuma, Sonora, Mexico, where, we believe, deposits of tellurium, gold
and silver may exist in economically minable quantities. We are still in the exploration stage and have not generated any revenues
from our mining properties in Mexico.



The Mexivada Property Option Agreement



On February 11, 2011, we entered into a
property option agreement (the “AuroTellurio Option Agreement”) with Mexivada Mining Corp. (“Mexivada”)
to acquire up to an 80% interest in Mexivada’s La Viuda and La Viuda-1 concessions comprising its AuroTellurio tellurium-gold-silver
property (the “La Viuda Concessions,” the “AuroTellurio Property” or, the “Property”) south
of Moctezuma, Sonora, Mexico.



Under the terms of the AuroTellurio Option
Agreement, we will acquire up to an 80% legal and beneficial ownership interest in the AuroTellurio Property by, in addition to
making certain cash payments and share issuances to Mexivada (as discussed above), incurring up to $3,000,000 in cumulative exploration
expenditures on the Property over a four year period at an investment rate of at least $750,000 per year. We will earn a 20% vested
interest in the AuroTellurio Property in the first year of the AuroTellurio Option Agreement by investing $750,000 in an exploration
program (the “Exploration Program”) and up to an additional 60% interest in the Property, in blocks of 20% each, by
investing an additional $750,000 in the exploration program in each of the following three years, or sooner, and meeting all of
the other required terms of the AuroTellurio Option Agreement. Each 20% interest will vest earlier if each year’s cash and
stock payments to Mexivada and $750,000 exploration expenditure investment are completed earlier than scheduled.



21







First Closing under the AuroTellurio
Option Agreement



On August 4, 2011, we conducted the first
closing (the “First Closing”) under the AuroTellurio Option Agreement.  Prior to the First Closing, we had
made cash payments to Mexivada totaling $20,000.  On the date of the First Closing, we paid Mexivada an additional $10,000
in cash and issued to Mexivada 250,000 shares of our restricted common stock. In exchange, we received from Mexivada four
fully executed title deeds, each transferring to us a twenty percent (20%) interest in the La Viuda Concessions comprising the
AuroTellurio Property. We will hold these title deeds in escrow until we meet the terms of the AuroTellurio Option Agreement
for the vesting of each twenty percent (20%) interest.  At that time, the relevant title deed will be released to us
from escrow and filed with the Ministry of Mines in Mexico, to evidence our ownership in that specific twenty percent interest
in the AuroTellurio Property. If we default on our commitments under the AuroTellurio Option Agreement or otherwise determine not
to proceed with the acquisition of the AuroTellurio Property, all unvested interests and related title deeds in the AuroTellurio
Property will be returned to Mexivada.



On August 10, 2012, we made a payment to
Mexivada of $40,000 and on August 28, 2012 we issued to Mexivada 250,000 shares of our restricted common stock. Having met all
the required conditions for the vesting of the first 20% interest in the La Viuda Concessions under the AuroTellurio Option Agreement,
including the required exploration program expenditure of $750,000, the first 20% interest in the La Viuda Concessions vested in
us as of August 28, 2012.



The La Viuda Concessions



The La Viuda Concessions, which cover approximately
18,840 acres (7,624 hectares) south of Moctezuma, Sonora Mexico, comprise two exploration concessions granted by the Mexican government
to Compania Minera Mexivada, S.A. de C.V., a wholly owned subsidiary of Mexivada.



The La Viuda Concessions comprising the
AuroTellurio Property is located less than a mile from the La Bambolla mine where gold-tellurium mineralization was discovered
in the early 1900’s. The AuroTellurio Property surrounds the La Bambolla mine area to the east and south and covers potentially
mineralized areas over extensive, adjoining areas to the east, south and west.



Historical data suggest that tellurium-gold
mineralization at the La Bambolla mine occurs along a regional structural system with an average S 70° E trend where a swarm
of relatively narrow, sub-parallel, silica-rich mineralized veins are present. At La Bambolla, these veins are either vertical,
or have steep dips, and range from 0.14 to 2.60 meters in width.  Earlier this year, we acquired certain geological information
as well as analytical results of more than 500 underground channel samples taken at La Bambolla in the 1980's. The average grades
in the veins that were sampled, as indicated in the analytical results that we acquired, range from 0.01 to 3.26 % tellurium, and
0.03 to 4.90 oz/ton gold.



22







The AuroTellurio Property
Exploration Program



Pursuant to the terms of the AuroTellurio
Option Agreement, the annual exploration program expenditure requirement is calculated based on four 12 month periods beginning
on the date of the First Closing. As such, we will be required to complete our first $750,000 annual exploration program investment
by August 4, 2012.



On May 16, 2012, we renewed for an additional
year our surface rights agreement with the land owner in Moctezuma, Sonora, Mexico where the La Viuda Concessions are located.
In return for the easement for our exploration of the La Viuda Concessions, we are paying the land owner $14,400 for each year
in which we conduct exploration work on this land.



We have begun Phase 1 of our exploration
program and have conducted mapping, trenching and sampling programs at the AuroTellurio Property as well as gravity and magnetic
geophysical surveys, including a helicopter-borne magnetics and radiometric survey, in preparation for an initial 3,000-meter drilling
program that is planned for implementation later in 2012.



Geologic mapping and sampling on the AuroTellurio
Property have thus far confirmed that the regional structure hosting the tellurium-gold vein system at La Bambolla extends east-southeasterly
onto the AuroTellurio Property. Zones of fracture-controlled silicification, strikingly similar to those described at La Bambolla,
have been mapped in our La Viuda 1 concession.  We believe that these features could be spatially located at a higher level
than similar alteration-mineralization features found at La Bambolla.  This interpretation tends to support our initial geologic
model where a series of essentially north-trending, post-mineral faults have down-dropped segments of the original mineralized
system to the east.  Our current understanding, based on geological interpretation of the existing data, is that ore-grade
tellurium-gold mineralization is highly likely to exist at depth within our La Viuda 1 concession. We are building a road to access
and further evaluate this potentially mineralized area.



Through our geologic work on the AuroTellurio
Property we have delineated three drilling targets within our mining concessions. In order of importance, they are: 1) Target 1,
where tellurium-gold mineralization with similar characteristics as those present in the La Bambolla deposit is expected to be
intercepted; 2) the La Viuda Target, where our objective is to find precious metal and tellurium mineralization in highly siliceous
veins with abundant manganese oxides; and 3) a deep-seated mineralized target associated with an igneous intrusive detected by
two separate geophysical surveys at estimated depths in the range of 400 meters.



Our principal target, Target 1, consists
of gold-tellurium mineralization emplaced along the southeasterly extension of the mineralized vein system that exists at the La
Bambolla mine. Target 1 is about 2 kilometers (1.8 miles) south east of the La Bambolla mine. Both the La Bambolla mine and Target
1 are located along one of several, sub-parallel regional structures that were delineated by airmagnetics-radiometric geophysical
surveys within the AuroTellurio project area. This particular structure, which is known as the La Bambolla Linear, was first recognized
through geologic field observations and was later confirmed by geophysical surveys. Geological features and sampling results of
the exposures observed on the surface of the Target 1 area show strong fracturing, quartz veining and detectable tellurium. Two
initial 400-meter core holes are programmed for this target; however, if the results warrant it, the emphasis of the drilling program
will shift to pursue the extension and continuity of mineralization along the La Bambolla Linear to the northwest.



23







Two additional drill holes programmed for
the La Viuda target area will test for precious metal mineralization, principally silver, and the possibility of gold-tellurium
mineralization at depth. The presence of old workings, including an inclined shaft about 12 meters deep, shows that the area has
been explored, and possible mined as a low-scale operation in the past. However, we found no evidence that the area was previously
drilled.



Located at estimated depths in the 400-meter
range, our third target is projected to be a large-tonnage, porphyry-type deposit associated with a potential intrusive at depth.
This target, which we have named “Las Milpas,” is visualized to be a large mineral deposit associated with this deep-seated
igneous intrusion. A geological exploration model was initially created to develop the presence of a blind intrusive in the project
area. This intrusive was subsequently corroborated by separate gravity and helicopter-borne magnetics and radiometrics geophysical
surveys carried out on the AuroTellurio project in 2011 by two different independent contractors. The gravity data delineated a
potential intrusive at depth located within an area of approximately 800 x 1,400 meters (2,600 x 4,600 feet) in size. A second
confirmation was provided by the results of a subsequent helicopter-borne magnetics-radiometrics survey. Both geophysical surveys
outlined their respective anomalous responses on the same location and with strong correlation. In addition, the radiometrics survey
outlined anomalous potassium suggesting the presence of unmapped hydrothermal alteration on the surface. The depth to the top of
the intrusive is projected to be 400 meters (1,300 feet). Two 700-meter (2,300 feet) drill holes, separated by a distance of about
one kilometer (0.6 miles), have been programmed to test this deep target.



Of the three drilling targets that we defined
on a geological basis, two of them, the southeasterly extension of the La Bambolla vein system and the deep-seated intrusive target
area, respectively, are being further investigated using geophysical methods in order to better define the configuration of these
targets at depth.



In both instances, a high resolution resistivity
imaging technique, CSAMI (Controlled Source Audio-Frequency Magneto Telluric), is being used to model lithologic contacts and structures.
This methodology is being supplemented with CSIP (a similar technique to gradient Induced Polarization) in order to detect sulfide
mineralization associated with both the intrusive contact and the structural features.



The results of these additional surveys
are intended to assist us in selecting drill targets and specific drill sites more effectively.



We have completed
the field work for this survey and we are currently evaluating the data. We expect to have this analysis completed and reach a
decision as to the timing of the launch of our drilling programby the end of our third fiscal quarter.



24







RESULTS OF OPERATIONS



Three Months Ended July 31, 2012 and
2011



We are still in our exploration stage and
have generated no revenues to date.



We incurred
total operating expenses of$270,377 and$513,464 for the three
months ended July 31, 2012 and 2011, respectively. These expenses decreased during the three months ended July 31, 2012 by$243,087
or 47.3%, due to lower general and administrative expenses we incurred during the three months ended
July 31, 2012, which amounted to$150,054 compared to$449,167 incurred
during the three months ended July 31, 2011. The $299,113 decrease in overall general and administrative expenses was primarily
attributable to the $304,705 decrease in stock-based compensation expense;$25,284 for the three
months ended July 31, 2012 when compared to$329,989 for the three months ended July 31, 2011.
We also incurred lower accounting and consulting fees during the three months ended July 31, 2012, partially offset by higher legal
fees incurred for the preparation and filing of our resale registration statement of the Form S-1 andthe overall increased
level of activity relating to our exploration activities in the AuroTellurio Property in 2012.



In the three
months ended July 31, 2012, we had non-operating income of$930,876, compared to non-operating
income of$827,456 in the three months ended July 31, 2011. The overall increase of$103,420
from the prior comparative period was primarily due to a$930,571 realized
and unrealized gain on derivative instruments relating to the issuance of the warrants as a result of the private placement offerings
completed in December 2010 and January 2011, and the over-allotments in April, June and July 2011, as well as the March 2012 private
placement offering. In the three months ended July 31, 2011, we reported an$826,978 realized
and unrealized gain on derivative warrant instruments.



We had net income
of$660,499 for the three months ended July 31, 2012, compared to net income of$313,992
for the same period in 2011. The$346,507 increase in net income over
the same period in the prior year mainly resulted from the $299,113 decrease in general and administrative expenses discussed above.



We have generated
no operating revenues and our net loss from inception through July 31, 2012 was$2,314,049.



Six Months Ended July 31, 2012 and 2011



We incurred total operating expenses of
$874,579 and $681,335 for the six months ended July 31, 2012 and 2011, respectively. The $193,244 increase over the prior year
was primarily due to increased general and administrative expenses. General and administrative expenses increased from $550,864
for the six months ended July 31, 2011 to $690,813 for the six months ended July 31, 2012, primarily due to higher legal fees and
consulting expenses resulting from the overall increased level of activity relating to our exploration activities in the AuroTellurio
Property in 2012. Accordingly, we incurred higher mineral property expenses relating to the AuroTellurio project during the six
months ended July 31, 2012, compared to the same period last year. Our total mineral property expenses were $182,885 and $130,408
for the six months ended July 31, 2012 and 2011, respectively.



25







We also reported non-operating income of
$1,682,451 for the six months ended July 31, 2012, compared to non-operating income of $514,987 for the six months ended July 31,
2011. The increase of $1,167,464 over the prior year was primarily due to a $1,168,043 increase in unrealized gain on derivative
warrants instruments, partially offset by a $221 foreign currency exchange loss incurred during the six months ended July 31, 2012
and a $358 decrease in interest income over the prior year.



Our net income for the
six months ended July 31, 2012 was $807,872, compared to net loss of $166,348 for the six months ended July 31, 2011.



LIQUIDITY AND CAPITAL RESOURCES



Our cash and cash equivalents balance as
of July 31, 2012 was $537,979, compared to $828,181 as of January 31, 2012.



In July 2011, we completed the final closing
of the 2010/2011 Private Placement, in which we sold an aggregate of 77,478,258 Units of our securities for gross proceeds of $1,936,956,
at an offering price of $0.025 per Unit. 55,478,258 of the Units consisted of one share of our common stock and an 18-month warrant
to purchase one-half of one share of our common stock at an exercise price of $0.125 per whole share. As of February 1, 2012, we
amended the terms of these warrants such that (i) their term has been extended by six months and (ii) one half of them (19,369,565)
retain the exercise price of $0.125 per share and one half (19,369,564) have an exercise price of $0.05 per share. The remaining
22,000,000 Units included our Series A Preferred Stock instead of our common stock and warrants exercisable for our common stock.



On March 16, 2012, we completed the closing
of a private placement offering pursuant to which we sold to various accredited investors and non-U.S. persons 4,250,000 Units
of our securities (the “2012 Units”) for gross proceeds of $170,000, at an offering price of $0.04 per Unit. Each of
these Units consisted of one share of our common stock and a warrant to purchase one-half share of our common stock at an exercise
price of $0.06 per whole share. These warrants will be exercisable from issuance until twenty four (24) months after the closing
of this offering. We raised these funds for general working capital purposes separate from our first year exploration program commitments
under the AuroTellurio Agreement.



Due to our brief history and historical
operating losses, our operations have not been a source of liquidity, and our sources of liquidity primarily have been debt
and proceeds from the sale of units in our 2010/2011 Private Placement and in our March 2012 offering. Although we have begun the
acquisition of the AuroTellurio Property, this property will require exploration and development that could take years to complete
before it begins to generate revenues. There can be no assurances that the AuroTellurio Property will be successfully developed
to the revenue producing stage. If we are not successful in our proposed rare and precious metals mining operations, our business,
results of operations, liquidity and financial condition will suffer materially.



26







As a result of the 2010/2011 Private Placement,
we have sufficient funds to meet our first year requirements under the AuroTellurio Agreement, including the requirement that we
invest $750,000 in the exploration program by August 4, 2012.  If we determine to proceed with the exploration of the
AuroTellurio Property after the first year, we will be required under the terms of the AuroTellurio Agreement to invest an additional
$750,000 in the exploration program per year for each of the following three years. We will also be required to pay Mexivada $40,000
upon the first anniversary of the First Closing, which amount we have already paid, $50,000 upon the second anniversary of the
First Closing, $70,000 upon the third anniversary of the First Closing, and $100,000 upon the fourth anniversary of the First Closing,
for a total of $290,000. We will also need additional funds for working capital purposes. We do not have this capital at this time
and we will have to raise these amounts, plus additional amounts for general working capital purposes, in the capital markets.
We plan to seek to raise such capital through additional sales of our equity or debt securities. There can be no assurance, however,
that such financing will be available to us or, if it is available, that it will be available on terms acceptable to us and that
it will be sufficient to fund our expected needs. If we are unable to obtain sufficient financing, we may not be able to proceed
with our exploration and development plans for the AuroTellurio Property after the first year of our exploration program or meet
our ongoing operational working capital needs.



OFF-BALANCE SHEET ARRANGEMENTS



We have no off-balance sheet arrangements.



SIGNIFICANT ACCOUNTING POLICIES



It is suggested that these financial statements
be read in conjunction with our January 31, 2012, audited financial statements and notes thereto, which can be found in our Form
10-K filing on the SEC website at www.sec.gov under our SEC File Number 333-134549.



|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------



Not applicable.



|ITEM 4. | CONTROLS AND PROCEDURES
|------- | -----------------------



Evaluation of Disclosure Controls and Procedures



Disclosure controls and procedures include,
without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports
that it files or submits under the Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. This information
is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. It should be noted
that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and
there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless
of how remote.



27







The management of California Gold Corp.
is responsible for establishing and maintaining an adequate system of internal control over financial reporting (as defined in
Rule 13a-15(f) under the Exchange Act. Under the supervision and with the participation of our senior management, consisting of
James D. Davidson, our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of
the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act as of the end of the period covered by this report (the “Evaluation Date”). Based on this evaluation, our chief
executive officer and chief financial officer concluded, as of the Evaluation Date, that our disclosure controls and procedures
were not effective because of the identification of what might be deemed a material weakness in our internal control over financial
reporting which is identified below.



Our internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes of accounting principles generally accepted in the United States. Because of its inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to
be effective can provide only reasonable assurance of achieving their control objectives. In evaluating the effectiveness of our
internal control over financial reporting, our management used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO) inInternal Control-Integrated Framework. Based on this evaluation, our sole officer concluded
that, during the period covered by this quarterly report, our internal controls over financial reporting were not operating effectively.
Management did not identify any material weaknesses in our internal control over financial reporting as of July 31, 2012; however,
it has identified the following deficiencies that, when aggregated, may possibly be viewed as a material weakness in our internal
control over financial reporting as of that date:



|1. | We do not have an audit committee. While we are not currently obligated to have an audit committee, including a member who is an “audit committee financial expert,” as defined in Item 407 of Regulation S-K, under applicable regulations or listing standards; however, it is management’s view that such a committee is an important internal control over financial reporting, the lack of which may result in ineffective oversight in the establishment and monitoring of internal controls and procedures.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|2. | We did not maintain proper segregation of duties for the preparation of our financial statements. We currently only have one officer overseeing all transactions. This has resulted in several deficiencies including the lack of control over preparation of financial statements, and proper application of accounting policies.                                                                                                                                                                                



28







Management believes that the material weaknesses
set forth the two items above did not have an effect on our financial results. However, management believes that the lack of a
functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight
in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement
in our financial statements in future periods.



Management's Remediation Initiatives



In an effort to remediate the identified
material weaknesses and other deficiencies and enhance our internal controls, we plan to initiate the following series of measures
once we have raised sufficient capital to do so.



We will create a position to segregate
duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the
accounting function when funds are available to us. And, we plan to appoint one or more outside directors to our board of directors
who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight
in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and
assumptions made by management when funds are available to us.



Management believes that the appointment
of one or more outside directors, who shall be appointed to a fully functioning audit committee, would remedy the lack of a functioning
audit committee and a lack of a majority of outside directors on our Board.



Changes in Internal Controls over Financial
Reporting



There was no change in our internal controls
over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably
likely to materially affect, our internal controls over financial reporting.



PART II

OTHER INFORMATION



|ITEM 1. | LEGAL PROCEEDINGS
|------- | -----------------



None.



|ITEM 1.A. | RISK FACTORS
|--------- | ------------



There have been no material changes from
the risk factors disclosed in our 2012 Form 10-K under Part I, Item 1A, therein.



|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|------- | -----------------------------------------------------------



None.



|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------



29







Not applicable.



|ITEM 4. | MINE SAGETY DISCLOSURES
|------- | -----------------------



Not applicable.



|ITEM 5. | OTHER INFORMATION
|------- | -----------------



None.



|ITEM 6. | EXHIBITS
|------- | --------



The following exhibits are included with this quarterly report.



30







|Exhibit   |  |                                                                                                                                                                                       
|--------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number    |  | Description                                                                                                                                                                           
|          |  |                                                                                                                                                                                       
|31.1/31.2 |  | Certification of Principal Executive and Principal Financial Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|          |  |                                                                                                                                                                                       
|32.1/32/2 |  | Certification of Chief Executive and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*                  



* This certification is being furnished
and shall not be deemed “filed” with the SEC for purposes of Section 18 of the Exchange Act, or otherwise subject to
the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act
or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference.



31







SIGNATURES



In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|Date:   September 19, 2012 | California Gold Corp.
|-------------------------- | ---------------------
|                           |                      
|                           | By                   
|                           |                      
|                           |                      
|                           |                      
|                           |                      



32