ASX ANNOUNCEMENT AND MEDIA RELEASE

14 July 2016

320m WIDE GOLD ZONE INTERSECTED AT NAMDINI PROJECT

HIGHLIGHTS

• Wide gold mineralised zone of 320m intersected with infill Diamond drilling

• Significant gold mineralised intersections within this section include:

  • 75m @ 2.88 g/t gold including 40m @ 4.56 g/t gold

  • 66m @ 1.54 g/t gold o 47m @ 1.26 g/t gold o 30m @ 2.08 g/t gold o 29m @ 1.72 g/t gold o 24m @ 1.13 g/t gold o 15m @ 2.19 g/t gold

Cardinal Resources Limited (ASX: CDV) ("Cardinal" or "the Company") is pleased to report the results of a further two Diamond drill holes, NMDD452‐748 and NMDD450‐768, recently completed on the Namdini Project ("Namdini"), Ghana (Figure 1).

Cardinal's Managing Director, Archie Koimtsidis said:

"The width and tenor of gold encountered with our drilling at Namdini to date is certainly pointing towards a very large gold system being present within the 900m x 300m that has been the focus of our drilling so far. On top of this, Namdini has great exploration upside given the mineralisation remains open at depth and along strike."

The potential of the Namdini Project to host a world‐class gold project continues to be confirmed by the intersection of long mineralised zones, including 75m @ 2.88 g/t Au, 66m @ 1.54 g/t Au, 47m @ 1.26 g/t Au and 30m @ 2.08 g/t Au.

Infill Diamond drill holes NMDD452‐748 and NMDD450‐768 have enabled Section L to be compiled, with a 320m wide gold mineralised zone intersected (Figure 2). This mineralised section reaffirms the continuation of wide gold mineralisation both at depth and along strike within the Namdini Project.

Infill Diamond drilling has been completed on 50m spacings, between previous 100m spaced Diamond drill sections, to confirm and enhance the gold mineralisation previously intersected within the volcaniclastics, granitoids and diorites (Figure 1).

Figure 1: Location of Diamond drill holes NMDD452‐748 and NMDD450‐768

Figure 2: Diamond Drill Holes NMDD452‐748 and NMDD450‐768 with mineralised zone of 320m

NMDD452‐748 intersected 242m of gold mineralisation within hydrothermally altered granitoids and volcaniclastics from 26m to 268m vertical depths with multiple zones of mineralisation down the drill hole, including 75m @ 2.88 g/t, 47m @ 1.26 g/t and 15m @ 2.19 g/t, confirming continuity of mineralisation with depth (Figures 2, 3 and 4).

Figure 3: Mineralised volcaniclastics within 75m @ 2.88 g/t Au zone (NMDD452‐748)

Figure 4: Mineralised granitoid with quartz veining within 75m @ 2.88 g/t Au zone (NMDD452‐748)

NMDD450‐768 intersected 190m of mineralisation within hydrothermally altered granitoids from and volcaniclastics 0m to 190m vertical depths, including 66m @ 1.54 g/t, 30m @ 2.08 g/t, 29m @ 1.72 g/t and 24m @ 1.13 g/t confirming continuity of mineralisation with depth (Figures 2 and 5).

Figure 5: Mineralised volcaniclastics and granitoids within 66m @ 1.54 g/t Au zone (NMDD450‐768)

Drill holes NMDD452‐748 and NMDD450‐768 were cored from surface. The soft near surface materials were drilled with a Triple Tube core barrel to reduce core losses. Once harder rock was encountered, then HW steel casing was inserted for stability of each hole and HQ size core was drilled to their final depths of 330.97m and 235.85m respectively.

The drill rigs were aligned for both drill holes at ‐65⁰ dip drilling east which allows for the shallowing of the drill holes with depth. The azimuth was set at 095⁰ instead of 100⁰ (normal to the strike of the formations) as the borehole traces usually deviates to the right with depth due to the clockwise rotation of the drill rods.

The drill holes were surveyed near the top of each drill hole, then every 30m down the hole to determine the dip and azimuth of the drill holes with depth.