ASX ANNOUNCEMENT AND MEDIA RELEASE

17 June 2016

190m WIDE GOLD ZONE WITH INFILL DRILLING AT NAMDINI

HIGHLIGHTS

• Wide gold mineralised zone of 190m with infill diamond drilling

• Significant gold mineralised intersections within this section include:

  • 98m @ 1.31 g/t gold - from surface

  • 49m @ 1.39 g/t gold o 31m @ 1.57 g/t gold o 9m @ 4.62 g/t gold

• On track for delivery of an initial Exploration Target to be provided in Q3 2016

Cardinal Resources Limited (ASX: CDV) ("Cardinal" or "the Company") is pleased to report the results of a further two diamond drill holes, NMDD393‐725 and NMDD391‐745, recently completed on the Namdini Project ("Namdini"), Ghana (Figure 1).

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 98m @ 1.31 g/t Au and 49m @ 1.39 g/t Au, as well as a high grade gold zone of 9m @ 4.44 g/t Au within diamond drill hole NMDD391‐745.

Infill diamond drill holes NMDD393‐725 and NMDD391‐745 have enabled Section F to be compiled, with a 190m wide gold mineralised zone (Figure 2). This mineralised section confirms the continuation of wide gold mineralisation both at depth and along strike within the Namdini Project.

The volcaniclastics intersected in both diamond drill holes are mineralised throughout which confirm that gold mineralisation is consistently being intersected along strike and at depth.

Infill diamond drilling is being 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).

Currently hole NMDD512‐766 is being drilled. Assay results are pending from a further 17 diamond drill holes, which should provide a constant flow of results in the weeks ahead. The Company has divided up its core submissions between SGS Laboratories in Burkina Faso and Ghana to assist in accelerating receipt of assay results (Figure 1).

Figure 1: Location of Diamond Drill Holes NMDD393‐725 and NMDD391‐745

Figure 2: Diamond Drill Holes NMDD393‐725 and NMDD391‐745 with mineralised zone of 190m

NMDD393‐725 intersected 209m of gold mineralisation within hydrothermally altered volcaniclastics from 40m to 249m vertical depths with multiple zones of mineralisation down the drill hole, including 31m @ 1.57 g/t, 49m @ 1.39 g/t and 15m @ 1.27 g/t, confirming continuity of mineralisation with depth (Figures 2 and 3).

Figure 3: Hydrothermally mineralised and altered volcaniclastics (NMDD393‐725)

NMDD391‐745 intersected 144m of mineralisation within hydrothermally altered volcaniclastics from surface to 144m vertical depths, including 98m @ 1.31 g/t and 9m @ 4.62 g/t confirming continuity of mineralisation with depth (Figures 2 and 4).

Figure 4: Hydrothermally mineralised and altered volcaniclastics (NMDD391‐745)

Drill holes NMDD393‐725 and NMDD391‐745 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 373.14m and 276.9m 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 deflects 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.

The core was orientated at each drill run using a digital instrument. The core was marked showing the base of the drill hole, then the core from each drill run was laid in a length of angle iron to fit the core together so that the orientation line could be drawn along the length of the core at the drill site. Geotechnical parameters were measured using this orientation line as the datum line.

The core was photographed then cut in half and then cut in half again. One quarter of the core was consistently sampled, with the remaining three quarters stored in metal core trays and placed on metal racks under cover in the core shed at Bolgatanga. The quarter core samples were sent to the SGS Laboratory in Burkina Faso for sample preparation and fire assay.