ASX ANNOUNCEMENT AND MEDIA RELEASE

25 July 2016

HIGH GRADE RESULTS CONTINUE AT NAMDINI

HIGHLIGHTS

• 108m @ 1.62 g/t from surface including 43m @ 2.52 g/t

• Confirms wide gold mineralisation across strike to 240m

• Significant gold mineralised intersections within this section include:

  • 108m @ 1.62 g/t gold ‐ from surface o 69m @ 2.05 g/t gold - from surface o 50m @ 1.99 g/t gold

  • 58m @ 1.61 g/t gold

  • 37m @ 2.36 g/t gold

Cardinal Resources Limited (ASX: CDV) ("Cardinal" or "the Company") is pleased to report the results of another shallow updip RC drill hole, NMRC470‐784, recently completed on the Namdini Project ("Namdini"), Ghana (Figure 1).

Cardinal's Managing Director, Archie Koimtsidis said: "This shallow updip drill hole confirms that the mineralised gold corridor has been widened across strike, thereby significantly enhancing the gold potential of the Namdini project.

"This updip drill hole also confirms the presence of near surface gold mineralisation within the Namdini mineralised corridor.

"The width and tenor of gold that continues to be 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 that mineralisation remains open at depth and along strike".

Infill diamond drill holes NMDD472‐745 and NMDD470‐774 with updip RC hole NMRC470‐784 have enabled Section N to be compiled, with a 240m wide gold mineralised zone (Figure 2). This mineralised section confirms the continuation of wide gold mineralisation at depth and along strike and near surface within the Namdini Project.

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 108m @ 1.62 g/t Au, 69m @ 2.05 g/t Au, 58m @ 1.61 g/t Au, 50m @ 1.99 g/t Au and 37m @ 2.36 g/t Au.

Assay results are pending from 9 diamond and 11 RC 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 drill holes NMDD472‐754, NMDD470‐774 and NMRC470‐784

Figure 2: Drill holes NMDD472‐754, NMDD470‐774 and NMRC470‐784 with 240m mineralised zone

NMRC470‐784 intersected 120m of gold mineralisation within hydrothermally altered granitoids,volcaniclastics and diorites from 0m to 120m vertical depths with multiple zones of mineralisation down the drill hole, including 108m @ 1.62 g/t, confirming continuity of mineralisation with depth (Figures 2 and 3).

Figure 3: Mineralised volcaniclastics amd granitoids within 108m @ 1.62 g/t Au zone (NMRC470‐784)

The drill rig was aligned for this RC drill hole at ‐60⁰ 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 deflect to the right with depth due to the clockwise rotation of the drill rods.

The RC drill hole was surveyed at the top of the drill hole to confirm that the drill rig had been set up correctly. Once harder rock was encountered, PVC casing was inserted for stability of the RC drill hole which was drilled to the planned depth of 150m. The drill hole was also surveyed at the base of the drill hole to determine the dip of the drill hole.

NMDD472‐754 intersected 244m of gold mineralisation within hydrothermally altered granitoids and volcaniclastics from 48m to 292m vertical depths with multiple zones of mineralisation down the drill hole, including 37m @ 2.36 g/t, 58m @ 1.61 g/t and 22m @ 1.01 g/t, confirming continuity of mineralisation with depth (Figures 2, 4 and 5).

Figure 4: Mineralised volcaniclastics within 37m @ 2.36 g/t Au zone (NMDD472‐754)

Figure 5: Mineralised granitoid within 58m @ 1.61 g/t Au zone (NMDD472‐754)