2005 INTERIM REPORT

Cardinal Resources plc
26 September 2005


                             CARDINAL RESOURCES PLC
                              2005 Interim Report

          Unaudited Interim Results for the six months ended 30th June 2005


Highlights:

• Successful initiation of work programme

• Two workovers completed, two in progress and eighteen pending

• One drilling location prepared and second location being prepared for new
  wells

• 15%+ increase in Ukraine gas prices since admission to AIM - significantly
  higher than expected

• Turnover increased 24% to $1.91 million

• Ongoing political developments in Ukraine should have positive implications
  for Cardinal

• Loss per ordinary share was $0.042


For further information, please contact:

Cardinal Resources PLC

Charles C. Green
Vice Chairman and Chief Financial Officer
[phone]

Kate Spiro
Investor and Public Relations
[phone]

Chairman's Statement

Dear Shareholder,

I am pleased to present the first set of interim figures since Cardinal
Resources plc's admission to the Alternative Investment Market of the London
Stock Exchange in April 2005. These figures cover the six months ended 30th June
2005 and represent the period of project development in the run-up to flotation
which has been fully described in our AIM admission document.

While there is a limited amount that we can add to the comprehensive information
contained in that document, I would like to take this opportunity to review the
development projects currently underway and provide updates where appropriate.

Before turning to discussion of the financial accounts and operations, I first
want to address the political situation in Ukraine. President Yushchenko's
decision earlier this month to dismiss his government confirms his commitment to
building a team that will fight corruption, encourage and attract western
investment, and work for the people of Ukraine rather than for self interests.

In the long-term I believe this move has positive implications for Cardinal and
underscores the fact that Ukraine is moving along the path of political and
economic change.

Progress has also been made with regards to the reform of the Ukrainian energy
sector and the liberalization of gas prices. Gazprom, Russia's state-run gas
company, has announced that it has set the 2006 starting price for natural gas
for Ukraine at approximately $5.00/Mscf - more than two and a half times the
current gas price in September 2005. This month the Russian and Ukrainian heads
of Industry and Energy also met to discuss tariffs for the transportation of gas
and oil through Ukrainian territory in 2006. After the negotiations, the
Ukrainian minister for the first time announced that Ukraine is ready to 'work
out the formula' of switching to European prices for gas starting in the New
Year. The final price is still subject to further negotiations but I view both
announcements as very encouraging for Cardinal's ongoing business development in
Ukraine. Mindful of the political ramifications for any increase in energy
prices, I nevertheless believe these factors set the stage for upward movements
in the domestic gas price in Ukraine over the short term.

FINANCIAL REVIEW

Total revenues (Group and share of joint venture) for the six month period
increased 24% to $1.91 million (2004: $1.54 million), supported by the strong
pricing environment. Cardinal's operating loss was $3.00 million (2004: $3.05
million) which is in-line with the company's expectations during this flotation
and initial development phase.

Offset somewhat by the one time Carpatsky Petroleum Corporation reorganisation
costs, total General and Administration expenses decreased by 3%.

Following the successful IPO in April, Cardinal's cash position at 30th June
remains strong, up $10.8 million over the same six month period last year, with
a cash balance of $13 million.


OPERATING REVIEW

Cardinal's current operations are in Ukraine where it holds interests in two
fields - the Rudivsko-Chernovozavodske ('RC') field and the Bytkiv-Babchenske
('Bytkiv') field. As at December 31st 2004 the company had total net reserves of
18.4 MMBOE (110.6 Mscfe) and net daily average production for the year to June
30th was 631 boepd.

The development programme that was set out at the time of Cardinal's admission
to AIM is progressing.

Rudivsko-Chernovozavodske ('RC') Field

Under Cardinal's JAA with Ukrnafta in the RC field, six wells were in production
at 30th June. The workover program, as planned at the time of the AIM listing,
was initiated at the end of June. One workover has already been completed, one
is currently in progress and a further two workovers are expected to be
completed by the end of the year. Ukrnafta is currently in discussions with
Cardinal to evaluate workovers on six other wells not included within the JAA
and that were not contemplated in the AIM admission document.

Bytkiv-Babchenske ('Bytkiv') Field

Cardinal holds a 45% net profit interest in the Bytkiv field through its Joint
Venture, UkrCarpatOil, with Ukrnafta. Twelve wells were producing at 30th June.
One well has been worked over and one further well is currently in the process
of being worked over. Drilling of at least one well is expected to commence
before year-end and a further ten workovers are scheduled to be completed by the
end of 2006.

A Progressive Capacity (PC) pump has been tested at one well with encouraging
results but requires further evaluation. Meanwhile, the well has been returned
to production, utilizing gas lift with slightly higher than original production
rates. UkrCarpatOil has ordered additional pumps for its other producing wells,
to be delivered to the field by the end of September. The new pumps are expected
to reduce downtime and, together with re-perforating and stimulations, increase
production rates.

2005 OUTLOOK

The year so far has been an exciting time for Cardinal. Our debut on the AIM
market and the initiation of our work programme were both key milestones in our
development. The year ahead will remain busy as we ramp up the development
programme in the RC and Bytkiv fields. We have many workovers to perform and new
wells to drill. Production is expected to decline in the short term as
production is temporarily suspended on wells subject to workover. The impact of
the work programme will start to flow through in our 2006 results. Furthermore,
we continue to seek and identify acquisition opportunities in Ukraine to add to
the company's reserve base.

Over the next six to twelve months I believe that we will continue to see
developments in Ukraine which will support Cardinal's growth. We are in the
unique position of being able to participate in the consolidation of the oil and
gas sector while also taking advantage of increasing Ukrainian gas prices and
the ongoing development of the domestic economy.

Robert Bensh
Chairman

22nd September 2005

Kiev, Ukraine

Consolidated Profit and Loss Account
for the six months ended 30th June 2005

                        Six months ended   Six months ended        Year ended
                            30 June 2005       30 June 2004  31 December 2004
                               Unaudited          Unaudited           Audited
                                   $'000              $'000             $'000

Turnover

Group and share of joint                              
venture                            1,906              1,540              3,024
Less: share of joint
venture turnover                   (974)              (474)            (1,429)
                               -----------        -----------       ------------
                                     932              1,066              1,595
Cost of sales                       (632)              (703)            (1,220)
                               -----------        -----------       ------------
Gross profit                         300                363                375

Reorganisation Expenses             (601)                 -               (698)
Other General &
Administrative Expenses           (2,702)            (3,410)            (5,464)
                               -----------        -----------       ------------
Total General &
Administrative Expenses           (3,303)            (3,410)            (6,162)
                               -----------        -----------       ------------
Operating loss                    (3,003)            (3,047)            (5,787)

Share of operating
(losses)/profit of joint venture      185                189              (167)
Interest receivable                    54                 11                45
Interest payable                       (5)               (75)              495
                               -----------        -----------       ------------
Loss on ordinary
activities before taxation        (2,769)            (2,922)            (5,414)

Tax on loss on ordinary
activities                          (134)               (82)              (179)
                               -----------        -----------       ------------
Loss on ordinary activities                        
transferred to Reserves           (2,903)            (3,004)            (5,593)


Loss per ordinary share ($)1       0.042              0.064              0.110


There were no recognised gains or losses other than the result for the financial
period.

Consolidated Balance Sheets
at 30th June 2005


                               30 June 2005   30 June 2004    31 December 2004
                                  Unaudited      Unaudited             Audited
                                      $'000          $'000               $'000

Fixed Assets
Tangible fixed assets                 2,915          2,900               2,604
                                  -----------    -----------        ------------

Investments
Joint Ventures
Share of gross assets                 2,168          1,864               1,881
Share of gross liabilities           (1,682)        (1,169)             (1,580)
                                  -----------    -----------        ------------
                                        486            695                 301
                                  -----------    -----------        ------------

                                      3,401          3,595               2,905
                                  -----------    -----------        ------------

Current Assets
Stock                                     8             17                  15
Debtors                               2,227            492               3,453
Cash at bank and in hand             13,034          4,627               2,185
                                  -----------    -----------        ------------
                                     15,269          5,136               5,653

Creditors: amounts falling
due within one year                  (2,843)        (2,477)             (4,634)

Net current assets/
(liabilities)                        12,426          2,659               1,019
                                  -----------    -----------        ------------

Total assets less current
liabilities                          15,827          6,254               3,924
Creditors: amounts falling
due within one year                  (1,220)        (1,220)             (1,220)
Provision for liabilities and
charges                                (144)          (179)               (144)
                                  -----------    -----------        ------------

                                     14,463          4,855               2,560
                                  ===========    ===========        ============

Capital and Reserves

Called up share capital              32,435          5,825               5,825
Share Premium account                 3,393            960                 960
Reverse Acquisition Reserve          (1,278)        (1,278)             (1,278)
Shares to be issued                       -         14,209              14,209
Other reserves                        1,303          1,128               1,331
Profit and loss account             (21,390)       (15,989)            (18,487)
                                  ===========    ===========        ============

Total shareholders' funds            14,463          4,855               2,560
                                  ===========    ===========        ============


Consolidated Cash Flow Statements
for the six months ended 30th June 2005

                        Six months ended   Six months ended         Year ended
                            30 June 2005       30 June 2004   31 December 2004
                               Unaudited          Unaudited            Audited
                                   $'000              $'000              $'000
                               -----------        -----------       ------------
Net cash outflow from
operating activities              (3,323)            (4,990)            (7,064)
                               -----------        -----------       ------------

Returns on investment and servicing of finance
Interest received                     54                 11                 45
Interest paid                         (5)               (75)              (146)
                               -----------        -----------       ------------
Net cash (outflow)/inflow
from returns on investments                    
and servicing of finance              49                (64)              (101)
                               -----------        -----------       ------------
Taxation                            (134)               (82)              (179)

Capital expenditure
Payments to acquire tangible        
fixed assets                        (577)               (97)              (156)
                               -----------        -----------       ------------
Net cash outflow from
capital expenditure and                     
financial investment                (577)               (97)              (156)
                               -----------        -----------       ------------
Acquisitions
Net cash from purchase of                                     
subsidiary undertakings                -              9,500              9,500
                               -----------        -----------       ------------
Net cash inflow from
acquisitions                           -              9,500              9,500

Financing
Repayment of borrowings                -                  -               (175)
Receipts from share issue         19,843
Share issue costs                 (5,009)                 -                  -
                               -----------        -----------       ------------
Net cash outflow from
financing                         14,834                  -               (175)
                               -----------        -----------       ------------

Increase in cash                  10,849              4,267              1,825
                               ===========        ===========       ============


Notes to the Interim Statement
for the six months ended 30th June 2005

1. Loss per ordinary share

                        Six months ended   Six months ended         Year ended
                            30 June 2005       30 June 2004   31 December 2004

Loss for the    $'000              2,903              3,004              5,593
period

Weighted average number   
of shares        '000             68,654             46,997             50,837

Loss per share      $              0.042              0.064              0.110


2. The directors do not recommend the payment of a dividend.


3. The financial information contained in this document does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The financial information for the year ended 31 December 2004 is extracted from
the audited financial statements for that period on which the auditors gave an
unqualified report. A copy of those financial statements has been filed with the
Registrar of Companies.


4. This statement will be available on our website www.cardinal-uk.com or from
the company's registered office at Whitefriars House, 6 Carmelite Street, London
EC4Y 0BS.

Company

Directors                      Robert J Bensh (Chairman and CEO)
                               Charles C Green (Vice Chairman and CFO)
                               Jonathan C R Morley-Kirk (Non-executive Director)
                               David F Phillips (Non-executive Director)
                               Marcus J G Stanton (Non-executive Director)

Company Secretary              William S Hayes

Registered Office              Whitefriars House
                               6 Carmelite Street
                               London EC4Y 0BS

Registered in England & 
Wales No.                      5049975

Advisers

Nominated Adviser              Nabarro Wells & Co. Limited
                               Saddlers House, Gutter Lane
                               London EC2V 6HS

Broker                         Fox-Davies Capital Limited
                               Whitefriars House
                               6 Carmelite Street
                               London EC4Y 0BS

Bankers                        Barclays Bank plc
                               54 Lombard Street
                               London EC3V 9EX

Auditors                       Grant Thornton UK LLP
                               Grant Thornton House, Melton Street
                               London NW1 2EP

Solicitors                     McCarthy Tetrault
                               5 Old Bailey
                               London EC4M 7BA

Solicitors in Ukraine          Salans
                               Business Centre Panorama
                               20 Velyka Zhytomyrska Street
                               01025 Kiev

Registrar                      Computershare Investor Services PLC
                               P O Box 82, Bridgwater Road
                               Bristol BS99 7NH


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