Strategic agreement

Cardinal Resources plc
09 August 2007


CARDINAL RESOURCES PLC SIGNS ADMINISTRATIVE AND SERVICES AGREEMENT.


LONDON -  9 August 2007


Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an independent
oil and gas exploration and production company operating in Ukraine, today
announces that it has entered into an administrative and technical services
agreement ('the Agreement') pursuant to which Cardinal has undertaken to provide
certain services to Condor Exploration, Inc ('Condor'), a company with oil and
gas exploration and development assets in Columbia.


Agreement highlights:
     
•    Cardinal will provide administrative and technical advisory services to 
     Condor in relation to Condor's exploration and development assets in 
     Colombia

•    Cardinal will receive an immediate cash payment of $675,000

•    Cardinal will receive an ongoing quarterly administration fee of $250,000

•    Cardinal will also receive a 6.75% equity interest in Condor in lieu of 
     cash-based reimbursement for historical due diligence related expenditure 
     and Cardinal management's time allocated to the due diligence process

•    Robert J Bensh, Chairman and CEO of Cardinal has joined the Board of Condor


Transaction rationale:

The signing of the Agreement follows the statement in Cardinal's 2006 Annual
Report and Accounts that the Company was negotiating an outsourcing agreement to
provide services to a third party which would utilise the Company's existing
resources to deliver an additional revenue stream which could be offset against
Cardinal's fixed costs.


About Condor:

Condor is a privately-owned and Delaware-incorporated company which was
established earlier this year to undertake the acquisition, development and
operation of hydrocarbon assets in Colombia. Condor has an economic interest in
future production from three contract areas which are located in the Middle
Magdalena and Llanos Basins, Colombia.

Condor's strategy is to develop the contracted areas and conduct high impact
exploration and development projects within its portfolio.

Hares Group Energy Limited, a subsidiary of Hares Group Limited which is a 19.2%
shareholder in Cardinal, owns a 10% equity interest in Condor. No director or
employee of Cardinal owns a personal interest in Condor. The remainder of
Condor's shareholders are various institutional and private investors.


Key terms of the Agreement:

Cardinal has undertaken to use its existing corporate infrastructure, personnel,
commercial relationships, as well as various other resources, as appropriate, to
provide the following services:
     
•    advice on the exploration and development of Condor's existing assets;

•    advice on general, strategic, administrative and technical support
     services;

•    advice on financing, planning, accounting, taxation and legal matters and

•    advice on business development issues.

The Agreement will have an initial term of one year and will be capable of
renewal annually thereafter, unless terminated by either party, which must be
done by serving notice 90 days' in advance.  The Agreement may be terminated at
Condor's election in the event that:

•    Cardinal is in material breach of its obligations under the Agreement;

•    A change of control of Cardinal occurs, with control for this purpose being 
     a person or persons acting in concert holding more than 50% of Provider's
     ordinary share capital;

•    Robert J. Bensh is no longer serving in an executive capacity with
     Cardinal (agreed at the request of Condor).

Cardinal's equity interest in Cardinal would survive a termination of the
Agreement.

In the event that Cardinal considers that it provides more advice and assistance
to Condor than was reasonably envisaged at the time of the Agreement, it shall
be entitled to seek to increase its quarterly administration fee, but such
increase would be subject to consent of a key  Condor shareholder. Based on
current roles and responsibilities CEO Robert J. Bensh and COO Cliff M West
would each allocated approximately 4 days per month to Condor-related activity.

One of Condor's other shareholders has provided a loan to the company. All other
equity interests in Condor, including that of Cardinal, will be pledged to the
lending shareholder pending full repayment of this loan.

The Directors of Cardinal believe that Cardinal has considerable and valuable
regional expertise within the Company's senior management. Cliff M West has been
involved in South American energy projects since 1987, whilst Robert J Bensh
previously worked as an adviser to the government of the Republic of Colombia
during the 1990s. Both have an extensive network of contacts within the
Columbian industrial and political spheres.

Commenting today Robert J. Bensh said: 'This deal represents an excellent
opportunity to gain an interest in undervalued high-margin assets in an area
where we have considerable technical and regional expertise. The Agreement has
an immediate positive impact on Cardinal's current cash flow and will provide
additional cash flow going forward. Condor also has potential for considerable
upside, should its exploration and development based growth strategy prove
successful'.


For further information please contact:

 Cardinal Resources
 Charles Green / Natalia Egorova                            [phone]
                                              [e-mail]
 College Hill                                              +44 (0)  207 457 2020
 Nick Elwes/Paddy Blewer

 Nominated Adviser
 Nabarro Wells & Co. Limited                                [phone]
 John Wilkes / Marc Cramsie                         [e-mail]
 


Notes to Editor

Cardinal Resources plc is an independent oil and gas company engaged in the
acquisition, development, production and exploration of oil and natural gas
properties in Ukraine. Cardinal is an experienced operator in the country
focused on expanding its existing operations through the farm-in or acquisition
of additional upstream oil and gas assets that can be further developed through
the application of modern technology and expertise.

Condor is a privately-owned and Delaware-incorporated company which was
established earlier this year to undertake the acquisition, development and
production of hydrocarbon assets in Colombia. Condor has an economic interest in
future production from three contract areas which are located in the Middle
Magdalena and Llanos Basins, Colombia.




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