EGM Statement

Cardinal Resources plc
06 November 2007


   CARDINAL RESOURCES PLC POSTS EGM CIRCULAR TO SHAREHOLDERS

   LONDON - Tuesday, 6 November 2007                                          

   Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'the Company'), an
   independent oil and gas exploration and production company operating in
   Ukraine, today mailed a circular to shareholders to notify them of an
   extraordinary general meeting ('EGM') to be held at 10:00 am on the 30
   November 2007 at the offices of Fox Williams LLP, Solicitors, Ten Dominion
   street, London EC2M 2EE. 

   The circular addresses the following issues:
   --------------------------------------------

   • Capital reorganisation and reduction of share capital
   • Increase in borrowing powers

   The directors of Cardinal (the 'Directors') have been reviewing the
   existing capital structure and believe that it is in the best interests of
   the shareholders of the Company (the 'Shareholders') and the Company as a
   whole to effect a reorganisation and reduction of the share capital of the
   Company. 

   The Company confirms, following the announcement on 30 October 2007, that
   pursuant to the terms of a framework agreement for the potential sale of
   its Ukrainian assets (the 'Transaction'), the Company is working toward
   signing a share purchase agreement ('SPA') to effect the Transaction by 9
   November 2007. However, there is no guarantee that the SPA will be
   executed, or, if it is executed, that the Transaction will be approved by
   Shareholders at a further extraordinary general meeting to be convened for
   that purpose.

   The Directors believe that a reduction of share capital and an increase in
   the borrowing powers of the Directors would increase the number of options
   available to the Company, including providing for the flexibility to raise
   additional equity/debt financing as opportunities become available should
   the Transaction fail to complete and/or to successfully execute the post
   Transaction investing strategy of the Company.

   Capital reorganisation and reduction of share capital:
   ------------------------------------------------------
   For the Company to have the flexibility to consider and conduct equity
   fund-raising initiatives at a price available in the market, without being
   restricted to a price of not less than 20p which is the current nominal
   value of the Company's ordinary shares (the 'Ordinary Shares'), the
   Directors are of the opinion that the nominal value of the Ordinary Shares
   needs to be reduced below its market value, which at the time the Ordinary
   Shares were suspended from trading on AIM, was 7p.

   Although the capital reorganisation will have the result of creating a new
   distributable reserve, the purpose of the capital reorganisation is to
   reduce the nominal value of the Ordinary Shares to facilitate the
   possibility of equity fund-raising.

   Increase in borrowing powers:
   -----------------------------
   The Directors believe that it is in the best interests of the Company to
   reduce the restrictions on the borrowing powers of the Directors currently
   imposed by the articles of association of the Company (the 'Articles of
   Association') which, due to ongoing declines in the Company's adjusted
   capital and reserves, cap the borrowing powers of the Directors at £20
   million.

   Given the Company's immediate need for liquidity, the Directors believe
   that it is in the best interests of the Shareholders and the Company as a
   whole to reduce the restrictions on the borrowing powers of the Directors
   and therefore propose an amendment to the Articles of Association to
   increase the Directors' borrowing powers to the greater of £40 million and
   4.5 times the Company's adjusted capital and reserves. The Directors also
   believe that this change will facilitate any future negotiations with the
   Company's chief creditor Silver Point Capital ('SPC'), failing completion
   of the Transaction, to restructure SPC's outstanding financing to the
   Company and the Company's efforts to attract new equity funding for the
   business through a rights offering, open offer or private placement.

   The recommendation:
   -------------------
   The circular contains a recommendation by the Directors to Shareholders to
   vote in favour of the resolutions to be proposed at the EGM as the
   Directors have irrevocably undertaken to do in respect of their aggregate
   shareholding of 2,066,924 Ordinary Shares, representing 1.8 per cent of
   the issued ordinary share capital of the Company at the date of this
   document.

   A copy of the EGM Circular sent to shareholders is available on the
   Company's web site: www.cardinal-uk.com in accordance with the AIM rules.

   For further information please contact:

   Cardinal Resources                           Conduit PR Ltd
   Charles Green / Natalia Egorova              Jonathan Charles
   [phone]                         [phone]
   [e-mail]           [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.





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