RC Update and Well Swap

Cardinal Resources plc
10 March 2006


CARDINAL RESOURCES PLC ANNOUNCES UPDATE ON RC FIELD REINSTATEMENT AND WELL SWAP

RESERVES INCREASE BY 1.8 MILLION BARRELS OF OIL EQUIVALENT

LONDON - Friday, 10th March 2006

Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'The Company'), an independent
oil and gas production and exploration company operating in Ukraine, today
announces an update on the Rudivsko-Chernovozavodske (RC) Field reinstatement.
Cardinal also announces that it has concluded an agreement for a well swap with
its Joint Activity (JAA) partner, Ukrgazvydobuvannya (Ukrgaz), a subsidiary of
Naftogaz Ukraine.

Since the end of last year, Cardinal has held intermittent negotiations and
general discussions with its Joint Activity partner, Ukrnafta, and its major
shareholders regarding the reinstatement of Cardinal's subsidiary, Carpatsky
Petroleum's, net profit interest in the RC Field and in four development wells
drilled by Ukrnafta. An agreement has not been reached and the Company does not
expect one until after the Ukrainian parliamentary elections on 26th March.

Under the new swap agreement with Ukrgaz Cardinal gains increased ownership and
operational control of the Bilousivsko-Chornukhinska (BC) licence area,
increasing its working interest in six undeveloped wells previously in JAA #429
from 50% to 100%. Cardinal also obtains 50% of one additional workover candidate
in the North Yablunivska (NY) licence. In turn, Ukrgaz gains an increased
interest in four wells, reducing Cardinal's interest in them by 50%. Cardinal
acquired the three licences - Dubrivska (DB), Bilousivsko-Chornukhinska (BC) and
North Yablunivska (NY) - through its acquisition of Rudis Drilling Company
(Rudis) in October 2005.

The net effect to Cardinal of the swap is that its average working interest in
the wells subject to the swap rises to approximately 76% from 64%, with a
corresponding net revenue increase of 16%. As part of the agreement, Cardinal
and Ukrgaz will adjust their capital contributions to the JAA accordingly. After
accounting adjustments and profit distributions, it is anticipated that the net
cost to Cardinal will be a maximum of approximately $400,000.

The transaction, which is effective from 30th January 2006, increases Cardinal's
total proved and probable reserves by 1.8 million barrels of oil equivalent
(MMBOE) to 29.3 MMBOE.

Taking into account the well swap, Cardinal has identified eleven development
drilling locations and seven well workovers in the BC and NY licence areas. The
2006 / 2007 development program on the BC and NY licence areas include seven
well workovers and the initiation of drilling operations on seven of the eleven
development locations, with four of those expected to be completed prior to
year-end 2007. The forecasted capital investment to develop these locations is
$25 to $42 million, dependant upon the number of wells drilled, the extent of
western equipment utilised and the availability of finance, with an anticipated
2,500 to 3,000 barrels of oil equivalent per day increase to current net
production levels by the end of 2007.

At present, the BC #13 workover has been completed and is now producing
approximately 50 barrels of condensate per day. Site work on the drilling
locations for the BC #3 and NY #4 development wells has begun. The NY #203
workover has begun, and the BC #111 and BC #9 workovers are expected to commence
operations in the second and third quarters of 2006 respectively. The results of
the Dubrivska # 2 exploratory well are expected in the second quarter of 2006.

'We will continue to deliver on our strategy to add properties that are operated
by Cardinal which offer significant upside to our portfolio,' said Chairman and
Chief Executive Officer Robert J. Bensh. 'Our team has the opportunity to
enhance our asset base with increased exposure to gas in the Ukraine, while
adding further development drilling opportunities under Cardinal's control.'


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For further information please contact:

Cardinal Resources         Parkgreen Communications
Kate Spiro                 Justine Howarth / Victoria Thomas
[phone]       [phone]
[e-mail]     [e-mail]


Notes to Editor

Cardinal Resources plc
Cardinal Resources plc is an independent oil and gas production and exploration
company with assets 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.

Cardinal's main assets are:

Rudivsko-Chernovozavodske (RC) Field

Rudivsko-Chernovozavodske is a large under-developed gas field (1.54 TCF
original gas in place), located in the Dnieper-Donets basin, 200km east of Kiev
in the Poltava Oblast. Cardinal has a Joint Activity Agreement (JAA) with a
subsidiary of Ukrnafta for production and further development.

Bytkiv-Babchenske (Bytkiv) Field

Bytkiv-Babchenske is an oil field, located in the Carpathian fold belt, 45km
south-west of Ivano-Frankivsk in the Nadvirna Oblast. Cardinal has a 45%
interest through UkrCarpatOil, a Joint Venture (JV) with Ukrnafta, to operate
and develop the field.

Plus the following assets which were acquired as part of the Rudis Drilling
Company transaction in 2005:

Bilousivsko-Chornukhinska (BC) Licence

Bilousivsko-Chornukhinska is a producing gas-condensate licence in the
Dnieper-Donets basin, owned and operated by Cardinal.

North Yablunivska (NY) Licence

North Yablunivska is a producing gas-condensate licence in the Dnieper-Donets
basin, owned by Cardinal and operated under the JAA.

Dubrivska (DB) Licence

Cardinal is currently drilling an exploration well as part of the JAA with
Ukrgazvydobuvannya.

Ukrgazvydobuvannya JAA #429

Cardinal has a 50% percent interest in three wells in two other fields
(Kulickykhin and Bilskie) in the Dnieper-Donets Basin under a JAA with
Ukrgazvydobuvannya.


This release may contain certain forward-looking statements. These statements
relate to future events or future performance and reflect management's
expectations regarding Cardinal's growth, results of operations, performance and
business prospects and opportunities. Such forward-looking statements reflect
management's current beliefs, are based on information currently available to
management and are based on reasonable assumptions as of this date. No
assurance, however, can be given that the expectations will be achieved. A
number of factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in this
release. While Cardinal makes these forward-looking statements in good faith,
neither Cardinal, nor its directors and management, can guarantee that the
anticipated future results will be achieved.




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