Statement re Financing

Cardinal Resources plc
01 December 2005


                       CARDINAL RESOURCES PLC ANNOUNCES NEW FINANCING 
                       FACILITIES; SETTLES RUDIS ACQUISITION
                       DEFERRED PAYMENT

                       LONDON - Thursday, 1st December 2005
Contact
Kate Spiro             Cardinal Resources plc (AIM:CDL), an independent oil and
DIRECTOR               gas exploration and production company, today announces
Investor Relations     that it has secured a US$8 million bridge financing
[e-mail] facility from Silver Point Finance to fully satisfy the
[phone]   Rudis acquisition deferred cash consideration, for
                       transaction expenses and general corporate purposes.

                       Cardinal is also in advanced discussions with Silver
                       Point to increase the bridge financing to US$38 million.
                       This will enable Cardinal to refinance the initial US$8
                       million and to also take advantage of several significant
                       development opportunities. Specifically, the additional
                       facility would allow Cardinal to:

                       • exercise its previously-disclosed right to increase its
                       net profit interest in the Rudivsko-Chernovozavodske (RC)
                       Field from 14.9% to 45% (the RC Buy-Back) on terms to be
                       agreed by Cardinal and its local joint venture partner,
                       JSC Ukrnafta. For such negotiations to commence Cardinal
                       needs to have committed financing in place;

                       • expand its work programme to include development of the
                       recently-acquired Rudis assets; and

                       • finance additional farm-in and acquisition
                       opportunities available to Cardinal in Ukraine.

                       Cardinal expects that when it completes the RC Buy-Back
                       and the current development drilling activities and
                       workovers it will benefit from significantly increased
                       reserves, increased oil and gas production and an
                       increasing oil and gas price environment in Ukraine.

                       'This financing is the first step in moving forward with
                       a financial partner that can assist Cardinal in its
                       strategy of growth through acquisitions in Ukraine,' said
                       Robert J Bensh, Chairman and Chief Executive Officer of
                       Cardinal.

                       Summary Terms of Financing Agreement

                       Under the completed financing agreement with Silver
                       Point, Cardinal has issued US$8 million in PIK Notes to
                       Silver Point. The PIK Notes will carry a coupon of 15%
                       with quarterly interest payable in cash or by issue of
                       further PIK Notes (on the same terms) at Cardinal's
                       option. As part of this financing, Cardinal has also
                       issued to Silver Point warrants to subscribe at a price
                       of 27.5p for 4,389,875 new Cardinal ordinary shares for a
                       period of 5 years. The subscription price represents a
                       premium of 49% over the mid-market closing price of
                       Cardinal shares on 1st December 2005.

                       The PIK Notes will have a 6 month term and, based on
                       advanced discussions with Silver Point, the expectation
                       of the Directors of Cardinal is that the PIK Notes will
                       be refinanced by an issue of new Bridge PIK Notes in the
                       amount of US$38 million. The terms, subject to final due
                       diligence and satisfactory documentation, would be
                       similar to those for the US$8 million bridge, with the
                       exception of a 2 year term, and are intended to be
                       refinanced, subject to shareholder approval, by an issue
                       of Senior PIK Notes before expiry of the term. If the
                       Senior PIK Notes are not issued, interest payments will
                       rise from 15% to 20% per annum six months after the
                       Bridge PIK Notes' issue date and then another 1% per
                       annum for every quarter thereafter until maturity. A
                       break up fee of US$3.5 million would become payable to
                       Silver Point if Cardinal were to refinance the US$8
                       million PIK Notes within 90 days of the date hereof with
                       an alternative party. No break up fee will be payable if
                       Silver Point withdraws, or if Silver Point and Cardinal
                       fail to agree terms.

                       Cardinal Resources plc

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

                       Silver Point Finance

                       Silver Point Finance structures and provides custom
                       financing for large and middle market companies across
                       all industries.

                                         ###

                       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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