Cardinal Resources : Hits 51m High Grade Gold Along Strike At Namdini

ASX ANNOUNCEMENT AND MEDIA RELEASE

27 January 2015

CARDINAL HITS 51m HIGH GRADE GOLD ALONG STRIKE AT NAMDINI HIGHLIGHTS

• High grade gold continues north along strike from the 43m gold intersection recently announced

• 51m @ 3.58 g/t from 85m vertical

• Further RC drill holes are planned to expand the gold potential at Namdini

Cardinal Resources Limited (ASX: CDV) ("Cardinal" or "the Company") announces that a high grade gold intersection has been located approximately 25m north along strike from the 43m gold intersection (see ASX announcement dated 5 November 2014) at the Namdini Mining Licence ("Namdini"), located within Cardinal's Bolgatanga Project in Ghana.

Commenting on today's results from Ghana, Cardinal Resources Managing Director Archie Koimtsidis said:
"This 51m wide gold intersection is the widest zone located since drilling started at Namdini. Additionally we are greatly encouraged that this intersection also has high gold grades and is located approximately 25m north along strike from the recently announced 43m gold intersection. This confirms the northern extension along strike of the amalgamated Zones 1 and 2 (Figure 1), which continues to produce promising grades and intersection lengths.
"This very encouraging result provides additional information that will guide the next stage of the drill plan to test for further strike and depth extensions of the three gold zones which are anticipated to expand the gold potential at Namdini.
"We have drilled a further approximately 900 metres and the samples will be sent to the SGS laboratory in
Ouagadougou, Burkina Faso this week. These results will be reported to the market as they become available."

Hole ID	Easting UTM	Northing UTM	Dip (⁰)	Azim (⁰)	RL (m)	Length (m)	From (m)	To (m)	Vertical (m)	Width (m)	Gold (g/t)
NMRC368-731	757325	1176760	-45	100	215	212	121	172	85	51	3.58

Table 1: Latest Namdini RC Drill Results Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 1 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Figure 1: Namdini Plan View of drill hole collars and projected gold zones Figure 2: Composite Section of Gold Zones Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 2 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Figure 3: Namdini Proximity Map FURTHER RC DRILLING PLANNED AT NAMDINI

Cardinal is the owner and operator of its own drill rig and has established an express assaying service with its drilling results, enabling the Company to continuously improve its drill plan strategy as new information becomes available.
The Company will continue drilling selective holes, submitting the samples and be on standby as results are received. Once the results have been assessed Cardinal can plan further drill holes to maximise expansion of the gold potential at Namdini.
"We are operating two shifts daily to finalise the the balance of ~1,000 metres of the planned drill target of
3,000 metre announced on 28 November 2014," Managing Director Archie Koimtsidis said. For further information contact:
Archie Koimtsidis
Managing Director

Cardinal Resources Limited

P: [phone]
Skype: cardinal.archie

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 3 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone] Competent Person's Statement

Information in this report that relates to the Namdini Project is based on information compiled by Mr Paul Abbott, a full time employee of Cardinal Resources Limited, who is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Geological Society of South Africa. Mr Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Abbott consents to the inclusion in this report of the statements based on his information in the form and context in which it appears.

Disclaimer

This ASX announcement (Announcement) has been prepared by Cardinal Resources Limited (ABN: 56 147
325 620) ("Cardinal" or "the Company"). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this Announcement.
This Announcement contains summary information about Cardinal, its subsidiaries and their activities which is current as at the date of this Announcement. The information in this Announcement is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Cardinal.
By its very nature exploration for minerals is a high risk business and is not suitable for certain investors. Cardinal's securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold provide movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.
Certain statements contained in this announcement, including information as to the future financial or operating performance of Cardinal Resources and its projects, are forward-looking statements that:

• may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;

• are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal Resources, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and,

• involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.

Cardinal Resources disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words 'believe',
'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may',
'will', 'schedule' and similar expressions identify forward-looking statements.

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 4 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

All forward looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
No verification: Although all reasonable care has been undertaken to ensure that the facts and opinions given in this Announcement are accurate, the information provided in this Announcement has not been independently verified.

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 5 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

JORC CODE 2012 EDITION - TABLE 1

CARDINAL HITS 51m HIGH GRADE GOLD ALONG STRIKE AT NAMDINI Section 1 - Sampling Technique and Data

Criteria	JORC Code Explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, Nature and quality of sampling is carried out under random chips, or specific specialised industry QAQC procedures as per industry standards, with standard measurement tools appropriate to the duplicates taken every 22nd sample, while standards minerals under investigation, such as down hole and blanks are inserted in the ratio of 1:44. gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Sampling techniques	Include reference to measures taken to ensure Sample representivity is ensured through a 3 tier riffle sample representivity and the appropriate splitter, as it provides an unbiased sample. calibration of any measurement tools or systems used.
Sampling techniques	Aspects of the determination of mineralisation The determination of mineralisation is not yet known. that are Material to the Public Report.
Sampling techniques	In cases where 'industry standard' work has been Industry standard reverse circulation drilling was done this would be relatively simple (eg 'reverse used to obtain 1m samples from which 3 kg was circulation drilling was used to obtain 1 m pulverised to produce a 50 g charge for fire assay. samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Drilling techniques Drill type (eg core, reverse circulation, open-hole Reverse Circulation drilling with a standard tube, hammer, rotary air blast, auger, Bangka, sonic, etc) Remet 5½ inch Hard Face (face-sampling) button and details (eg core diameter, triple or standard drilling bit. tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drill sample recovery	Method of recording and assessing core and chip Method of recording and assessing chip samples was sample recoveries and results assessed. on a hand held Motion F5te Tablet PC using a set of standard templates supplied by Maxwell Geoservices, Perth (Maxwell).
Drill sample recovery	Measures taken to maximise sample recovery and The measures taken to maximize sample recovery are ensure representative nature of the samples. through a cyclone and a 3 tier riffle splitter. This method ensures maximum sample recovery and an unbiased representative sample to be assayed.
Drill sample recovery	Whether a relationship exists between sample No relationship is known to exist between sample recovery and grade and whether sample bias may recovery and grade, and no sample bias may have have occurred due to preferential loss/gain of occurred due to preferential loss/gain of any fine/coarse material. fine/coarse material.
Logging	Whether core and chip samples have been Chip samples have been geologically logged to a level geologically and geotechnically logged to a level of of detail to support appropriate future Mineral detail to support appropriate Mineral Resource Resource estimations. estimation, mining studies and metallurgical studies.
Logging	Whether logging is qualitative or quantitative in Logging is quantitative. Chip samples are nature. Core (or costean, channel, etc) photographed in dry form. photography.

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 6 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Criteria	JORC Code Explanation	Commentary
The total length and percentage of the relevant All holes are logged in full. intersections logged.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, No core has been drilled. half or all core taken.
Sub-sampling techniques and sample preparation	If non-core, whether riffled, tube sampled, rotary The sub-sampling technique is with a 3 tier riffle split, etc and whether sampled wet or dry. splitter, and sampled dry.
Sub-sampling techniques and sample preparation	For all sample types, the nature, quality and Sample preparation is completed at SGS appropriateness of the sample preparation Laboratories, Ouagadougou, Burkina Faso. All technique. preparation equipment is flushed with barren material prior to the commencement of sample preparation. The entire sample is dried, crushed to a nominal 2mm using a Jaw Crusher, and pulverised (85- 90% passing 75 micron size fraction) using LM5 grinding mills. A 250 gram split is retained for fire assay with AAS finish to 10 ppb detection limit. The remainder is returned and stored at Cardinal's Bolgatanga premises.
Sub-sampling techniques and sample preparation	Quality control procedures adopted for all sub- Quality control procedures adopted for all sub- sampling stages to maximise representivity of sampling stages to maximize representivilty of samples. samples uses commercial certified reference material (CRM) for standards.
Sub-sampling techniques and sample preparation	Measures taken to ensure that the sampling is Measures taken to ensure that the sampling is representative of the in situ material collected, representative of the in situ material collected are to including for instance results for field insert duplicates at every 22nd sample. duplicate/second-half sampling. Approximately 3kg samples from the splitter are retained from each sample and stored on the company's premises for possible re-assay.
Sub-sampling techniques and sample preparation	Whether sample sizes are appropriate to the The sample sizes are considered appropriate to give grain size of the material being sampled. an accurate indication of gold mineralisation.
Quality of Assay The nature, quality and appropriateness of the The pulverized rock sample is weighed and mixed with data and assaying and laboratory procedures used and flux and fused using lead oxide at 1,100°C, followed by laboratory tests whether the technique is considered partial or cupellation of the resulting lead button (Dore bead). total. The bead is digested using 1:1 HNO₃ and HCl and the resulting solution is submitted for analysis. The digested sample solution is aspirated into the Flame Atomic Absorption Spectrometer (AAS), aerosolised, and mixed with the combustible gas, acetylene and air. The mixture is ignited in a flame whose temperature ranges from 2,100 to 2,800⁰C. During combustion, atoms of the gold in the sample are reduced to free, unexcited ground state atoms, which absorb light. Light of the appropriate wavelength is supplied and the amount of light absorbed can be measured against a standard curve. Results have a lower gold detection limit of 10 ppb. The AAS equipment is calibrated with each job. The analytical technique is industry standard fire assay which is considered to be a total digest of gold.

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 7 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Criteria JORC Code Explanation Commentary

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

No hand held geophysical tools are used.

Sample preparation checks for fineness are carried out by the laboratory as part of their internal procedures to ensure the grind size of 85-90% passing 75 micron is being attained. Each batch of

100 samples has 5 checks (20%), with the grind size varying between 87-99% passing 75 micron, which is acceptable. Laboratory QAQC involves the use of internal lab standards using certified reference material and blanks.

Certified reference materials, having a range of values, and in-house blanks are inserted in the ratio of 1:44. Duplicate samples are taken every 22nd sample.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

External laboratory checks are done on a three monthly basis through Laboratories Quality Services International (LQSI). Recent LQSI checks of Fire Assay analyses on Low Grade Oxide Material produced acceptable levels of accuracy and precision.

The verification of significant intersections by either independent or alternative company personnel has not occurred.

The use of twinned holes. There has been no use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Primary data was collected on a hand held Motion F5te Tablet PC using a set of standard templates supplied by Maxwell Geoservices, Perth (Maxwell). Daily data was synchronised and digitally captured by Maxwell for validation and compilation into Excel and Access spreadsheets and stored on the Cardinal servers located in Bolgatanga, Ghana, West Africa.

Discuss any adjustment to assay data. No adjustments were made to assay data.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Accuracy of drill hole collar surveys is +/- 3m using a hand held Garmin GPSmap 62s GPS.

Data spacing and distribution

Specification of the grid system used. WGS84 Sector 30N, with local grid baseline at 010⁰ True North and lines at 20m to 30m intervals and stations at 10-25m along lines.

Quality and adequacy of topographic control. The quality and adequacy of topographic control is +/-

3m using a hand held Garmin GPSmap 62s GPS.

Data spacing for reporting of Exploration Results. Data spacing is 10-25m (northing) and 20-30m

(easting).

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation

The data spacing and distribution is considered to be sufficient to establish a degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s)

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 8 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Criteria	JORC Code Explanation	Commentary
procedure(s) and classifications applied. and classifications applied.
Orientation of data in relation to geological structure	Whether sample compositing has been applied. No sample compositing ha-s been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves The orientation of sampling achieves unbiased unbiased sampling of possible structures and the sampling of possible structures as drilling is extent to which this is known, considering the orientated normal to the dip and foliation of the deposit type. deposit.
Orientation of data in relation to geological structure	If the relationship between the drilling orientation No orientation based sampling bias has been and the orientation of key mineralised structures is identified in the data to date. considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security The measures taken to ensure sample security. The measures taken to ensure sample security are through an independent Ghanaian security contractor. Samples are stored at Cardinal's base camp located at Bolgatanga, Ghana, West Africa under security until collected by SGS Laboratories and transported to their Ouagadougou laboratory in Burkina Faso.
Audits or reviews The results of any audits or reviews of sampling Sampling techniques are of industry standards. Data is techniques and data. audited by Maxwell Geoservices (Perth), who have not made any other recommendations.

Section 2 - Reporting of Exploration Results

(Criteria listed in section 1 will also apply to this section where relevant)

Criteria	JORC Code Explanation	Commentary
Mineral Tenement and Land Status	Type, name/reference number, location and The Namdini Mining Licence is located in NE Ghana. ownership including agreements or material issues Namdini Mining Limited (NML) holds the mining with third parties including joint ventures, licence. NML signed a Heads of Agreement with partnerships, overriding royalties, native title Savannah Mining Ltd (Savannah) to provide "Mining interests, historical sites, wilderness or national Support" services to NML. Savannah has signed a park and environmental settings. Heads of Agreement with Cardinal Mining Services Ltd (CMS) to provide "Mining Support" services in relation to the Namdini Mining Licence.
Mineral Tenement and Land Status	The security of the tenure held at the time of There are no known impediments to offer "Mining reporting along with any known impediments to Support" services to Namdini Mining Limited within obtaining a licence to operate in the area. the Namdini Mining licence area.
Exploration Done Acknowledgment and appraisal of exploration by No previous systematic exploration has been by Other Parties other parties. undertaken.
Geology Deposit type, geological setting and style of The deposit type comprises gold mineralisation within mineralisation sheared and highly altered rocks containing sulphides (pyrite and arsenopyrite). The geological setting is a Paleoproterozoic Greenstone Belt comprising Birimian metavolcanics, volcaniclastics & metasediments located in close

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 9 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Criteria	JORC Code Explanation	Commentary
proximity to a major 30 km ~N-S regional shear zone with splays. The style of mineralisation is hydrothermal alteration containing disseminated gold-bearing sulphides
Drill hole information	A summary of all information material to the A summary of all information is contained within this understanding of the exploration results including announcement. tabulation of the following information for all Material drill holes: • Easting and northing of the drill hole collar • Elevation or RL (Reduced Level - elevation above sea level in meters) of the drill hole collar • Dip and azimuth of the hole • Down hole length and interception depth • Hole length
Drill hole information	If the exclusion of this information is justified on There has been no exclusion of information. the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods	In reporting Exploration Results, weighting No weighting averaging techniques nor cutting of high averaging techniques, maximum and/or minimum grades have yet been undertaken. grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
Data aggregation methods	Where aggregated intercepts incorporate short Aggregated intercepts incorporating short lengths of lengths of high grade results and longer lengths of high grade will be calculated and will include no more low grade results, the procedure used for such than intervals of 3m below cut-off grades of 0.5 g/t aggregation should be stated and some typical Au. examples of such aggregations should be shown in detail.
Data aggregation methods	The assumptions used for any reporting of metal No metal equivalent values were used for this report. equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in The relationship between mineralisation widths and the reporting of exploration results. intercept lengths is not yet known.
Relationship between mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect The geometry of the mineralisation with respect to the to the drill hole angle is known, its nature should drill hole angle is not yet known. be reported.
Relationship between mineralisation widths and intercept lengths	If it is not known and only the down hole lengths Only down hole lengths are reported and true widths are reported, there should be a clear statement to of mineralisation are not yet known. this effect (e.g. 'down hole length, true width not known').
Diagrams Appropriate maps and sections (with scales) and Appropriate map and plan view are included in this tabulations of intercepts should be included for announcement. any significant discovery being reported. These should include, but not be limited to a plane view of drill hole collar locations and appropriate sectional views.

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 10 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]

Criteria	JORC Code Explanation	Commentary
Balanced Reporting Where comprehensive reporting of all Exploration A representative summary of low and high grade Results is not practical, representative reporting of results is contained within this announcement. both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Other substantive Other exploration data, if meaningful and material, Historical drill results are included in this exploration data should be reported including (but not limited to): announcement as an image (Figure 1). These geological observation; geophysical survey results; results are the subject of previous announcements geochemical survey results; bulk samples - size to the ASX. and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical The interpretation of the geological observations and rock characteristics; potential deleterious or shown in Figure 2 is subject to possible change as contaminating substances. new information is gathered. No geochemical surveys, bulk sampling, metallurgical, mineralogical or geotechnical assessments were undertaken.
Further Work	The nature and scale of planned further work (e.g. A combination of reverse circulation and diamond tests for lateral extensions or depth extensions or drilling is planned, followed by possible additional large - scale step - out drilling). ground geophysical surveys depending on the results of the drilling.
Further Work	Diagrams clearly highlighting the areas of possible The plan included shows the possible extent of extensions, including the main geological mineralisation based on geological observations and interpretations and future drilling areas, provided previous assay results. Future drilling is planned west this information is not commercially sensitive. of the pit to obtain down dip extensions to the ore body.

4850-1965-7505, v. 4

Cardinal Resources Limited ABN 56 147 325 620

www.cardinalresources.com.au

Ghana: Durugu Residential Area, Kumbosco, Bolgatanga, Ghana P: [phone] SKYPE: cardinal.archie 11 Australia: Level 1, 115 Cambridge Street, West Leederville, Perth, 6007 P: [phone] F: [phone]