Acquisition of Licences

Cardinal Resources plc
30 September 2005


    CARDINAL RESOURCES PLC TO ACQUIRE THREE OIL AND GAS LICENCES IN UKRAINE

                $14.8 MILLION TO PURCHASE 9.1 MMBOE OF RESERVES
     DAILY NET AVERAGE PRODUCTION TO INCREASE FROM 631 BOEPD TO 1131 BOEPD

LONDON - Friday, 30th September 2005

Cardinal Resources plc (AIM:CDL), today announces that it has entered into a
binding agreement with Hares Group Limited to acquire 100% of Rudis Drilling
Company in Ukraine for $14.8 million.

Rudis' assets comprise three oil and gas licences - Dubrivska,
Bilousivsko-Chornukhinska and North Yablunivska - and a 50% working interest in
a Joint Activity Agreement ('JAA') with Ukrgazvydobuvannya, a subsidiary of
Naftogaz Ukraine, for which Rudis is the operator. All of Rudis' properties are
located approximately 40 kilometres from Cardinal's existing JAA wells in the
Rudivsko-Chernovozavodske Field in Eastern Ukraine. Rudis' net profits for the 6
months ended 30th June 2005 were $480,000, before exploration costs of $835,000.

Cardinal initially plans to drill five development wells and complete four
workovers in the three licence areas. At present, a well is drilling in the
Dubrivska licence area.

Rudis' current net average daily production is 500 barrels of oil equivalent per
day ('boepd'.) Cardinal's year to date net average daily production is 631
boepd.

Cardinal has estimated Rudis' reserves at 9.1 million barrels of oil equivalent
('MMBOE'). The reserve estimate is based on the expectation that a 20-year
production licence will be granted for each of the licences which currently have
producing wells on them (Bilousivsko-Chornukhinska and North Yablunivska). Once
the exploration and pilot commercial development licences expire the company has
no reason to believe that the conditions required for the production licences
will not be achieved. Exploration Consultants Limited (ECL) has reviewed the
assumptions and methodology employed by Cardinal in its reserve evaluation and
believes them to be sound and reasonable. The transaction is expected to
increase Cardinal's reserves from 18.4 MMBOE to 27.5 MMBOE.

To fund the acquisition, Cardinal will issue 21,949,364 of Cardinal Ordinary
Shares at a deemed value of 22p per share, equating to 20% of the enlarged share
capital, and pay $6,000,000 in cash. If the cash component of the consideration
is not paid prior to 1st December 2005, Hares has the right to require Cardinal
to satisfy any outstanding amount by the issue of additional shares (at a deemed
price of 22p) up to a maximum of a further 9.9% of Cardinal. Any unpaid balance
will attract interest of 1% per month commencing on 1st January 2006 up until
the date of payment.

As a result of this transaction, the Hares Group has the right to appoint a
non-executive Director to the Board of Cardinal, who will not receive any fees
in respect of such an appointment. If the shareholding in the company falls
below 7%, the right to Board representation falls away.

The acquisition is expected to close within six weeks.

'The acquisition of Rudis represents the initial step in executing on our
strategy to acquire additional operated oil and gas assets in Ukraine, where
Cardinal can apply local knowledge and modern technology to create value for
stakeholders,' said Robert J. Bensh, Cardinal's Chairman and Chief Executive
Officer.

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 with
near-term opportunity to significantly expand existing operations through
farm-ins or acquisitions of additional oil and gas assets accretive to reserves
and production.

Hares Group
Hares Group has been active in Ukraine since 1992 in various areas including
steel production and trading, real estate development, industrial engineering
and oil and gas exploration. Its steel activity is held through Hares Group
Holdings GmbH, an Austrian company, and its oil and gas activity is held through
Hares Group Limited, a Cyprus company.

                                      ###

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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