Publication of Reserve Report

Cardinal Resources plc
15 May 2006


CARDINAL RESOURCES PLC ANNOUNCES PUBLICATION OF RESERVE REPORT

RESERVES INCREASE 75% SINCE IPO TO 32.5 MMBOE
PV 12 UP 162% TO $105.6 MILLION

LONDON - Monday, 15th May 2006

Cardinal Resources plc (AIM:CDL) ('Cardinal' or 'The Company'), an independent
oil and gas production and exploration company operating in Ukraine, announces
that the Company's independent competent person, Scott Pickford Ltd., has today
supplied its reserve report for Cardinal, as of 31st December 2005.

Total proved (P1) and probable (P2) reserves for the Company are estimated to be
32.5 million barrels of oil equivalent (MMBOE), of which 85% is natural gas and
62% P1. The year end estimate represents a 75% increase over the reserves stated
in the 31st March 2005 Scott Pickford report published at Cardinal's admission
on AIM in April 2005. The increase is due to the acquisition of Rudis Drilling
Company that Cardinal made in October 2005. The pre-tax present value of the
Company's reserves, discounted at 12%, has increased 162% to $105.6 million over
the same period due to the inclusion of the Rudis reserves and upward revisions
to expected future gas and oil prices in Ukraine. The pre-tax present value
discounted at 10% is $124.7 million.

Reserve Data
------------
Detailed tables can be found in the Appendix on page 5

                       P1                            P2              P1 + P2
Property                                                             Total MBOE

Rudis       50,818    2,021    10,491    34,118    1,392     7,078   17,569
RC          50,714      754     9,206    29,183      421     5,285   14,491
Bytkiv         530      295       383        44       26        33      416
TOTAL      102,062    3,070    20,080    63,344    1,839    12,396   32,477


Rudis Assets
------------
Reserves for the Rudis properties have been upgraded to 17.6 MMBOE from the 9.1
MMBOE stated at the time of the Rudis Drilling acquisition in October 2005. This
is due to Cardinal's initiation of an aggressive work programme to complete
seven workovers and initiate drilling operations on seven of eleven identified
development locations by year-end 2007 as a result of the well swap with
Ukrgazvydobuvannya (Ukrgaz) conducted in January of 2006. Cardinal is in
negotiations to hire three locally-sourced Uralmash drilling rigs which it will
upgrade using certain modern equipment and supplies. Negotiations are also
underway to lease a further Uralmash workover rig. Production at the Rudis
properties is anticipated to increase by 2,500 to 3,000 barrels of oil
equivalent per day (boepd) by the end of 2007 from 597 boepd at 31st March 2006.
The capital investment to develop these locations is forecast to be in the range
of $25 to $42 million, dependant upon the number of wells drilled, the extent of
modern equipment utilised and the availability of finance.

Rudivsko-Chernovozavodske (RC) Field
------------------------------------
Reserves for the RC Field have been reduced slightly from 16.2 MMBOE to 14.5
MMBOE due to poorer than expected production at Well #117. The delay Cardinal is
experiencing in reinstating its net profit interest in the field back up to 45%
has also resulted in setbacks in executing the work programme set out at the
time of the IPO. The workover on Well #102 has been temporarily suspended and it
is expected that, apart from the four wells Ukrnafta is currently drilling
outside of the JAA, no further wells will be drilled in the field in 2006.

RC Field Reinstatement
----------------------
Cardinal expects discussions with Ukrnafta and its primary shareholders
regarding the reinstatement of its net profit interest in the RC Field back up
to 45% and the purchase of shares in four wells currently drilling on the field,
will resume after a Parliamentary coalition has been formed in Ukraine. In the
meantime, the active work programme on the Rudis assets is expected to produce
positive results for the Company and more than compensate for the setbacks at
the RC Field.

Bytkiv-Babchenske (Bytkiv) Field
--------------------------------
Effective 1st January 2006 the Ukrainian Government imposed a 59% increase in
taxes on oil produced in Ukraine. This coincided with the expiration of Bytkiv's
royalty-free status which had previously been granted due to the technical
challenges of operating the field. Consequently, the economics for drilling new
wells in the Bytkiv Field have diminished significantly. UkrCarpatOil - the
Joint Venture (owned 50% by Cardinal) that owns and operates the Bytkiv licence
- will therefore focus primarily on low cost, high return workovers, and Scott
Pickford has reduced the P1 and P2 reserves in the field. However, Cardinal is
currently in discussions with Ukrnafta to decide whether the drilling of well #
1007 will proceed as planned.

Valuation
---------
The Scott Pickford report also provides updated present values for the Company's
reserves based on the new reserve data inclusive of the Rudis assets and a more
positive outlook for gas and oil prices in Ukraine. The pre-tax net present
value of Cardinal's reserves discounted at 12% (PV12) has increased 162% to
$105.6 million from $40.3 million at the time of Cardinal's listing on AIM in
April 2005. The pre-tax PV10 value is set at $124.7 million and will be the
figure Cardinal uses going forward to bring the Company in line with valuations
attributed to its peers.

Property       PV @ 10% ($ ,000)                PV @ 12% ($ ,000)

Rudis          71,983                           61,107
RC             50,420                           42,336
Bytkiv          2,316                            2,173
Total         124,720                          105,616


The following price assumptions were made by Scott Pickford in establishing the
present values:

Time Period   Forecast Average Forecast Average Forecast Average 
              Gas Price/Mcf    Oil Price/Bbl    Cond Price/Bbl

        2006  $2.60           $53.36            $59.67
        2007  $2.67           $54.20            $60.70
2008 to 2020  $3.40           $54.45            $60.98
2021 to 2030  $4.52           $70.19            $78.61

Commenting on the new reserve report, Robert J. Bensh, Chairman and CEO of
Cardinal Resources said, 'The Scott Pickford report shows what a long way
Cardinal has come since the AIM listing in April 2005. The acquisition of Rudis
Drilling Company has more than compensated for the setbacks we have experienced
in the work programmes on our original assets.

'The new reserve figures show that the Rudis acquisition was made at the price
of just $0.85/BOE and we will be conducting a significant amount of development
activity on these properties over the next few years to fully exploit their
potential. Gas prices have also increased more than our expectations, resulting
in the sharp increase in the net present value of our reserves. We plan to
continue to create value for our shareholders by executing similar acquisitions
at attractive prices that boost both reserves and increase production.'

Glossary of Terms

Bbl             Barrel of oil
Bcf             Billion cubic feet of gas
Boepd           Barrels of oil equivalent per day
Mbbls           Thousand barrels of oil
Mcf             Thousand cubic feet of gas
MMcf            Million cubic feet of gas
MBOE            Thousand barrels of oil equivalent
MMBOE           Million barrels of oil equivalent
P1 (Proved)     Those oil or gas reserves considered to have at least a 90% 
                chance of being recovered (using the Society of Petroleum 
                Engineers definitions)
P2 (Probable)   Those oil or gas reserves considered to have at least a 50% 
                chance of being recovered (using the Society of Petroleum 
                Engineers definitions)PV Present value

The classification Standard used for the Scott Pickford report is the Canadian
National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities
('NI 51-101') and specifically the definitions and interpretations detailed in
the Canadian Oil and Gas Evaluation Handbook (COGEH), Volumes 1 & 2, as endorsed
by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).

Scott Pickford confirms that it has reviewed this press release and finds that
the information presented herein has been extracted from its Report in a manner
which is not misleading and provides a balanced view of the Report.

                                      ###

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 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.

The following assets 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 #429 with Ukrgazvydobuvannya
(Ukrgaz).

Dubrivska (DB) Licence
Cardinal is currently drilling an exploration well as part of the JAA with
Ukrgaz.

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 this JAA with
Ukrgaz.

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.

APPENDIX

The following Reserves and Resources tables are formatted to match the guidance
note for mining, oil and gas companies as issued by the London Stock Exchange in
March 2006.


Summary Table of Assets

   Asset       Operator   Company           Status           Licence  Licence                 Comments
                            Net                              Expiry    Area
                          Interest                            Date
                            (%)
-----------------------------------------------------------------------------------------------------------------------
     RC          PNG       14.91%         Production        20/7/2024 192km2    Negotiations to restore current 14.91%
                                                                                     net interest to 45% continue
-----------------------------------------------------------------------------------------------------------------------
   Bytkiv    UkrCarpatOil     45%         Production        28/7/2015 176km2    Well #1007 scheduled to start Drilling
                 (JV)                                                                        in August 2006
-----------------------------------------------------------------------------------------------------------------------
Rudis Licences and JAA #429
-----------------------------------------------------------------------------------------------------------------------
 Kulickykhin     Rudis        50%         Production        N/A        N/A                   Ukrgaz has the
 #18 & 26 PDP   (JAA #                                                                     Production Licence
    Wells        429)                                                                         
-----------------------------------------------------------------------------------------------------------------------
   Bilskie       Rudis        50%         Production        N/A        N/A                   Ukrgaz has the
#161 PDP Well   (JAA #                                                                     Production Licence
                 429)
-----------------------------------------------------------------------------------------------------------------------
    North       (JAA #     50% in      Pilot Exploration    29/11/06   52km2    Licence extension will be applied for*
 Yablunivska     429)     the PDNP       and Production 
  #201 PDNP      Rudis     Wells           Licence  
   #203 PDP        &         &
  #300 PDNP     Licence  100% in
 #4 new well     (New    New Drill
   location     Wells)    Wells
 construction
is underway &
  expect to
   start in
August 2006
-----------------------------------------------------------------------------------------------------------------------
  Dubrivska      Rudis       50%       Pilot Exploration    29/11/06   40km2    Licence extension will be applied for*
     One        (JAA #                   and Production 
 exploration     429)                      Licence  
   well is
  currently
being drilled
-----------------------------------------------------------------------------------------------------------------------
Bilousivsko-
Chornukhinska    Rudis      100%       Pilot Exploration     23/11/06   45km2   Licence extension will be applied for*
#13 PDP & #110 (Licence)                 and Production 
     PDP                                   Licence  
Chornukhinska
 #3 new drill
well is rigged
    up and
 scheduled to
start in June
     2006
-----------------------------------------------------------------------------------------------------------------------

Source: Scott Pickford Ltd.


* The licences are in good standing, their work programmes are ongoing and
Cardinal has no reason to believe the licence extensions will not be granted as
per Ukraine's existing Petroleum Law.


Summary of Reserves and Resources by Status

Oil and Liquids Reserves

                       Gross (Mbbls)                Net Attributable (Mbbls)       Operator
-----------------------------------------------------------------------------------------------
             Proved   Proved &  Proved,         Proved   Proved & Proved,
                      Probable  Probable &               Probable Probable &
                                Possible                          Possible
-----------------------------------------------------------------------------------------------
RC            5,057     7,881   Not Calculated     754    1,175   Not Calculated      PNG
(Condensate)
-----------------------------------------------------------------------------------------------
Bytkiv (Oil)    656       711   Not Calculated     295      320   Not Calculated  UkrCarpatOil
                                                                                      (JV)
-----------------------------------------------------------------------------------------------
Rudis
(Condensate
and Oil)      2,403     3,911   Not Calculated   2,021    3,413   Not Calculated     Rudis
-----------------------------------------------------------------------------------------------
Total Oil
and           8,116    12,503                    3,070    4,908
Liquids
-----------------------------------------------------------------------------------------------


Gas Reserves
                 Gross (Bcf)               Net Attributable (Bcf)     Operator
-----------------------------------------------------------------------------------------------
       Proved    Proved &   Proved,    Proved    Proved &  Proved,
                 Probable   Probable &           Probable  Probable &
                            Possible                       Possible
-----------------------------------------------------------------------------------------------
RC         340        536      Not      50.714    79.897      Not         PNG
                            Calculated                     Calculated
-----------------------------------------------------------------------------------------------
Bytkiv   1.178      1.276      Not       0.530     0.574      Not     UkrCarpatOil
                            Calculated                     Calculated     (JV)
-----------------------------------------------------------------------------------------------
Rudis   59.670    104.032      Not      50.818    84.936      Not        Rudis
                            Calculated                     Calculated
-----------------------------------------------------------------------------------------------
Total   400.85     641.31               102.06    165.41
Gas
-----------------------------------------------------------------------------------------------


Oil & Gas - Contingent Resources

       Gross Recoverable            Net Attributable             Risk   Operator
                                                                 Factor*
-----------------------------------------------------------------------------------------------
       Low      Best     High       Low      Best     High
       Estimate Estimate Estimate   Estimate Estimate Estimate
-----------------------------------------------------------------------------------------------
Bytkiv  2,476    2,647      Not      1,114    1,191      Not       50%  UkrCarpatOil
(Oil)   Mbbls    Mbbls   Calculated  Mbbls    Mbbls   Calculated            (JV)
-----------------------------------------------------------------------------------------------
Bytkiv  4.258    4.744      Not      1.916    2.135      Not       50%  UkrCarpatOil
(Gas)    Bcf      Bcf    Calculated   Bcf      Bcf    Calculated            (JV)
-----------------------------------------------------------------------------------------------

Source: Scott Pickford Ltd.


* Risk Factor - This is Scott Pickford's opinion of the probability that these
technically recoverable reserves will become economic and be converted from
Contingent Resource to Reserves.


                      This information is provided by RNS
            The company news service from the London Stock Exchange