CARPATSKY PETROLEUM INC.

CARDINAL RESOURCES PLC

CARDINAL RESOURCES PLC

March 10, 2005 12:21 ET

Carpatsky Petroleum Inc. Obtains Shareholder and Court Approval for Acquisition by Cardinal Resources Plc


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CARPATSKY PETROLEUM INC.

AND CARDINAL RESOURCES PLC

MARCH 10, 2005 - 12:21 ET

Carpatsky Petroleum Inc. Obtains Shareholder and Court
Approval for Acquisition by Cardinal Resources Plc

LONDON, UNITED KINGDOM--(CCNMatthews - March 10, 2005) - Cardinal
Resources Plc (Cardinal) and Carpatsky Petroleum Inc. (Carpatsky)
announced today that common shareholders of Carpatsky have
overwhelmingly approved the previously announced proposed acquisition of
Carpatsky by Cardinal through a share exchange reorganization.

The Carpatsky shareholder meeting was held on March 9, 2005 in Calgary,
Canada. Of the votes cast at the meeting, 98.9% were voted in favour of
the reorganization. Approval was also obtained from the Court of Queen's
Bench of Alberta after the meeting because the reorganization is
structured as a plan of arrangement under the Business Corporations Act
(Alberta).

Carpatsky and Cardinal intend to complete the reorganization when
Cardinal concludes a further financing. Carpatsky's existing directors
were re-elected at the March 9 shareholder meeting and will continue to
serve until the reorganization is completed. In addition, cease trade
orders issued in 2003 by the Alberta and British Columbia Securities
Commissions with respect to Carpatsky's securities must be revoked or
partially revoked. Applications have been made to the Securities
Commissions and Carpatsky is hopeful that the requested relief will be
granted in time. Transmittal letters relating to the exchange of
Carpatsky shares for Cardinal shares will be sent to Carpatsky
shareholders when the reorganization is assured.

Cardinal a company incorporated in England that was created by Carpatsky
to complete a U.S. $9.5 million private placement in 2004, principally
to U.K. institutional purchasers, and then acquire Carpatsky. Carpatsky
is an independent oil and gas exploration, development and production
company that operates in Ukraine. Carpatsky entered into a joint
activity agreement with the Ukraine state-owned oil and gas company
Ukrnafta in 1995 to develop the RC Field. The joint venture company
Ukrcarpatoil was formed with Ukrnafta in 1994 to develop the Bitkov
Field. Both the RC Field and the Bitkov Field are currently producing
oil and gas for Carpatsky.

This news release contains forward-looking information relating to
capital expenditures, future drilling and other matters. This
information is based on Carpatsky and Cardinal's current expectations
and assumptions as to a number of factors, including weather conditions,
availability of drilling rigs, drilling success, reserves and
production, ability to tie-in production, commodity prices, exchange
rates, interest rates, access to capital, general economic, industry and
political conditions. If those expectations and assumptions prove to be
incorrect, or factors change, then actual results could differ
materially from the forward-looking information contained in this news
release.

Not for distribution to United States newswire services or dissemination
in the United States.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cardinal Resources Plc
    Robert J. Bensh
    Chairman and Chief Executive Officer
    + 44 207 936 5250
    Email: rbensh@cardinal-uk.com
    or
    Carpatsky Petroleum Inc.
    Robert J. Bensh
    Chairman, President and Chief Executive Officer
    + 44 207 936 5250
    Email: rbensh@cardinal-uk.com