August 11, 2006 14:12 ET

Cardinal Resources plc Provides Supplement to the Press Release of 30 June 2006 Regarding Form NI 51-101F1

LONDON--(CCNMatthews - August 11, 2006) - Cardinal Resources plc (AIM: CDL) ("Cardinal" or "the Company"), an independent oil and gas production and exploration company operating in Ukraine, today provides supplementary information to its 30 June 2006 release regarding the Form NI 51-101F1 filed with the Alberta Securities Commission (ASC). Specifically, the following is further explanation of the term "Contingent Resources" at the Bytkiv Field in Ukraine as required by the ASC in compliance with Canadian filing requirements. These Canadian filing requirements date back to when Cardinal's predecessor, Carpatsky Petroleeum Inc., was a public company in Canada. All filings can be accessed electronically at

The data contained in this release is based on that included in Cardinal's press release dated 15 May 2006 regarding the publication of its reserve report.

The Bytkiv Field's net "Proved plus Probable Reserves" reported in the RPS Energy Canada Ltd. (the Canadian-registered affiliate of Scott Pickford Ltd. and formerly known as ECL Canada) May 2006 Reserve Report are stated as 0.320 MMbbls and 0.574 Bcf with a net present value discounted at 10% of US$1.7 million after tax (US$2.3 million before tax), using a constant price of US$52.70 per bbl. The Proved plus Probable Reserves, which consist of the existing producing wells (with appropriate decline incorporated), are significantly less than reported in the 2005 Canadian Reserve Report. Technically, the estimated reserve volumes have not changed, but, as a large portion of the reserves are viewed as uneconomic in the May 2006 Canadian Reserve Report, 1.191 MMbbls and 2.135 Bcf previously classified as Proved Plus Probable Reserves are now classified as "Contingent Resources" and consequently have no value assigned to them.

In the June 2005 Reserve Report published by ECL Canada, the Bytkiv Field had net Proved plus Probable Reserves of 1.57 MMbbls and 2.805 Bcf with a net present value discounted at 10% of US$17.04 million after tax (US$23.2 million before tax) using a constant price of US$46.20 per bbl. However, since that time there have been major increases in government royalties, operating costs, and land rentals. This, together with the increases in drilling costs and the relatively low initial production rates of the wells assumed in the 2006 Canadian Reserve Report (86-136 bbls per day per well), means that the drilling of new wells using traditional equipment and practice is not expected to make a reasonable return on investment under the price scenario used in the Canadian report. Therefore, under Canadian regulatory guidelines, most of the reserves at Bytkiv Field are now classified as Contingent Resources.

Cardinal believes that the Bytkiv #1007 low-risk development well scheduled to start later this year (estimated to cost US$1.8 million) and utilizing more advanced drilling and completion practices should result in a higher initial production rate that could improve the economics of these Contingent Resources. Once this well is drilled and evaluated, if circumstances warrant, the Contingent Resources may be re-classified as Proven plus Probable Reserves with values assigned.

Background to the Bytkiv Field

The Bytkiv Field, located in the Carpathian Basin of Western Ukraine, produces light oil from the Oligocene Menelite formation at an average depth of approximately 7,500 feet. This field is a thrust faulted geologic structure approximately 20km long and 5km wide that has estimated original in place resources of approximately 600 MMbbls. Other commercial fields in the trend include the Pasichna field 5km to the north and the Dovbushany field 10km to the southwest. The Bytkiv Field has been producing since 1951 with cumulative production of more than 53 MMbbls. Cardinal's gross and net interest in the field is 45%. This interest was obtained through ownership of a 45% interest in UkrCarpatOil Ltd., which is a Ukrainian limited liability company established by JSC Ukrnafta and Carpatsky Petroleum Corporation, the latter of which is a subsidiary of Cardinal.

UkrCarpatOil has a 20-year production licence granted on July 28, 1995 that allows the further development of the field. The field is located entirely within the approximately 176 km2 licence area. UkrCarpatOil's operations on the field are conducted through Ukrnafta's subsidiary Nadvirninaftagaz and are managed by a joint committee of representatives from Ukrnafta and Cardinal, with a general manager appointed by both parties.

For the year ending December 31, 2005, the joint venture produced 75,518 bbls of oil and 220,260 Mcf from 12 wells. Approximately 50% of the produced gas is recycled and used for gas lift. The oil is sold at prices generally comparable to Urals Blend, and gas is sold to local end users in Ukraine at a controlled monthly auction price. At the end of May 2006, Cardinal realized a gas price of US$3.84 per Mcf, including VAT, and $51.87 per bbl.

Cliff West, Executive Vice President and Chief Operating Officer of Cardinal (MSc Geology from West Virginia University, Professional Geologist licensed in the State of Texas, Member of the American Association of Petroleum Geologists - Certified Petroleum Geologist # 1563, the Society of Exploration Geophysicists, and the Houston Geological Society), has reviewed the above reserve and resource information and approved its content.

Glossary of Terms (Canadian)

Bbl(s) Barrel(s) of oil

Bcf Billion cubic feet of gas

Contingent Those quantities of oil and gas estimated to be
Resources potentially recoverable from known accumulations
but not currently economic. Contingent resources
include, for example, accumulations for which
there is currently no viable market.

Mcf Thousand cubic feet of gas

MMbbls Million barrels of oil

Reserves Estimated remaining quantities of oil and
natural gas and related substances anticipated to
be recoverable from known accumulations, from a
given date forward, based on (a) analysis of
drilling, geological, geophysical, and engineering
data; (b) the use of established technology; and
(c) specified economic conditions, which are
generally accepted as being reasonable and shall be
disclosed. Reserves are classified according to
the degree of certainty associated with the

Probable Those additional reserves that are less certain
reserves to be recovered than proved reserves. It is
equally likely that the actual remaining
quantities recovered will be greater or less
than the sum of the estimated proved plus
probable reserves.

Proved Those reserves that can be estimated with a high
reserves degree of certainty to be recoverable. It is
likely that the actual remaining quantities
recovered will exceed the estimated proved

Notes to Editor

Cardinal Resources plc

Cardinal Resources plc is an independent oil and gas company engaged in the acquisition, development, production and exploration of oil and natural gas properties 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.

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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