Cardinal Resources : Interim Metallurgical Update

21 March 2017

• A number of conventional gold recovery improvement techniques are showing that overall gold recoveries of 84% are easily achievable.

• A conventional crush‐float‐fine grind‐CIL flowsheet continues to be the preferred processing option, which allows for a low mass flotation concentrate with superior operating costs due to low volumes of high grade concentrate to beprocessed

  Cardinal Resources Project Technical Manager Julian Barnes said:

  "We have undertaken further optimisation testwork on the master composite sample reserves that remained from the 2016 metallurgical programme and these have shown a significant improvement in overall gold recovery to 84%. Further optimization testwork is ongoing.

  "The objective of this recent optimisation test work was to investigate the possibility of improving overall gold recovery with the main focus on the following:

• Optimising the leach residence time; and

• Pre‐leach aeration."

"This baseline result is extremely encouraging for our next phase of testwork which will target a significantly higher improvement in overall recovery."

"Independent Metallurgical Operations (IMO) in conjunction with Oreway Mineral Consultants (OMC - a subsidiary of Lycopodium) from Perth, Australia have recently been contracted to develop a metallurgical programme which is representative of the entire Namdini deposit. The resulting report from this new programme is due during Q3 2017 and will be of a level sufficient to complete a feasibility study."

"This second round of interim results from the 2016 NMDD005 master composite has demonstrated further significant improvements as part of our ongoing metallurgical optimisation programme.

"We anticipate further improvements in overall recoveries as we continue with the testwork, in addition to growing the maiden resource of 4Moz in both size and confidence categories."

For further information contact:

Archie Koimtsidis Managing Director

P: +233 (0)26 190 5220

Skype: cardinal.archie

This ASX announcement ("Announcement") has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) ("Cardinal" or "the Company").

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.

Except for statutory liability which cannot be excluded, each of Cardinal's officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this Announcement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. The Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this Announcement or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this Announcement should make their own independent assessment and determination as to the Company's prospects, its business, assets and liabilities as well as the matters covered in this Announcement.

This Announcement is for information purposes only and does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in the Company in any jurisdiction. It is not intended to be and is not a prospectus, product disclosure statement, offering memorandum or private placement memorandum for the purpose of Chapter 6D of the Corporation Act 2001. This Announcement and its contents must not be distributed, transmitted or viewed by any person in any jurisdiction where the distribution, transmission or viewing of this Announcement would be unlawful under the securities or other laws of that or any other jurisdiction. This Announcement is not considered a recommendation by the Company or any of its affiliates, directors or officers that any recipient invest in the Company nor does it constitute as any investment, accounting financial, legal or tax advice.

This Announcement does not contain all information which may be material to the making of a decision in relation to the Company. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Any investor should seek independent financial and taxation advice independent assessment and determination as to the Company's prospects prior to making any investment decision, and should not rely on the information in this Announcement for that purpose. Neither the Company nor its related bodies corporate is licensed to provide financial advice in respect of the Company's securities or any financial products. This Announcement does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold securities in the Company. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return

on the capital invested, that dividends will be paid on the shares or that there will be an increase in the value of the shares in the future.

Certain statements contained in this Announcement, including information as to the future financial or operating performance of Cardinal and its projects, may also include statements which 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. These 'forward - looking statements' are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, 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 disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today's date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX Listing Rules. The words 'believe', 'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may', 'will', 'schedule' and similar expressions identify forward‐looking statements.

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.

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 (including information derived from publicly

Information in this release that relates to the Namdini Project is based on the results of the Metallurgical Testwork program undertaken at SunTech Laboratories, Johannesburg, South Africa. The work has been monitored on behalf of Cardinal Resources by Bruce Lilford, MAusIMM, who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activities being reported. Mr Lilford consents to the inclusion in this report of the statements based on the information in the form and context in which it appears.

The overall release has been compiled by Dr Julian F. H. Barnes, FAusIMM, MAIG, Technical Manager of Cardinal Resources, who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activities being reported upon 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'. Dr Barnes consents to the inclusion in this report of the statements based on the information in the form and context in which it appears.

Information in this release that relates to the Namdini Project is based on the results of the Metallurgical Testwork program undertaken at SunTech Laboratories, Johannesburg, South Africa. The work has been monitored on behalf of Cardinal Resources by Dr Simon Meik, FAusIMM CP (No. 106146), who has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activities being reported upon 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'. Dr Meik consents to the inclusion in this report of the statements based on the information in the form and context in which it appears.

RESOURCES

JORC CODE 2012 EDITION -TABLE 1 INTERIM METAUURGICAL UPDATE

section 1-Sampling Technique and Data

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