Cardinal Signs Framework Agreement for Sale of Ukrainian Assets

Cardinal Resources has entered into a framework agreement for the potential sale of its Ukrainian assets, subject to contract, to Kuwait Energy Company K.S.C.C. for total consideration of U.S. $71 million.

The transaction will consist of a sale of 100% of the share capital of Carpatsky Petroleum Inc., Raget Commercial Ltd and Mitre Resources Limited, each owned 100% by Cardinal Resources Finance Ltd., a 100% owned subsidiary of Cardinal.

Cardinal's shares were suspended from trading on AIM on October 1, 2007 pending conclusion of refinancing discussions. Cardinal has been in ongoing discussions with one or more potential funding providers to obtain a viable financial solution. The sale is subject to shareholders approval and other conditions.

Closing of the transaction is currently expected to occur by December 10, 2007.