COMPANY UPDATE

COMPANY UPDATE

TORONTO, March 30, 2020 (GLOBE NEWSWIRE) — Cardinal Resources Limited (Cardinal or Company) (ASX:CDV, TSX:CDV), an advanced West African gold developer, is pleased to provide a corporate update to shareholders and commentary as to how the Company is managing the current COVID-19 pandemic.Nordgold
The Company advises that further to the press release dated 16 March 2020, the Company is working constructively with Nordgold. A confidentiality agreement has been executed with Nordgold and the Company has provided Nordgold with full access to the Cardinal data room to allow Nordgold to complete its due diligence as requested.
It should be noted that whilst Nordgold has already acquired a 19.9% interest in the Company’s shares, it has not made any formal offer to Cardinal. Cardinal will advise shareholders if a formal offer is received from Nordgold or there are any other material developments.Sprott Loan Facility
On 27 February 2020, Cardinal announced that it had repaid US$8.0 million to Sprott Private Resources Lending (Collector), L.P. (Sprott). Given the unexpected downturn in global equity markets and uncertainties as a result of the COVID-19 pandemic, the Company has executed an agreement to redraw US$5.0 million from Sprott. The US$5.0 million may be redrawn by Cardinal in two equal tranches, with funding for the first tranche expected to be received imminently.
As consideration for the redraw, Cardinal has agreed to pay a redraw fee as well as apply a 5% redemption premium on all future repayments of the facility. The material terms (including interest rate) of the Credit Agreement with Sprott remain otherwise unchanged.Upon completion of the redraw of the entire USD$5.0 million facility, the loan position will be approximately US$24 million. With current cash of AU$3.2 million, and redraw of the entire facility being approximately AU$8.4 million (US$5.0 million), Cardinal will have approximately A$11.6 million cash and facilities (excluding fees). The Company reasonably expects the Loan Facility will be fully repaid prior to the maturity date of 1 March 2021. Personnel and Wellbeing
Following advice from the World Health Organization (WHO) and the Australian, Ghanaian and Canadian Governments, Cardinal has enacted changes to its exploration programme primarily focused on the safety and wellbeing of our workforce.
All international travel has been suspended, while on the ground in Ghana, the workforce has been reduced to key personnel only. According to WHO Situation Report 68 (28 March 2020), there had been 138 confirmed cases of Covid-19 in Ghana, including cases via local transmission. Four (4) deaths from Covid-19 have been recorded in Ghana.While fieldwork has been scaled back for at least the next four weeks, the Namdini project team is still actively working on adding value to the project. In February, the Company was awarded key water extraction permits, while earlier this month, the Government approved our Resettlement Action Plan, which will have significant health and wellbeing benefits for our local community. Further, the company announced the approval of the Namdini Mining Licence expansion from 19km2 to 63km2 (ASX/TSX press release “26 March 2020 Cardinal Expands Namdini Mining Licence Area”).Regional Exploration Update
First pass limited drilling to test one of the newly identified targets at Ndongo was completed with no mineralisation of economic potential intersected. Even though this very limited scout drilling has not returned economic mineralisation, recognisable altered, silicified, sulphidic zones were intersected and provide confidence in the potential for additional drilling.
The first pass scout drilling programme of 23 shallow RC holes with 2 diamond tails was completed to test Target Zone 2 at Ndongo (Figure 1 & Tables 1 and 2 in Schedule 1). Drilling comprised 1,960m of RC and 244.07m of core, totaling approximately 2,203.57m.The drilling encountered zones of variable chlorite‐silica‐carbonate‐sericite alteration with sulphides (mainly pyrite with very minor arsenopyrite). Results were intermittent including 3m @ 0.7g/t Au in NDRC342, 1m @ 3.2g/t Au in NDRC339, 1m @ 0.7g/t Au in NDRC329 and 1m @ 0.7g/t Au in NDRC334 (Figure 1). Geological interpretation is ongoing and this process will incorporate all new assay results, geophysical dataset and geochemical data analysis for further targeting.Figure 1: Ndongo Target 2 Drill Locations
A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/8cf2c6cb-0173-4a61-94a4-d8131d25d078
ABOUT CARDINALCardinal Resources Limited (ASX/TSX: CDV) is a West African gold‐focused exploration and development Company that holds interests in tenements within Ghana, West Africa. Cardinal is readying for development of the world‐class Namdini Gold Project located in Northern Ghana, subject to concluding project development financing. Once developed, the Namdini Gold Project is expected to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum. The Definitive Feasibility Study completed in late 2019, indicated compelling economics, including a post‐tax NPV5 of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).The Company is focused on the development of the Namdini Project, for which the Company has published a gold Ore Reserve of 5.1Moz (138.6 Mt @ 1.13 g/t Au; 0.5 g/t cut‐off), inclusive of 0.4Moz Proved (7.4 Mt @ 1.31 g/t Au; 0.5 g/t cut‐off) and 4.7Moz Probable (131.2 Mt @ 1.12 g/t Au; 0.5 g/t cut‐off).The Company announced completion of the Definitive Feasibility Study (DFS), which was released 28 October 2019. The technical report on the DFS, prepared in accordance with NI 43‐101 of the Canadian Securities Administrators, was issued on SEDAR at www.sedar.com on 28 November 2019.Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Ore Reserve of 3 April 2019, its completed Feasibility of 28 October 2019 and the information on the drill results noted in this announcement. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.Authorised for release by the CEO/MD of Cardinal Resources Limited.For further information contact:Cannings Purple
Andrew Rowell or Peta Baldwin
E: arowell@canningspurple.com.au
E: pbaldwin@canningspurple.com.au
_________________________________________________________________________________________________________________________________________________________________Competent / Qualified Person StatementThe information in this press release that relates to Exploration Results is based on information prepared by Mr. Paul Abbott, a full-time employee of Cardinal Resources, who is a member of the Geological Society of South Africa. Mr. Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking 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”.The scientific and technical information in this announcement that relates to Exploration Results, Mineral Resources and Ore Reserves at the Namdini Gold Project has been reviewed and approved by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken 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” and as a Qualified Person for the purposes of NI43‐101. Mr. Bray and Mr. Taylor are full‐time employees of Cardinal and hold equity securities in the Company.Disclaimer
This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (“Cardinal” or “the Company”). Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.
This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release. The information in this press release 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 price 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 and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release 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. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this press release 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 press release.Forward‐looking statements
Certain statements contained in this press release, 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, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of 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 and TSX 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 press release 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.SCHEDULE 1
NDONGO DRILL RESULTS
Table 1: Meta‐Data Listing of Drill HolesTable 2: Summary of Individual InterceptsNotes:Samples are analysed for Au (SGS Lab FAA505 method) using is a 50g charge Fire Assay fusion with AAS instrument finish.Grid coordinates are in WGS84 Zone 30 North.The intercepts were calculated, using a greater than 0.5 g/t Au cut‐off, which approximates the cut‐off for Reasonable Prospects of Eventual Economic Extraction (“RPEEE”) as per the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”) 2012 and the Canadian Institute of Mining (“CIM”) 2010 guidelines, and internal dilution of no more than 3m at <0.5g/t Au.JORC CODE 2012 EDITION
TABLE 1 REPORTING OF EXPLORATION RESULTS – NDONGO
Section 1 – Sampling Technique and Data
Section 2 – Reporting of Exploration Results

(Criteria listed in section 1 will also apply to this section where relevant)

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