Cardinal Resources debt purchase by Ghana Infrastructure Investment Fund

Cardinal Resources announcef that the senior secured credit facility has been assigned from Sprott Private Resource Lending to the Ghana Infrastructure Investment Fund, a Ghana Government owned infrastructure investment vehicle. The Company has been informed that completion of the acquisition by GIIF occurred on 4 June 2020. As a result of the acquisition, Cardinal's senior debt facility provider is now GIIF. The balance of the Facility is approximately $23.8M and Cardinal has also been provided with further funding totaling an additional $3.1M which now forms part of Cardinal's working capital. As part of the transaction, Cardinal has agreed to amend and restate the Facility under Ghanaian law. A Feasibility Study released in Q4 -2019 demonstrated that Cardinal's flagship Namdini Gold Project in Ghana's Northern District has the potential to be a low capital cost, high-margin development opportunity at a $1,350 per ounce gold price. The material commercial terms of the Facility remain unchanged or are otherwise more favourable for Cardinal, as set out below: 24-month repayment term; Interest rate of 7.75% + the greater of 3 months LIBOR or 1% per annum; Early repayment flexibility is continued and as per the arrangements with Sprott, a 5% redemption premium applies to all future repayments of the Facility; Secured against the assets of Cardinal and its wholly owned subsidiaries in Ghana; Upon a change of control of Cardinal, GIIF may require repayment of the Facility. Please refer to the Company's announcements of 16 March 2020 and 30 March 2020 in relation to the approach from Nord Gold. The Company continues to work with the Special Purpose Committee and its advisors, Maxit Capital, Hartleys Limited, BMO Capital Markets and Cannacord Genuity, to review all strategic alternatives.