Cardinal Energy Ltd. Announces an Increase to the Previously Announced Bought Deal Financing to $60.8 Million

CALGARY, ALBERTA--(Marketwired - May 26, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Cardinal Energy Ltd. ("Cardinal" or the "Company") (TSX:CJ) is pleased to announce that, due to strong demand, the Company has increased the size of its previously announced public offering to 6,500,000 common shares (the "Common Shares"), for aggregate gross proceeds to Cardinal of $60.8 million (the "Offering"). The Offering will be underwritten by a syndicate of underwriters (the "Underwriters") led by CIBC Capital Markets.

The Underwriters will have an option to purchase up to an additional 650,000 Common Shares issued under the Offering to cover over-allotments, if any, exercisable in whole or in part at any time until 30 days after the closing date. The maximum gross proceeds that could be raised under the Offering is approximately $66.9 million should the over-allotment option be exercised in full.

The Offering will be completed by way of short form prospectus in all provinces of Canada, and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended. The Offering is subject to normal regulatory approvals, including the Toronto Stock Exchange and is expected to close on or about June 15, 2016.

This press release is not an offer of the Common Shares for sale in the United States. The Common Shares many not be offered or sold in the United States absent registration or an exemption from registration. The Common Shares will not be publicly offered in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act, or any state securities laws.

About Cardinal Energy Ltd.

Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal's operations are focused in all season access areas in Alberta.

Note Regarding Forward Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Offering, including the anticipated closing date and the exercise of the over-allotment option.

These forward-looking statements are subject to various risks and uncertainties, certain of which are beyond Cardinal's control. Such risks and uncertainties include, without limitation: obtaining the necessary regulatory approvals, including the approval of the Toronto Stock Exchange and on the timeframe contemplated.

Management has included the forward-looking statements above in order to provide readers with a more complete perspective on Cardinal's future operations and such information may not be appropriate for other purposes. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Cardinal will derive there from. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and Cardinal disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.