Cardinal Energy Ltd. Announces Implementation of Drip and Stock Dividend Program

CALGARY, ALBERTA--(Marketwired - Jan. 13, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cardinal Energy Ltd. ("Cardinal" or the "Company") (CJ.TO) is pleased to announce that it has adopted a dividend reinvestment plan (the "DRIP") and a stock dividend program (the "SDP"). Eligible shareholders may elect to participate in the DRIP or the SDP commencing with the dividend to be paid on February 17, 2014 to shareholders on record as of January 31, 2014. Participation in the DRIP or the SDP is optional and will not affect shareholders' cash dividends unless they elect to participate in the DRIP or the SDP.

The following is a summary of the key attributes of the DRIP and the SDP. A complete copy of the DRIP and the SDP is available on Cardinal's website at www.cardinalenergy.ca. Shareholders should carefully read the complete text of the DRIP and the SDP before making any decisions regarding their participation in the DRIP or the SDP. For further information regarding the DRIP or the SDP, please contact Valiant Trust Company at 403-233-2801.

The DRIP allows eligible shareholders of Cardinal to reinvest their cash dividends into additional common shares of Cardinal, which when issued from treasury will be issued at the Average Market Price (as defined in the DRIP) on the applicable dividend payment date. Registered and beneficial owners of common shares who are not a resident in Canada are not eligible to participate in the DRIP. While it is currently the intention of Cardinal to issue the required additional common shares through treasury, Cardinal may, from time to time, in its discretion, direct that such common shares be purchased through the facilities of the Toronto Stock Exchange ("TSX") at prevailing market prices. Cardinal also reserves the right to limit the amount of new equity available under the DRIP on any particular dividend date. No commissions, service charges or brokerage fees are payable in connection with the purchase of common shares from treasury under the DRIP. Eligible shareholders who wish to participate in the DRIP indirectly through the broker or other nominee through which their common shares are held should consult such broker or nominee to confirm whether commissions, service charges or other fees (if any) are payable.

Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in new common shares under the DRIP. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.

To participate in the DRIP, registered shareholders must deliver a properly completed authorization form to Valiant Trust Company (the "Plan Agent"), before 3:00 p.m. (Calgary time) on the business day immediately preceding a dividend record date. Registered shareholders who wish to participate in the DRIP for the January 2014 dividend must deliver a properly completed enrollment form to the Plan Agent no later than 3:00 p.m. (Calgary time) on Thursday, January 30, 2014. Beneficial shareholders (i.e. owners of common shares that are held through a nominee) who wish to participate in the DRIP should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrollment in the DRIP.

The SDP delivers increased optionality for eligible Cardinal shareholders. While it is similar to the DRIP, the SDP is expected to have certain favorable income tax attributes and is available to both eligible Canadian and non-Canadian shareholders, except that shareholders resident in the State of California are not eligible to participate in the SDP.

The SDP enables Cardinal to issue common shares as payment of all or a portion of dividends declared on the common shares for those shareholders who elect to receive stock dividends instead of cash dividends. Such stock dividends will be issued at the Average Market Price (as defined in the SDP) on the applicable dividend payment date. Cardinal may discontinue the declaration and payment of stock dividends at any time. Common shares issued pursuant to the SDP will be issued directly by Cardinal to the Plan Agent on behalf of SDP participants. No commissions, service charges or brokerage fees are payable in connection with the issue of common shares under the SDP. Eligible shareholders who wish to participate in the SDP indirectly through the broker or other nominee through which their common shares are held should consult such broker or nominee to confirm whether commissions, service charges or other fees (if any) are payable.

Participation in the SDP will not relieve shareholders of any liability for taxes that may be payable on dividends. Shareholders should consult their own tax advisors concerning the tax implementation of their participation in the SDP having regard for their own personal circumstances.

To participate in the SDP, registered shareholders must deliver a properly completed stock dividend confirmation notice to the Plan Agent before 3:00 p.m. (Calgary time) on the business day immediately preceding a dividend record date in order to receive stock dividends. Registered shareholders who wish to receive the January 2014 dividend as a stock dividend pursuant to the SDP must deliver a completed and stock dividend signed confirmation notice to the Plan Agent no later than 3:00 p.m. (Calgary time) on Thursday, January 30. 2014. Beneficial shareholders (i.e. owners of common shares that are held through a nominee) who wish to participate in the SDP should contact the broker, investment dealer, financial institution or other nominee who holds their common shares to inquire about the applicable enrolment deadline and to request enrollment in the SDP.

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.

Reader Advisory

This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States, in any province or territory of Canada or in any other jurisdiction. The common shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States absent registration or absent an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. There shall be no sale of common shares in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or a sale would be unlawful.

Forward-Looking Statements

This news release contains forward-looking information that involves known and unknown risks and uncertainties, most of which are beyond the control of Cardinal. Forward-looking information in this press release includes, but is not limited to, Cardinal's dividend policy and the amount of and timing related to the payment of future dividends.

The forward‐looking information is based on certain key expectations and assumptions made by Cardinal's management, including expectations and assumptions concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully and Cardinal's ability to access capital. Management has included the above summary of assumptions and risks related to forward‐looking information provided in this press release in order to provide securityholders with a more complete perspective on Cardinal's future operations and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect Cardinal's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements.

These forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, Cardinal does not assume any obligation to update or revise them to reflect new events or circumstances.