----

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| Nevada                       |   | 47-1579622          |
|------------------------------|--------|---------------------|
| (State or other jurisdiction |   | (IRS Employer       |
| of incorporation)            |   | Identification No.) |

| Large accelerated filer | [  ] | Accelerated filer         | [  ] |
|-------------------------|----------------|---------------------------|----------------|
| Non-accelerated filer   | [  ] | Smaller reporting company | [X]            |

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TABLE OF CONTENTS

|       | PART I – FINANCIAL INFORMATION                                                         |   |      |
|------------|----------------------------------------------------------------------------------------------|--------|-----------|
|       |                                                                                         |   |      |
| Item 1.    | Financial Statements.                                                                        |   | F-1  |
|       |                                                                                         |   |      |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |   | 3         |
|       |                                                                                         |   |      |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk.                                  |   | 8         |
|       |                                                                                         |   |      |
| Item 4.    | Controls and Procedures.                                                                     |   | 8         |
|       |                                                                                         |   |      |
|       | PART II – OTHER INFORMATION                                                            |   |      |
|       |                                                                                         |   |      |
| Item 1.    | Legal Proceedings.                                                                           |   | 9         |
|       |                                                                                         |   |      |
| Item 1A.   | Risk Factors.                                                                                |   | 9         |
|       |                                                                                         |   |      |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds.                                 |   | 9         |
|       |                                                                                         |   |      |
| Item 3.    | Defaults Upon Senior Securities.                                                             |   | 9         |
|       |                                                                                         |   |      |
| Item 4.    | Mine Safety Disclosures.                                                                     |   | 9         |
|       |                                                                                         |   |      |
| Item 5.    | Other Information.                                                                           |   | 9         |
|       |                                                                                         |   |      |
| Item 6.    | Exhibits.                                                                                    |   | 9         |
|       |                                                                                         |   |      |
| Signatures |                                                                                         | 10     |

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Table Of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

| CARDINAL RESOURCES, INC. AND SUBSIDIARY                                                              |   |
|------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                          |   |
| AS OF JUNE 30, 2014 AND DECEMBER 31, 2013 (Unaudited)                                                |   |
|                                                                                                 |   |   |   |   |   |   |
| ASSETS                                                                                               |   |   |   |   |   |   |
|                                                                                                 |   | June 30, 2014 |   |   | December 31, 2013 |   |
|                                                                                                 |   |   |   |   |   |   |
| CURRENT ASSETS                                                                                       |   |   |   |   |   |   |
| Cash and cash equivalents                                                                            |   | $ | 193,596 |   |   | $ | 545,714 |   |
| Accounts receivable, net                                                                             |   |   | 602,086 |   |   |   | 589,965 |   |
| Inventory                                                                                            |   |   | 14,137 |   |   |   | 14,137 |   |
| Other current assets                                                                                 |   |   | 28,430 |   |   |   | 28,430 |   |
| TOTAL CURRENT ASSETS                                                                                 |   |   | 838,249 |   |   |   | 1,178,246 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT, NET                                                                   |   |   | 247,263 |   |   |   | 261,109 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                         |   | $ | 1,085,512 |   |   | $ | 1,439,355 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND MEMBERS' DEFICIT                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                  |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                     |   | $ | 1,836,818 |   |   | $ | 1,602,968 |   |
| Accounts payable - related parties                                                                   |   |   | 62,528 |   |   |   | 62,528 |   |
| Notes payable                                                                                        |   |   | 222,657 |   |   |   | 222,657 |   |
| Notes payable - related parties                                                                      |   |   | 36,377 |   |   |   | 55,415 |   |
| Convertible notes payable, net of discount of $84,702 and $77,011                                    |   |   | 231,298 |   |   |   | 180,989 |   |
| Accrued liabilities                                                                                  |   |   | 570,946 |   |   |   | 560,421 |   |
| Derivative liabilities                                                                               |   |   | 67,038 |   |   |   |   |   |
| TOTAL CURRENT LIABILITIES                                                                            |   |   | 3,027,662 |   |   |   | 2,684,978 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES                                                                                    |   |   | 3,027,662 |   |   |   | 2,684,978 |   |
|                                                                                                 |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' (DEFICIT) / EQUITY                                                                     |   |   |   |   |   |   |   |   |
| Preferred stock, $.001 par value, 25,000,000 shares authorized; none of which issued and outstanding |   |   |   |   |   |   |   |   |
| as of June 30, 2014 and December 31, 2013, respectively                                              |   |   | - |   |   |   | - |   |
| Common stock, $0.001 par value, 300,000,000 shares authorized, 90,343,332 and 87,026,331 shares      |   |   | 90,343 |   |   |   | 87,026 |   |
|  issued and outstanding as of June 30, 2014 and December 31, 2013, respectively                 |   |   |   |   |   |   |   |   |
| Additional paid in captial                                                                           |   |   | 1,772,340 |   |   |   | 954,815 |   |
| Accumulated deficit                                                                                  |   |   | (3,804,833 | ) |   |   | (2,287,464 | ) |
| TOTAL STOCKHOLDERS' (DEFICIT) / EQUITY                                                               |   |   | (1,942,150 | ) |   |   | (1,245,623 | ) |
|                                                                                                 |   |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) / EQUITY                                               |   | $ | 1,085,512 |   |   | $ | 1,439,355 |   |

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Table Of Contents

| CARDINAL RESOURCES, INC. AND SUBSIDIARY                                    |   |
|----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                      |   |
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (Unaudited) |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   | For the Three Months Ended |   |   | For the Six Months Ended |   |
|                                                                       |   | June 30, 2014 |   |   | June 30, 2013 |   |   | June 30, 2014 |   |   | June 30, 2013 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Sales                                       |   | $ | (250,868 | ) |   | $ | 149 |   |   | $ | 44,552 |   |   | $ | 89,905 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                              |   |   | 335,118 |   |   |   | 84,922 |   |   |   | 486,643 |   |   |   | 138,152 |   |
| Selling, general and Administrative                                        |   |   | 374,825 |   |   |   | 113,723 |   |   |   | 655,842 |   |   |   | 104,660 |   |
| Depreciation and amortization expenses                                     |   |   | 13,065 |   |   |   | 12,493 |   |   |   | 24,901 |   |   |   | 26,345 |   |
| Total operating expenses                                                   |   |   | 723,008 |   |   |   | 211,138 |   |   |   | 1,167,386 |   |   |   | 269,157 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                       |   |   | (973,876 | ) |   |   | (210,989 | ) |   |   | (1,122,834 | ) |   |   | (179,252 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expenses                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                           |   |   | (33,539 | ) |   |   | (7,093 | ) |   |   | (67,899 | ) |   |   | (14,851 | ) |
| Interest income                                                            |   |   | - |   |   |   | 9,575 |   |   |   | - |   |   |   | 24 |   |
| Loss on extinguishment of debt                                             |   |   | (303,411 | ) |   |   | - |   |   |   | (303,411 | ) |   |   | - |   |
| Changes in derivative liabilities                                          |   |   | (12,038 | ) |   |   | - |   |   |   | (12,038 | ) |   |   | - |   |
| Gain from disposal of vehicle                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,847 |   |
| Other expenses                                                             |   |   | (6,476 | ) |   |   | - |   |   |   | (11,187 | ) |   |   | - |   |
| Total other expenses                                                       |   |   | (355,464 | ) |   |   | 2,482 |   |   |   | (394,535 | ) |   |   | 2,020 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                          |   |   | (1,329,340 | ) |   |   | (208,507 | ) |   |   | (1,517,369 | ) |   |   | (177,232 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                          |   | $ | (1,329,340 | ) |   | $ | (208,507 | ) |   | $ | (1,517,369 | ) |   | $ | (177,232 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                      |   | $ | (0.02 | ) |   | $ | (0.00 | ) |   | $ | (0.02 | ) |   | $ | (0.00 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding                              |   |   |   |   |   |   |   |   |   |
| Basic                                                                      |   |   | 88,066,578 |   |   |   | 87,026,331 |   |   |   | 87,549,328 |   |   |   | 87,026,331 |   |

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Table Of Contents

| CARDINAL RESOURCES, INC. AND SUBSIDIARY                                  |   |
|--------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                    |   |
| FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013 (Unaudited)         |   |
|                                                                     |   |   |   |   |   |   |
|                                                                     |   | For the Six Months Ended |   |
|                                                                     |   | June 30, 2014 |   |   | June 30, 2013 |   |
|                                                                     |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                    |   |   |   |   |   |   |
| Net loss                                                                 |   | $ | (1,517,369 | ) |   | $ | (177,232 | ) |
| Adjustments to reconcile net loss to                                     |   |   |   |   |   |   |   |   |
| net cash provided by operating activities:                               |   |   |   |   |   |   |   |   |
| Depreciation and amortization expenses                                   |   |   | 24,901 |   |   |   | 26,345 |   |
| Amortization of debt discounts                                           |   |   | 50,309 |   |   |   | - |   |
| Loss on extinguishment of debt                                           |   |   | 303,411 |   |   |   | - |   |
| Change in derivative liabilities                                         |   |   | 12,038 |   |   |   | - |   |
| Gain from disposal of vehicle                                            |   |   | - |   |   |   | (16,847 | ) |
| Stock based compensation                                                 |   |   | 200,000 |   |   |   | - |   |
| Changes in operating assets and liabilities:                             |   |   |   |   |   |   |   |   |
| Accounts receivable                                                      |   |   | (12,121 | ) |   |   | (21,403 | ) |
| Accounts payable                                                         |   |   | 233,850 |   |   |   | (48,014 | ) |
| Accounts payable - related parties                                       |   |   | - |   |   |   | 24,400 |   |
| Accrued liabilities                                                      |   |   | 121,540 |   |   |   | 221,634 |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                |   |   | (583,441 | ) |   |   | 8,883 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                    |   |   |   |   |   |   |   |   |
| Purchase of equipment                                                    |   |   | (11,055 | ) |   |   | (163 | ) |
| Proceeds from disposal of vehicle                                        |   |   | - |   |   |   | 24,284 |   |
| NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                      |   |   | (11,055 | ) |   |   | 24,121 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                    |   |   |   |   |   |   |   |   |
| Repayments of notes payable                                              |   |   | - |   |   |   | (45,285 | ) |
| Repayments of notes payable - related parties                            |   |   | - |   |   |   | (38,902 | ) |
| Proceeds from options exercises                                          |   |   | 22,378 |   |   |   | - |   |
| Proceeds from sales of common stock                                      |   |   | 165,000 |   |   |   | - |   |
| Proceeds from convertible notes payable                                  |   |   | 55,000 |   |   |   | 40,100 |   |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                      |   |   | 242,378 |   |   |   | (44,087 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS                                |   |   | (352,118 | ) |   |   | (11,083 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                               |   |   |   |   |   |   |   |   |
| Beginning of period                                                      |   |   | 545,714 |   |   |   | 11,133 |   |
| End of period                                                            |   | $ | 193,596 |   |   | $ | 50 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                        |   |   |   |   |   |   |   |   |
| Cash paid for income taxes                                               |   | $ | - |   |   | $ | - |   |
| Cash paid for interest                                                   |   | $ | - |   |   | $ | 1,787 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Supplemental disclosures of non-cash investing and financing activities: |   |   |   |   |   |
| Debt discount due to member units issued with convertible notes          |   | $ | 58,000 |   |   | $ | 3,000 |   |
| Stock issued to settle partial accrued salaries                          |   | $ | 111,015 |   |   | $ | - |   |
| Stock issued to settle related parties notes                             |   | $ | 19,038 |   |   | $ | - |   |

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Table Of Contents

| CARDINAL RESOURCES, INC. AND SUBSIDIARY                                               |   |
|---------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)                              |   |
| FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 AND FOR SIX MONTHS ENDED JUNE 30, 2014 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   | Preferred Stock |   |   | Common Stock |   |   | Additional |   |   | Retained |   |   | Total |   |
|                                                                                  |   | $0.001 par value |   |   | $0.001 par value |   |   | Paid in |   |   | Earnings |   |   | Stockholders' |   |
|                                                                                  |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | (Deficit) |   |   | (Deficit) |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2011                                                            |   |   | - |   |   | $ | - |   |   |   | 46,623,554 |   |   | $ | 46,624 |   |   | $ | 109,628 |   |   | $ | (685,963 | ) |   | $ | (529,711 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders contribution                                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,070 |   |   |   | - |   |   |   | 4,070 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss)                                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (609,789 | ) |   |   | (609,789 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2012                                                            |   |   | - |   |   | $ | - |   |   |   | 46,623,554 |   |   | $ | 46,624 |   |   | $ | 113,698 |   |   | $ | (1,295,752 | ) |   | $ | (1,135,430 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reorganization due to reverse merger                                                  |   |   | - |   |   |   | - |   |   |   | 36,000,000 |   |   |   | 36,000 |   |   |   | (117,848 | ) |   |   | - |   |   |   | (81,848 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of common stock                                                   |   |   | - |   |   |   | - |   |   |   | 2,900,000 |   |   |   | 2,900 |   |   |   | 649,100 |   |   |   | - |   |   |   | 652,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                      |   |   | - |   |   |   | - |   |   |   | 500,000 |   |   |   | 500 |   |   |   | 124,500 |   |   |   | - |   |   |   | 125,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intrinsic value from beneficial conversion feature                                    |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 86,368 |   |   |   | - |   |   |   | 86,368 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for conversion of debt                                                  |   |   | - |   |   |   | - |   |   |   | 1,002,777 |   |   |   | 1,003 |   |   |   | 73,997 |   |   |   | - |   |   |   | 75,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants issued for services                                                          |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 25,000 |   |   |   | - |   |   |   | 25,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss)                                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (991,712 | ) |   |   | (991,712 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2013                                                            |   |   | - |   |   | $ | - |   |   |   | 87,026,331 |   |   | $ | 87,026 |   |   | $ | 954,815 |   |   | $ | (2,287,464 | ) |   | $ | (1,245,623 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from sales of common stock                                                   |   |   | - |   |   |   | - |   |   |   | 457,500 |   |   |   | 458 |   |   |   | 164,543 |   |   |   | - |   |   |   | 165,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of debt                                                                    |   |   | - |   |   |   | - |   |   |   | 325,135 |   |   |   | 325 |   |   |   | 129,728 |   |   |   | - |   |   |   | 130,053 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for services                                                      |   |   | - |   |   |   | - |   |   |   | 500,000 |   |   |   | 500 |   |   |   | 199,500 |   |   |   | - |   |   |   | 200,000 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Option exercises                                                                      |   |   | - |   |   |   | - |   |   |   | 2,034,368 |   |   |   | 2,034 |   |   |   | 20,344 |   |   |   |   |   |   |   | 22,378 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants issued for debt settlement                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 303,411 |   |   |   |   |   |   |   | 303,411 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss)                                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | (1,517,369 | ) |   |   | (1,517,369 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, June 30, 2014                                                                |   |   | - |   |   | $ | - |   |   |   | 90,343,334 |   |   | $ | 90,343 |   |   | $ | 1,772,340 |   |   | $ | (3,804,833 | ) |   | $ | (1,942,150 | ) |

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|   | (A) | Convertible Notes Payable |
|--------|-----|---------------------------|

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|   | (B) | Convertible Notes Payable – Derivative liabilities |
|--------|-----|----------------------------------------------------------|

|  Reporting Date |   |    Fair Value |   |   |    Term(Years) |   |   | Assumed Conversion Price |   |   | Market Price on Issuance Date |   |   |   Volatility Percentage |   |   |   Risk-freeRate |   |
|----------------------|--------|-------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-------------------------------|--------|--------|------------------------------|--------|--------|----------------------|--------|
| 5/28/2014            |   | $                       | 67,185 |   |                     |   | 0.76   |                     |   | $      | 0.145                         |   |   | $                            | 0.25   |   |                 |   | 176 | % |   |   | 0.0011 |   |
| 6/30/2014            |   | $                       | 67,038 |   |                     |   | 0.67   |                     |   | $      | 0.599                         |   |   | $                            | 1.05   |   |                 |   | 176 | % |   |   | 0.0011 |   |

| The Note                                           | 06/30/2014 |   |
|----------------------------------------------------|------------|--------|
|                                               |       |   |
| Proceeds                                           |       | $      | 58,000 |   |
| Less derivative liabilities on initial recognition |       |   | (58,000 | ) |
| Value of the Note on initial recognition           |       |   | 0 |   |

| Add accumulated accretion expense |   |   | 6,885 |   |
|-----------------------------------|--------|--------|-------|--------|
| Balance as at June 30, 2014       |   | $      | 6,885 |   |

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| Term (Years) |   | Exercise Price |   |   | Market Price on Issuance Date |   |         | Volatility Percentage |   |   | Risk-freeRate |   |
|--------------|--------|----------------|--------|--------|-------------------------------|--------|--------------|-----------------------|--------|--------|---------------|--------|
| 3 years      |   | $              | 0.80   |   |                          | $      | 0.25 - $1.05 |                  |   |   | 176           | %      |   |   | 0.0011 |   |

|                              |   |                                                       |   |   |      |   |   |      |   |   |               |   |
|-----------------------------------|--------|------------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------------------|--------|
|                              |   | Fair Value Measurements at June 30, 2014 December 31, 2013 |   |
| Description                       |   | (Level 1)                                                  |   |   | (Level 2) |   |   | (Level 3) |   |   | TotalCarryingValue |   |
| Derivative liability - 12/31/2013 |   | $                                                          | -      |   |      | $      | -      |      |   | $      | 0                  |   |   | $ | 0 |   |
| Derivative liability - 6/30/2014  |   | $                                                          | -      |   |      | $      | -      |      |   | $      | 67,038             |   |   | $ | 67,038 |   |
|                              |   |                                                       |   |   |      |   |   |      |   |   |               |   |   |   |   |   |

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|                                  |   | Number of Warrants |      | WeightedAverage Exercise Price |
|---------------------------------------|--------|--------------------|-----------|--------------------------------|
| Stock Warrants                        |   |               |      |                           |
| Balance at January 1, 2014            |   |               | 3,276,000 |                           |   | $ | 0.47 |   |
| Granted                               |   |               | 662,633   |                           |   | $ | 0.80 |   |
| Exercised                             |   |               | 0         |                           |   | $  | 0  |   |
| Expired                               |   |               | 0         |                           |   | $  | 0 |   |
| Balance at June 30, 2014              |   |               | 3,938,633 |                           |   |   | 0.53 |   |
| Warrants Exercisable at June 30, 2014 |   |               | 3,938,633 |                           |   | $ | 0.53 |   |

| Term (Years) |   | Exercise Price |   |   | Market Price on Issuance Date |   |         | Volatility Percentage |   |   | Risk-freeRate |   |
|--------------|--------|----------------|--------|--------|-------------------------------|--------|--------------|-----------------------|--------|--------|---------------|--------|
| 3 years      |   | $              | 0.80   |   |                          | $      | 0.25 - $1.05 |                  |   |   | 176           | %      |   |   | 0.0011 |   |

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| Total Contract               |   |
|------------------------------|--------|
| Job                          |   | Revenues |   |   | Cost of Revenues |   |   | EstimatedGross Profit |   |   | Gross Profit % |   |
| Bayelsa as of March 31, 2014 |   | $ | 6,300,000 |   |   | $ | 3,443,651 |   |   | $ | 2,856,349 |   |   |   | 45 | % |

|                                      |   |   |      |   |   |   |      |   |   |   |        |   |   |   |   |   |
|-------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-------------|--------|--------|--------|--------|--------|
| Changes during the second quarter of 2014 |   | $      | 0         |   |   | $      | 1,661,310 |   |   | $      | (1,661,310) |   |   |   | (26)   | %      |
|                                      |   |   |      |   |   |   |      |   |   |   |        |   |   |   |   |   |
| Bayelsa as of June 30, 2014               |   | $      | 6,300,000 |   |   | $      | 5,104,961 |   |   | $      | 1,195,039   |   |   |   | 19     | %      |

| Six Months Ended June 30, 2014 |   |
|--------------------------------|--------|
| Job                            |   | Revenues |   |   | Cost of Revenues |   |   | Gross Profit |   |   | Billed to Date |   |   | % Complete |   |   | Over (Under) Billed |   |
| Bayelsa                        |   | $ | 1,832,630 |   |   | $ | 1,485,000 |   |   | $ | 347,630 |   |   | $ | 1,832,630 |   |   |   | 29 | % |   | $ | - |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: previously recognized    |   |   | (1,826,448 | ) |   |   | (998,357 | ) |   |   | (828,091 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Totals                         |   | $ | 6,182 |   |   | $ | 486,643 |   |   | $ | (480,461 | ) |   | $ | 1,832,630 |   |   |   |   |   |   | $ | - |   |

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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|                                |   | Three Months Ended |       |
|-------------------------------------|--------|--------------------|------------|
|                                |   | June 30, 2014      |       |   | June 30, 2013 |   |
| Sales                               |   | $                  | (250,868)  |   |   | $ | 149 |   |
| Gross Profit (Loss)                 |   | $                  | 335,118    |   |   | $ | 84,922 |   |
| Research and Development Expenses   |   | $                  | ---        |   |   | $ | -- |   |
| General and Administrative Expenses |   | $                  | 374,825    |   |   | $ | 113,723 |   |
| Operating Expenses                  |   | $                  | 723,008    |   |   | $ | 211,138 |   |
| Other Income (Expense)              |   | $                  | (355,464   | ) |   | $ | 2,482 |   |
| Net Loss                            |   | $                  | (1,329,340 | ) |   | $ | (208,507 | ) |

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|                |   | June 30, 2014 |       |   | December 31, 2013 |   |       | Increase/(Decrease) |   |
|---------------------|--------|---------------|------------|--------|-------------------|--------|------------|---------------------|--------|
| Current Assets      |   | $             | 838,249    |   |              | $      | 1,178,246  |                |   | $ | (339,997) |   |
| Current Liabilities |   | $             | 3,027,662  |   |              | $      | 2,684,978  |                |   | $ | 342,684 |   |
| Working Capital     |   | $             | (2,189,413 | )      |              | $      | (1,506,732 | )                   |   | $ | (696,527 | )  |

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|   |
|--------|

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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Item 4. Controls and Procedures.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Item 1A. Risk Factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Item 3. Defaults upon Senior Securities.

Item 4. Mine Safety Disclosures

Item 5. Other Information.

Item 6. Exhibits.

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| Exhibit No. |   | Description                                                                                                                                                    |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1        |   | Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). * |
|        |   |                                                                                                                                                           |
| 31.2        |   | Certification by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). * |
|        |   |                                                                                                                                                           |
| 32.1        |   | Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *            |
|        |   |                                                                                                                                                           |
| 32.2        |   | Certification by the Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *            |
|        |   |                                                                                                                                                           |
| 101.INS     |   | XBRL Instance Document **                                                                                                                                      |
|        |   |                                                                                                                                                           |
| 101.SCH     |   | XBRL Taxonomy Extension Schema **                                                                                                                              |
|        |   |                                                                                                                                                           |
| 101.CAL     |   | XBRL Taxonomy Extension Calculation Linkbase **                                                                                                                |
|        |   |                                                                                                                                                           |
| 101.DEF     |   | XBRL Taxonomy Extension Definition Linkbase **                                                                                                                 |
|        |   |                                                                                                                                                           |
| 101.LAB     |   | XBRL Taxonomy Extension Label Linkbase **                                                                                                                      |
|        |   |                                                                                                                                                           |
| 101.PRE     |   | XBRL Taxonomy Extension Presentation Linkbase **                                                                                                               |

SIGNATURES

|       | CARDINAL RESOURCES, INC. |
|--------------------------------|--------------------------|
|       |                     |     |
| Date: August 18, 2014     | By:                      | /s/ Kevin Jones |
|       | Name:                    | Kevin Jones |
|       | Title:                   | Chief Executive Officer (Principal Executive Officer) (Principal Financial Officer) (Principal Accounting Officer) |

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