Overview

Commodity

Metallurgical Coal

Overview

The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The project has a current resource estimate of 468 million tonnes measured and indicated including an initial Reserve of 121 million tonnes. The Company released results of an independent Prefeasibility Study in November 2012 which outlines the robust nature of the deposit. Plans for 2012 include exploration drilling aimed at expanding the current resource base and advancing the Carbon Creek asset towards completion of a Feasibility Study in 2013.

Ownership

Cardero acquired a 100% interest in Coalhunter Mining Corp. via a plan of arrangement in June 2011. Coalhunter Mining was renamed Cardero Coal Ltd. (a wholly-owned subsidiary of Cardero Resource Corp.) and holds 75% joint venture interest in & is the operator of the Carbon Creek Metallurgical Coal project.

Location

The project is located in the Peace River Coal District of northeast British Columbia, Canada

Prefeasibility Study

US$, Post-Tax, Post NPI	Price*	IRR	NPV8	NPV10	NPV12
Best Case (5-year historical Metcoal pricing)	$187/t	27.0%	$819M	$616M	$462M
Base Case (independent marketing consultant)	$174/t	23.7%	$633M	$465M	$338M
Low case (analyst consensus on long-term price)	$143/t	13.1%	$191M	$99M	$30M

Carbon Creek Prefeasibility Valuation Results (Post-Tax, Post NPI). *Price presented is average price based on relative
proportions of coal products sold over mine life: 60% Hard Coking Coal, 34% HV metallurgical Coal, 6% Thermal
(near-surface oxidized coal).

Mineral Resource Estimate

Deposit Type	ASTM Coal Rank	Measured (Mt)	Indicated (Mt)	Inferred (Mt)
Surface	mvB	197	31	32
Underground	mvB	143	97	199
Total	mvB	468		232

Classification of Resource - Carbon Creek Property - September 5, 2012

MINERAL RESERVE ESTIMATE

Mining Method	ROM Tonnes (millions)	Clean Tonnes (millions)
Surface	56	38
Highwall	14	7
Underground	52	33
Combined Total	121	78

Proven and Probable Coal Reserves Through Year 2034

The Company cautions that the accuracy of resource and reserve estimates is, in part, a function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Given the data available at the time this report was prepared, the estimates presented herein are considered reasonable. However, they should be accepted with the understanding that additional data and analysis available subsequent to the date of the estimates may necessitate revision. These revisions may be material. There is no assurance that any mineral resources, other than those already identified in the PFS as proven or probable reserves, will ultimately be reclassified as proven or probable reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There is no guarantee that all or any part of the estimated resources or reserves will be recoverable.