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FSE: CR5
OTC: CDYCF
TSX.V: CDU

Kootenay Project

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Details of Option Terms

Details of Option Terms

The first option agreement applies to four properties being Ledgend, Enerplus-Tesla, Nico, and Spine (2,647 hectares) being optioned from the underlying owners who are at arms-length to the company. Cardero has been granted the exclusive option to acquire a 100% interest in the four properties by paying an aggregate of $895,000 in cash and issuing an aggregate of 3,000,000 common shares over a four year term are as follows:

Date

Cash to Optionors

Cardero Shares

On the Effective Date (Oct. 25)

$25,000

0

On the Closing Date

$0

200,000

Year 1 Anniversary

$75,000

400,000

Year 2 Anniversary

$170,000

600,000

Year 3 Anniversary

$225,000

800,000

Year 4 Anniversary

$400,000

1,000,000

Total

$895,000

3,000,000



The second option agreement applies to the Lardeau project (1,728 hectares). The underlying owner is Wealth Minerals Ltd (TSX.V: WML), a corporation which is not at arm's length to the Company. Cardero has been granted the exclusive option to acquire a 100% interest in the Lardeau project by issuing an aggregate of 1,400,000 common shares over a four year term are as follows:

Date

Cardero Shares

Closing

200,000

Year 1 Anniversary

300,000

Year 2 Anniversary

300,000

Year 3 Anniversary

300,000

Year 4 Anniversary

300,000

Total

1,400,000



All of the claims are subject to a 2% net smelter returns royalty. Cardero will have the right to purchase ½ of the royalty applicable to the Ledgend, Enerplus-Tesla, Nico, and Spine properties for a payment of $1,000,000 in cash at any time following date Cardero exercises its right to acquire the properties. A similar buy-back provision applies in relation to the Lardeau project.