Iron Projects Update November 2008

Iron Projects Update

November 2008

CARDERO BUSINESS MODEL

A Mineral Exploration company focused in Latin America.

Proven Technical teams - experience, expertise and training

from previous careers in major mining companies.

+

Flexibility and drive

of an aggressive junior explorer.

Iron Ore Commodity Focus

CARDERO MANAGEMENT

Henk Van Alphen, President - Cardero Resource – 25 years experience in exploration mining and an experienced Exploration and Mining Entrepreneur. Henk as been active in Latin America since 1991 and has consequently developed an extensive business network particularly in Argentina and Peru. Founder and President of Pacific Rim Mining followed by Corriente Resources. Founded Cardero in 1999.

Carlos Ballon, VP South America – A graduate from Colorado School of Mines and experienced mining engineer. Carlos was VP South America for Corriente Resources followed by Director of Thiess South America (Australia’s largest contract miner – Tintaya, Yanacocha). Advisor to Scotia Bank Peru

(formerly Banco Wiesse) on settlement of Minera Milpo & Minera Atacocha (Peru’s largest Zn producers).

Keith Henderson, VP Exploration – Keith was educated in Europe with Geology B.Sc. and Petroleum Geology M.Sc. He has extensive exploration and mining experience with 15 years experience in Africa, Europe, North America and South America. Keith worked extensively with a host of junior explorers, before moving to Anglo American as a base metal specialist. Most recently, Keith was Project Manager for Anglo Coal Canada managing all aspects of project start-up and resource definition. Keith joined Cardero in early 2007.

WORLD-CLASS IRON EXPERTISE

Glenn Hoffman, President Cardero Iron Ore – Extensive Iron processing experience covering 30 years at Midrex/Kobe Steel as manager R & D and Coal based technologies. Midrex is a leading

international process engineering and technology company. He has been instrumental in the

development of a variety of new innovative iron-making technologies which has enabled Midrex to become the undisputed global leader in direct reduced iron (DRI) and associated next generation technologies. He has constructed / operated 4 next generation DR plants across the globe and holds 13 US patents on processing technology.

Dr. Jayson Ripke, VP Technical – Educated in Michigan Technological University with B.S. and M.S. in Metallurgical and Materials Engineering and Ph.D. in Chemical Engineering. He has extensive

processing experience working as a Pellet Plant Process Engineer with Cleveland-Cliffs Inc. and Chief Metallurgist at CCI’s Wabush Mines in Labrador Canada. Most recently, Jayson was New Technology Manager and Plant Sales Manager for Midrex Technologies Inc. Jayson joined Cardero Iron Ore Co. Ltd. in 2008 to head up pelletizing work at Pampa de Pongo.

PACIFIC COAST INFRASTRUCTURE

Gas Pipeline Electricity ADVANTAGES

ƒ Pan American Hwy

ƒ 38km from tidewater

ƒ Deep water port at San Juan

ƒ Mega-port expansion in line with project timelines

ƒ Gas pipeline extension to be completed 2009

ƒ Power line crosses property

ƒ Direct export route to Asia

P a_n A m e ric a n H w y Pampa de Pongo Port Facility Pampa El Toro

PAMPA DE PONGO DEPOSIT

ƒ Original option from Rio Tinto $560K.

ƒ Independent (SRK) Scoping Study

ƒ 863Mt Inferred Resource grading 41.3% Fe, 0.10% Cu, 0.07g/t Au

ƒ Potential tonnage up to 1.4Bt

ƒ Pellets - 15 Million tonnes / annum

ƒ After-tax NPV₈ is US$4.1 Billion and IRR is 20%

ƒ US$200 Million 100% sale agreement signed October 2008

ƒ Cardero continues to seek higher bids

10km San Juan San Nicolas P a n A m e ric a_n H w y Magnetic Data Marcona Mine MARCONA MINE PAMPA DE PONGO

ECONOMIC ASSESSMENT

Economic Highlights - Base DR Pellet case: price = 218¢/dmtu (US$140/tonne) ƒ After-tax NPV₈ is US$4.1 Billion & after-tax IRR is 20%

ƒ Before-tax net revenue (after royalties & off-site costs) is US$46.2 Billion ƒ equates to US$140/tonne of pellets produced

ƒ OPEX is conservatively estimated at US$22 (extremely low) ƒ yielding a net operating cash flow of US$118/tonne of pellets

ƒ Operating costs only 15.9% of net revenue – very high project operating margin ƒ After-tax undiscounted net cash flow $20.2 Billion ($840 Million annually)

MINERAL RESOURCES

2008 SRK RESOURCE ESTIMATE

Central Zone Open Inferred Resource

ƒ 748Mt @ 41.7% iron, 0.1% copper, 0.06 g/t gold

ƒ 580Mt Planned Extraction – two blocks

South Zone Open Inferred Resource

ƒ 115Mt @ 39.5% iron, 0.12% Cu, 0.13g/t Au

East Zone SRK Potential Tonnage

ƒ Single drillhole discovery

ƒ 350-500Mt real potential Potential Tonnage ƒ Up to 1.4 Billion tonnes 292m magnetite discovery hole DDH-04 CENTRAL EAST 3D Magnetic Model Cross-Section SRK Resource 368m 553m

TWO-STAGE PROCESSING

BENEFICIATION AT MINESITE ƒ Crushing and Grinding

ƒ Wet Magnetic Separation – Mag Conc.

ƒ Copper-Gold Flotation - Cu-Au Conc.

PELLETIZING AT SAN JUAN PORT ƒ Flux & Binder addition

IRON OXIDE PELLETS

NRRI Metallurgical Testing

ƒ 64.5% Iron Grade in pellets

ƒ No deleterious elements (low S, SiO₂, P) MIDREX® _{Direct Reduction Testing}

ƒ Positive assessment from MIDREX

ƒ Pellets meet DR requirements

ƒ Qualify for 10% product premium

“The metallurgical quality shows reducibility, swelling and

porosity all meeting industry standards for high quality blast

furnace feed.”

Natural Resources Research Institute.

“…commercially produced pellets made from this ore would be a suitable feedstock

for the MIDREX ® _Direct

Reduction Process”

MIDREX®

ROBUST LONG-TERM MARKET

ƒ Iron ore consumption driven by demand for steel

ƒ Continued industrialization in China (& India, Brazil, Russia)

ƒ China’s internal supply – lower grade & expensive extraction

ƒ Strategic behaviour – producers maintain ‘balanced’ market

ƒ To meet consumption, supply must increase 35% by 2013

Long-Term DR US¢250/dmtu in 2015 [$161/t]

BF Pellet $ Low US¢154/dmtu [$99/t]

BF _{DR Pellet $ Base Case US¢218/dmtu [$140/t]}

DR

BF Pellet $Base Case US¢198/dmtu [$128/t]

GLOBAL STEEL PRODUCTION

1945 TO PRESENT

$67/t Breakeven @ 8% Discount Rate 2008

PAMPA DE PONGO DEAL

Nanjinzhao Deal - 100% Project Sale for US$200 million (CAN$240)

ƒ Equates to US$3.45 (CAN$4.20) per share for just Pampa de Pongo

ƒ US$10 million paid within 3 months, remaining US$190 million within 9 months

ƒ Before $10M payment – no break fee

ƒ After $10M payment - $20M break fee plus $10M deposit

PAMPA DE PONGO SUMMARY

ƒ After-tax US$4.1 Billion NPV_8% with 20% IRR on stand-alone Central Zone.

ƒ Low OPEX and very high project operating margins – extremely robust.

ƒ 863Mt resource plus 500Mt additional potential (Potential 1.4 Billion tonnes)

ƒ Strategic location & infrastructural advantages for Asian markets export route

ƒ Annual production of 15 Mtpa Pellets = 35% of Vale’s current pellet production

ƒ Robust long-term market and pricing outlook – mine opens during supply deficit.

ƒ Outstanding pilot-scale metallurgical results – excellent BF- and DR-grade pellets

ƒ Government committed to mega-port at San Juan - meets project timeline

PAMPA EL TORO IRON SANDS

PROJECT OUTLINE

ƒ Low Cost Mining (Raw Sand)

ƒ Simple Upgrade to Magnetic Concentrate [target 2Mtpa concentrate production]

ƒ Transport concentrate short distance to deep sea port

ƒ Pig Iron Production at port: High quality PIG IRON [96-98% Fe, 2-4% C] Titanium & Vanadium Credits

Planned 1.3Mtpa pig iron

CONCENTRATOR PILOT PLANT

ƒ 40 tonne concentrate produced ahead of schedule.

ƒ Increased through-put to 18+ tonne/hour ƒ Increased grade 55.5% FeTOT

IRON SANDS APPLICATIONS

ƒ High Quality Iron Sand Concentrate Can Be Used as a Diluent Feedstock With High Phosphorus Iron Ore Fines to Produce Acceptable Sinter Feed For Blast

Furnace.

ƒ High Quality Iron Sand Concentrate Can Be Sold As Merchant Concentrate Product Either on Spot or Long Term Basis.

ƒ High Quality Iron Sand Concentrate Can Be Used As Raw Material Feed to Melting / Smelting Operation For Production of High Quality Merchant Pig Iron.

ƒ High Quality Iron Sand Concentrate Can Be Used as Pelletizing Feed For Production of Blast Furnace Grade Pellets.

Disclaimer

Except for historical information contained in the presentation to be made, there are matters discussed here that are forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Litigation Reform Act of 1995. Although Cardero

Resource Corp. believes that the expectations reflected in such forward-looking statements are reasonable at this time, no assurance can be given that such expectations will prove to have been correct.

These statements, including those given during the question and answer part of this presentation, are therefore only predictions and actual events or results may differ materially. You are cautioned not to place undue reliance on such forward-looking statements.

Cardero Resource Corp. does not undertake any obligation to update publicly any forward-looking statements discussed in this presentation, whether as a result of new information, future events or otherwise.