Cardero Resource Corp. (the "Company") (TSX: CDU, AMEX: CDY, Frankfurt: CR5) said Tuesday that it has entered into a letter of intent with Hochschild Mining Holdings Limited ('HMHL'), a subsidiary of Hochschild Mining plc (LSE: HOC), pursuant to which it has granted HMHL the option to earn up to a 70% interest in the Los Manantiales Gold property, located in Chubut Province, Argentina.

According to publicly available information, mineralization at Los Manantiales (originally called 'Mina Angela') consists of low sulphidation epithermal vein systems hosted by Jurassic andesitic volcanics. Production took place on selected veins between 1978 and 1992. From 1983, when accurate mining records began, until closure in 1992, Los Manantiales produced 1,037,360 tons at an average grade of 4.0g/t gold, 48.4g/t silver, 2.0% lead, 0.4% copper and 4.6% zinc. Mineralization remains open at depth.

Most recently, in 1997 and 1998, Lonrho Mining of South Africa conducted significant exploration and discovered a new vein system, El Sahuel. Based on very limited testing the best drill intersection obtained was 1.36 metres grading 40.65 g/t gold, 1773 g/t silver, 1.79% lead, 0.23% copper and 10.06% zinc at a vertical depth of 65 metres below surface. Another hole drilled on the El Sahuel system intersected a second vein approximately 65 metres to the west which returned 2 metres averaging 6.69 g/t gold, 240g/t silver, 0.52% lead, 0.04% copper and 2.19% zinc. At the end of 1998 Lonrho decided to concentrate on mining activities in Africa and withdrew from overseas exploration, including South America. Geophysics indicates that the vein system has a potential strike length of 1.6 kilometres. The system is presently poorly delineated and remains open along strike and at depth.

'Possessing strong technical expertise, our primary objective is exploration and discovery of world-class deposits,' stated Henk Van Alphen, president and CEO. 'This joint venture with Hochschild is an excellent opportunity that will enable us to continue our aggressive exploration strategy while having the potential for participation in a cash-flow project operated by an established producer'.

Jorge Benavides, Hochschild's Chief Executive of Exploration stated: 'The Los Manantiales option exemplifies the kind of partnership that Hochschild can offer to precious metals producers in the region – combining our expertise in the extraction of precious metals from narrow epithermal vein deposits with their assets and expertise in exploration to release the value of this exciting project.'

Pursuant to the letter of intent, HMHL has a period of 60 days to carry out due diligence. The Company received a payment of USD 40,000 on the signing of the letter of intent, which is refundable to HMHL if it declines to proceed following the completion of due diligence (which it may only do in the event a material adverse condition is found to exist). Following a decision to proceed upon completion of due diligence, HMHL may earn an initial 60% interest in the property by incurring an aggregate of USD 3,500,000 in expenditures over 4 years.

Upon HMHL having earned an initial 60% interest, the Company may elect to either participate at its 40% interest level, or request HMHL to fund the preparation of a bankable feasibility study within 4 years of such request and thereby earn an additional 10% interest in the joint venture. Upon such request being made by the Company, HMHL may either elect to fund the bankable feasibility or not. If it does so, it will earn the additional 10% interest upon completion of the bankable feasibility study. Following the formation of the joint venture and the completion of its earn-in requirements by HMHL, each participant is responsible for funding its share of joint venture expenditures. If it does not do so, its interest will be diluted. Upon the interest of a participant being diluted to less than 10%, such interest will be converted to a 2% net smelter return royalty.

About Hochschild Mining plc

Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg) is a publicly held company listed on the London Stock Exchange. Hochschild is a leading precious metals company with a primary focus on the exploration, mining, processing and sale of silver and gold, and currently operates three underground epithermal vein mines located in southern Peru. Hochschild also has three advanced stage development projects, one in each of Mexico, Peru and Argentina and one early stage development project in Mexico. In addition, Hochschild has over twenty long-term prospects throughout Latin America. Hochschild over forty years experience in the mining of precious metal epithermal vein deposits.

About Cardero Resource Corp.

Cardero is well financed and positioned to continue to explore its projects in Mexico, Peru, and Argentina. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the American Stock Exchange (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). The Company is actively evaluating new gold, copper and iron projects, and continues to maintain an active pipeline of prospects.