Resource Stock Update - V15 #18.2 – CPQ, CDU, GGI, NL - Dec. 23, 2009

PO Box 1020 Owen Sound, Ontario, Canada N4K 6H6

Cardero Resource TSXV:CDU Recent Price – C$1.50

Entry Price $1.60 Opinion – hold

Cardero put out news that the Nanjinzhao Group Co. Ltd., is proceeding with the completion of the purchase of Cardero Resource's Pampa de Pongo iron deposit in Peru. Due to the fact that Nanjinzhao has not yet finalized its project financing banking arrangements with respect to the Pampa de Pongo project, and is therefore making the final payment from its own corporate resources, it has requested, and Cardero and Cardero Hierro Peru SA have
agreed, that the final payment of $88-million (U.S.) will be split into three payments, as
follows:

• $18-million (U.S.), to be paid prior to Dec. 17, 2009 -- paid;

• $40-million (U.S.), to be paid on Dec. 17, 2009 -- paid;

• $30-million (U.S.), to be paid on Dec. 31, 2009 -- to come.

The stock popped up on the news but is still way undervalued and selling at a discount to
what will be its new cash value. My calculations show they have 58.5M shares out and the
US$88M is about C$91M and they have cash of C$7M plus what many do not realize they
hold 3.5M shares of Int Tower Hill, ITH that has been a big success and is now priced at over $7 so that is worth C$24.5M for a total of C$122.5M or $2.09/share
Looks like they are burning about $6M cash/year - even if we subtract that the stock is still a
good discount to $1.99 cash value
The only negative I see for the stock price is 4 million warrants exercisable at $1.50 that
expire March 1 2010 so that might act as cap on stock for the 1st 2 months of 2010.

The stock just can't seem to maintain traction, it pops higher only to fall back again but a lot of that has to do with the on again - off again buy out arrangements for their Pampa de Pongo project. I plan on holding the stock to it at least moves up to it's cash value around $2.00 and by looking at the chart that looks like an easily obtainable target.

On the chart you can see the solid support around $1.00 where I last gave an update on the
stock as a 'Strong Buy' in May at
.94. The stock is currently at it's first resistance level just
above $1.50 and might pause here for a while. However we can see the stock is in a nice
rising upward channel and it's next resistance is around $2.00 that happens to be it's cash
value. The stock has also moved above it's 200 day MA in December, another signal a
significant uptrend is in place. We should be able to obtain this target and I will re access at
that time.