Carderos Carbon Creek Environmental Assessment Advances to the Issuance of a Section 11 Order

Section 11 Order

The Section 11 Order specifies the scope, procedures, and methods by which the Carbon Creek Project EA review is to be conducted.

In addition, a working group, including representatives of First Nations groups and federal, provincial and local government agencies, has been established and met for the first time on July 24th and 25th, 2012. This working group will be involved in the review of EA studies and documentation, including the draft Application Information Requirements (“AIR”), relating to the EA process.

The next stage in the EA process is for the Company to prepare the draft AIR for review by the EAO, the working group and First Nations and, subsequently, the public.

Mr. Bob Osborne – Director, Community Relations

The Company also announces that Mr. Bob Osborne has been appointed as the Director, Community Relations, effective October 1, 2012. Bob will be working closely with local communities and First Nations to continue positive, open working relationships on behalf of the Company as the Carbon Creek Project progresses towards a production decision and anticipated subsequent development.

On discussing his appointment, President & CEO, Michael Hunter stated, “We are very pleased to have Bob join the Cardero Coal team. His background and experience will be a significant asset to Cardero as we continue to develop and enhance our relationships with stakeholders, communities and First Nations in the region.”

Mr. Osborne has more than 25 years’ experience in First Nations and community relations and consultation. Bob worked for several years with the BC Environmental Assessment Office consulting on major projects and, more recently, with the BC Ministries of Energy and Mines and Forests Lands and Natural Resource Operations on major mines in the province. Previously, Bob also spent four years with the Okanagan Indian Band as their Director of Community Development.


On Behalf of the Board of Directors of


Michael Hunter, CEO and President

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian and US securities legislation. All statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the potential for the Company to receive the permits necessary to operate a mine at Carbon Creek, the potential for the making of a production decision to proceed with a mine at Carbon Creek, the potential commencement of any development of a mine at the Carbon Creek deposit following a production decision, business and financing plans and business trends, are forward-looking statements. Information concerning mineral resource/reserve estimates and the economic analysis thereof contained in the prefeasibility study may also be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered, and the results of mining it, if a mineral deposit were developed and mined.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.