Cardero Resource Corp. said Tuesday that it has entered into agreements to acquire a 100% interest in the Salar de Oro gold property in Jujuy province, northwestern Argentina. The (33,500 hectare) property consists of 10 continuous cateos and two minas, over elevations ranging from 3900 – 4900 meters. This property forms part of the Company's extensive gold property portfolio in the prospective 61,000 km2 Santa Victoria basin.

Reconnaissance scale sampling conducted by Cardero has led to the discovery of two separate gold bearing zones located 15 kilometres apart along a north-trending belt of sedimentary rocks. The northern gold zone is characterized by historical underground workings which targeted multiple gold zones hosted over a minimum area 850 metres north-south by up to 100 metres east-west. The zone is characterized by a sericite-pyrite-carbonate-iron carbonate alteration assemblage associated with intense quartz stockwork veining. The zone is open to the north, south and west. Ongoing artisanal placer mining continues to recover gold from the system.

Sampling at the northern gold zone targeted outcropping quartz veins, altered sediments with quartz veinlets, and tailings from the historical workings. The average grade from a total of 65 characterization or grab samples is 3.96 g/t gold.

In detail, the results of the 65 samples collected are as follows: From fourteen samples collected from in-situ quartz veins, four high-grade samples assayed 44.6, 21.9, 12.9, and 6.04 g/t gold, with the remaining ten samples ranging from detectable to 0.6 g/t gold. Thirty-four samples collected from the adjacent altered sediments with quartz veinlets yielded grades from detectable up to 31.6 g/t gold, indicating the potential for disseminated bulk tonnage gold mineralization. Finally, sixteen composite samples taken from the tailings dumps yielded results ranging from detectable to 107 g/t gold, and demonstrate the high grade nature of the veins that have been historically mined. Finally, visible gold was discovered in the central adit.

Recent sampling late in the field season revealed the presence of two southern gold zones. The average grade from a total of 128 characterization samples is 0.55 g/t gold, with the highest grade sample returning 10.0 g/t gold. The range of grades from the 128 samples is as follows: three samples range from 5 to 10 g/t gold, fourteen samples range from 1 to 5 g/t gold, five samples range from 0.5 to 1 g/t gold, twelve samples range from 0.2 to 0.5 g/t gold with the remaining samples ranging from non-detectable to 0.05 g/t gold.

The relationship between the northern and southern gold zones is at present unknown as the 15 kilometre strike extension between the zones has not been evaluated.

Previous exploration work at the Salar de Oro property appears to have been very limited, and there are neither records nor evidence of any extensive modern exploration. Small-scale underground mining ceased back in the 1950's. Importantly, the property has never been drill tested.

Cardero plans to systematically explore the property through a phased program of detailed structural and alteration mapping, trenching, and geochemical sampling. Contingent on favourable results, an initial drill program will evaluate the continuity of the high grade gold veins as well as the potential for disseminated bulk tonnage gold mineralization. Detailed structural mapping is presently in progress and will be followed by systematic trenching and associated geochemical sampling in the third quarter of 2006.

"Work to date at Salar de Oro and the recently acquired Incahuasi properties clearly demonstrates their gold endowed nature." stated Henk Van Alphen, President and CEO of Cardero. "In order to fast-track the exploration program and take advantage of what we see as a large under-explored district a regional exploration office has been opened in Salta."

The terms of the relevant agreements are as follows: Cardero has the option ("Option") to acquire a 100% interest, in 3 cateos and 2 minas from Los Andes Compania Minera S.A., an Argentine Mining Company, by making escalating aggregate payments of USD 2,470,000 over 4 years to May 3, 2010. The agreement excludes the surficial placer rights. The remaining 7 cateos are 100% Cardero.

Cardero has approximately $13 million in the treasury and is 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.