Annual Information Form for the Fiscal Year Ended October 31, 2012
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ANNUAL INFORMATION FORM FOR THE FISCAL YEAR ENDED OCTOBER 31, 2012 CARDERO RESOURCE CORP. Suite 2300 – 1177 West Hastings Street Vancouver, British Columbia V6E 2K3 January 28, 2013 TABLE OF CONTENTS Page PRELIMINARY NOTES ............................................................................................................................ 1 Documents Incorporated by Reference .......................................................................................... 1 Date of Information ........................................................................................................................ 1 Currency and Exchange Rates ........................................................................................................ 1 Metric Equivalents .......................................................................................................................... 2 Forward-Looking Statements ......................................................................................................... 2 Caution Regarding Adjacent or Similar Mineral Properties ........................................................... 4 Caution Regarding Reference to Resources and Reserves ............................................................. 5 Caution Regarding Historical Results ............................................................................................ 5 Glossary of Terms .......................................................................................................................... 6 CORPORATE STRUCTURE ................................................................................................................... 12 Name, Address and Incorporation ................................................................................................ 12 Intercorporate Relationships ......................................................................................................... 12 GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................... 12 Three Year History ....................................................................................................................... 12 Significant Acquisitions ............................................................................................................... 15 NARRATIVE DESCRIPTION OF THE BUSINESS .............................................................................. 15 General ......................................................................................................................................... 15 Risk Factors .................................................................................................................................. 18 Material Mineral Projects ............................................................................................................. 25 DIVIDENDS ............................................................................................................................................. 53 DESCRIPTION OF CAPITAL STRUCTURE ......................................................................................... 53 General Description of Capital Structure ..................................................................................... 53 MARKET FOR SECURITIES .................................................................................................................. 53 Trading Price and Volume ............................................................................................................ 53 ESCROWED SECURITIES ...................................................................................................................... 54 DIRECTORS AND EXECUTIVE OFFICERS ........................................................................................ 54 Name, Occupation and Security Holding ..................................................................................... 54 Cease Trade Orders, Bankruptcies, Penalties or Sanctions .......................................................... 56 Conflicts of Interest ...................................................................................................................... 57 PROMOTERS ........................................................................................................................................... 58 LEGAL PROCEEDINGS AND REGULATORY ACTIONS .................................................................. 58 Legal Proceedings ........................................................................................................................ 58 Regulatory Actions ....................................................................................................................... 58 Interest of Management and Others in Material Transactions ...................................................... 58 TRANSFER AGENT AND REGISTRAR ............................................................................................... 59 MATERIAL CONTRACTS ...................................................................................................................... 59 i TABLE OF CONTENTS (continued) Page NAMES AND INTERESTS OF EXPERTS ............................................................................................. 59 Names and Interests of Experts .................................................................................................... 59 ADDITIONAL INFORMATION ............................................................................................................. 61 Audit Committee Information ...................................................................................................... 61 Additional Information ................................................................................................................. 61 SCHEDULE “A” – AUDIT COMMITTEE INFORMATION ii PRELIMINARY NOTES Documents Incorporated by Reference Incorporated by reference into this Annual Information Form (“AIF”) are the following documents: (a) Consolidated Audited Financial Statements of the Company for the year ended October 31, 2012; (b) Management Discussion and Analysis of the Company for the year ended October 31, 2012 dated January 28, 2013 (“MD&A”); (c) Management Information Circular dated August 17, 2012 in respect of the 2012 Annual General Meeting (“Information Circular”); (d) Technical report dated November 6, 2012, effective September 20, 2012, entitled “Technical Report, Prefeasibility Study of the Carbon Creek Coal Property, British Columbia, Canada” prepared by Norwest Corporation (the “Carbon Creek Report”); and (e) Technical report dated January 14, 2013, effective January 14, 2013, entitled “Mineral Resource Estimate for the Sheini Hills Iron Project, Ghana” prepared by SRK Consulting (UK) Limited (the “Sheini Report”); copies of which may be obtained online from SEDAR at www.sedar.com. All financial information in this AIF have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Date of Information All information in this AIF is as of October 31, 2012 unless otherwise indicated. Currency and Exchange Rates All dollar amounts in this AIF are expressed in Canadian dollars unless otherwise indicated. The Company’s accounts are maintained in Canadian dollars and the Company’s financial statements are prepared in accordance with IFRS. All references to “U.S. dollars”, “USD” or to “US$” are to U.S. dollars, to “MXP” are to Mexican pesos, to “ARS” are to Argentinean pesos, to “PEN” are to Peruvian nuevo soles and to CHS are to Ghanaian cedis. The following table sets forth the rate of exchange for the Canadian dollar, expressed in United States dollars in effect at the end of the periods indicated, the average of exchange rates in effect on the last day of each month during such periods, and the high and low exchange rates during such periods based on the noon rate of exchange as reported by the Bank of Canada for conversion of Canadian dollars into United States dollars. Year Ended October 31 Canadian Dollars to U.S. Dollars 2012 2011 2010 Rate at end of period USD 1.0004 USD 1.0065 USD 0.9784 Average rate for period USD 0.9961 USD 1.0139 USD 0.9636 High for period USD 1.0299 USD 1.0583 USD 1.0039 Low for period USD 0.9536 USD 0.9430 USD 0.9278 - 2 - Metric Equivalents For ease of reference, the following factors for converting Imperial measurements into metric equivalents are provided: To convert from Imperial To metric Multiply by Acres Hectares 0.404686 Feet Metres 0.30480 Miles Kilometres 1.609344 Tons Tonnes 0.907185 Ounces (troy)/ton Grams/Tonne 34.2857 1 mile = 1.609 kilometres 2000 pounds (1 short ton) = 0.907 tonnes 1 acre = 0.405 hectares 1 ounce (troy) = 31.103 grams 2,204.62 pounds = 1 metric ton = 1 tonne 1 ounce (troy)/ton = 34.2857 grams/tonne Terms used and not defined in this AIF that are defined in National Instrument 51-102 “Continuous Disclosure Obligations” shall bear that definition. Other definitions are set out in National Instrument 14-101 “Definitions”. Forward-Looking Statements This AIF contains forward-looking statements and forward-looking information (collectively, “forward- looking statements”) within the meaning of applicable Canadian and US securities legislation. These statements relate to future events or the future activities or performance of the Company. All statements, other than statements of historical fact, are forward-looking statements. Information concerning mineral resource estimates