Commerce Resources Corp. Updates Rare Earth Exploration at Eldor Project

VANCOUVER , Oct. 8 /CNW/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company" or "Commerce") is pleased to announce that it has completed the follow-up exploration program at the Eldor Property in Quebec targeting rare earth element mineralization at the newly discovered Ashram Zone.

A total of 70 rock samples (53 boulder, 17 outcrop) and 2 soil samples were collected during early to mid September. The samples have been sent to ACME Analytical Laboratories Ltd. in Vancouver , British Columbia for immediate analysis. Results will be released when received.

Exploration focused on further defining the Ashram Rare Earth Zone as well as testing peripheral rare earth targets. The majority of the samples (68) were collected on or adjacent to the Ashram Zone. Additionally, a secondary area of carbonatite outcrop, distinct from the main complex, was identified approximately three kilometers ("km") to the east of the Ashram Zone. The area was targeted for prospecting due to highly anomalous rare earth soil samples collected previously. Cursory prospecting was completed and two samples were collected from the area.

A map showing sampling locations is available for download at: http://www.commerceresources.com/s/Eldor.asp

The Eldor Property is situated in northern Quebec approximately 130 km south of the town of Kuujjuaq. The property is 100% owned by the Company and is composed of 366 claims comprising approximately 17,100 hectares. It includes the Ashram Rare Earth Zone as well as the Northwest, Southeast, and Star Trench Zones where previous drilling discovered significant concentrations of tantalum and niobium.

Carbonatites are very rare and unique rock types, with approximately 500 complexes known worldwide. Often containing a variety of exotic minerals, carbonatites have been known to produce economic concentrations of rare earth elements, niobium, copper, iron, apatite, vermiculite and fluorite; with significant associated commodities which may include barite, zircon, tantalum, gold, silver, uranium, nickel and platinum group elements. Several of the world's largest rare earth deposits and mines, including Bayan Obo in China and Mountain Pass in the United States are carbonatite hosted.

Darren Smith , P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Closing of Private Placement

The Company is also pleased to announce that it has raised gross proceeds of $7,205,700 in two private placement financings. These proceeds will be used to advance exploration and development at the Blue River Tantalum and Niobium Project, to conduct further exploration at the Eldor Property, and for general working capital.

The first private placement consisted of the issuance of a total of 16,676,750 units at a price of $0.40 per unit. Each unit consisted of one common share and one half of one share purchase warrant. Each whole share purchase warrant is exercisable into an additional common share of the Company at a price of $0.50 per share until September 15, 2010 and at a price of $0.54 from September 16, 2010 to September 15, 2011 . All securities issued bear a four month hold period, expiring on January 15, 2010 .

Of the units sold, 9,655,250 units were sold on a non-brokered basis. Pope & Company, an independent brokerage firm ("Pope"), brokered the remaining portion of the private placement and sold 7,021,500 units. For their assistance in the placement, Pope received $224,688 and 561,720 broker warrants, exercisable until September 15, 2011 , at a price of $0.40 per broker warrant, into one common share and one half of one share purchase warrant. Each whole share purchase warrant issued upon exercise of the broker warrants will entitle the holder to purchase one additional common share of the Company, at a price of $0.50 per share until September 15, 2010 and at a price of $0.54 from September 16, 2010 to September 15, 2011 . The Company paid additional finder's fees totaling $144,600 and 18,875 common shares.

The second private placement consisted of the issuance of a total of 1,337,500 units at a price of $0.40 per unit. Each unit consisted of one common share and one half of one share purchase warrant. Each whole share purchase warrant is exercisable into an additional common share of the Company at a price of $0.50 per share until October 2, 2010 and at a price of $0.54 from October 3, 2010 to October 2, 2011 . All securities issued bear a four month hold period, expiring on February 2, 2010 .

The Company paid finder's fees totaling $38,000 and issued 60,000 broker warrants to Allied Capital Corp. Each broker warrant is exercisable until October 2, 2011 , at a price of $0.40 per broker warrant, into one common share and one half of one share purchase warrant. Each whole share purchase warrant issued upon exercise of the broker warrants will entitle the holder to purchase one additional common share of the Company, at a price of $0.50 per share until October 2, 2010 and at a price of $0.54 from October 3, 2010 to October 2, 2011 .

    
    On Behalf of the Board of Directors
    COMMERCE RESOURCES CORP.

    "David Hodge"
    ---------------
    David Hodge
    President and Director

     Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
         responsibility for the adequacy or accuracy of this release.
    

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that the results from sampling will be released when received.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our property; that we may not complete environmental programs in a timely manner or at all; market prices for tantalum & niobium may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's Management Discussion and Analysis of its audited financial statements filed with the British Columbia Securities Commission.

For further information: David Hodge, President and Director, Tel: [phone]; For more information, contact Investor Relations: Tel: [phone], TF: [phone], Email: [email protected], Web: http://www.commerceresources.com