Commerce Completes Eight Drill Holes at Upper Fir and Bone Creek; Closes Private Placement

Commerce Completes Eight Drill Holes at Upper Fir and Bone Creek; Closes Private Placement

Commerce Resources Corp. (CCE – TSX Venture) (the “Company”) is pleased to announce that it has completed drilling at the company’s wholly owned Tantalum-Niobium Project located near Blue River, British Columbia. During October, 2005 the Company completed eight HQ (6.35cm diameter) core holes; four at the Upper Fir Carbonatite, and four at the Bone Creek Carbonatite.

The Bone Creek Carbonatite is situated approximately 1km south of the Fir Carbonatite, and about 200m stratigraphically above it. While the Upper Fir Carbonatite, is about 1200m east of and upslope from the Fir Carbonatite. A summary of pertinent drill intersections are as follows:

Upper Fir

HoleFrom (m)To (m)Length (m)Total Carbonatite (m)

Bone Creek

HoleFrom (m)To (m)Length (m)Total Carbonatite (m)

As the 2005 holes were vertical and the carbonatite are near flat lying, drill intersections represent approximately true thickness.

“The management team is pleased with the initial results for the Upper Fir and Bone Creek carbonatites. Given the thickness of carbonatite intersected during drilling, both bodies are likely to host significant tonnages, as observed at the Fir and Verity Carbonatites,” said President David Hodge.

At Bone Creek, drill holes CF0501 and CF0503 intersected late anatectic pegmatites that appear to cross-cut the main mass of carbonatite. Drill hole CF0504, which is the most southerly drill hole, intersected about 9m of carbonatite and remains open to the south.

At the Upper Fir Carbonatite, drill holes CF0505, CF0506 and CF0508 were completed from north to south over a strike length of approximately 150m. Hole 7, which was completed approximately 45m north of hole 6, did not intersect carbonatite. The Upper Fir Carbonatite remains open to the south and to the east.

Due to the potentially coarse grain size of the pyrochlore and ferrocolumbite mineralization at Fir, the company utilized the larger diameter drill core to obtain larger samples. Analytical results will be released as soon as available. Samples have been sent to Exploration Research Laboratory of Teck-Cominco for analyses. Click here to view a map of the locations of the 2005 holes.)

The foregoing news release was reviewed and approved by Jody Dahrouge, P.Geol., of Dahrouge Geological Consulting Ltd., Edmonton, Alta, and Director of the Company. Mr. Dahrouge is a Qualified Person under National Instrument 43-101, and is responsible for the exploration of the Blue River Carbonatites.

Private Placement
The Company announces that it has received TSX Venture Exchange approval of a private placement of a total of 3,375,950 units. 2,445,000 of the units were issued as non flow-through units at a price of $0.12 per unit for total gross proceeds to the Company of $293,400. A further 930,950 units were issued on a flow through basis at a price of $0.16 per unit, for total gross proceeds to the Company of $148,952.

Each unit consists of one common share and one share purchase warrant which will entitle the holder to purchase one common share of the Company at a price of $0.18 per share until November 25, 2006. The common shares comprising the flow-through units were issued as flow-through common shares for Canadian income tax purposes. The common shares bear a four month hold period expiring March 26, 2006. Any common shares issued on exercise of the share purchase warrants shall bear that same hold period. Finders fees totaling $12,090 cash and 102,416 common shares were paid to arm’s length parties that assisted in the financing.

The proceeds of the private placement will fund the first phase of the Company’s 2005 exploration program on the Blue River tantalum properties and for general working capital.

Second Private Placement
Pursuant to the Company’s news release of October 28, 2005, the Company is proceeding with a private placement of up to 8,500,000 units at a price of $0.12 per unit for gross proceeds of $1,020,000. Each unit will consist of one common share and one non-transferable share purchase warrant entitling the holder to purchase one common share of the Company at a price of $0.18 per share for a period of one year from the date of issuance. The offering is subject to the approval of the TSX Venture Exchange and a finder’s fee may be payable in accordance with the policies of the TSX Venture Exchange. The proceeds of this second private placement will be used towards the Company’s 2005 exploration program on the Blue River tantalum properties and for general working capital.

About Commerce Resources Corp.
Commerce Resources Corp. continues to maintain its focus on the development and exploration of its Fir and Verity tantalum and niobium projects covering 49 square kilometers in British Columbia, Canada. The Company is one of the most active tantalum explorers in North America, conducting detailed exploration of its Fir and Verity deposits. Exploration to date at the Fir deposit has outlined an indicated resource of 5.65Mt with 203.1g/t Ta2O5 and 1,047g/t Nb2O5 (Verzosa, 2003). The Verity deposit, 10 km north of the Fir property, is host to an estimated inferred resource of 3.06Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001). Detailed information on both resource estimates may be viewed in the company’s public disclosure on SEDAR. Commerce Resources Corp. trades on the TSX Venture Exchange under the symbol “CCE”.

For further details on Commerce Resources Corp. and the Blue River Tantalum Property, visit the corporate website at www.commerceresources.com, or contact Investor Relations at (604) 484 2700 or toll free at (866) 484 2700.

On Behalf of the Board of Directors

“Jody Dahrouge”
Jody Dahrouge, P.Geol
Vice President Exploration, Director
Tel: 604.484.2700

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

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