June 07, 2006
Commerce Resources Corp. (TSXv: CCE) (“Commerce”) is pleased to announce that it has entered into a strategic alliance with NAC KazAtomProm whereby KazAtomProm’s tantalum division, Ulba Metallurgical Plant JSC (“Ulba”) will process representative concentrate from Commerce’s upcoming commercial bulk sample. In addition to being a world leader in tantalum-niobium processing, KazAtomProm is the world’s third largest producer of uranium.
The signed letter of intent between Commerce and Ulba for this strategic alliance covers such items as:
a) the collection and delivery of up to an initial 50 tonnes of tantalum-niobium concentrate,
b) Ulba to process the concentrate into mutually agreed upon Ta/Nb end products, of which Commerce will receive back a negotiated fair market equivalent of the processed end products, and
c) the sharing of technical information from the separation process by Ulba to Commerce for the purpose of Commerce completing a pre-feasibility study.
“The processing of concentrate from Commerce’s commercial sample by Ulba will provide solid information as to the cost and best method of up-grading the material to pure finished products. This initial agreement will provide the information that would allow for the negotiation of long-term agreements for a complete tantalum-niobium supply chain from the ground to finished products.” said David Hodge, President.
The terms of the strategic alliance will be set forth in a formal agreement to be prepared within 60 days.
About NAC KazAtomProm (http://www.kazatomprom.kz)
NAC KazAtomProm was established in July 1997 by the Decree of the President of the Republic of Kazakhstan to unite uranium and rare metals into production into one commercial structure representing the interests of Kazakhstan in the world markets of nuclear and rare metals. KazAtomProm produces natural uranium, nuclear fuel for power stations, tantalum, beryllium, niobium and its alloys. Some of KazAtomProm’s industry partners include Cameco Corp. (NYSE: CCJ), AREVA and Exelon Corp. (NYSE: EXC). KazAtomProm is the parent company of Ulba Metallurgical Plant.
About OJSC Ulba Metallurgical Plant (http://www.ulba.kz)
Ulba Metallurgical Plant is a unique enterprise, with over 50 years of experience in the processing and production of tantalum-niobium, beryllium and uranium. Their facilities are capable of completing a full production cycle from raw material processing to the manufacture of finished products. Ulba produces materials for high-tech products in the nuclear, aerospace and electronics industries. Ulba’s main customers are General Electric Co. (NYSE: GE), TVEL Corporation and Tosoh Corporation.
About Commerce Resources Corp.
Commerce Resources Corp. is focused 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 Fir is also host to an inferred resource of 6.7Mt 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”.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.