Development and Exploration Update for Blue River Tantalum and Niobium Project in British Columbia

December 04, 2008

Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the “Company”) is pleased to advise that the 2008 summer exploration and development program at the Company’s Blue River Tantalum and Niobium Project in east-central British Columbia has been successfully completed.

During 2008, a total of 131 HQ diameter drill holes, totaling 26,281 m, were completed at the following locations:
  • Upper Fir Carbonatite — 118 drill holes
  • Switch Creek Carbonatite — 3 drill holes
  • Hodgie Rare Earth Zone — 4 drill holes
  • Lower Gum Creek Zone — 6 drill holes
In addition, a bulk sample of approximately 2,000 tonnes of material from the Upper Fir Carbonatite was collected and stockpiled on the property.

Regional exploration conducted during 2008 identified several new tantalum-niobium, rare earth (REE), and/or carbonatite occurrences on the property.

Upper Fir Carbonatite

The 2008 drilling of the Upper Fir Carbonatite, was completed on November 3, 2008. The intent of this program was to both infill and expand upon the existing tantalum and niobium resource base. Prior to 2008, 40 holes totaling 8,558 m were completed at the Upper Fir deposit. During 2008, an additional 118 HQ diameter drill holes totaling 23,724 m were completed. Approximately 4,663 m of carbonatite was intersected by this drill program. All carbonatite was cut, with one half of the core sampled and sent for analysis to ACME Analytical Laboratories Ltd. in Vancouver, British Columbia.

The Company anticipates that it will receive complete analytical results for the 2008 drill program during the next few months. Some highlights from the program are as follows:
  • 139.86 m of carbonatite was intersected in hole F-08-88 (thickness is apparent);
  • 96.77 m, of continuous carbonatite was intersected in hole F-08-111 (thickness is apparent);
  • 70.08 m true thickness of carbonatite was intersected in hole F-08-153; the southernmost hole completed to date.
Drilling to date has shown the Upper Fir Carbonatite to extend over 1,300 m in a north-south direction, and approximately 600 m in an east-west direction. The final hole of the 2008 summer exploration program, F-08-153, was completed at a location approximately 100 m further south than the nearest hole in an attempt to constrain the southerly extent of the carbonatite. This vertical hole intersected greater than 70 m of carbonatite (true thickness) representing a potentially new and significant zone south of the main deposit. A map of the drill plan is available on the company’s website.

Upper Fir Bulk Sample

The bulk sampling program was completed in early November. Approximately 2,000 tonnes of carbonatite was extracted from 17 benches at three different sample pits. The material has been stockpiled in preparation for transport and processing by Process Research Associates Ltd. (“PRA”) of Richmond, B.C. Samples have been shipped to ACME Analytical Laboratories Ltd. of Vancouver, BC, for analysis.

The work will extend the characterization program previously completed as well as provide information which will support the development of a preliminary flow sheet for a pilot plant program to be conducted at PRA’s facility.

Switch Creek Carbonatite

Three holes were completed at the Switch Creek Carbonatite to follow-up drilling completed during 2007. A total of 486.33 m was drilled, with approximately 55.52 m of carbonatite intersected. As a result of the strongly fractured and faulted bedrock encountered, the recovery of core was poor.

Hodgie Rare Earth Zone

Exploration conducted during 2008 confirmed the significance of a rare-earth element (REE) occurrence identified during the later part of 2007 and named the ‘Hodgie Zone’. It is located approximately 2 kilometres southeast and upslope of the Upper Fir Carbonatite.

Prospecting within the Hodgie area suggests that rare-earth mineralization may be comprised of several zones extending at least 2,000 meters along strike. A total of 84 grab samples was collected from float and outcrops within the area. Seven samples returned total REEs + Y(yttrium) greater than 2.0% to a high of 11.1%. Results of several samples are still outstanding. A total of 812.9 m was drilled in 4 holes completed along approximately 350 m strike length at the Hodgie Zone.

Lower Gum Creek Zone

The Lower Gum Creek Zone is located directly north of the Hodgie Zone and was identified by a series of niobium-in-soil anomalies discovered during the 2007 regional exploration program.

A total of six holes totaling 1,257 m targeted a subsurface carbonatite body, interpreted to lie upslope of the anomalies. No significant intervals of carbonatite were intersected. The source of the niobium mineralization may lay further upslope and to the east of the area drill tested.

Regional Exploration

The Company’s regional exploration program has led to the discovery of several new carbonatites, as well as the extension of two carbonatites previously discovered within the existing property boundaries. Thirteen new claims have been staked along the southeast margin of the existing claim block to ensure full coverage of the newly discovered Felix Carbonatite. Sampling and mapping have been completed to allow further evaluation of all the carbonatite bodies.

Approximately 4,085 soil, 527 stream sediment (pan concentrate), and 127 rock samples were collected throughout the property during 2008.

In addition to the carbonatite discoveries, several areas have been identified as having elevated levels of REEs. Preliminary results reveal an area north east of Mud Lake, approximately 15 km south of the Hodgie Zone, as an anomalous area indicative of ultramafic geology. The data is currently being compiled and analysis is ongoing.

Environmental and Regulatory

In addition, the Company is advancing environmental and regulatory programs designed to ensure that the Blue River Tantalum and Niobium Project is well positioned to enter the environmental assessment process once a development decision is made. Field programs, which were completed on time and on budget, include surface and groundwater sampling, hydrology, wildlife, and fisheries work.

Jody Dahrouge, P.Geo. and Vice-President of Exploration, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

On Behalf of the Board of Directors
David Hodge
President and Director
Tel: 604 484 2700

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

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 release include statements regarding the possible identification of several new tantalum-niobium, REE, and/or carbonatite occurrences on the Blue River Property; that the Company will receive complete analytical results for the 2008 drill program during the next few months; that there is a potentially new and significant zone south of the main Upper Fir Carbonatite deposit; that the bulk sample work will extend the characterization program previously completed and provide information to support the development of a preliminary flow sheet for a pilot plant program; that prospecting within the Hodgie zone area suggests that the zone of rare-earth mineralization may comprise several zones of over 2,000 meters or more strike length; and that preliminary results indicate that an area north east of Mud Lake, approximately 15 km south of the Hodgie Zone, is an anomalous area indicative of ultramafic geology.

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, but are not limited to, economic, competitive, governmental, environmental and technological factors that 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.