First Phase of Three Phase Exploration Program; Private Placement

August 16, 2005

Commerce Resources Corp. (the “Company”) announces that it has initiated the first phase of a three phase exploration program designed to conclude in a pre-feasibility study. The first phase will consist of a drill program to explore the potential of the Upper Fir Carbonatites. In addition, further reconnaissance exploration will be conducted at the Bone Creek, Gum Creek and Roadside carbonatites for the potential for follow-up drilling.

Upper Fir Carbonatite

The Upper Fir Carbonatite, located 1,200m east of the Fir Carbonatite, was discovered during an exploration program in 2002. Subsequent exploration included geologic mapping, sampling and a soil geochemistry survey. Exploration to date has shown the Upper Fir to be similar in character to that observed at the main Fir Deposit. The upcoming drill program will be designed to begin to determine the thickness and extent of the Upper Fir Carbonatite.

In 2002, several rock samples were collected from poor exposures of beforsite carbonatite, across an approximate interval of 10m thickness. Results varied from 135 to 266 g/t Ta2O5, and 2,260 to 6,738 g/t Nb2O5 (or 0.67% Nb2O5). Follow-up exploration in 2003 revealed an extensive soil anomaly with high values of tantalum and niobium. The soil anomaly, which exceeds 20 ppm tantalum and 100 ppm niobium, extends for more than 200m north-south within the surveyed area and is open to the south, beyond the southern limits of the sampled area. The company is encouraged by these results, as prior exploration at the original Fir Carbonatite showed it to be associated with a similar soil anomaly.

Bone Creek Carbonatite

Within the south-central part of the Fir Claim Group, the Bone Creek Carbonatite, was previously tested by 17 core holes. It is near flat-lying, discontinuous, and typically less than 5m thick. The Bone Creek Carbonatite is known to contain significant concentrations of Uranium. Prior grab samples have returned between 153 and 231 ppm Uranium. Quantitative microprobe analysis of pyrochlores from the Bone Creek Carbonatite (Mariano, 1979) have shown between 13.52 and 14.71 per cent UO2.

Roadside Carbonatite

The Roadside-Serpentine Creek carbonatites are a series of discontinuous outcrops/scree slopes located south of the Paradise Carbonatite and north of Serpentine Creek. Both beforsite and sovite varieties are present. The Roadside occurrence has large (up to 30 cm) magnetite nodules and the Serpentine Creek outcrops bright-red olivine crystals.

Samples collected from these carbonatites generally have low concentrations of tantalum and niobium, although a value of 176 g/t Ta2O5 has been reported for the Roadside occurrence. Both the Roadside and Serpentine Creek carbonatites possess higher concentrations of Zr and Ti, than the Verity carbonatite. The carbonatite occurrences are likely part of the same sill-like body (or bodies) and may possibly represent the southern strike extension of the Paradise carbonatite.

Gum Creek Carbonatite

The Gum Creek Carbonatite has had minimal exploration to date, with only one known grab sample collected during a field mapping program in 1989. In 2002, the sample was examined for its potential to host Ta-Nb-P-REE mineralization. A portion was forwarded to Dr. Anthony Mariano of Boston, MA, for detailed mineralogical examination and a portion was analyzed for Ta-Nb-REE content. Analysis of the grab sample showed concentrations of Ta-Nb-P-REE, similar to other carbonatites in the region. Concentrations of 3,211 g/t Nb2O5, 75 g/t Ta2O5 and 1.82% phosphate were reported, with highly enriched light rare-earth elements (Lanthanum(La) = 1,905 ppm; Cerium(Ce) = 2,666 ppm). Th and U were relatively low at 12.1 ppm and 3.9 ppm, respectively. An anomalous value of Copper (Cu) (101 ppm) was also reported.

Private Placement

In addition, Commerce Resources announces a private placement of up to 1,750,000 units for gross proceeds of $255,000. Of the 1,750,000 units offered, up to 1,125,000 units will be issued on a flow-though basis at a price of $0.16 per unit. Each flow-through unit will consist of one flow-through common share and one non-transferable share purchase warrant entitling the holder to purchase one non flow-through common share of the Company at a price of $0.18 per share for a one year period from the date of issuance. Up to 625,000 units will be issued on a non flow-through basis at a price of $0.12 per unit. Each non flow-through unit will consist of one common share and one non-transferable share purchase warrant entitling the holder to purchase one non flow-through 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. A finder’s fee may be payable in accordance with the policies of the TSX Venture Exchange.

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

Phase 2 & 3 Exploration

Based on results, the second phase of exploration will include the collection of a bulk sample from either the Fir Carbonatite or Upper Fir Carbonatite in preparation for the third phase of exploration consisting of a pre-feasibility study.

On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
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David Hodge
President
Tel: 604.484.2700

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