Mr. Chris Grove reports

COMMERCE RESOURCES CORP. ANNOUNCES FILING OF PRELIMINARY SHORT FORM PROSPECTUS

Commerce Resources Corp. has filed a preliminary short-form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario in connection with a best-efforts offering of units of the company at a price of 10 cents per unit for gross proceeds of a minimum of $1-million and up to a maximum of $3-million. The public offering is being conducted by Secutor Capital Management Corp. The company has granted the agent an overallotment option to sell up to an additional 15 per cent of the public offering on the same terms and conditions, exercisable at any time following the closing of the public offering for a period of 30 days.

Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share of Commerce at a price of 12 cents per warrant share at any time before 4:30 p.m. (Vancouver time) on the date that is 24 months after the closing of the public offering.

Concurrent with the closing of the public offering, the agent has also agreed to offer up to 13,636,364 flow-through common shares of the company on a brokered private placement basis at a price of 11 cents per flow-through share for gross proceeds of up to $1.5-million. The prospectus does not qualify the distribution of the flow-through shares issued pursuant to the concurrent private placement. The flow-through shares purchased pursuant to the concurrent private placement will be subject to a statutory hold period.

The company intends to use the net proceeds from the public offering and the concurrent private placement to advance the company's Ashram rare earth element deposit in Quebec, and for general working capital purposes.

The company has agreed to (i) pay the agent a cash commission equal to 7 per cent of the gross proceeds of the public offering and the concurrent private placement, and a reduced cash commission of 2 per cent on purchasers, if any, whose name appear on the list of purchasers to the public offering and the concurrent private placement introduced to the agent by insiders of the company; and (ii) issue to the agent share purchase warrants, with each agent's warrant entitling the agent to acquire that number of common shares in the capital of Commerce equal to 7 per cent of the number of units and flow-through shares sold under the public offering and concurrent private placement, respectively, and a reduced number agent's warrants equal to 2 per cent on purchasers, if any, whose name appear on the president's list.

The public offering and concurrent private placement are subject to certain conditions, including but not limited to, the execution of a definitive agency agreement with the agent and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

We seek Safe Harbor.