VANCOUVER, Oct. 8 /CNW/ -- Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company" or "Commerce") is pleased to announce that it has completed the follow-up exploration program at the Eldor Property in Quebec targeting rare earth element mineralization at the newly discovered Ashram Zone.

A total of 70 rock samples (53 boulder, 17 outcrop) and 2 soil samples were collected during early to mid September. The samples have been sent to ACME Analytical Laboratories Ltd. in Vancouver, British Columbia for immediate analysis. Results will be released when received.

Exploration focused on further defining the Ashram Rare Earth Zone as well as testing peripheral rare earth targets. The majority of the samples (68) were collected on or adjacent to the Ashram Zone. Additionally, a secondary area of carbonatite outcrop, distinct from the main complex, was identified approximately three kilometers ("km") to the east of the Ashram Zone. The area was targeted for prospecting due to highly anomalous rare earth soil samples collected previously. Cursory prospecting was completed and two samples were collected from the area.

A map showing sampling locations is available for download at: http://www.commerceresources.com/s/Eldor.asp

The Eldor Property is situated in northern Quebec approximately 130 km south of the town of Kuujjuaq. The property is 100% owned by the Company and is composed of 366 claims comprising approximately 17,100 hectares. It includes the Ashram Rare Earth Zone as well as the Northwest, Southeast, and Star Trench Zones where previous drilling discovered significant concentrations of tantalum and niobium.

Carbonatites are very rare and unique rock types, with approximately 500 complexes known worldwide. Often containing a variety of exotic minerals, carbonatites have been known to produce economic concentrations of rare earth elements, niobium, copper, iron, apatite, vermiculite and fluorite; with significant associated commodities which may include barite, zircon, tantalum, gold, silver, uranium, nickel and platinum group elements. Several of the world's largest rare earth deposits and mines, including Bayan Obo in China and Mountain Pass in the United States are carbonatite hosted.

Darren Smith, P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Closing of Private Placement

The Company is also pleased to announce that it has raised gross proceeds of $7,205,700 in two private placement financings. These proceeds will be used to advance exploration and development at the Blue River Tantalum and Niobium Project, to conduct further exploration at the Eldor Property, and for general working capital.

The first private placement consisted of the issuance of a total of 16,676,750 units at a price of $0.40 per unit.