Commander Resources Ltd.

Commander Resources Ltd.

January 14, 2008 09:00 ET

Commander Reaches Agreement to Accelerate Acquisition of 100% of Qimmiq Gold Property, Baffin Island

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2008) - Commander Resources Ltd. (TSX VENTURE:CMD) is pleased to report that it has entered into a Letter of Intent ("LOI") with BHP Billiton Diamonds ("BHP Billiton") to amend the terms of the Qimmiq Property Option Agreement dated June 18th, 2003. Qimmiq is the core property holding in the Baffin Island Gold project, Nunavut.

The amendment provides Commander the option to increase its current 50% interest in the Property to 100% by making a single cash payment of $400,000 to BHP Billiton, as further described below. The amendment enables Commander to eliminate remaining earn-in expenditures and to eliminate the requirement for a feasibility study. Furthermore, the amendment enables Commander to extinguish BHP Billiton's back-in rights to non-gold resources, as provided under the existing Option Agreement.

The Property covers 23,600 hectares (58,000 acres) and about 80 linear kilometres of the belt that hosts the main gold zones of the Baffin Project, including Malrok, Ridge Lake and the Brent, Peninsula, Qim4, Qim5 and the new Hebert prospects. Securing 100% ownership of the properties and removing the BHP Billiton back-in right greatly increases Commander's scope to advance exploration and development of the project.

The amendments to the Option Agreement covered in the LOI provide Commander the option to accelerate its exclusive right to earn 100% in the Property by paying the lump sum of $400,000 in cash to BHP Billiton on or before September 30th, 2008. In addition, Commander agrees to provide BHP Billiton with the Right of First Refusal ("ROFR") to purchase all or any portion of the concentrates or other such mineral products produced only from non-gold resources on the Property. For the first four (4) years of commercial production, BHP Billiton's ROFR shall apply to 50% of the non-gold concentrates; the other 50% of the non-gold concentrates shall be available for Commander to support or facilitate mine financing terms and other project capitalization and BHP Billiton shall retain a ROFR to match such financing terms. Commander will have 100% control over the sale and marketing of all gold concentrates or gold products produced from the Property. BHP Billiton will retain no ROFR or other rights to gold concentrates or gold products that may be produced from the Property. Certain royalties on the Property are held by International Royalty Corporation (IRC) and will remain attached to the Property. IRC purchased the royalties from BHP Billiton.

Commander's current working capital position is about $3 million.

A Definitive Agreement incorporating the terms of the LOI will be prepared by February 28th, 2008. This LOI is subject to approval of the TSX Venture Exchange and Commander's Board of Directors.


Commander Resources Ltd. is a junior exploration company focused on gold and base metal exploration in Canada. The strength of Commander comes from a combination of aggressive land acquisition and strategic partnerships to increase exposure to discovery while mitigating risk to the shareholders. Diversification is the cornerstone of Commander's strategy and is reflected in its extensive property portfolio including the main projects, Baffin Island Gold, Hermitage Uranium and the South Voisey's Bay Nickel property.

On behalf of the Board of Directors,

Kenneth E. Leigh, President & CEO

Shares Issued: 69,849,660

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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