Commander Resources Ltd.

Commander Resources Ltd.

September 03, 2009 15:08 ET

Commander Signs $20 Million Farm-In Agreement and $1.2 Million Private Placement With AngloGold Ashanti for Baffin Island Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 3, 2009) - Commander Resources Ltd. (TSX VENTURE:CMD) has signed a Farm-in and Joint Venture Agreement (the "Agreement") with AngloGold Ashanti Limited's subsidiary AngloGold Ashanti Holdings Plc ("AngloGold"). Under the Agreement, AngloGold may earn a 51% participating interest in Commander's Baffin Island Gold Project, Nunavut (the "Property") by funding $20 million in exploration expenditures and by completing a $1.2 million private placement in the shares of Commander.

Ken Leigh, President & CEO of Commander states that "We believe this to be the right time for a high-quality partnership with one of the top gold companies in the world. The agreement enables us to rapidly accelerate exploration and development of our Baffin Gold project, which covers a regionally extensive and exciting new gold district in the rapidly developing Nunavut frontier."

The key terms of the Farm-in Agreement are as follows:

AngloGold may earn a 51% participating interest in the Property by spending $20 million over a six (6) year period, including a firm commitment to fund $5.5 million in exploration expenditures within the first two (2) years. The commitment includes completion of a minimum of 3,000 metres of diamond drilling;

Commander will act as Project Manager for the initial two (2) year committed program. AngloGold will pay a 10% management fee to Commander on all project expenditures incurred on the project during that period;

Once AngloGold has vested a 51% interest in the Property, a 51:49 Joint Venture will be formed. AngloGold may then elect within 60 days of vesting to increase its interest in the Property to 70% by sole-funding all on-going expenditures to complete a feasibility study within four (4) years on at least one of the prospects on the Property.

Private Placement:

AngloGold has agreed, subject to TSX Venture Exchange approval, to subscribe to units of Commander totaling $1.2 million, such units to consist of one share plus one-half share purchase warrant. The shares will be priced at $0.12. One whole warrant will be exercisable to purchase one share of Commander for two (2) years at a price of $0.24. The proceeds will be used by Commander primarily for working capital and corporate purposes. AngloGold will have the right, subject to TSX Venture Exchange approval, to participate in future private placements in order to maintain its initial equity interest level in Commander under this Agreement.

As part of the initial two-year commitment, AngloGold may provide the funds that will allow Commander to exercise its right to accelerate acquisition of ownership of 100% of the Bravo Property, which is part of the Baffin Gold Project.

Commander is currently completing a limited field program to advance the project in the remaining field season and to begin preparation for a full campaign next year. This season's program is focused primarily on expanding the Hebert Zone. An aggressive multi-target drill campaign will start in the Spring of 2010.

This Agreement is subject to approval by the TSX Venture Exchange and the Reserve Bank of South Africa.

On Behalf of the Board of Directors,

Kenneth Leigh, President & CEO

Shares Issued: 79,572,516

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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