Commander Resources Ltd.
TSX VENTURE : CMD

Commander Resources Ltd.

July 12, 2005 09:15 ET

Commander Resources Ltd.: Sampling Yields High Value Uranium Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2005) - COMMANDER RESOURCES LTD. (TSX VENTURE:CMD) reports uranium analyses of 111 surface rock chip samples from the Blue Hills and White Bear River properties located just north of the port of Burgeo on the south coast of Newfoundland. The properties have not been previously drilled, are located close to a paved highway and power line, close to a sea port and are in a sparsely vegetated area.

Results included 18 samples exceeding 4 pounds per tonne U3O8 (0.18% U3O8) and 33 samples exceeding 2 pounds per tonne U3O8 (0.09% U3O8). Highest values reported were 12.3 pounds per tonne U3O8 (0.56% U3O8), 11.7 pounds per tonne U3O8 (0.53% U3O8), 10.3 pounds per tonne U3O8 (0.46% U3O8) and 9.2 pounds per tonne U3O8 (0.42% U3O8). A total of 57 samples returned values exceeding 1 pound per tonne U3O8 (0.045% U3O8). Detailed sample results are shown in the table and map on the Company's website (see WHAT'S NEW on the homepage) at www.commanderresources.com.

Based on the encouraging results returned from the limited first pass sampling program, an aggressive follow-up sampling and mapping program is being planned for later this summer that will include a combination of detailed radiometric surveying, basal till soil sampling and machine trenching and sampling using a back-hoe.

For comparison purposes, the average grade of world-wide operating uranium mines is about 3.3 pounds per tonne U3O8 (0.15% U3O8). At the current price of US$29.00/per pound U3O8 , the in situ value of a tonne of rock at this average grade is just under $US100, equivalent to about 3% copper (@US$1.40/pound copper) or 0.25 ounces of gold (@US$400/ounce gold).

Many analysts consider the long term uranium market outlook to be more positive than almost any other mineral commodity. Going forward there is a projected shortfall of U3O8 as existing primary and secondary sources are being depleted against a background of increasing demand for U3O8 energy. Given the projected gaps in supply and depletion of existing high grade uranium deposits, exploration and new production are needed if projected demand is to be satisfied.

Samples collected averaged 2 to 3 kilograms each consisting of an aggregate of numerous rock chips. A few saw-cut channel samples were also collected. No single "grab" samples were submitted for analysis in this batch. Results for approximately 15 individual grab samples from selected mineralized boulders and outcrops are awaited.

Mineralization appears to be stratigraphically controlled in most of the prospects. At the "Main" prospect on Blue Hills, 21 samples returned in excess of 2 pounds per tonne U3O8 and 10 samples were in excess of 4 pounds per tonne U3O8. A composite of three consecutive saw-cut channel samples from a bedrock exposure graded 2.36 pounds per tonne U3O8, over 1.5 metres. The best rock chip sample ran 11.70 pounds per tonne U3O8 from another part of the bedrock exposure. At the #4 Boulder Prospect, located about 600 metres to the east along strike from the Main prospect, 2 samples returned 7.84 pounds per tonne and 4.32 pounds per tonne U3O8. The main host rocks are fine-grained felsic volcanics with strong silica and sericite alteration.

Other prospects on the Blue Hills Property include the "Chan", "Hawks Nest", "Muise", "Baggs Hill" and "Fat Lip" where only limited sampling was done during this program. Four rock chip samples from the Muise prospect graded between 1.00 and 7.09 pounds per tonne U3O8. Three rock chip samples from the Chan prospect graded 2.79, 3.93 and 4.41 pounds per tonne U3O8 and one sample from the Fat Lip prospect graded 2.74 pounds per tonne U3O8. The Hawks Nest, Muise and Chan prospects are located along the contact between felsic volcanic rocks and graphitic sediments close to and parallel with the Baggs Hill granite and the Fat Lip and Baggs Hill prospects are hosted by the Baggs Hill granite itself.

The White Bear #3 prospect consists of several clusters of boulders of fine-grained felsic volcanics with silica and sericite alteration at the base of a gentle slope covered by moss and overburden. Six boulder samples graded from 1.88 to 12.31 pounds per tonne U3O8. Three bedrock samples from the #2 prospect, hosted in staurolite mica schists after metasediments, ran 1.84, 1.88 and 1.56 pounds per tonne U3O8.

Analytical Procedures

Samples were trucked to Eastern Analytical Laboratory in Springdale N.F. where samples were coarse crushed and 2 pulp samples prepared. One sample was retained while a second pulp was forwarded to ACME Analytical Laboratory, Vancouver, B.C. Samples were analyzed for uranium at ACME via the following procedure. A 0.2gm sample of pulp is mixed with 1.5gm lithium metaborate flux in a graphite crucible. This charge is heated to 1050 degrees Celcius for 15 minutes, then poured into 100 milliliters of 5% nitric acid. This solution is shaken for 2 hours, then tested directly for uranium content by ICP mass spectrometer. Accuracy is 0.10 ppm U, to a maximum value of 10,000 ppm U (1.0%U) . Standards are run at regular intervals at ACME.

About 30 select sample pulps and several high count specimen are being sent to Saskatchewan Research Council (SRC) Laboratory for check assaying.

Results from the laboratory were reported as parts per million (ppm) uranium (U). Since the accuracy of the analyses was very high (0.10 ppm U), the values can be considered equivalent to %U with 1000 ppm equivalent to 0.10%. The product is priced and sold on the market in pounds of U3O8, so the data was converted from %U to %U3O8 using the factor of 1.179 and further converted to pounds per tonne (metric) of U3O8 to better reflect the potential in situ value of the rock. The table on the Company's website presents the original data from the lab (ppm U) and the conversions to %U3O8 and pounds per tonnes (metric) U3O8.

Bernard Kahlert (P.Eng), V.P. Exploration is the Qualified Person under N.I. 43-101 supervising all aspects of the program.

ON BEHALF OF THE BOARD:

Kenneth E. Leigh, President & CEO

Shares Issued: 36,166,423

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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