Commander Resources Ltd. - Bay St. George Uranium

Commander has entered into an earn-in/JV Agreement with Vulcan Minerals Inc. ("Vulcan") whereby Commander may earn an 80% interest in designated metals, including base and precious metals and uranium, on Vulcan's large, 38,350 hectare Bay St. George Property in southwestern Newfoundland. The Maps are below.

Acquisition of this new large property is in line with the Company's strategy and complements the Company's larger and more advanced Hermitage uranium property in southern Newfoundland where drilling of high priority uranium targets is on-going.

The Bay St. George Basin contains a Carboniferous sequence of non-marine continental sediments that provide potential for sandstone hosted uranium deposits. Vulcan's claims cover areas with anomalous uranium values in lake-bottom geochemical samples. As well, they contain airborne radioactive anomalies from a 1975 survey flown at a 2 km line spacing grid.

The Property has very good access to the basin by a myriad of logging roads leading off the Trans Canada Highway. Ucore Uranium Inc. holds claims with uranium showings adjacent to the Vulcan Property.

The geological setting of the Bay St. George basin is similar to that of the Deer Lake Basin located 50 kilometres to the north. In the Deer Lake Basin, a number of uranium showings have recently been worked by Spruce Ridge Resources Ltd., JNR Resources Inc., Altius Minerals Corporation and Cameco Corp. The source of sandstone-hosted uranium mineralization in boulders grading up to 10% U3O8 has not been located. Recently, Spruce Ridge Resources located uranium in richly organic limestone and sandy limestone breccias with published values of up to 3.7% U3O8 in bedrock.

Detailed mapping of the stratigraphy by government geologists have determined that the uranium hosting sequences existing in the Deer Lake Basin have equivalents in the Bay St. George Basin. In addition, numerous structural breaks and folds allow for the presence of conduits and traps for uranium mineralization.

Commander's initial program will focus on prospecting with scintillometers along all logging roads and creek beds where bedrock exposures are maximized. This work will be accompanied by geological mapping and soil and silt sampling in designated areas.

Vulcan has been exploring the property for petroleum for several years and has acquired an extensive proprietary data base including interpreted seismic data and airborne magnetics which provides basin architecture, focusing on fault networks. There are also several million dollars worth of results from oil/gas wells completed in the basin to which Commander has access as part of the agreement.

Option

Commander may earn an 80% interest in all base metals, precious metals and uranium on the Property over a five year period by issuing to Vulcan 500,000 common shares and completing $3.5 million in exploration work, including 150,000 shares of Commander on regulatory approval and $100,000 of exploration expenditures in the first year. An initial cash payment of $50,700 will be paid to Vulcan to cover refundable staking deposits with the Provincial Department of Natural Resources. Any future refunds will be the property of Commander. Once Commander has earned its 80% interest, a Joint Venture will be formed and the parties will jointly fund continuing work on the designated metals. Once a party's interest falls to 10% or lower, its interest will convert to a 2% royalty, which will be an NSR in the case of base and precious metals and a gross sales royalty in the case of uranium production.