RNS Number:3764T
Commoditrade Inc.
31 October 2005


31 October 2005

               Commoditrade Inc. ("Commoditrade" or "the Company")

On 12 July 2005, the Directors of Commoditrade announced that it had entered
into heads of agreement and a period of exclusivity to acquire a commodity
trading business, in a transaction which would constitute a reverse takeover
under the AIM Rules.

The Company is pleased to announce that negotiations are at an advanced stage to
acquire a UK-based company engaged in the brokerage of commodities and
derivatives.   The company to be acquired is regulated by the Financial Services
Authority in the UK (the "FSA") and as such an application for approval for
change of controller has been submitted to the FSA. Proposals will be sent to
shareholders in due course but not before FSA approval has been obtained.

Consideration for the proposed transaction will be satisfied as to a combination
of cash and through the issue to the vendors of new ordinary shares in
Commoditrade.  In order to satisfy the cash consideration in respect of the
proposed acquisition it is intended that Commoditrade will undertake a placing
of new ordinary shares in the Company, and in addition raise senior debt
funding.

A further announcement will be made as appropriate.

Enquiries:

John Bick
Tel: (020) 7651 6999



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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