RNS Number:9626W
Commoditrade Inc.
16 January 2006


16 January 2006

                                Commoditrade Inc.
                        ("Commoditrade" or "the Company")
                                        
                               Acquisition Update
                                        
On 31 October 2005, Commoditrade announced that negotiations were 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.

The Company confirms that negotiations to acquire this brokerage company
("Brokerage") are progressing and an  appropriate announcement will be made in
due course.

In addition, the Company is pleased to announce that it has been granted an
option by Tambelan Limited ("Tambelan") to  acquire Tambelan's economic interest
in its contract with the Brokerage ("Contract"), in respect of  metals trading
on  the London Metal Exchange. The option is exercisable at the sole discretion
of Commoditrade. In the event of exercise,  the consideration to be paid by
Commoditrade to acquire Tambelan's interest in the Contract is to be satisfied
as to a  combination of cash and shares. The consideration will be determined
following finalisation of Tambelan's trading  results for the financial year
ending 31 December 2005. As the acquisition of Tambelan's interest in the
Contract would  constitute a reverse takeover under the AIM Rules, it would be
subject to, inter alia, the approval of shareholders.  Tambelan is owned by
Graham Porter, Chairman of Corvus Capital Inc., which itself is Commoditrade's
largest  shareholder.  As such, the exercise of the option will also be a
related party transaction under the AIM Rules. Further  details relating to the
option will be announced in due course.

The proposed acquisition of the Brokerage and the exercise of the option are not
inter-conditional. In the event that  Commoditrade's proposed acquisition of the
Brokerage does not complete, the Company is preparing an application to the  FSA
for a new company to be regulated as a metals trader.

The Company expects to provide a further update by 28 February 2006. The
Company's shares were suspended on 12 July  2005.  The Company's shares will, as
a result of today's announcement, remain suspended.

Enquiries

John Bick 0870 389 6999



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