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Commerce Resources Corp. Achieves 98% NdPr Recoveries into Solution from Sulphation Crack of its High-Grade Concentrates

Metallurgy & Processing

Commerce Resources Corp. Achieves 98% NdPr Recoveries into

Solution from Sulphation Crack of its High-Grade Concentrates

September 9, 2021 – Commerce Resources Corp. (TSXV: CCE, FSE: D7H 0; OTC:CMRZF)

(the “ Company” or “ Commerce”) is pleased to provide an update on the progress of its

metallurgical program to produce samples of mixed rare earth carbonate (“REC”) concentrate to

satisfy several requests by global processors . As part of this program, continued bench -scale

flowsheet development, ahead of scale -up and bulk processing, has resulted in the highest rare

earth element ( “REE”) recoveries to date into the combined high-grade monazite mineral

concentrate1 as well as into the subsequent sulphation crack water -leach liquor phase (i.e., the

pregnant leach solution or “PLS”). Highlights include:

• Monazite mineral concentrate1 grade of approximately 40% rare earth oxide

(“REO”) at 82% recovery and 3.2% mass pull (recovery and mass pull with reference

to unprocessed whole rock).

• Recoveries of 98% Nd, 98% Pr, 95% Tb, and 90% Dy into the PLS (with reference to

the mineral concentrate1).

• Combined overall NdPr recovery of approximately 78% into the PLS (with reference

to unprocessed whole rock).

The flowsheet for the Ashram REE/ Fluorspar Deposit, developed by Hazen Research , uses

conventional unit processes to produce a high -grade rare earth mineral (monazite) concentrate1

that is comparable to active global hard-rock REE producers. Specifically, the Ashram flowsheet

utilizes a flotation – HCl leach - magnetic separation pro cess approach to achieve high-grade

(>40% REO) monazite concentrates1 at high recovery comparable to active global producers.

In the current work, flotation concentrate produced from the 2015 pilot plant operation was used

as feed to the subsequent HCl leach and magnetic separation stages, which were completed at

bench scale and resulted in monazite concentrate1 grades of approximately 40% REO at 82%

overall recovery. The monazite concentrate1 was then mixed (in ~50 g batches) with concentrated

sulphuric acid (H2SO4) and heated to ~220°C in a stirred pot over a ~3-hour period to convert the

contained REEs into soluble rare earth sulphates (i.e., the ‘sulphation crack’) , which were then

dissolved in a water leach to bring the REEs into solution (i.e., the ‘PLS’). The recent test work

resulted in the highest recoveries of REEs achieved to date in the sulphuric acid – water leach

stage, at 98% for NdPr, as well as the high est overall recoveries achieved to date from

unprocessed rock into the PLS, at approximately 78% NdPr.

All major hard rock REE mines globally produce mineral concentrates of at least 35-40% REO,

which are then placed into solution and processed downstream into marketable products. Such

high grades of mineral concentrate considerably reduce the downstream processing cost and risk

through lower reagent use, fewer deleterious elements entering soluti on, and a smaller hydromet

plant requirement by comparison. With respect to the Ashram Deposit, test work has now

demonstrated that >80% of the REEs in the unprocessed deposit material can be effectively

concentrated (i.e., recovered) into just 3-4% of the original mass , resulting in a significant

upgrade factor of over 21 times the original head grade. In addition, the recent work has now

demonstrated that 98% of the NdPr contained in th is concentrate can be put into solution

for downstream recovery. These r esults are also a strong improvement on the 90 -95% REE

recoveries into solution achieved in prior test programs.

Company President, Chris Grove comments, “The ongoing work on the Ashram flowsheet has

demonstrated that very high-grade monazite concentrates1 at high recoveries have been produced,

and there is still room for improvement. Moreover, the prior bench-scale work has demonstrated

that producing high-grade monazite concentrates1 at high REE recoveries is repeatable, and now,

the current test program has demonstrated that high REE recoveries into solution at the sulphuric

acid water-leach stage, are also repeatable. Our metallurgical results to date continue to solidify

our belief in Ashram as a potential low-cost leader for mixed REC / NdPr supply to the global

market.”

In the next steps of the process flowsheet the leach liquor produced from the sulphuric acid water-

leach stage will be treated by solvent extraction (“SX”) to reject thorium followed by SX to purify

and concentrate the REEs. A mixed REC, high in NdPr, will then be precipitated from the SX strip

liquor. This test work is currently being completed on the bench scale and in parallel to the scale-

up of the sulphuric acid pot digestion stage from 50 g batches to 2.5 kg batches. The test work will

continue to scale up until approximately 2.5 kg of on-spec mixed REC is produced.

1. Concentrate refers to the recovered REE minerals into the magnetic fraction of the magnetic

separation stage (~70% of the overall REEs) as well as the REEs that have been precipitated

and recovered from the HCl leach liquor fraction (~12% of the overall REEs). Collectively,

the combined concentrate accounts for >80% overall REE recovery through this stage, which

is then fed together into the sulphation crack stage.

NI 43-101 Disclosure

Darren L. Smith, M.Sc., P.Geo., Dahrouge Geological Consulting Ltd., a Permit holder with the

Ordre des Géologues du Québec and Qualified Person as defined by National Instrument 43-101

– Standards of Disclosure for Mineral Projects , supervised the preparation of the technical

information in this news release.

About Commerce Resources Corp.

Commerce Resources Corp. is a junior mineral resource company focused on the development of

the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada. The Company is

positioning to be one of the lowest cost rare earth producers globally, with a specific focus on

being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the global market.

The Ashram Deposit is characterized by simple rare earth (monazite, bastnaesite, xenotime) and

gangue (carbonates) mineralogy, a large tonnage resource at favourable grade, and has

demonstrated the producti on of high -grade (>45% REO) mineral concentrates at h igh recovery

(>70%) in line with active global producers. In addition to being one of the largest rare earth

deposits globally, Ashram is also one of the largest fluorspar deposits globally and has the potential

to be a long-term supplier to the met-spar and acid-spar markets.

For more information, please visit the corporate website at http://www.commerceresources.com

or email [email protected].

On Behalf of the Board of Directors

COMMERCE RESOURCES CORP.

“Chris Grove”

Chris Grove

President and Director

Tel: 604.484.2700

Email: [email protected]

Web: http://www.commerceresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains forward-looking information which is subject to a variety of risks and uncertainties and

other factors that could cause actual events or results to differ from those projected in the forward -looking

statements. Forward looking statements in this press release include , but are not limited to, statements regarding

the progress of the Company’s metallurgical program and any future methods employed therein, the Company’s

ability to reduce downstream processing costs and risk, the Company’s ability to repeat and produce high-grade

monazite concentrates, the Company’s ability to become one of the lowest cost rare earth producers globally as

well as its potential ability to be a long-term supplier to the met-spar and acid-spar markets. These forward-looking

statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or

results to differ materially from those projected in the forward -looking information. Risks that could change or

prevent these statements from coming to fruition include that the methods proposed do not work as wel l as

expected, the leach residue may not be usable, that the Company may experience difficulties producing concentrate

or achieving an upgrade to the concentrate; changing costs for mining and processing; increased capital costs; the

timing and content of the work programs; geological interpretations based on drilling that may change with more

detailed information; potential process methods and mineral recoveries assumption based on limited test work and

by comparison to what are considered analogous deposits that with further test work may not be comparable; that

testing of the Company’s process may not prove successful and even i f tests are successful, the economic and

other outcomes may not be as expected; the availability of labour, equipment and markets for the products

produced; and despite the current expected viability of the project, conditions changing such that the minerals on

our property cannot be economically mined, or that the required permits to build and operate the envisaged mine

can be obtained. The novel strain of coronavirus, COVID-19, also poses new risks that are currently indescribable

and immeasurable. The forward -looking information contained herein is given as of the date hereof and the

Company assumes no responsibility to update or revise such information to reflect new events or circumstances,

except as required by law.