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Commerce Resources Corp. Advances Impurity Suppression for Fluorspar Concentrate from the Ashram Deposit, Quebec

Corporate Updates

Commerce Resources Corp. Advances Impurity Suppression for

Fluorspar Concentrate from the Ashram Deposit, Quebec

September 24th, 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0) (the “Company”

or “Commerce”) is pleased to announce continued advancements towards impurity suppression

and removal, from high-grade fluorspar concentrate produced from the Ashram Rare Earth and

Fluorspar Deposit, Quebec.

Previous test work has demonstrated the ability to achieve fluorspar (CaF 2) grades in excess of

97% CaF 2, as well a s specifications for SiO2, Al 2O3, Cl, Be, and Cd (see news release dated

February 28 th, 2020). Since that time, additional test work has further achieved the standard

specifications for Pb, As, and Hg while maintaining a high CaF 2 grade (~96.5%). The Company

continues to advance the impurity removal with several other elements approaching standard

specification for acid-grade fluorspar in recent tests.

The test work on fluorspar recovery is being carried out by Hazen Research, CO, USA, which is

also develop ing the primary rare earth element (REE) recovery flowsheet. The recovery of

fluorspar from the Ashram Deposit has been approached as a secondary objective to the primary

REE recovery. Further, d epending on the process approach for fluorspar recovery, impurity

removal may also increase overall REE recovery in the flowsheet.

In addition to being one of the largest rare earth deposits globally, the Ashram Deposit is also one

of the largest fluorspar deposits globally. The production of REEs and fluorspar are currently

dominated by China, placing Ashram in a unique position to potentially address the supply

concerns of these two critical commodities. Both REEs and fluorspar are considered critical /

strategic commodities by the US Department of the Interior, the European Union, and the Province

of Quebec, Canada.

Fluorspar Market

Fluorspar is an essential raw material to the steel, aluminum, and chemical industries in two

marketable products, acid spar grade and met spar grade.

Acid-spar (>97% CaF2), accounting for roughly sixty percent of the market, is primarily used to

synthesise hydrofluoric acid (HF) and subsequent fluorochemicals, and in the production of

aluminum metal, to reduce process temperatures and energy consumption. It is also a key raw

ingredient of materials used in enhancing the operational performance of lithium-ion batteries.

Met-spar (>60% CaF 2), accounting for roughly forty percent of the global fluorspar market, is

primarily used as a flux in the steel making process to lo wer the melting temperature, to reduce

slag viscosity and remove impurities.

Similar to the prevailing dynamics for rare earth elements, China was historically the largest

exporter of fluorspar. However, in the last 3 years, China has become a net importe r. This has

caused significant price appreciation for fluorspar, and market interest from industry in new

sources.

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,

supervised the preparation of the technical information in this news release.

About Commerce Resources Corp.

Commerce Resources Corp. is an exploration and development company with a par ticular focus

on deposits of rare metals and rare earth elements. The Company is focused on the development

of its Ashram Rare Earth Element Deposit in Quebec and the Upper Fir Tantalum -Niobium

Deposit in British Columbia.

For more information, please vis it the corporate website at 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 that the Company ca n advance the impurity

removaland that impurity removal may increase overall REE recovery in the flowsheet.. 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 includethat we may not be able to further remove impurities, and

even if we do, it may not increase REE recovery; changing costs for mining and processing; increased capital

costs; the timing and content of upcoming work programs; geological interpretations based on drilling that may

change with more detailed information; potential process methods and miner al 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; testing of our process may not prove successful and even it tests are successful, the economi c

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 forward-looking information contained herein is given as of the date hereof and the Company

assumes no responsibility to update or revise such informati on to reflect new events or circumstances, except as

required by law.