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Commerce Resources Corp. Announces Encouraging Results from XRF Ore Sorting Test Program, Ashram Deposit, Quebec

Metallurgy & Processing

Commerce Resources Corp. Announces Encouraging Results from XRF

Ore Sorting Test Program, Ashram Deposit, Quebec

January 13th, 2021 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0) (the “Company”

or “Commerce”) is pleased to announce encouraging results from an XRF ore sorting test project

initiative with MineSense, a digital mining solutions provider based in Vancouver, BC . The

project was conducted as part of the Company’s ongoing collaboration with CanmetMINING, a

branch of Natural Resources Canada (NRCan).

The MineSense technology is based primarily on XRF (X-ray fluorescence) sensors fitted to

specific pieces of existing mining equipment which monitor the spectral response of the material

being actively mined in order to determine its composition. The technology provides for a higher

level of grade control compared to typical methods, which allows for improved mine planning

and resultant cost efficiencies.

The recently completed test project assessed the spectral response of 127 co arse analytical drill

core rejects , comprising 5 rock types associated with the Ashram Rare Earth and Fluorspar

Deposit. The Company is pleased to report that algorithmic modelling of responses obtained

from each XRF and LIBS (Laser Induced Breakdown Spectroscopy) analyses were successful in

predicting the neodymium (Nd) content of the samples , a mong other elements . This is a

significant result as it indicates that a shovel or belt mounted sen sor could effectively estimate

the Nd content of the raw run -of-mine feed, allowing for real -time grade-control and therefore

more efficient and cost-effective mining.

Further work was recommended , including a desktop geostatistical analysis of the drill hole

database and a comprehensive review of mineral processing variables which, collectively, would

feed into an economic assessment of the XRF , LIBS, or combined XRF -LIBS ore sorting

method for the Ashram Project . The Company is currently evaluating the optimal approach and

schedule for next steps.

The funding for the test work was provided by Natural Resources Canada (NRCan) through

CanmetMINING’s 6 -year rare earth element (“REE”) and chromite program, (announced in

April 2015), focused on developing new extraction technologies, addressing Canadian

environmental challenges, and improving the knowledge of Canadian deposits

(www.reechromite.ca). The Company’s contribution to the collaboration was a supply of REE

mineralized material from the Ashram Deposit, in which several tonnes remain readily available

from a bulk sample completed in 2012.

The Ashram Deposit outcrops at surface , allowing for cost-effective collection of material for

test work . As such, t he Company is actively engag ing with various research and academic

institutions to support the advancement of the REE industry in Canada, and in Quebec

specifically.

About MineSense

MineSense ( minesense.com) specializes in digital technology solutions for ore -waste

classification in real -time at the min e extraction face (run-of-mine), thereby providing better

grade control compared to that of the deposit block model or mine plan. MineSense utilizes data

analytics combined with its t rademarked ShovelSense and BeltSense technologies to monitor

mineralogical or grade changes in an ore body daily, as it is mined. This information allows for

optimal ore blending, grade trend characterization, and overall improved mine planning with

resultant cost efficiencies and reduced environmental footprint.

About CanmetMINING

CanmetMINING, a S&T branch of the Lands and Minerals sector of Natural Resources Canada

with facilities in Ottawa, Val -d’Or, and Sudbury is a world class leader in the developm ent and

deployment of green mining and transformative technologies. Under the banner of Green Mining

Innovation, CanmetMINING has two intertwined objectives: reduce the environmental impacts

and improve Canada’s competitiveness related to mineral resource development.

CanmetMINING continues to work with stakeholders to develop and deploy green technologies

that will improve energy efficiency, reduce greenhouse gas (GHG) emissions, minimize waste

generation and water consumption and increase productivity. Ca nmetMINING also equips

Canada to manage ecosystem risks and to craft and implement sound, science-based regulations.

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.

The term “ore” as noted herein, refe rs to the industry’s preferred description of the techno logy

discussed (i.e. ore sorting). At this time, no reserve estimate has been determined for the Ashram

Deposit, and therefore no “ore” has been defined. The Ashram Deposit hosts a measured

resource of 1.6 million tonnes (Mt) at 1.77% rare earth oxide (REO ) and 3.8% F, an indicated

resource of 28 Mt at 1.90% REO and 2.9% F, and an inferred resource of 220 Mt at 1.88% REO

and 2.2% F, at a cut-off grade of 1.25% REO.

About Commerce Resources Corp.

Commerce Resources Corp. is an exploration and development company with a particular 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 visit 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 a shovel or belt mounted sensor could

effectively estimate the Nd content of the raw run -of-mine feed, allowing for real -time grade -control and more

efficient and cost -effective mining . 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 preve nt these statements from coming to fruition

include that our conclusions about CanmetMINING’s work may not prove to be correct ; 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

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; testing of our process may not prove successful and

even it 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 c urrent 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 information to

reflect new events or circumstances, except as required by law.