Commerce Resources Corp. Produces 98% CaF2 Fluorspar Concentrate from the Ashram Deposit, Quebec

Commerce Resources Corp. Produces 98% CaF2 Fluorspar Concentrate

from the Ashram Deposit, Quebec

February 28, 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to announce significant advancements in the metallurgical programs

focused on upgrading the Ashram Deposit’s fluorspar component to acid -spar grade. Recent test

work, being carried out by Hazen Research, CO, USA, has resulted in successful upgrading of the

Ashram Deposit’s fluorspar content to a purity of 97.8% CaF2, which exceeds the 97% base criteria

that is typical of acid-spar grade.

This high-grade test result demonstrates the applicability of standard physical separation

techniques to upgrade the Ashram Deposit’s fluorspar component from a head grade of ~7.5%

CaF2 to high-grades in excess of 97% CaF2, as is required to achieve acid-spar grade product. The

processing approach utilizes a relatively coarse grind followed by a fluorspar pre-float as an initial

upgrade step to isolate a sizable portion of the fluorspar prior to material entering the primary rare

earth element (“REE”) recovery flowsheet. The fluorspar flotation concentrate is then processed

by magnetic separation, resulting in the desired CaF2 grade, while the reject fractions are sent back

to the primary flowsheet circuit where the REE component is then recovered along with the bulk

of the REEs.

Commerce Resources Corp.’s President Chris Grove comments “We are thoroughly encouraged

by these results which continue to validate the value of the Ashram Deposit’s fluorspar component.

Ashram is primarily a rare earth deposit that is well-positioned to supply the permanent magnet

industry over the long-term. However, these fluorspar test results also demonstrate the potential

for Ashram to be a significant contributor to the acid-spar market.”

Now that a mineral processing approach to achieve a fluorspar concentrate with an acid -grade

CaF2 specification has been demonstrated (>97% CaF2), the test work will now focus on impurity

removal as well as improved fluorspar recovery. Target specifications for s everal of the typical

acid-spar impurities have already been achieved and include SiO2, Al2O3, Cl, Be, and Cd.

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.

The Fluorspar Market

Fluorspar prices remain robust ($400 to $500 USD/t), underpinned by strong market demand and

long-term fundamentals from the steel and chemical industries. It is an essential raw material to

the industry that is consumed during use and therefore cannot be recycled, resulting in new

production being required over time to meet global demand.

Acid-spar (>97% CaF 2), accounting for roughly two-thirds of the market, is primarily used to

manufacture hydrofluoric acid (HF) and subsequent fluorochemicals, which are used in a variety

of modern consumer products including an estimated half of all new medicines (Roskill, 2019).

Acid-spar is also used in the production of aluminum metal, to reduce process temperatures and

energy consumption, and is also a key raw ingredient of materials used in enhancing the

operational performance of lithium-ion batteries.

Met-spar (>60% CaF2), accounting for roughly one -third of the global fluorspar market , is

primarily used as a flux in the steel making process to lower the melting temperature, as well as to

reduce slag viscosity and remove impurities. Met-spar is also used as a flux in the cement industry

to speed up the calcination process.

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 importer. This has

caused significan t 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 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 Ta ntalum-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 Ashram is in a unique position to

potentially address the supply concerns of REE and Flourspar, two critical commodities. 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. R isks that could change or

prevent these statements from coming to fruition include 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 current expected viability of the project, con ditions 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.