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Commerce Resources Corp. Provides Update on INRS Test Work for the Ashram Deposit, Quebec

Metallurgy & Processing

Commerce Resources Corp. Provides Update on INRS Test Work for the

Ashram Deposit, Quebec

May 14, 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H 0) (the “Company” or

“Commerce”) is pleased to provide an update on the ongoing tailings characterization test

programs being completed by the Centre Eau Terre Environnement of the Institut national de la

recherche scientifique (INRS) . The flowsheet for the Ashram Rare Earth and Fluorspar Deposit

incorporates a flotation circuit and associated tailings management facility at the mine -site. The

test work at INRS is designed to characterize this material and its behaviour under various

weather conditions over time. The programs are jointly funded through a grant, totaling

$300,000, from the Fonds de recherche du Québec - Nature et technologie (FRQNT) and the

Ministère de l’Énergie et des Ressources naturelles (MERN) (see news release dated June 16,

2016).

To date, characterization work including a series of static tests (TCLP, SPLP, and CTEU) and

kinetic tests (columns and weathering cells) have been completed with very positive results. The

flotation tailings are indicated to be relatively benign with no major issues identified with the

material or its management. Key takeaways include:

1. The tailings are not acid generating due to the material ’s high carbonate and low

sulphide content resulting in a natural neutralization effect. This trait also provides for a

significant cost advantage as no addition of lime is required to achieve neutralization of

the tailings.

2. The tailings are not considered hazardous or ra dioactive (S value = 0.157) according

to Quebec’s Hazardous Materials Regulations and Environmental Quality Act. The

concentrations of U -Th leached during the test work did not exceed any water quality

criteria and are therefore U and Th are not considered a potential source of

contamination.

3. Concentrations of all elements in t he tailings’ leachate fall below the “high -risk”

criteria as outlined in Directive 019.

4. Freeze-thaw cycles appear to play an important role in mineral solubility and add itional

test work is required to further characterize.

Following the completion of the static test program (see news release dated June 5 th, 2018), a

series of kinetic tests (columns and weathering cells) began and remain underway. Column tests

are designed to reasonably reflect a range of on -site weather conditions that a tailings material

may be subjected to over time , and to identify potentially leachable elements under these

scenarios. The data allows for better understanding of how the tailings may be altered over time

and for proper mitigation measures to be implemented if any elements are indicated to be

potentially problematic to the environment.

A total of six (6) columns tests have now been completed – two (2) x water leach, two (2) x

NaCl leach, and two (2) x CaCl 2 leach. The baseline conditions for each test included 28 days at

4°C, 18 days at -18°C, and 10 days at 4°C. The conditions also allowed for the potential impacts

of freeze-thaw cycles to be evaluated. The results of the column test work have been positive

and indicate that the tailings are relatively benign and fall below the “high-risk” criteria as

outlined in Directive 019 by the Ministry of Environment and Fight Against Climate

Change (MELCC). Only Cd, Pb, and Zn exceed resurgence criteria for the protection of aquatic

life. Measurement of partial contents of Cd, Pb , and Zn will be carried out in order to determine

if their contents exceed the natural soil background levels of the Labrador Trough. If the partial

contents measured are lower than the natural background, the tailings will not be considered

leachable under Directive 019 classification.

Figure 1: Diagram and laboratroy set-up for kinetic testing

The project’s next steps include tailing s weathering modelling using PHREEQC software. The

objectives are to; 1) understand which mineral phases are likely to dissolve or precipitate under

specific conditions, 2) evaluate the transport of elements leached from the flotation tailings, and

3) evaluate the behaviour of the tailings under variable temperature, pH, and salinity.

The current tailing characterization project is anticipated to conclude in December 2020.

However, due to the success of the collaboration over the last four years, the Company and the

INRS are exploring a continuation of the tailings characterization work under the same funding

mechanisms.

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 and Fluorspar 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 , proper mitigation measures could be

implemented if any element s are indicated to be potentially problematic to the environment; and that we might

continue the tailings characterization work beyond December 2020. 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 fru ition include that we may misdiagnose problems or prepare solutions that do not

remedy the problems; we may not receive more funding to extend the program; changing costs for mining and

processing; increased capital costs; the timing and content of upcomin g work programs and reports produced on

work done ; 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, equi pment 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 information to reflect new events or circumstances, except as required by

law.