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Commerce Resources Corp. Provides Update on the Metallurgical Test Program at Université Laval for the Ashram Rare Earth Deposit

Metallurgy & Processing

Commerce Resources Corp. Provides Update on the Metallurgical Test

Program at Université Laval for the Ashram Rare Earth Deposit

August 20, 2018 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to provide an update on the metallurgical test program for the Ashram

Rare Earth Deposit that is being completed under the direction of the Université Laval (“Laval”).

The test program uses an alternative flowsheet approach with the purpose of validating a

software model simulator developed by Laval (see news releases dated May 31 and July 24,

2018). The program is fully funded through a grant received by Laval with testwork being

completed in collaboration with SGS Canada Inc. (“SGS”) at their facilities.

Since the program was first initiated in May 2018, the test work has advanced aggressively with

a bench-scale level demonstration of the entire flowsheet now complete, including the

production of several grams of mixed rare earth oxide concentrate (see news release dated July

24, 2018). The Company is now pleased to report that the crushing and grinding component, as

well as the large-scale flotation component of the program, have now been completed. A total of

~1.5 tonnes of Ashram Deposit material was processed, with the flotation component completed

using individual batches ranging from 10 kg to 30 kg. Initial results are in line with expectations

with the team now looking ahead to the pilot-level hydrometallurgical component that will

commence with a caustic crack on an estimated 150 kg of flotation concentrate.

Company President Chris Grove states, “ We continue to be impressed with the rapid

advancement of this collaboration and look forward to the commencement of the

hydrometallurgical pilot component.”

The next steps of the program will use the flotation concentrate as feed to a semi-continuous

hydrometallurgical pilot operation to produce a purified solution containing the REE. The REE

solution will then be processed through a continuous solvent extraction (SX) separation pilot

circuit to separate the LRE (1) from the SEG (2) and HRE (3). In parallel, the solution composition

will be used to simulate the pilot scale SX separation circuit using the model simulator. The

comparison between the results of the pilot plant and the simulation will validate the model

simulator, which could then be used to further assess the economics of the separation of the REE

into individual rare earth oxides.

(1) LRE – Light Rare Earth

(2) SEG – Samarium, Gadolinium, Europium

(3) HRE – Heavy Rare Earth

NI 43-101 Disclosure

Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as

defined by National Instrument 43-101, supervised the preparation of the technical information

in this news release.

About Université Laval

Université Laval is a French-language university based in Quebec City, QC, Canada with over

42,500 students enrolled in some 500 programs. Laval is a highly regarded academic institution

at the forefront of research and development in the country with over 60 departments and schools

supporting a range of innovative initiatives.

About SGS

SGS is the world’s leading inspection, verification, testing and certification company. SGS is

recognized as the global benchmark for quality and integrity. With more than 95,000 employees,

SGS operates a network of over 2,400 offices and laboratories around the world.

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 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, 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; the availability of labour, equipment and

markets for the products produced; and despite the current expected potential 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.

Commerce acknowledges its partners: