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Commerce Resources Corp. Releases Mineralogical Analysis Ahead of 2020 Exploration

Metallurgy & Processing

Commerce Resources Corp. Releases Mineralogical Analysis Ahead of

2020 Exploration

February 6th, 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to announce that preliminary mineralogical analysis has been completed

on a suite of rock samples from the Mallard Prospect, situated within the Niobium Claim Group

Property (the “Property”) , which is part of the Company’s Eldor claims located i n Quebec, and

adjacent to the Ashram Rare Earth Elements and Fluorspar Project . The Mallard Prospect is

characterized by numerous drill intersections of high -grade niobium, along with variably

associated high grades of tantalum, phosphate, and fluorspar.

Saville Resources Inc. (“Saville”) is currently working on programs to complete the requirements

of their Earn-in-Agreement with Commerce Resources Corp. for a 75% interest in the Property

(see news release dated January 11th, 2018).

Optical and scanning electron microscope ( SEM) mineralogical analysis of thin sections was

carried-out on a total of fifteen (15) core samples collected during the 2019 drill program

completed at the Mallard Prospect. Analysis was completed at the University of Windsor as part

of a research project related to the genesis of the Eldor Carbonatite Complex and its niobium

mineralizing event(s). The main highlights indicated from the preliminary work are as follows:

1. Pyrochlore and columbite are the dominant niobium minerals present

2. There are indications that niobium has been mobilized – a mechanism that could potentially

enhance the grade of a deposit

3. Mineralogy supports the model of a continuous niobium mineralized trend through the

complex

Pyrochlore and columbite are the dominant source minerals for niobium globally and are actively

mined in Quebec near Lac Saint-Jean (the Niobec Mine). This niobium mineralogy is well-known

to the Comp any from prior work it completed on its Upper Fir carbonatite located in British

Columbia. Moreover, the Company wishes to emphasize the importance of this mineralogy in

niobium deposits as it is, in large part, a harbinger to favourable processing downstream.

All the work to date by Saville indicates that these are also the primary niobium-bearing minerals

present on the Property. In addition, grain sizes for the niobium minerals in the samples analyzed

are estimated to range from 0.03 mm to 3 mm, and are most commonly between 0.05 mm and

0.4 mm. These grain sizes are encouraging from a commercial mineral processing perspective

(see Figure 1).

From an exploration perspective, the mineralogical work on the Mallard core samples reported

herein is very encouraging and supports the prior work c ompleted on surface rock and drill core

samples from other niobium -bearing areas of the complex, notably; the Northwest, Miranna,

Spoke, and South Mallard areas. Moreover, collectively, the data supports a continuous niobium

mineralized trend connecting th rough these areas, whereby Mallard, and potentially other

targets/prospects, form key zones of higher grade – potentially outlining areas where the niobium

has preferentially mobilized to augment the grade.

Figure 1: Pyrochlore minerals in carbonate matrix (drill hole EC19-172)

In addition to the mineralogical work, as part of the research project at the University of Windsor,

a hydrochloric acid (HCl) leach to remove carbonates was completed on a piece of drill core from

Mallard in order to recover a patite for oxygen isotope analysis. However, as the pyrochlore

mineral is resistant to HCl attack, the test also resulted in the liberation of the pyrochlore (see

Figure 2 below). The pyrochlore recovered is of the typical brown colour with an octahedral habit

(i.e. a “square bipyramid” shape).

Figure 2: Liberated pyrochlore minerals from HCl leach

Parallels to the Niobec Deposit

Numerous parallels may be drawn between the Mallard Prospect and the Niobec Deposit, part of

the Saint -Honoré Carbonatite Complex, located approximately 45 km east of Lac Saint -Jean,

Quebec. The Niobec Deposit started production in 1976 – now owned and ope rated by Magris

Resources Inc. – and it currently accounts for 8 to 10% of global production (1, 2). Both Mallard

and Niobec are carbonatites, a rock type dominated by carbonate minerals along with common

accessory oxides, silicates, apatite, sulphides, fl uorite, and barite. The niobium mineralization at

Niobec is hosted by fine -grained (0.2 to 0.8 mm) pyrochlore and columbite minerals, while the

recently completed mineralogical work reported herein indicate that pyrochlore and columbite are

the dominant ni obium-bearing minerals at Mallard and are also of similar grain -size to that of

Niobec. In addition, at both Mallard and Niobec, the mineralization is present as moderate to

steeply dipping elongate lenses. At Niobec, these lenses have been outlined to sig nificant depth

(up to 750 m), while at Mallard the lenses remain to be delineated, including at depth, having been

drill tested to generally less than 200 m vertically (see news release dated September 16, 2019).

Management notes that mineralization/operations at Niobec may not necessarily be indicative to

the mineralization, or potential for development, of the Mallard Prospect. To date, no resource

has been determined nor economic studies completed for the Mallard Prospect.

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.

Sources:

(1) www.niobec.com

(2) Vallieres, D. et al. 2013, NI 43-101 Technical Report, Update on Niobec Expansion, December

2013. IAMGOLD Corp., 203 pgs.

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 the current REE flowsheet effectively

produces a potentially saleable metallurgical -grade fluorspar product (“met -spar”) at no additional cost, while

having no negative impact on the REE recovery to the primary REE concentrate; and that if the tests are successful,

the sale of the fluorspar would reduce the footprint of the Project’s tailings management facility as well as provide

another revenue stream while also serving as a source of secure supply for the market. . These forward -looking

statements are subject to a variety of risks and uncertainties an d 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 include changing costs for mining and proces sing; 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, conditions changing such that the minerals on

our property cannot be economically mined, or that the required permits to b uild 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, exce pt as

required by law.