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Commerce Resources Corp. Reports Mixed Rare Earth Oxide from Ashram Rare Earth Deposit Produced by Université Laval

Corporate Updates

Commerce Resources Corp. Reports Mixed Rare Earth Oxide from Ashram

Rare Earth Deposit Produced by Université Laval

July 24, 2018 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to announce that Université Laval (“Laval”) has produced a mixed rare

earth oxide concentrate using material from the Ashram Rare Earth Deposit. The test work is part

of a larger program being completed in collaboration with Laval to process material from the

Ashram Rare Earth Deposit, located in northern Quebec. The test program also includes pilot

level components, (see news release dated May 31, 2018).

Highlights to date for the program include:

 Demonstration of entire process flowsheet, as developed by Laval, on the bench scale

 Bench scale production of mixed LRE (1) oxide (1.2 grams) and mixed

LRE+SEG(2)+HRE(3) oxide (0.6 grams)

 Validation of the software model simulator, using data from the bench scale processing of

Ashram material, for the separation of rare earth elements (REEs) by solvent extraction

(SX)

Company President Chris Grove states, “ The rapid progress of this collaboration now includes

the first ever mixed rare earth oxide concentrate produced from Ashram Deposit material. This

is a key milestone for the advancement of the Project. This test work has demonstrated again the

versatility of the Ashram Deposit to be processed by a number of different flowsheet

approaches.”

The Company has previously produced among the highest-grade rare earth mineral concentrates

in the rare earth development space (>45% REO), which also compare favorably with current

operating mines globally. This is a direct result of the simple rare earth and gangue mineralogy

of the Ashram Deposit, and the versatility in processing this permits. This versatility is further

demonstrated herein with the bench-scale production of downstream mixed rare earth oxide

concentrates by Laval using an alternative flowsheet approach. By extension, this versality in

processing approaches lends itself to more cost-effective methods to be incorporated into the

final flowsheet to achieve the same products and quality desired.

During May 2018, a sample of whole rock material from the Ashram Deposit was beneficiated

using flotation methods and the resulting concentrate was processed downstream using a

sequential caustic – acid leach to “crack” the rare earth minerals and liberate the REEs into

solution with a low impurity content. This solution was then processed using conventional

solvent extraction to obtain mixed LRE, SEG, and HRE fractions, with the LRE solution then

further processed to final mixed oxide product. Although recovery was not a target factor in the

completed test work, an overall recovery of 60 to 65% was achieved for several of the LRE.

Recent modifications to the flotation conditions are expected to improve the recoveries, with the

optimization process still on-going.

The primary objective of the test work is to validate a new software program (the software

“model simulator”), developed by Laval, for the simulation of a continuous SX separation plant

for the REEs. The software utilizes pre-defined inputs to generate a set of product outputs with

specific characteristics. The bench and pilot scale test data, generated from the processing of the

Ashram material, is then compared to the predicted outputs of the software in order to validate

the results, and therefore, the software program.

This validation of the software has now been completed using bench scale test data from

processing of the Ashram Deposit material, with results matching closely the predicted outputs

of the model simulator. The next step is to complete the test work at the larger pilot scale and

compare these results to those predicted by the model simulator.

As such, the large-scale crushing and grinding of ~1.5 tonnes of Ashram material is currently

being completed at SGS Canada Inc.’s (“SGS”) Quebec City facility with the flotation

component to follow shortly thereafter. The flotation concentrate will be used 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 SX separation pilot circuit to

separate the LRE from the SEG and HRE. 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.

A targeted commercial benefit of the software model simulator is as a planning tool for process

piloting to help reduce delays and costs associated with piloting the SX separation process for

REE. Moreover, various scenarios may be run through the model simulator to obtain predicted

outputs following process changes, prior to incurring the costs of physically completing the test

work. Further, the simulation may include REE prices for the process optimization where one

REE is favored over another one, as well as product specification optimization.

(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 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: