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Commerce Resources Corp. Updates Environmental Test Work on Tailings Optimization for the Ashram Rare Earth Deposit

Metallurgy & Processing

Commerce Resources Corp. Updates Environmental Test Work on Tailings

Optimization for the Ashram Rare Earth Deposit

June 5, 2018 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to provide an update on the ongoing environmental tailings optimization

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

recherche scientifique (INRS) in support of the Ashram Rare Earth Project (the “Project”).

The test programs are being 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), and is in the 2nd year of three (see news release dated June 16,

2016). This work is being completed in partnership with the INRS, a research-oriented branch of

the Université du Québec, which has considerable experience in environmental management and

sustainability.

The primary test work has focused on characterization of the flotation tailings, which would be

produced at the mine-site if the Project were to enter production. The results to date are

encouraging with highlights that include:

 No “red flags” or serious concerns

 No acid generating potential

 Strong indications of no metal leaching potential

Company President Chris Grove states, “The Company is committed to advancing the Ashram

Project in an environmentally responsible manner, with the inherent low-sulphide and non-acidic

nature of the carbonatite host rock giving the Project an added advantage. The recent test results

are encouraging and we look forward to the results of the ongoing kinetic test work. A complete

characterization of tailings material is an essential component for the proper design and

maintenance of the tailings management facility”.

In order to characterize the flotation tailings, a sound understanding of the potential contaminants,

their mobility, and their stabilization is required. This is first assessed through a series of

permeability and static tests (TCLP, SPLP, and CTEU) under conditions representative of a

northern Quebec environment (low temperature control room at laboratory installations). This test

work phase has now been completed with encouraging results in line with expectations. Follow-

up kinetic test work is now underway and is expected to be completed later in 2018. In general,

static tests are considered less representative of real onsite conditions as they are more

“aggressive” than kinetic tests, and therefore, the encouraging indications of the static tests bodes

well for the results of the kinetic tests. In addition, sequential extraction tests are planned which

will further assess the potential mobility, bioavailability, and toxicity of metals and therefore

provide information on the metal removal mechanisms.

Fluorspar Characterization

The overall program also includes a fluorspar characterization and upgrading component. This

work is less advanced in comparison to the flotation tailings characterization work; however, initial

mineralogy work indicates that free grains of monazite are present in the fluorspar concentrate.

This is very encouraging and indicates that these grains may be readily separated from the fluorspar

by optimization of the prior magnetic separation step, or through additional processing without the

need for further grinding. The recovery of the monazite grains, which contain a significant amount

of REEs, would upgrade the purity of the fluorspar concentrate as well as potentially increasing

the overall recovery of REEs into the primary rare earth concentrate.

The results of the programs described in this news release will be incorporated, along with other

necessary technical data including geological and engineering studies, into the ongoing Pre-

feasibility Study, with costs and benefits to be described in more detail therein.

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 the Institut national de la recherche scientifique (INRS)

The Institut national de la recherche scientifique (INRS) is a research oriented branch of the

Université du Québec, and is dedicated to fundamental and applied research, graduate studies, and

the training of researchers. The INRS is comprised of four research centers focusing on

environmental sustainability, advanced technologies, health, and social sciences, with locations in

Quebec City, Laval, Montreal, and Varennes.

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 and Niobium

Deposit in British Columbia.

For more information please visit the corporate website at http://www.commerceresources.com or

contact Investor Relations at 604.484.2700 or [email protected].

On Behalf of the Board of Directors

COMMERCE RESOURCES CORP.

“Chris Grove”

Chris Grove

President

Tel: 604.484.2700

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the 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.

For example forward looking statements in this press release include and are not limited to the statements that the

planned work will be completed over three years; any indication that the tailings facility will be built and that the

results will be incorporated into the Pre-feasibility Study Risks 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 current data 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; 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 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.