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Commerce Resources Corp. Updates Metallurgical Collaboration with CanmetMINING and Announces Partnership with Corem, for the Ashram Deposit, Quebec

Metallurgy & Processing Partnerships & JV

Commerce Resources Corp. Updates Metallurgical Collaboration with

CanmetMINING and Announces Partnership with Corem, for the

Ashram Deposit, Quebec

May 13, 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or

“Commerce”) is pleased to provide an update with respect to its ongoing collaboration with

CanmetMINING, focused on beneficiation test work for the Ashram Rare Earth and Fluorspar

Deposit. Despite disruptions caused by COVID-19 to the test programs , some significant

advancements have been made on the flotation circuit.

In recent flotation test work, CanmetMINING – a division of Natural Resources Canada (NRCan)

– has completed collector screening, an evaluation of mixed collectors, reverse conditioning tests,

cleaning stage tests, and a continuous process simulation with a locked cycle test. Further to the

initial findings presented in the news release dated March 9 th, 2020, CanmetMINING has

identified through its test work an alternative reagent scheme and flotation circuit to achieve, and

potentially exceed, the target objective of <25% mass pull at >80% recovery. This has also been

achieved using one-half to one-quarter of the quantity (kg/t) of reagents utilized in prior test

work completed by other metallurgical labs. Previous work has identified reagents as a key area

of optimization in the Ashram Deposit’s flotation circuit and where significant cost advantages

may be found by screening the performance of each pertinent reagent with respect to their

consumption and purchase cost.

Through CanmetMINING’s test work, improvement in flotation performance has been achieved

through a combination of distributed reagent additions, reagent synergism, and reverse

conditioning in a very simple and basic flotation circuit. Details of the recent flotation test work

will be detailed by CanmetMINING in a paper titled “Mineral Processing Flowsheet Approaches

for the Ashram Rare Earth and Fluorspar Deposit ” at the 2020 Conference of Metallurgists

(COM2020) to be held August 24th to 27th in Toronto, ON.

In addition, the Company is pleased to announce that Corem will be partnering with

CanmetMINING for certain program components, beginning with multi-gravity testing. Corem is

the largest center of expertise and innovation in Canada dedicated to mineral pro cessing. The

center provides specialized services and research expertise to exploration and mining companies

around the world. In February 2020, approximately 0.4 tonnes of unprocessed Ashram Deposit

material was received by Corem; however, shortly thereaf ter work was paused due operating

restrictions related to COVID -19. The work is anticipated to move forward as these restrictions

are eased.

The primary objective of CanmetMINING’s work on the Ashram Deposit is to identify a key

approach to further enh ance beneficiation performance by exploring and testing a range of

potentially applicable process methods at varying test conditions. These methods are expected to

include flotation, gravity separation, magnetic separation, and ore sorting, in addition to several

other physical separation approaches.

The funding for the test work is provided by Natural Resources Canada (NRCan) through

CanmetMINING’s 6-year rare earth element (“REE”) and chromite program, (announced in

January 2015), focused on developing new extraction technologies, addressing Canadian

regulations, and improving the knowledge of Canadian deposits (www.reechromite.ca). The

Company’s contribution to the collaboration is a supply of REE mineralized material f rom the

Ashram Deposit, in which several tonnes remain readily available from a bulk sample completed

in 2012.

The Ashram Deposit outcrops at surface, allowing for cost-effective collection of material for test

work. As such, the Company is actively engaging with various research and academic institutions

to support the advancement of the REE industry in Canada, and in Quebec specifically.

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 Element Depos it 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 def ined 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 s tatements in this press release include that CanmetMINING’s work on the Ashram Deposit will

identify a key approach to further enhance beneficiation performance. 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 fruition include that CanmetMINING’s work may not be success ful; changing costs for mining and

processing; 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 rec overies

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 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.