MRZL.V · 2021-12-22 12:00:00

Commerce Resources Intersects 2.19% REO over 302.0 m, including 2.94% REO over 35.5 m at the Ashram Deposit, Quebec

Drill Results

Commerce Resources Intersects 2.19% REO over 302.0 m, including 2.94%

REO over 35.5 m at the Ashram Deposit, Quebec

December 22, 2021 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX:

CMRZF) (the “Company” or “Commerce”) is pleased to announce assay results received for

the first four (4) holes completed at the Ashram Rare Earth and Fluorspar Deposit (“Ashram

Deposit”) as part of the 2021 drill program . The field program, completed in July -August

2021 in support of the Ashram Project’s Prefeasibility Study, included twelve (12) drill holes

totalling 2,814 m focused on resource infill within the planned open-pit shell.

Core sample assay highlights include:

• 2.19% rare earth oxide (“REO”) over 302.0 m (EC21-187), including,

o 2.94% REO over 35.5 m

• 2.14% REO over 222.7 m (EC21-185), including,

o 2.35% over 93.5 m

• 1.71% REO over 297.6 m (EC21-183), including,

o 2.25% over 25.3 m

• 2.44% REO over 24.0 m (EC21-182)

The primary objective of the 2021 drill program at Ashram was to improve the confidence

of the mineral resource (inferred -> indicated -> measured) in support of an updated mineral

resource estimate to be completed as part of the ongoing Prefeasibility Study, which will also

determine the initial mineral reserve estimate for the Ashram Project. Based on the drilling

to date, the Company anticipates a large portion of Ashram’s current inferred and indicated

resources will be converted to indicated and measured resources.

All four (4) drill holes collared in mineralization starting at depths of 1.4 – 4.7 m (core

length), consistent with previous drilling , with three (3) of the drill holes remaining

mineralized over their entire length. The grades of the infill drilling at Ashram continue to

remain strong compared to the current resources’ head grades , with wide intervals of

greater than 2% REO common.

In addition, the NdPr oxide distribution (i.e. % of Nd+Pr oxide of the total REO) continues to

remain very strong compared to active global produce rs, and commonly ranges from 19 –

24+%, including a 21% NdPr oxide distribution in EC21-187’s 302.0 m interval of 2.19%

REO. The high distribution of NdPr oxide at Ashram is a result of the monazite dominate rare

earth mineralogy and unique chemistry and equates to a relatively high -value end-product

that Ashram could supply the market with over the long -term. Grade over width and

corresponding NdPr oxide distributions are presented in Table 1 , with drill hole highlights

and locations presented in Figure 1.

Table 1: 2021 drill hole results for infill drill holes at the Ashram Deposit

Drill hole EC21 -182 was completed as a vertical step-out at the northern margin of the

deposit. The hole collared in mineralization before trending out of and back into at depth,

indicating the geometry of the deposit in this location flares out near surface. The northern

Hole ID From

(m)

Interval

(m)

REO3

(%)

NdPr Oxide

Distribution4

(%)

CaF2

(%) Comments

Total

Depth

(m)

Azimuth

(°)

Dip

(°)

EC21-182 2.3 32.0 29.7 1.49 24.7 1.6 3.2 152 - -90

including 2.3 17.0 14.7 1.85 23.2 0.8 1.6

including 128 152.0 24.0 2.44 18.2 2.8 5.7

EC21-183 4.5 302.0 297.6 1.71 22.8 3.7 7.5 Entire hole 302 120 -45

including 137.0 162.3 25.3 2.25 19.9 6.3 12.9

EC21-184 302 90 -45

EC21-185 1.4 224.0 222.7 2.14 20.3 3.4 6.9 Entire hole 224 - -90

including 51.0 144.5 93.5 2.35 19.8 4.6 9.5

including 209.0 224.0 15.0 2.88 17.3 2.1 4.3

EC21-186 227 - -90

EC21-187 4.7 302.0 302.0 2.19 20.9 3.5 7.2 Entire hole 302 20 -45

including 209 244.5 35.5 2.94 19.9 4.4 9.0

EC21-188 200 - -90

EC21-189 152 - -90

EC21-190 224 - -90

EC21-191 224 - -90

EC21-192 227 - -90

EC21-193 278 0 -45

(2) Intervals reported are core length. True width varies between each hole due to varied hole orientations; however, EC21-183, 184, 187, and

193 were oriented more oblique to dip than is typical for geological modelling purposes.

(4) Percent of NdPr oxide out of the total REO content, calcluated as (Nd2O3 + Pr2O3) / REO x 100.

(5) Assumes all fluorine is contained within the minreal fluorite.

Core assays not yet received

(1) All drill holes are NQ core size.

(3) REO is the sum of lanthanides (as oxides) + yttrium oxide.

Core assays not yet received

margin of the deposit remains open with mineralization continuing to be intersected in step-

out holes, as is evidenced by EC21-182.

Drill holes EC21-183 and 187, were part of a group of four (4) holes (EC21 -183, 184, 18 7,

and 193) which targeted the region beneath the shallow bay (<1.5 m water depth) on Centre

Pond, in the north -central area of the deposit . These drill holes were completed at various

orientations, resulting in the drill holes crossing the deposit at different oblique angles, and

were primarily completed to help constrain the geological model. The drill holes continue to

re-enforce the strong mineralization (and NdPr distribution) in this area of the deposit.

Drill hole EC21 -185 was completed in the central area of the deposit and returned strong

mineralization, as expected, at 2.14% REO (20.3% NdPr oxide distribution) over 222.7 m ,

including 2.35% over 93.5 m. This drill hole ended in strong mineralization with the last 15

m of the hole averaging 2.88% REO, and the last sample assaying 2.69% REO.

As the Ashram Deposit is known to continue for more than 600 m in depth, and remains

open, the 2021 drill holes were ended at pre -determined depths below the anticipated pit

shell, and therefore, most holes completed as part of the infill drilling at Ashra m ended in

mineralization, including EC21-182, 183, 185, and 187.

The Company notes that it carried out its field programs while adhering to all federal,

provincial, and regional restrictions in place due to the COVID -19 pandemic. The Company

successfully navigated the process to enter Nunavik with authorization obtained to complete

its planned field activities. Mineral exploration has been recognized as an essential service

in Canada and the Province of Quebec. The Company is also pleased to report that no cases

of COVID-19 were documented related to the 2021 exploration program.

Quality Assurance / Quality Control (QAQC)

A quality assurance / quality control protocol following industry best practices was

incorporated into the program and included systematic insertion of quartz blanks and

certified reference materials into sample batches, as well as collection of quarter -core

duplicates, at a rate of approximately 5%. Drill holes were sampled from top to bottom and

shipped to Activation Laboratories in Ancaster, ON, for analysis.

Lab analysis included major oxides and multi-element, including the rare earth elements, by

ICP-OES/MS following a lithium borate fusion (package 8-REE) and fluorine by Fusion

Specific Ion Electrode -ISE (Code 4F -F). Standard drill core sample preparation was

completed and comprised of crushing to 80% passing 10 mesh, followed by a 250 g riffle

split and pulverizing to 95% passing 105 µ (package RX1).

About the Ashram Deposit

The Ashram Deposit ranks as one of the largest REE (and fluorspar) deposits globally,

consisting of a monazite dominated, single mineralized body outcropping at surface, and has

a footprint approximately 600 m along strike, over 300 m across, and 600 m deep, remaining

open in several directions. The deposit hosts a measured resource of 1.6 million tonnes (Mt)

at 1.77% rare earth oxide (REO) and 3.8% F, an indicated resource of 27.7 Mt at 1.90% REO

and 2.9% F, and an inferred resource of 219.8 Mt at 1.88% REO and 2.2% F, at a cut-off grade

of 1.2 5% REO (Effective Date July 5 th, 2012). Note, mineral resources are not mineral

reserves as they do not have demonstrated economic viability. There is no certainty that all

or any part of the Mineral Resources will be converted into Mineral Reserves.

Figure 1: 2021 drill assay highlights – Ashram Deposit

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 in National Instrument 43-

101 – Standards of Disclosure for Mineral Projects, supervised the preparation of the technical

information in this news release.

About Commerce Resources Corp.

Commerce Resources Corp. is a junior mineral resource company focused on the

development of the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada.

The Company is positioning to be one of the lowest cost rare earth producers globally, with

a specific focus on being a long -term supplier of mixed rare earth carbonate and/or NdPr

oxide to the global market. The Ashram Deposit is characterized by simple rare earth

(monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage

resource at favourable grade, and has demonstrated the production of high -grade (>45%

REO) mineral concentrates at high recovery (>70%) in line with active global producers. In

addition to being one of the largest rare earth deposits globally, Ashram is also one of the

largest fluorspar deposits globally and has the potential to be a long -term supplier to the

met-spar and acid-spar markets.

For more information, pl ease 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: https://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 statements, which includes any information about activities, events or

developments that the Company believes, expects or anticipates will or may occur in the future. Forward looking

statements in this news release include that we expect to complete an updated mineral resource estimate and a

prefeasibility study for the Ashram Project, that we anticipate that certain of Ashram’s inferred and indicated resources

will be converted to indicate and measured resources; that an open -pit shell is planned for the Ashram Project; and

that the Company is positioning to be one of the lowest cost rare earth producers globally. 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 we may not be able to fully finance any additional exploration on the

Ashram Project; that even if we are able raise capital, costs for exploration activities may increase such that we may

not have sufficient funds to pay for such exploration or processing activities; the timing and content of any future

work programs; geological interpretations based on drilling that may change with more detailed information; potential

process methods and mineral recoveries assumptions 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 if such tests are successful, the economic and other outcomes may not be as expec ted; the

availability of labour and equipment to undertake future exploration work and testing activities; the required permits

to build and operate the envisaged open -pit shell may not be obtained in a timely or cost -effective manner, or at all;

and desp ite the current expected viability of the Ashram Project, conditions changing such that even if metals or

minerals are discovered on the Ashram Project, the project may not be commercially viable; The forward -looking

statements contained in this news relea se are made 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.

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