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Commerce Resources Produces 1.2 Kg of 52% REO Mixed REC Concentrate with 21.9% NdPr – for Shipment to Major Global Processor and Major Emerging Global Processor

Drill Results

Commerce Resources Produces 1.2 Kg of 52% REO Mixed REC Concentrate

with 21.9% NdPr – for Shipment to Major Global Processor and Major

Emerging Global Processor

October 27, 2022 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF)

(the “Company” or “Commerce”) is pleased to announce that it has successfully scaled -up its

process flowsheet with the production of approximately 1.2 kg of mixed rare earth carbonate

(“mixed REC”) concentrate . Further, the Company is preparing to ship an approximate 0.5 kg

sample of this of mixed REC concentrate produced to both a major global processor of rare earth

elements (“REEs”) as well as a major producer / emerging global processor of REEs. The samples

(combined 1.0 kg) meet typical market specifications and was produced as part of the Company’s

scale-up from gram quantities (see news releases dated March 23, May 12, and July 15, 2022) to

larger kilogram quantities.

In addition, the Company has received requests of interest in the remaining 200 grams of the mixed

REC, and will look to deliver this to these industry companies.

The Company is pleased to report the new sample of mixed REC has a neodymium (Nd) plus

praseodymium (Pr) distribution – i.e. % of Nd+Pr oxide of the total rare earth oxide (“REO”) – of

21.9%, which is significantly higher than that reported by several major global producers, and is

in line with that of the previous samples produced (21.6% and 24.2% NdPr). Additionally, the

mixed REC sample, with a formula of REE2(CO3)3(H2O)8 as determined by XRD, contains

approximately 52% REO, <0.1 ppm Th, and <0.1 ppm U.

The two (2) half-kilogram samples are part of a total 1.2 kg mixed REC batch that was produced

as part of a process scale-up run, which followed the gram quantity batches previously produced.

Therefore, th e Company has now successfully scaled up from gram quantities to kilogram

quantities of mixed REC concentrate to market specifications, with NdPr distribution s ranging

from 21.6% to 24.2%. The strong NdPr distributions that characterize these Ashram samples rank

among the highest in the world for non-cerium depleted mixed REC concentrates and exceeds that

of several major global producers. These samples were produced with the Company’s

conventional flowsheet developed at Hazen Research, CO, in which several process operations

have been demonstrated at a continuous pilot-scale level.

The Company is currently in the process of producing another ~1.5 kg of mixed REC concentrate

to satisfy additional third -party requests. The additional kilogram quantity sample(s) is expected

to be completed in the first quarter 2023 and will be delivered to the relevant parties immediately

following.

The ~1.2 kg mixed REC concentrate sample as described herein (Figures 1 and 2) was produced

from the Ashram Rare Earth and Fluorspar Deposit using a conventional recovery flowsheet,

which results in high grade monazite concentrate exceeding 40% REO. The monazite concentrate

was processed through a sulphuric acid pot digestion, to ‘crack’ the monazite, which was then

followed by a water leach to liberate the individual REEs into solution at high recovery (98% for

NdPr in the sulphuric acid + water leach stage – see news release dated September 9, 2021) . The

thorium was then selectively removed using solvent extraction and the REEs subsequently isolated

– also using solvent extraction – and precipitated as a mixed REC concentrate, meeting typical

market specifications.

In the rare earth industry, a mixed REC concentrate is typically viewed as the initial marketable

product in the REE value chain. A mixed REC is readily saleable as it is the most common

feedstock to REE solvent extraction facilities globally, which separate the individual REEs and

allow for them to be individually refined into marketable products and disseminated throughout

downstream value chains.

Figure 1: Two (2) 0.5 kg jars of marketable mixed rare earth carbonate concentrate –

21.9% NdPr

Figure 2: Marketable mixed rare earth carbonate concentrate – 21.9% NdPr

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 700 m along strike, over 300 m across, and 600 m deep, remaining open in several

directions. The deposit hos ts 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 1.25% 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.

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 prep aration 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. Th e 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 rar e 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, p lease 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 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 a prefeasibility study for the Ashram Project; that

mixed REC is readily saleable; that partial separation will allow for a marketable neodymium and praseodymium

oxide to be produced; that we may move downstream early in the mine -life through partial separation; that Ashram

has the potential to become one of the largest fluorspar deposit and a long-term supplier to the met-spar and acid-spar

markets; and that the Company is positioning to be one of the lowest cost rare earth element 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 events, activities or developments 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 an d 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 or samples derived from the Ashram Project may

not yield positive results, and even if such tests are successful or initial sample results are positive, the economic and

other outcomes may not be as expected; the availability of labour and equipment to undertake future exploration work

and testing activities; geopolitical risks which may result in market and economic instability; and despite 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 release 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.