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Commerce Resources Ships First Mixed REC Sample – 24.2% NdPr – to Major Rare Earth Producer

Corporate Updates

Commerce Resources Ships First Mixed REC Sample – 24.2% NdPr – to

Major Rare Earth Producer

July 15, 2022 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF) (the

“Company” or “Commerce”) is pleased to announce that it has completed its first shipment of a

mixed rare earth carbonate (“mixed REC”) concentrate sample to a major global producer of rare

earth elements (“REEs”) for evaluation. The sample (gram quantities) meets typical market

specifications and was produced as part of the Company’s ongoing scale-up to larger kilogram

quantities.

The sample follows the initial gram quantities of mixed REC sample produced by the

Company, announced March 23rd, 2022. The Company is pleased to report the new sample has

a neodymium (Nd) plus praseodymium (Pr) distribution – i.e. % of Nd+Pr oxide of the total rare

earth oxide (“REO”) – of 24.2%, which is significantly higher than that reported by several major

global producers , and that of the previous samples produced ( 21.6% and 22.4% NdPr).

Additionally, the mixed REC sample grades 53.9% REO, with 1.0 ppm Th, and <0.1 ppm U.

The Company has now produced several bench -scale samples of mixed REC concentrates 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 concentrate 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 now undergoing a process scale-up to kilogram quantities of mixed REC

concentrate to deliver to additional third-party processors per their request.

The mixed REC sample recently delivered to the third -party producer (Figure 1) 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 monaz ite, 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 9th, 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 marke table products and disseminated throughout

downstream value chains.

Figure 1: Sample of marketable mixed rare earth carbonate, with an NdPr distribution of 24.2%,

produced from the Ashram Deposit and shipped to global producer for evaluation

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 1.25% 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 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 grad e, 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, 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: 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 t o scale-up our production of mixed REC; that mixed REC is

readily saleable; that Ashram is one of the largest fluorspar deposits globally and has the potential to become 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 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 or future

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 n ot 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 assu mes

no responsibility to update or revise such information to reflect new events or circumstances, except as required by

law.