Mr. Chris Grove reports

COMMERCE RESOURCES CORP. UPDATES METALLURGICAL PROGRAMS FOR THE ASHRAM RARE EARTH DEPOSIT

Commerce Resources Corp. is providing an update on its metallurgical programs for the Ashram rare earth deposit. The primary objectives of the current programs are to demonstrate the entire flowsheet (mini-pilot/bench testing) through to production of several kilograms of marketable mixed rare earth carbonate concentrate (REC) as well as to produce a sample of high-purity mixed RE chloride concentrate, to further establish flowsheet product versatility.

Commerce Resources president Chris Grove stated: "These are significant results showing continued advancements on the fundamentals for our Ashram rare earth element deposit. We are fortunate to be able to underwrite programs both in the lab and in the field to advance our world-class asset and further appreciate the interest we are receiving from industry."

Highlights:

• Reproduced baseline flotation flowsheet using varied Ashram feedstock material;
• Improved flotation concentrate grades;
• Improved flotation concentrate recoveries;
• Initial program expanded to produce 500 grams of mixed RE chloride concentrate, of high purity, anticipated to further demonstrate flowsheet product versatility;
• Demonstrated successful hydrochloric (HCL) acid regeneration on synthetic solution with up to 66-per-cent recovery into 24 per cent to 26 per cent hydrogen chloride concentrated solution.

The current testwork is aimed at optimizing the grinding and flotation circuits in a lead up to the implementation of a flotation mini-pilot plant that remains on schedule for late January, 2015, initiation.

Recent work has successfully reproduced and improved flotation grades and recoveries achieved previously. This further confirms the robustness of the baseline flowsheet developed to date (test sequence of flotation plus HCl leach plus WHIMS), which has produced high-grade mineral concentrates of greater than 40 per cent total rare earth oxides at greater than 70-per-cent recovery. Select flotation concentrate results are summarized in the table.

        RECENT FLOTATION RESULTS COMPARED TO THE BASELINE

Test        Stage       Mineral concentrate   Recovery  Mass pull
                                    (% TREO)        (%)        (%)

55-25/279   Flotation                    17         73          9
55-25/298   Flotation                    13         78         12
III Ro 002  Flotation                    12         77         14
58.34 R+S   Flotation                     9         87         18
III Ro 004  Flotation                    10         81         17
Baseline    Flotation                     9         81         17
          

It is anticipated that improvements to the baseline flotation concentrate (9 per cent TREO at 81-per-cent recovery and 17-per-cent mass pull) will improve the performance of the subsequent HCl preleach (resulting in lower acid consumption) and WHIMS stages (cleaner separation). This potentially will result in a mineral concentrate of even higher grade and/or recovery than previously produced (44 per cent at 71-per-cent recovery).

Both mineral processing and hydrometallurgical testing are being undertaken in parallel to optimally advance the schedule for full demonstration of the flowsheet (mini-pilot plant and bench tests).

In addition to a mixed REC product, the flowsheet circuit will also now produce approximately 500 grams of mixed RE chloride of high purity (meets impurity tolerances of typical industry processors) for evaluation by third party processors and strategic investors. Mixed RE chloride concentrate is a common feedstock to world separation facilities and the Ashram flowsheet can be easily modified to produce this as well as a mixed REC concentrate, further demonstrating the versatility of its metallurgical flowsheet.

Testing of the hydrometallurgical flowsheet has focused first on HCl acid recovery from the preleach circuit. Preliminary results on synthetic samples indicate at least 66-per-cent recovery is attainable into a solution of about 24-per-cent to 26-per-cent concentration. This suggests the majority of the acid consumed in the preleach may be recovered and fed back into the circuit, significantly reducing operating costs.

National Instrument 43-101 disclosure

Darren L. Smith, MSc, PGeol, 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. Eric Larochelle, Eng, and Alain Dorval, Eng, manager, process, mining and mineral processing, of Roche Ltd. consulting group, qualified persons as defined by National Instrument 43-101, reviewed the technical information presented in this news release.

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