Mr. Chris Grove reports

COMMERCE RESOURCES CORP. ANNOUNCES BINDING MEMORANDUM OF UNDERSTANDING WITH NORFALCO

Commerce Resources Corp. has entered into a memorandum of understanding with NorFalco Sales, a division of Glencore Canada Corp.

Under the terms of the MOU, the company agrees that NorFalco will be the sole provider of the sulphuric acid required for the Ashram project, at highly competitive market rates and terms. The agreement is binding and is subject to an initial five-year term, and may be renegotiated thereafter.

Company president Chris Grove stated: "We are very excited to be working with NorFalco, an industry leader in marketing, trading and distribution of sulphuric acid. This agreement is a significant first step in what we expect to be a meaningful ongoing supply relationship with NorFalco. The nature of this agreement today is that it is a benefit to the Ashram project with favourable pricing for one of the largest project consumables. We look forward to working with NorFalco."

The information outlined in this news release will be incorporated, along with other necessary technical data including geological and engineering studies, into the continuing prefeasibility study, with costs and benefits to be described in more detail therein.

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.

About the Ashram rare-earth-element deposit

The Ashram rare-earth-element (REE) deposit is located in Nunavik, northeastern Quebec. The deposit has a measured resource of 1.6 million tonnes (Mt) at 1.77 per cent total rare-earth oxides, an indicated resource of 27.7 Mt at 1.90 per cent TREO and an inferred resource of 219.8 Mt at 1.88 per cent TREO. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.

The REEs at Ashram occur primarily in the mineral monazite and to a lesser extent in bastnaesite and xenotime. These minerals dominate the currently known commercial extraction processes for rare earths. The Ashram deposit mineralization has an REE distribution with enrichment in the critical and magnet-feed REEs (neodymium, praseodymium, europium, terbium, dysprosium and yttrium).

A preliminary economic assessment (PEA) was completed by SGS-Geostat of Montreal (Blainville) with an effective date of July 5, 2012 (revised date of Jan. 7, 2015). The PEA is based on a 4,000-tonne-per-day open-pit operation with an initial 25-year mine life, a pretax net present value of $2.32-billion at a 10-per-cent discount rate, a pretax/prefinance internal rate of return (IRR) of 44 per cent and a pretax/prefinance payback period of 2.25 years.

This economic assessment is by definition preliminary in nature and it includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. The current Ashram technical report dated Jan. 7, 2015, explains why no after-tax case is included, and that a combined tax rate of around 32.5 per cent may apply to production.

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