Mr. Chris Grove reports

COMMERCE RESOURCES CORP. PROVIDES UPDATE ON THE 2016 FIELD PROGRAM AT THE ASHRAM RARE EARTH DEPOSIT

Commerce Resources Corp. is providing an update on the 2016 field program currently under way at its 100-per-cent-owned Ashram rare-earth deposit located in Northern Quebec.

The program consists of three main components: resource definition drilling, hydrogeological testwork and continued environmental baseline data collection. The field program began mid-August and is expected to be completed by mid-October.

The drill program has now concluded with a total of 14 drill holes for approximately 2,000 metres completed, focused along the northern, western and southern margins of the Ashram deposit. Initial geologic review and portable XRF data indicate significant mineralization is present over appreciable widths in several holes. Core is now being logged in detail on-site with samples being collected for analysis by Activation Laboratories Ltd. in Ancaster, Ont., for major oxides by fusion ICP, rare earths by ICP-MS and for fluorine by fusion ISE.

The hydrogeological program comprises two phases. The first phase focused on the installation of various types of monitoring equipment down several previously completed drill holes at the deposit. This first phase has now been successfully completed. The second phase will include a pump test which is expected to begin in approximately two weeks. The data collected will be used to evaluate the subsurface water flow and slope stability of the anticipated pit shell.

The environmental program has also been completed, with surface water samples collected for analysis from various lakes in the vicinity, including the proposed tailings area options, as well as groundwater samples collected from several Ashram deposit drill holes. These data will contribute to the continuing baseline data collection and related studies as required for advancement of the project.

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 at 1.77 per cent TREO (total rare-earth oxides), an indicated resource of 27.7 million tonnes at 1.90 per cent TREO and an inferred resource of 219.8 million tonnes 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 (Nd, Pr, Eu, Tb, Dy and Y).

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 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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