Mr. Chris Grove reports

COMMERCE RESOURCES CORP. ENTERS INTO QUEBEC GOVERNMENT FUNDED COLLABORATION WITH UNIVERSITE LAVAL TO CONDUCT REE HYDROMETALLURGICAL PILOT PLANT TEST WORK

Commerce Resources Corp. has entered into a collaboration with Universite Laval to process material from the Ashram rare earth deposit, located in Northern Quebec. The testwork will focus on a pilot plant validation of a new hydrometallurgical process for the extraction of rare earth elements (REEs) and a newly developed software model simulator for the separation of these elements. The pilot program is fully funded through a $365,000 grant provided by Quebec's Ministere de l'Economie, de la Science et de l'Innovation (MESI) to Universite Laval.

The primary objective of the collaboration is to validate the performance of a new software model program, developed by Laval, that simulates a rare earth element (REE) hydrometallurgical flowsheet through to separation of various REE products. The software utilizes predefined mineral concentrate inputs and a specified hydrometallurgical process to generate a set of product outputs. In addition, the pilot plant will serve to validate a new hydrometallurgical process approach, also developed by Laval.

Partial validation of both the hydrometallurgical process and software model simulator has been completed through prior testwork at the bench scale. This work was highly encouraging, with recoveries greater than 85 per cent as well as good correlation between the bench test data and the modelled data outputs. The next step in the projects development is pilot-plant-level validation.

As such, the company has provided approximately two tonnes of Ashram deposit whole-rock material for the pilot plant testwork with the program now under way at the SGS Quebec City laboratory, in partnership with Laval.

For the software model validation, the characteristics of the Ashram material will be input into the software model, and the hydrometallurgical flowsheet simulated through to certain product outputs. Correspondingly, the pilot plant will operate, using actual Ashram deposit material and process equipment, to validate the outputs of the computer model.

The Ashram material will be beneficiated to produce a high-grade mineral concentrate and then, through semi-continuous pilot operation, be processed downstream using a sequential caustic -- acid leach to crack the rare earth minerals and produce a rare earth element (REE) solution with low Fe-Th-U (iron-thorium-uranium) for partial separation into LREE (light rare earth elements), SEG and HREE (heavy rare earth elements) fractions.

The overarching objectives of the piloting work are to:

• Further develop REE separation expertise in Quebec;
• To assess the economics of having REE separation completed in Quebec;
• To demonstrate that the newly developed software model simulation may be a more cost-effective means of evaluation compared with typical piloting in certain circumstances;
• To provide an alternative source of REE products to the global markets.

The company will benefit through further derisking of the Ashram project's beneficiation and hydrometallurgical flowsheet, as well as demonstrating the production of potentially marketable end-product. The data produced are anticipated to supplement the base flowsheet and also provide a significant advantage to the company as it advances hydrometallurgical aspects of the Ashram project toward prefeasibility.

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 Commerce Resources Corp.

Commerce Resources is an exploration and development company with a particular focus on deposits of rare metals and rare earth elements. The company is focused on the development of its Ashram rare earth element deposit in Quebec and the Upper Fir tantalum-niobium deposit in British Columbia.

We seek Safe Harbor.