Mr. Chris Grove reports

COMMERCE RESOURCES CORP. PROVIDES UPDATE ON THE METALLURGICAL TEST PROGRAM AT UNIVERSITE LAVAL FOR THE ASHRAM RARE EARTH DEPOSIT

Commerce Resources Corp. is providing an update on the metallurgical test program for the Ashram rare earth deposit that is being completed under the direction of the Universite Laval. The test program uses an alternative flowsheet approach with the purpose of validating a software model simulator developed by Laval (see news releases dated May 31 and July 24, 2018). The program is fully funded through a grant received by Laval with testwork being completed in collaboration with SGS Canada Inc. at its facilities.

Since the program was first initiated in May, 2018, the testwork has advanced aggressively with a bench-scale level demonstration of the entire flowsheet now complete, including the production of several grams of mixed rare earth oxide concentrate (see news release dated July 24, 2018). The company is now pleased to report that the crushing and grinding component, as well as the large-scale flotation component of the program, has now been completed. A total of about 1.5 tonnes of Ashram deposit material were processed, with the flotation component completed using individual batches ranging from 10 kilograms to 30 kg. Initial results are in line with expectations with the team now looking ahead to the pilot-level hydrometallurgical component that will commence with a caustic crack on an estimated 150 kg of flotation concentrate.

Company president Chris Grove states, "We continue to be impressed with the rapid advancement of this collaboration and look forward to the commencement of the hydrometallurgical pilot component."

The next steps of the program will use the flotation concentrate as feed to a semi-continuous hydrometallurgical pilot operation to produce a purified solution containing the rare earth element. The REE solution will then be processed through a continuous solvent extraction (SX) separation pilot circuit to separate the LRE (light rare earth) from the SEG (samarium, gadolinium and europium) and HRE (heavy rare earth). In parallel, the solution composition will be used to simulate the pilot scale SX separation circuit using the model simulator. The comparison between the results of the pilot plant and the simulation will validate the model simulator, which could then be used to further assess the economics of the separation of the REE into individual rare earth oxides.

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.

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