Mr. Chris Grove reports

COMMERCE RESOURCES CORP. RECEIVES MINERAL PROCESSING REPORT FROM UNIVERSITE LAVAL FOR WORK ON THE ASHRAM RARE EARTH DEPOSIT

Commerce Resources Corp. has received a final report from Universite Laval for mineral processing work recently completed on the Ashram rare earth deposit. This work was completed as part of a larger metallurgical program, which utilized an alternative flowsheet approach with the purpose of validating a software model to simulate the solvent extraction (SX) separation of rare earth elements (REE) processing developed by Laval.

As part of the program, a significant amount of flotation testwork was completed, and the method of a caustic/acid leach successfully demonstrated for processing the Ashram flotation concentrate to obtain a mixed REE chemical concentrate, or the solution ready for the SX separation of REE. Specifically, several laboratory bench-scale tests confirmed the viability of the process through the production of several grams of mixed light (lanthanum-niobium) rare earth oxide (see news releases dated May 31 and July 24, 2018).

The overall program is now concluded and was funded through a grant received by Laval from the Ministere de l'Economie et de l'Innovation (MEI), with testwork being completed in collaboration with SGS Canada Inc. at its facilities in Quebec.

The mineral processing component included both bench-scale (one kilogram) and large-scale batch (10 kilograms to 30 kilograms) flotation testwork. In total, approximately 1,500 kilograms of Ashram deposit material were processed using a simple rougher flotation circuit and reagent scheme developed by Laval. The large-scale batch testwork resulted in the production of approximately 170 kilograms of flotation concentrate at a grade of 11.2 per cent REO with a mass pull of 11.3 per cent (percentage of material reporting to concentrate). Moreover, the work at Laval has identified a new reagent scheme with potential to further improve the flotation performance of the Ashram deposit material.

The results, therefore, advance and expand upon those previously reported from test programs at Hazen Research Inc. and at UVR-FIA (Gerhard Merker) by illustrating the versatility and optimization potential of the flowsheet's flotation component. Earlier testwork on the downstream flowsheet, completed by Hazen Research, identified the flotation reagent scheme and performance as one of the most important flowsheet components in terms of overall cost and process efficiency.

Chris Grove, president, commented, "We are very happy with the results of our collaboration with Laval and look forward to continued work with local academic institutions to further develop REE expertise in the province of Quebec and, moreover, to move the Ashram deposit closer to production."

National Instrument 43-101 disclosure

Darren L. Smith, MSc, PGeo, Dahrouge Geological Consulting Ltd., a registered permit holder with the Ordre des Geologues du Quebec, qualified person as defined by NI 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.