Mr. Chris Grove reports

COMMERCE RESOURCES CORP. INITIATES DOWNSTREAM HYDROMETALLURGICAL PROGRAM FOR THE ASHRAM RARE EARTH DEPOSIT

Commerce Resources Corp. has initiated a program of downstream hydrometallurgical processing for material from the Ashram rare earth deposit. This hydrometallurgical testing will demonstrate the entire conceptualized flowsheet with a target of producing a mixed rare earth carbonate product. Once the hydrometallurgical flowsheet is fully bench tested, and mineral processing further optimized, a mini-pilot plant will commence to generate feed for the production of a cerium- and lanthanum-depleted mixed REC concentrate for evaluation by a potential joint venture and/or off-take partner.

The testwork also allow for a deeper evaluation of other potential end-product options with ready markets.

After a detailed review of the flowsheet, as well as a third party in-depth review of marketable rare earth products and potential end-users, the work is now focusing on the following objectives:

1. Optimize the mineral processing flowsheet by focusing on increased TREO recovery as well as HCl regeneration in the leach to further reduce acid consumption;
2. Complete bench testing of the conceptual hydrometallurgical flowsheet in preparation for various end-product generation and evaluation;
3. Complete a mineral processing mini pilot plant to confirm the process on a larger-scale, and to generate feed for full demonstration of the hydrometallurgical flowsheet through to production of about one to two kilograms of cerium- and lanthanum-depleted mixed REC.

The metallurgical programs will be conducted at UVR-FIA GmbH in Germany, and Hazen Research Inc. in Golden, Colo. Both the hydrometallurgical and mineral processing programs will be completed in a parallel and co-operative manner between Hazen and UVR for optimal advancement of the schedule.

Commerce president Chris Grove states, "Through our understanding of industry interests and requirements, we are excited to be initiating these advanced metallurgical programs with Hazen and UVR."

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.

Eric Larochelle, Eng, and Alain Dorval, Eng, manager, process, mining and mineral processing, of Roche Ltd., consulting group, qualified persons as defined by National Instrument 43-101, reviewed the technical information presented in this news release.

We seek Safe Harbor.