Mr. Chris Grove reports

COMMERCE RESOURCES INTERSECTS 2.09% REO OVER 110.4 M AT THE ASHRAM DEPOSIT, QUEBEC

Commerce Resources Corp. has released assay results received from three holes completed at the Ashram rare earth and fluorspar deposit as part of its 2021 drill program. The field program, completed in July and August, 2021, in support of the Ashram project's prefeasibility study, included 12 drill holes totalling 2,814 metres focused on resource infill within the planned open-pit shell. Results for the first four drill holes were announced Dec. 22, 2021, with the results for an additional three drill holes reported herein. Highlights include:

• 1.78 per cent rare earth oxides (REO) over 274.3 metres (EC21-193), including:
  • 2.09 per cent over 110.4 m;
• 1.83 per cent REO over 300.1 m (EC21-184), including:
  • 2.05 per cent REO over 37.7 m;
  • 2.08 per cent REO over 29.0 m;
• 1.59 per cent REO over 225.0 m (EC21-186), including:
  • 2.07 per cent over 35.0 m.

The primary objective of the 2021 drill program at Ashram was to improve the confidence of the mineral resource (inferred to indicated to measured) in support of an updated mineral resource estimate to be completed as part of the continuing prefeasibility study, which will also determine the initial mineral reserve estimate for the Ashram project. Based on the drilling to date, the company anticipates a large portion of Ashram's current inferred and indicated resources will be converted to indicated and measured resources.

All three drill holes (EC21-184, 186 and 193) collared in and bottomed in mineralization starting at depths of 1.9 to 3.7 m (core length), consistent with previous drilling, remaining mineralized over their entire length.

The NdPr (neodymium-praseodymium) oxide distribution (that is, per cent of Nd plus Pr oxide of the total REO) continues to remain very strong compared with active global producers, and commonly ranges from 19 to 24 plus per cent, including a 22.2-per-cent NdPr oxide distribution in EC21-193's 274.3 m interval of 1.78 per cent REO. The relatively high NdPr oxide distribution at Ashram is a result of the monazite-dominant rare earth mineralogy and unique chemistry and equates to a relatively high-value end-product that Ashram could supply the market with over the long term. Grade over width and corresponding NdPr oxide distributions are presented in a table on the company's website, with drill hole highlights and locations presented in an image on the company's website.

Drill hole EC21-186 was completed as a vertical infill hole in the west-central area of the deposit. The hole collared in a zone rich in NdPr, with an NdPr oxide distribution of 26 per cent over 52.5 m at 1.16 per cent REO, remaining mineralized over its entire length and ending in a higher-grade zone of 2.07 per cent REO over 35.0 m at an NdPr oxide distribution of 20 per cent.

Drill holes EC21-184 and 193 were part of a group of four holes (EC21-183, 184, 187 and 193), which targeted the region beneath the shallow bay (less than 1.5 m water depth) on Centre Pond, in the north-central area of the deposit. These drill holes were completed at various orientations, resulting in the drill holes crossing the deposit at different oblique angles, and were primarily completed to help constrain the geological model. The drill holes continue to reinforce the strong mineralization (and NdPr distribution) in this area of the deposit and are further highlighted by EC21-193 with 2.09 per cent REO over 110.4 m at an NdPr oxide distribution of 21 per cent.

As the Ashram deposit is known to continue for more than 600 m in depth and remains open, the 2021 drill holes were ended at predetermined depths below the anticipated pit shell, and therefore most holes completed as part of the infill drilling at Ashram ended in mineralization. Core sample assays for seven out of 12 drill holes from the 2021 drill program have now been reported with assays pending on the remaining five drill holes.

The company notes that it carried out its field programs while adhering to all federal, provincial and regional restrictions in place due to the COVID-19 pandemic. The company successfully navigated the process to obtain authorization to enter Nunavik, and no cases of COVID-19 were documented relating to its 2021 mineral exploration programs. Mineral exploration has been recognized as an essential service in Canada and the province of Quebec.

Quality assurance/quality control (QA/QC)

A quality assurance/quality control protocol following industry best practices was incorporated into the program and included systematic insertion of quartz blanks and certified reference materials into sample batches, as well as collection of quarter-core duplicates, at a rate of approximately 5 per cent. Drill holes were sampled from top to bottom and shipped to Activation Laboratories in Ancaster, Ont., for analysis.

Lab analysis included major oxides and multielement, including the rare earth elements, by ICP-OES/MS (inductively coupled plasma optical emission spectroscopy/mass spectrometry) following a lithium borate fusion (package 8-REE) and fluorine by fusion-specific ion electrode-ISE (code 4F-F). Standard drill core sample preparation was completed and comprised crushing to 80 per cent passing 10 mesh, followed by a 250-gram riffle split and pulverizing to 95 per cent passing 105 micrometres (package RX1).

About the Ashram deposit

The Ashram deposit ranks as one of the largest REE (and fluorspar) deposits globally, consisting of a monazite dominated, single mineralized body outcropping at surface, and has a footprint approximately 600 m along strike, over 300 m across and 600 m deep, remaining open in several directions. The deposit hosts a measured resource of 1.6 million tonnes at 1.77 per cent rare earth oxide (REO) and 3.8 per cent fluorine, an indicated resource of 27.7 million tonnes at 1.90 per cent REO and 2.9 per cent F, and an inferred resource of 219.8 million tonnes at 1.88 per cent REO and 2.2 per cent F, at a cut-off grade of 1.25 per cent REO (effective date July 5, 2012). Note, mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.

National Instrument 43-101 disclosure

Darren L. Smith, MSc, PGeo, Dahrouge Geological Consulting Ltd., a permit holder with the Ordre des Geologues du Quebec and qualified person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, supervised the preparation of the technical information in this news release.

About Commerce Resources Corp.

Commerce Resources is a junior mineral resource company focused on the development of the Ashram rare earth and fluorspar deposit located in Quebec, Canada. The company is positioning to be one of the lowest-cost rare earth producers globally, with a specific focus on being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the global market. The Ashram deposit is characterized by simple rare earth (monazite, bastnaesite and xenotime) and gangue (carbonates) mineralogy, a large tonnage resource at favourable grade, and has demonstrated the production of high-grade (greater than 45 per cent REO) mineral concentrates at high recovery (greater than 70 per cent) in line with active global producers. In addition to being one of the largest rare earth deposits globally, Ashram is also one of the largest fluorspar deposits globally and has the potential to be a long-term supplier to the met-spar and acid-spar markets.

We seek Safe Harbor.