Mr. Chris Grove reports

COMMERCE RESOURCES CORP. COMMENCES SUMMER DRILL PROGRAM AT THE ASHRAM RARE EARTH AND FLUORSPAR DEPOSIT

Commerce Resources Corp. has commenced a summer drill program at the Ashram rare earth and fluorspar deposit, located in Northern Quebec, with a first hole collar expected end of July/early August. The program is being managed by Dahrouge Geological Consulting Ltd. of Edmonton, Alta. (head office), with drilling operations being carried out by Forage Fusion Drilling Ltd. of Hawkesbury, Ont.

A total of 2,200 metres of NQ-size core drilling over seven to 10 holes is anticipated, focused at the Ashram deposit. The holes will target further delineation of the deposit, which remains open to the north and south, as well as target an increase in resource confidence from the inferred/indicated categories to the indicated/measured categories in areas where the neodymium-praseodymium (NdPr) contents are highest. Depending on the location within the deposit, the NdPr distribution -- that is, percentage of Nd plus Pr oxide of the total rare earth oxide (REO) -- typically varies from 21 to over 24 per cent with monazite being the dominant carrier of the rare earth elements (REEs).

The company has completed its drill core relog and geological model update of the deposit, which will guide the drill program to meet its objectives. Specifically, a portion of the drill program will target the south end of the deposit, which remains open, and will provide more confidence in the geological modelling of this area. Since the 2012 mineral resource estimate, which supported a preliminary economic assessment, an additional 98 drill holes, totalling 12,436 m, have been completed at the deposit and surrounding area, and will feed into a mineral resource update in support of prefeasibility. The Ashram deposit is characterized by a single REE and fluorspar mineralized body of considerable size, extending at least 600 m along strike, 300 m in width and 600 m to depth. The dominate REE mineral is monazite, resulting in a relatively high NdPr distribution (typically 21 to 24 per cent) and has enabled the production of high-grade (greater than 40 per cent REO) monazite concentrates to be produced at high recovery.

In addition to the drill program, the company continues to advance the other project components remaining to be completed as part of the continuing prefeasibility study (PFS). In recent weeks the company has advanced infrastructure layout and is nearing the final phases of flowsheet development for the PFS, which will then transition to a final design period with PFS cost estimation.

The company notes that it will carry out its field programs while adhering to all federal, provincial and regional restrictions in place due to the COVID-19 pandemic. Mineral exploration has been recognized as an essential service in Canada and the province of Quebec.

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 (Mt) at 1.77 per cent rare earth oxide (REO) and 3.8 per cent F (fluorine), an indicated resource of 27.7 Mt at 1.90 per cent REO and 2.9 per cent F and an inferred resource of 219.8 Mt 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, 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, 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.

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