Mr. Chris Grove reports

COMMERCE RESOURCES SHIPS 0.43 KG SAMPLE OF MIXED REC CONCENTRATE TO EMERGING NON-CHINESE PROCESSOR

Commerce Resources Corp., further to its news release dated Oct. 27, 2022, regarding a successful scale-up of its process flowsheet to kilogram (kg) quantities of mixed rare earth carbonate (REC), has produced additional amounts of mixed REC concentrate to satisfy third party sample requests.

A 0.43 kg sample of mixed REC, with an Nd-Pr (neodymium-praseodymium) distribution of 21.1 per cent and a Tb-Dy (terbium-dysprosium) distribution of 0.82 per cent, has been shipped to an emerging processor of rare earth elements (REEs) located outside of China. The sample meets typical market specifications and was produced through processing of feed material generated from its prior pilot plant operations on bulk sample material collected from the Ashram rare earth and fluorspar deposit. The mixed REC sample grades approximately 63 per cent rare earth oxides (REOs) with less than 0.1 part per million (ppm) Th (thorium) and less than 0.1 ppm U (uranium).

The strong Nd-Pr distributions that characterize the Ashram samples (21.1 per cent Nd-Pr for the current 0.43 kg sample) rank among the highest in the world for non-cerium-depleted mixed REC concentrates and exceeds that of several major global producers. Further, due to the presence of xenotime at Ashram, in addition to the dominant monazite, the concentrates also carry a significant heavy REE component -- 0.82 per cent Tb-Dy distribution for the current 0.43 kg sample.

The mixed REC sample was shipped to an emerging downstream processor of REEs, located outside of China. Delivery of the sample is part of the company's strategy of meaningful and tangible engagement with global downstream processors and end-users that have expressed a strong interest in obtaining a long-term, secure and stable supply of mixed REE chemical concentrates with a high Nd-Pr distribution.

This sample, as well as those previous, were produced with the company's flowsheet developed at Hazen Research, Colorado, in which several process operations have been demonstrated at a continuous pilot-scale level (see news release dated Oct. 27, 2022).

In the rare earth industry, a mixed REC concentrate is typically viewed as the initial marketable product in the REE value chain. A mixed REC is readily saleable as it is the most common feedstock to REE solvent extraction facilities globally, which separate the individual REEs and allow for them to be individually refined into marketable products and disseminated throughout downstream value chains.

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 700 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, senior technical adviser -- rare earths and niobium -- to the company, a permit holder with the Ordre des Geologues du Quebec and a 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 Nd-Pr 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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