Mr. Chris Grove reports

COMMERCE RESOURCES SHIPS 0.5 KG SAMPLE OF MIXED REC CONCENTRATE TO ESTABLISHED NON-CHINESE PROCESSOR

Further to Commerce Resources Corp.'s news release dated Sept. 29, 2023, where it announced the production of 0.43 kilogram of mixed rare earth carbonate (mixed REC), it has produced an additional 0.6 kg of mixed REC concentrate to satisfy third party sample requests from industry.

The 0.6 kg sample of mixed REC concentrate produced has an NdPr (neodymium-praseodymium) distribution of 20.5 per cent and TbDy (terbium-dysprosium) distribution of 0.89 per cent. Of this mixed REC, 0.5 kg has been shipped to a well-established downstream 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 pilot plant operations on bulk sample material collected from the Ashram rare earth and fluorspar deposit. The mixed REC sample grades approximately 54 per cent REO with less than one part per million thorium and less than one ppm uranium.

The strong NdPr distributions that characterize the Ashram samples (20 to 24 per cent) continue to 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 -- 0.89 per cent TbDy distribution for the current 0.6 kg sample.

Delivery of the sample to a well-established REE processor outside of China 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 NdPr 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.

The company also wishes to correct a typographical error in its news release dated Oct. 30, 2023, wherein it announced the closing of its oversubscribed private placement offering of units. On closing, the company issued 68,174,750 units (not 68,174,150 units), for gross proceeds of $5,453,980.

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 metres 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 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 rare earth oxide (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 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.

We seek Safe Harbor.