Mr. Ross Carroll reports

COMMERCE RESOURCES DISCOVERS KNOX NIOBIUM PROSPECT BY DRILLING 69.4 M OF 0.61% NB2O5 AND EXTENDS MINERALIZATION AT THE MIRANNA PROSPECT, ELDOR PROPERTY, QUEBEC

Commerce Resources Corp. has made a significant new discovery at its wholly owned Eldor property in Quebec, Canada, as part of its niobium-focused drill program, proximal to the Ashram rare earth and fluorspar deposit. Assays are reported herein for eight of the total 29 NQ-size diamond drill holes completed during the 2024 summer-fall drill program at the property.

Highlights:

• Commerce Resources discovers significant niobium mineralization in first drill program at the Knox prospect:
  • 96.5 metres (m) at 0.51 per cent Nb2O5 (EC24-220), including:
    • 69.4 m at 0.61 per cent Nb2O5;
  • 106.0 m at 0.40 per cent Nb2O5 (EC24-221), including:
    • 14.5 m at 0.60 per cent Nb2O5;
    • 20.5 m at 0.60 per cent Nb2O5;
  • Mineralization remains open in all directions.
• Follow-up on initial drill testing completed at the Miranna prospect has successfully extended mineralization starting from surface along strike:
  • 65.7 m at 0.53 per cent Nb2O5 (EC24-215), including:
    • 35.7 m at 0.67 per cent Nb2O5;
  • 72.4 m at 0.49 per cent Nb2O5 (EC24-216), including:
    • 20.3 m at 0.62 per cent Nb2O5.
• Core assay results from eight drill holes of the 2024 program, which targeted the Miranna and Knox prospects, are reported herein. Drill core assays are still pending for 13 of 29 NQ-diameter drill holes from the 2024 drill program that totalled 8,253 m and are expected before end of Q4 (fourth quarter) 2024.

Ross Carroll, president and chief executive officer of Commerce, comments: "We are thrilled with the outcomes of our recent drill program at the Eldor property. The team's dedication and hard work over the summer have been instrumental in achieving these impressive results. This discovery not only highlights the significant niobium and phosphate potential of the Eldor property but also adds tremendous value to our already world-class Ashram rare earth and fluorspar deposit, just 1.5 kilometres away. We look forward to updating the market on the final drill core assays and unlocking the full potential of this remarkable North American property.

"Niobium is acritical technology element delivering market traction owing to global supply constraints. Niobium is used in many green technologies and is important in advanced manufacturing and structural engineering. Canada, the United States, the European Union and many other countries have added niobium to their list of critical elements. Quebec has a history of being a secure supplier of this important metal and we are growing in confidence that we can add to the North American supply chain," Mr. Carroll added.

Patrik Schmidt, vice-president of exploration of Commerce, comments: "The discovery of a high-grade niobium zone at the Knox prospect and the best drill results to date at Miranna are very exciting news. The Eldor property hosts one of the largest known carbonatite complexes in the world, which hosts rocks that have the potential for significant critical and strategic element endowments, including niobium and tantalum. The tested magnetic-high anomaly defining the Knox prospect is one of the most prominent on the property and these initial results confirm the discovery of yet another high-potential prospect at Eldor."

Inaugural drilling at the previously untested geophysical anomaly, referred to as the Knox prospect or Knox, has identified substantial high-grade intercepts of niobium (plus or minus tantalum and phosphate), including 69.4 m at 0.61 per cent Nb2O5, within a wider interval of 96.5 m at 0.51 per cent Nb2O5 (EC24-220). Further to the new discovery made at the Knox prospect, follow-up drill testing at the Miranna prospect delivered the best niobium-mineralized intercepts to date for this prospect, factoring both grade and length of drill hole intercepts -- 65.7 m at 0.53 per cent Nb2O5, including 35.7 m at 0.67 per cent Nb2O5 (EC24-215). This new discovery, coupled with the known mineralization at the Mallard and Miranna prospects, signals the substantial potential for additional critical element discoveries proximal to the Ashram rare earth and fluorspar deposit.

The Miranna and Knox niobium (plus or minus tantalum and phosphate) prospects at the Eldor property are both situated within two kilometres (km) of the company's Ashram rare earth and fluorspar deposit. The Ashram deposit boasts a globally significant rare earth mineral resource of 73.2 million tonnes (t) at 1.89 per cent TREO (total rare earth oxide) (indicated) and 131.1 million t at 1.91 per cent TREO (inferred) (see the MRE (mineral resource estimate) news release dated May 22, 2024). The discovery of a substantial niobium deposit in proximity to Ashram would add to the company's existing portfolio of critical element occurrences at the Eldor property, presenting a compelling opportunity for a joint development scenario with shared infrastructure.

The Knox prospect presents as a prominent, near-circular magnetic-high signature, comparable in size with the Mallard prospect, but has previously remained untested owing to a lack of supporting surface evidence such as a well-mineralized boulder train. The applied exploration model, which incorporates the knowledge from previous drill programs at Eldor, identified Knox to have a high probability to host carbonatite-phoscorite magmatic dikes or sills. These intrusive rocks have high potential to host high-grade niobium (plus or minus tantalum and phosphate) mineralization.

Drill hole EC24-220 at Knox successfully returned several high-grade intercepts, including 69.4 m at 0.61 per cent Nb2O5 within a broad interval of 96.5 m at 0.51 per cent Nb2O5, hosted in a carbonatite-phoscorite. The drill intercepts encountered in hole EC24-220 represent the second-best niobium intercept thus far on the Eldor property, based on a combined grade-width assessment. Although follow-up holes EC24-221 and EC24-222 did not return the high-grade (more than 0.6 per cent Nb2O5) intercepts of hole EC24-220, the presence of a broad (106.0 m) interval of 0.4 per cent Nb2O5 in hole EC24-221, including subintervals of 14.5 m at 0.60 per cent Nb2O5 and 20.5 m at 0.60 per cent Nb2O5, along strike of hole EC24-220 warrants significant additional drilling at Knox to test the full extent of the niobium mineralization at the prospect. The discovery remains open in all directions.

The company also followed up on the initial drill testing completed at the Miranna prospect in 2021, whereas four drill holes designed to test for niobium mineralization along strike. The Miranna prospect was initially targeted for drill testing due to strongly mineralized (niobium plus or minus tantalum and phosphate) glacially dispersed boulder train in proximity to the Miranna magnetic anomaly. Drill hole EC21-180 successfully achieved the company's objective of identifying an area prospective for follow-up, confirming the presence of high-grade mineralization downhole, including 1.20 per cent Nb2O5 over 3.1 m, within a larger interval of 0.72 per cent Nb2O5 over 20.4 m (see news release dated Dec. 8, 2021).

Follow-up drill holes completed at Miranna during the 2024 drill program were planned adjacent to, and along strike of, EC21-180 to test for continuity of this mineralization. EC24-215 and EC24-216 confirmed continuity of high-grade niobium-mineralization hosted in carbonatite-phoscorite intervals from surface. EC24-215 returned strong grades over wide intervals, including 35.7 m at 0.67 per cent Nb2O5 within a wider interval of 65.7 m at 0.53 per cent Nb2O, and a deeper interval of 21.5 m at 0.62 per cent Nb2O5 contained within a broader zone of 80.4 m at 0.43 per cent Nb2O5. Additionally, EC24-216 collared in mineralization, returning 20.3 m at 0.62 per cent Nb2O5, within a broader interval of 72.4 m at 0.49 per cent Nb2O5. These strong results, following up from drill hole EC21-180, extend the near-surface mineralized trend of the Miranna prospect in either direction along strike, reaffirming the potential for additional shallow, high-grade niobium mineralization at Miranna. The mineralization at Miranna remains open in all directions.

Core assay results for 13 drill holes from the 2024 drill program are still pending and are currently at Activation Laboratories Ltd., located in Ancaster, Ont., for preparation and analysis.

Quality assurance/quality control (QA/QC)

A QA/QC protocol following industry best practices was incorporated into the program and included systematic insertion of quartz blanks and certified reference materials into sample batches at a rate of approximately 5 per cent. All core samples collected were shipped to Activation Laboratories in Ancaster, Ont., Canada, for sample preparation (code RX1), which includes crushing up to 80 per cent passing two millimetres (mm), riffle split (250 grams) and pulverized (mild steel) to 95 per cent passing 105 microns. The samples were homogenized and subsequently analyzed for multielement using fusion with lithium metaborate/tetraborate in platinum crucibles and analysis by fusion XRF (codes 8-Nb-Ta, majors plus REE (rare earth element)). Fluorine (F) assay was requested based on visual presence of fluorspar by lithium metaborate/tetraborate fusion and acid dissolution with analysis by ion selective electrode (ISE) with a detection limit of 0.01 per cent.

National Instrument 43-101 disclosure

Patrik T. Schmidt, MSc, PGeo, vice-president of exploration for the company and senior geologist at Dahrouge Geological Consulting Ltd., a permit holder with the Ordre des Geologues du Quebec and a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

About Commerce Resources Corp.

Commerce is a junior mineral resource company focused on the development of the Ashram rare earth and fluorspar deposit, located within the Eldor property, in Northern Quebec, Canada. 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 (more than 30 to 45 per cent TREO) mineral concentrates at high recovery (more than 60 to 75 per cent), in line with active global producers. The Ashram deposit also has a fluorspar component that makes it one of the largest potential sources of fluorspar in the world and could be a long-term supplier to the met-spar and acid-spar markets. 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. Additionally, Commerce is committed to exploring the potential of other high-value commodities on the property, such as niobium and phosphate minerals, which may help advance Ashram by reducing costs through shared development.

We seek Safe Harbor.