Mr. Nicholas Holthouse reports

ASHRAM PERFECTLY PLACED TO CAPITALISE ON CANADA'S PROMISE TO INCREASE SPENDING ON CRITICAL MINERALS

Commerce Resources Corp. has noted recent reports that state that the Canadian government has committed to increase spending on critical minerals projects as part of meeting its NATO (North Atlantic Treaty Organization) expenditure targets.

The commitment could deliver substantial benefits to Commerce's Ashram rare earths project, which is the biggest undeveloped rare earths deposit in North America.

Commerce chief executive officer and president Nicholas Holthouse said: "This important announcement from Canadian Prime Minister Mark Carney bodes extremely well for Canada's world-class array of critical minerals projects and, in particular, Commerce Resources' Ashram project in Northern Quebec.

"Commerce will continue to work closely with indigenous leaders, industry and government agencies to explore the appropriate shared infrastructure options to enable the Ashram project's high-value RE elements to be extracted and value added within Quebec, North America and European downstream industries."

Highlights from the reports include:

• Canada expects to meet its NATO commitment, under which it will spend equal to 5 per cent of its annual GDP (gross domestic product) on military expenditure, in part by developing critical mineral mining and processing.
• Critical minerals are changing the face of warfare and rare earth mines may assist Canada with meeting its $109-billion (U.S.) military commitment.
• Canadian Prime Minister Mark Carney said 5 per cent of Canada's GDP would amount to about $150-billion per year and Canada will reach the target in part by developing deposits of critical minerals.
• Canada's pledge to increase military expenditure to 5 per cent GDP will be a significant lift from its previous commitment of 2 per cent GDP.
• NATO's proposed military spending target of 5 per cent GDP highlights the changing nature of warfare with critical minerals now essential in technology such as drones, satellites, tracking systems and cybersecurity.

Pursuant to the announcement on April 10, 2025, the transaction with Mont Royal Resources is making solid progress, with both companies working diligently to achieve all documentation and statutory requirements to reach completion.

The company looks forward to keeping shareholders updated in the coming weeks with further updates on key documentation and timing of the admission to trading on the Australian Securities Exchange.

We seek Safe Harbor.