Mr. Chris Grove reports

COMMERCE RESOURCES CORP. ASSAYS 3.02% REO OVER 28.4 M IN DRILL CORE FROM THE ASHRAM DEPOSIT, QUEBEC

Commerce Resources Corp. has released analytical results for drill core recently analyzed from the Ashram rare earth and fluorspar deposit, located approximately 130 kilometres south of Kuujjuaq, Que. The analytical results announced herein are from drill holes completed in 2016, in which core samples were only recently submitted for analysis.

Highlights include:

• EC16-159: 3.02 per cent REO (rare earth oxides) over 28.4 metres, or 3.48 per cent REO over 13.4 m, within larger interval of 2.38 per cent REO over 64.5 m (66.5 m to 131.0 m);
• EC16-158: 2.18 per cent REO over 36.2 m within larger interval of 1.71 per cent REO over 222.0 m (2.7 m to 224.6 m);
• EC16-166: 2.16 per cent REO over 53.6 m (1.5 m to 55.1 m).

During the 2016 field campaign, 14 drill holes totalling approximately 2,014 m were completed as part of the resource definition drilling at Ashram, focused along the northern (EC16-160 and 161), western (EC16-162 to 166 and 170), and southern (EC16-157 to 159 and 167 to 169), margins of the deposit. The drill core was sampled during the 2016 and 2017 field programs; however, due to market conditions at the time, as well as diligent financial prudence, the core was placed into secure storage and only recently submitted for analysis in the fall of 2019.

With assay results now received, the 2016 drill program confirms intervals of strong rare earth element (REE) mineralization through to the outer boundary of the deposit's A-B zones, as evidenced by EC16-166 with 2.16 per cent REO over 53.6 m near the deposit's western margin, and EC16-159 with 2.38 per cent REO over 64.5 m, including 3.02 per cent REO over 28.4 m, near the deposit's southern margin. Further, this intersection from EC16-159 is one of the highest grades returned from this area of the deposit to date.

In addition to the strong REE mineralization returned at Ashram from the 2016 drilling, robust grades of fluorite continue to be present over wide intervals. These include drill hole EC16-158 with 1.71 per cent REO and 7.2 per cent CaF2 (calcium flouride) over 222.0 m, including 2.18 per cent REO and 11.5 CaF2 over 36.2 m. The fluorite is passively upgraded in the flowsheet and recovered as a separate product during the primary REE recovery process, and therefore, has been identified as a potential byproduct of significant value. Recovery and sale of the fluorite (industrially known as fluorspar) would also reduce the tailings footprint of the project, resulting in a social and environmental benefit (see news release dated Nov. 15, 2019).

The 2016 drill hole data will be integrated, along with other mineralogical and structural information, into an updated geological model, which will form the basis of a mineral resource update anticipated in 2020. A total of 9,625 metres of drilling have been completed at Ashram since the last mineral resource estimate was completed in 2012. Previous drilling at Ashram has traced mineralization to depths of over 600 m, with the final sample of drill hole EC11-050 assaying 4.13 per cent REO (599.9 to 600.5 m), and mineralization remains open in this direction. A summary of the analytical results is presented in the associated table.

            SUMMARY OF MINERALIZED INTERCEPTS FOR 2016 DRILL CORE FROM ASHRAM

Hole ID           From            To      Interval           REO          CaF2          MH/T
                   (m)           (m)           (m)           (%)           (%)           (%)

EC16-157          1.59        103.45        101.86          1.68           8.4           8.3
incl.             8.48         41.76         13.28          2.00           9.6           8.3
                 103.5        270.02        166.57          0.67           2.9          10.1
EC16-158          2.69        224.64        221.95          1.71           7.2           7.8
incl.            88.45        124.61         36.16          2.18          11.5           4.3
EC16-159          66.5        131.04         64.54          2.38           2.3           4.3
incl.            84.23        112.58         28.35          3.02           2.6           3.5
or               85.60         99.47         13.87          3.48           2.0           3.2
or               89.95         95.50          5.55          4.46           1.4           2.8
EC16-160                               not sampled -- completed for hydrogeological purposes
EC16-161          3.52        108.91        105.39          0.73           1.3          11.9
EC16-162          2.56         16.85         14.29          1.72           0.9           5.7
EC16-163          1.89        108.81        106.92          0.67           1.7           9.7
EC16-164                                                                         not sampled
EC16-165          1.79          19.5         17.71          0.64           1.3           8.4
EC16-166          1.54         55.09         53.55          2.16           4.9           4.7
EC16-167          2.25         87.16         84.91          1.55           8.2           8.7
EC16-168         81.32        148.44         67.12          0.75           1.6          12.5
EC16-169        120.41        124.46          4.05          2.95           9.4           3.0
EC16-170          1.80         43.73         41.93          0.85           3.0           9.2

Near the southeast end of the deposit, drill hole EC16-157 tested a distinct and isolated gravity anomaly, located outside of the 2012 resource shell. From surface, the drill hole intersected mineralization of 1.68 per cent REO over 101.9 m, including 2.00 per cent REO over 13.3 m, as well as demonstrated enrichment in the middle and heavy rare earths. This drill hole was the deepest of the program, at 270.4 m and ended in a wide interval of lower-grade BD zone mineralization (0.67 per cent REO over 166.6 m). With the well-mineralized intersection through the top half of the drill hole, the deposit continues to remain open to the southeast. In addition, as initially interpreted, the heavy rare earth enrichment is indicated to be associated with the gravity anomaly and mirrors that of the core zone of middle and heavy rare enrichment at the centre of the deposit, farther to the north.

Several of the holes completed along the margins of the main deposit intersected, as anticipated, variable widths of BD zone, where bastnaesite is visually observed; however, this unit also demarcates the lower-grade (less than 1 per cent REO) mineralized halo interpreted to rim much of the main deposit. This is readily evident in drill holes EC16-161, 163, 168 and 170 where intervals of 0.64 per cent to 0.85 per cent REO are returned. These drill holes provide significant control to the geological model and forthcoming resource estimate and were primarily completed for this purpose.

Drill hole EC16-161, completed as a 50 m stepout at the north end, may potentially demarcate the northern boundary of the deposit -- collaring and ending in BD zone. This hole is the only one completed along this line, with drill holes completed on the nearest line, located 50 m to the southeast, returning well-mineralized intervals of A zone (that is, 2.23 per cent REO over 32.0 m from surface in EC15-119 -- same drill pad location as EC16-160, which was completed for hydrogeological purposes). Further drilling is required in this area to better characterize the mineralized margin at the deposit's north end.

Each drill hole was collared vertically except for the final hole of the program (EC16-170), which was oriented at approximately 225/60 on the deposits western margin. Hole depths ranged from 53 m to 270 m, with depths predetermined based on hole positioning within the working pit shell for the purposes of the continuing prefeasibility study (PFS). All holes were NQ size, except for EC16-160 (HQ), which was completed as a twin of drill hole EC15-119 for hydrogeological purposes (see news release dated Oct. 20, 2016).

The Ashram deposit has now been drilled at roughly 50 m centres (distance between holes), with about 25 m infill also completed. Additional infill drilling at 25 m centres may yet be completed ahead of the resource update. The 2016 program and subsequent exploration of the property are being carried out by Dahrouge Geological Consulting Ltd.

Quality assurance/quality control (QA/QC)

A quality assurance/quality control protocol following industry best practices was incorporated into the program and included systematic insertion of quartz blanks and certified reference materials into sample batches, as well as collection of quarter-core duplicates, at a rate of approximately 5 per cent. Samples were collected in 2016/2017 and shipped to Montreal for secure storage until fall 2019 when they were then shipped to Activation Laboratories in Ancaster, Ont., for analysis. No samples were collected from drill holes EC16-160 and 164.

Samples were analyzed for major oxides, trace elements and REEs using a lithium metaborate/tetraborate fusion followed by ICP-OES (inductively coupled plasma optical emission spectroscopy) or ICP-MS (inductively coupled plasma mass spectrometry) analysis (package code 8-REE assay). Fluorine was also analyzed by fusion ISE (code 4F-F). Drill core sample preparation comprised crushing to 80 per cent passing 10 mesh, followed by a 250 g riffle split and pulverizing to 95 per cent passing 200 mesh (74 micro) (modified code RX1).

National Instrument 43-101 disclosure

Darren L. Smith, MSc, PGeo, Dahrouge Geological Consulting Ltd., a permit holder with the Ordre des Geologues du Quebec and 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 Resources is an exploration and development company with a particular focus on deposits of rare metals and rare earth elements. The company is focused on the development of its Ashram rare earth element deposit in Quebec and the Upper Fir tantalum-niobium deposit in British Columbia.

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