Mr. Chris Grove reports

COMMERCE RESOURCES PRODUCES MARKETABLE MIXED REC SAMPLE AS PART OF ITS FINAL PREFEASIBILITY DESIGN METALLURGICAL PROGRAM, ASHRAM DEPOSIT, QUEBEC

Commerce Resources Corp. has produced a sample of mixed rare earth carbonate (REC) that meets typical rare earth element (REE) market specifications. The mixed REC sample also demonstrated a strong and consistent recovery of neodymium (Nd) and praseodymium (Pr) throughout the flow sheet, resulting in a final NdPr oxide distribution -- percentage of Nd plus Pr oxide of the total rare earth oxide (REO) -- of 21.6 per cent, which is significantly higher than several major global producers.

This initial mixed REC sample is the last step ahead of final downstream scale-up to produce approximately 2.5 kilometres of on-spec mixed REC to satisfy several requests by third party processors. The company expects to have its initial sample volumes ready for third party evaluation over the next few weeks.

Commerce Resources president Chris Grove commented: "The company has achieved a key milestone in producing a marketable mixed REC product and, moreover, one with an extremely attractive NdPr distribution, which is reflective of the deposit. The flow sheet has been significantly advanced and derisked through the process of producing this mixed REC and I look forward to the delivery of these next samples to the major global processors that have requested it."

The mixed REC sample was produced from the Ashram rare earth and fluorspar deposit using the conventional recovery flow sheet developed at Hazen Research in Colorado, United States, which results in high-grade monazite concentrate exceeding 40 per cent rare earth oxide (REO). The monazite concentrate was processed through a sulphuric acid pot digestion, to crack the monazite, which was then followed by a water leach to liberate the individual REEs into solution at high recovery (see news release dated Sept. 9, 2021). The thorium was then selectively removed using solvent extraction and the REEs subsequently isolated and precipitated as a mixed rare earth carbonate concentrate, meeting typical market specifications.

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

In addition to targeting the production of a mixed REC for the initial years of production at Ashram, the company is currently evaluating moving downstream early in the mine life through to partial separations, which will be reflected in the prefeasibility study (PFS). A partial separation will allow for a marketable NdPr oxide product to be produced, in addition to a cesium-lanthanum product and a mixed samarium-europium-gadolinium plus heavy REE product, thereby unlocking additional value while not adding significant technical risk and capital expenditures to the flow sheet by pursuing full separation of all 15 REOs at initial production.

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 600 metres along strike, over 300 metres across and 600 metres deep, remaining open in several directions. The deposit hosts a measured resource of 1.6 million tonnes at 1.77 per cent rare earth oxide (REO) and 3.8 per cent fluorine, an indicated resource of 27.7 million tonnes at 1.90 per cent REO and 2.9 per cent fluorine, and an inferred resource of 219.8 million tonnes at 1.88 per cent REO and 2.2 per cent fluorine, at a cut-off grade of 1.25 per cent REO (effective date: July 5, 2012). Note that 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, Dahrouge Geological Consulting Ltd., a permit holder with the Ordre des Geologues du Quebec and qualified person as defined in NI 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 and xenotime) and gangue (carbonates) mineralogy and 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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