Commerce Resources Corp. announced an updated mineral resource estimate ("MRE") for the Ashram Rare Earth and Fluorspar Deposit (the "Ashram Deposit" or "Ashram"). The Ashram Deposit, wholly owned by the Company, is located in northeastern Quebec, Canada, approximately 130 kilometres south of the community of Kuujjuaq.

The updated MRE for the Ashram Rare Earth and Fluorspar Deposit firmly establishes it as a globally significant rare earth element ("REE") deposit, and one of the largest monazite-mineralized carbonatite REE deposits in the world: 73.2 Mt at 1.89% TREO and 6.6% CaF2(indicated), and 131.1 Mt at 1.91% TREO and 4.0% CaF2(inferred), at a cut-off of $287 Net Metal Return (NMR) per tonne. Ashram also continues to demonstrate very high NdPr distributions (i.e., percent of neodymium plus praseodymium oxide of the TREO) at 21.2% NdPr (indicated) and 21.4% NdPr (inferred), exceeding that of several active global producers. The favourable distribution starts at surface, allowing these high value elements to be targeted early on in a potential open-pit extraction scenario and thereby, enhancing the project's strategic value and operational efficiency.

This enrichment in the magnet feed REEs also extends to dysprosium (Dy) and terbium (Tb). The MRE update underscores the Ashram Deposit's potential as a long-term, sustainable source of critical minerals, vital for the evolving technology and energy sectors. The Company remains committed to advancing the project, with ongoing work to further delineate the deposit's full potential, and a planned niobium drill program poised to unlock additional value.

The primary objective of the mineral resource update was to increase the confidence of resources from the inferred category to the indicated category to support economic and development studies. This conversion was highly successful with an 164% increase in the indicated resource category compared to the prior MRE completed in 2012. The 2024 MRE was completed in accordance with National Instrument 43-101 with an Effective Date of April 4th, 2024, and is based on 117 diamond drill holes totaling 28,783 metres of NQ, HQ and BTW size drill core.

A pit design was developed which constrains the pit shell to ensure reasonable prospects of eventual economic extraction. The pit geometry considered an overall pit slope of 52 degrees based on previous geotechnical studies. The pit design considered 3-year annualized average pricing (2021, 2022, and 2023) for five payable oxides(USD1.25/kg for La2O3, USD95/kg for Pr2O3, USD95/kg for Nd2O3, USD1,500/kg for Tb2O3, and USD375/kg for Dy2O3), which were converted to Canadian Dollars using an exchange rate of 1.30 CAD:USD.

The pricing was sourced from Adamas Intelligence's Rare Earth Pricing Quarterly Outlook (Q1 2024). The pit optimization considered the following combined metallurgical recoveries for the concentrator and hydromet plant: 60.5% for La2O3, 58.9% for Pr2O3, 59.0% for Nd2O3, 42.7% for Tb2O3, and 38.6% for Dy2O3. A mining cost of CAD8/tonne (plus an incremental mining cost with depth of CAD0.02/tonne for every 10m of depth), variable operating costs of CAD60/tonne milled for the concentrator, CAD3,000/tonne of mixed REO product for the hydromet plant, and CAD7,700/tonne of product for the separation plant, fixed annual operating costs of CAD25M, CAD10M, CAD11M, CAD10M, for G&A, the concentrator, hydromet plant, and separation plant respectively, and transportation costs of CAD200/tonne of mixed REO product.

The operating costs have been established using a combination of comparable projects and industry benchmarks and are therefore conceptual in nature. The aforementioned economic parameters result in a Net Metal Return (NMR) cut-off of CAD154/tonne. An elevated cut-off of CAD287/tonne was considered as the base case for the MRE to ensure reasonable prospects of eventual economic extraction over a reasonable timeframe.

The resulting pit shell has a conical shape with a diameter of approximately 1,200m, a depth of roughly 600m, and has a 2.7:1 ratio of waste to mineralized material.