Commerce Resources Corp. Produces 40% TREO Mineral Concentrate from the Ashram Rare Earth Element Deposit, Northern Quebec

Commerce Resources Corp. Produces 40% TREO Mineral Concentrate from the Ashram
                 Rare Earth Element Deposit, Northern Quebec

PR Newswire

VANCOUVER, Feb. 20, 2013

VANCOUVER, Feb. 20, 2013 /PRNewswire/ - Commerce Resources Corp. (TSXv: CCE,
FSE: D7H, OTCQX: CMRZF) (the "Company" or "Commerce") is pleased to announce
additional results from the on-going metallurgical programs on the Company's
100%-owned Ashram Rare Earth Element (REE) Deposit. Significant metallurgical
advancements have been made since those detailed in the Company's News Release
dated November 15^th, 2012.

Highlights

  *Production of reproducible, high-grade, rare earth mineral concentrates
    with greater than 30.0% TREO

  *Successful application of wet high intensity magnetic separation (WHIMS)
    to mineral concentrate upgrading

  *Significant advancement in sulphation roast-leaching ('cracking') of
    mineral concentrates using a two-acid method

Using conventional beneficiation  and flotation  techniques, multiple  mineral 
concentrates of  greater than  30% Total  Rare Earth  Oxide (TREO)  have  been 
produced including 40.0% TREO at 51.9% recovery, 30.7% TREO at 51.9% recovery,
and 38.2% TREO at 44.8% recovery.  These results represent TREO upgrading  of 
over 15 times the original grade into less than 5% of the original mass  (i.e. 
a mass reduction of more than  95%). In addition, mineral concentrate  grades 
of 18.2% TREO at  73.0% recovery and  27.2% TREO at  58.4% recovery have  been 
produced. This demonstrates that high-grade mineral concentrates with  higher 
recoveries are achievable.

The high-grade mineral  concentrates result from  the Ashram Deposit's  simple 
rare earth  mineralogy consisting  of  monazite, bastnaesite,  and  xenotime. 
These three minerals  contain among  the highest  REO (>60%)  contents of  any 
known mineral, dominate  current commercial processing,  and share common  and 
conventional processing techniques.

Company President  David Hodge  states  "We are  excited by  the  considerable 
increase in  mineral  concentrate grades  and  recoveries over  the  past  3-4 
months. The REE mineral  concentrates produced from Ashram  appear to be  the 
highest grade of any developing rare  earth project. Our ability to create  a 
high-grade mineral  concentrate will  lead  to reduced  downstream  processing 
costs and acid consumption.  This will have a  positive and direct impact  on 
the Ashram Project's OPEX."

Physical Upgrade

To date, two successful approaches  to physical upgrading have been  developed 
involving  conventional   flotation   at   ambient   temperatures,   and   wet 
high-intensity magnetic separation (WHIMS).  The final Ashram flowsheet  will 
merge the best attributes of both methods to develop an optimized approach  of 
physical upgrading  to  a  high-grade rare  earth  mineral  concentrate.  The 
production of a  mineral concentrate  is the  final step  before undergoing  a 
sulphation roast-leach ('cracking') to liberate the REEs into solution.

Flotation (UVR-FIA GmbH)

The first method of  physical upgrading is a  size fraction approach in  which 
all  the  mineralized  whole  rock  material  is  ground  and  separated,  via 
hydrocycloning  and  screening,  into  three  size  fractions  termed  'fine', 
'middle', and  'coarse'.  The  fine  and middle  size  fractions  are  treated 
separately  using  conventional  flotation   techniques  optimized  for   that 
fraction, while the coarse fraction is reground and classified  proportionally 
into the other two fractions. After each fraction has been optimally upgraded
they are recombined into a final high-grade mineral concentrate.

This method has been the focus of UVR-FIA GmbH of Freiberg, Germany under  the 
direction  of  Gerhard  Merker,  a  leading  expert  in  mineral   flotation. 
Representative test results are listed in Table 1.

Table 1: Test  Results of  Flotation Upgrading  Using a  Three Size  Fraction 
Approach

                                                 % of
Analytical      Size        Test ID  Upgrading Original  Analysis  Recovery^(4)  Upgrade
Method^(1) Fraction(s)^(2)            Process    Feed   (TREO)^(3)              Ratio^(5)
                                                Weight
Grade and Recovery referenced to Size Fraction Input - fine, middle, and coarse
   XRF          Fine       55-25/124 Flotation  14.2%      8.3%       60.5%     4.3 times
   XRF         Middle       58-18a   Flotation  10.0%     22.4%       88.4%       11.5
                                                                                  times
   ICP         Middle       58-18b   Flotation   7.9%     26.8%       83.7%       13.7
                                                                                  times
   XRF       Fine^(7) +     58-20a   Flotation   6.0%     27.2%       74.5%       13.9
               Middle                                                             times
   ICP         Middle        58-13   Flotation   5.4%     29.7%       70.1%       15.2
                                                                                  times
   XRF         Middle       58-17a   Flotation   7.6%     30.7%       79.8%       15.7
                                                                                  times
   ICP         Middle        58-16   Flotation   5.3%     32.9%       72.9%       16.9
                                                                                  times
   ICP         Middle       58-17b   Flotation   5.3%     38.2%       68.9%       19.6
                                                                                  times
   XRF       Fine^(7) +     58-20b   Flotation   4.1%     40.0%       66.5%       20.5
               Middle                                                             times
   XRF         Middle      55-25-132 Flotation   1.9%     43.3%       33.8%       22.2
                                                                                  times
    -          Coarse      Re-ground proportionally back to fine and middle fractions
Grade and Recovery referenced to Whole Rock Input^(6)
   XRF     Fine + Middle + 55-25/124 Flotation  11.7%     15.5%       78.6%     7.9 times
               Coarse      + 58-18a
 XRF/ICP   Fine + Middle + 55-25/124 Flotation  10.4%     16.7%       75.6%     8.6 times
               Coarse      + 58-18b
   XRF     Fine + Middle + 55-25/124 Flotation  10.2%     18.2%       73.0%     9.3 times
               Coarse      + 58-17a
 XRF/ICP   Fine + Middle + 55-25/124 Flotation   8.8%     19.0%       66.0%     9.7 times
               Coarse      + 58-17b
             Fine^(7) +                                                           13.9
   XRF        Middle +      58-20a   Flotation   4.2%     27.2%       58.4%       times
               Coarse
           Middle + Coarse                                                        15.7
   XRF          (Fine       58-17a   Flotation   4.5%     30.7%       51.9%       times
             Discarded)
           Middle + Coarse                                                        16.9
   ICP          (Fine        58-16   Flotation   3.2%     32.9%       47.4%       times
             Discarded)
           Middle + Coarse                                                        19.6
   ICP          (Fine       58-17b   Flotation   3.2%     38.2%       44.8%       times
             Discarded)
             Fine^(7) +                                                           20.5
   XRF        Middle +      58-20b   Flotation   2.9%     40.0%       51.9%       times
               Coarse

(1) XRF refers to quantitative analysis by XRF using a fusion
         bead/tablet. XRF analysis is typically completed for Ce and La only
         with TREO extrapolated based on the correlation factor noted below.
         ICP analysis is quantitative with TREO defined as Ce[2]O[3] +
         La[2]O[3] + Pr[2]O[3 ]+ Nd[2]O[3] + Eu[2]O[3] + Sm[2]O[3 ]+ Gd[2]O[3]
         + Tb[2]O[3] + Dy[2]O[3 ]+ Ho[2]O[3] + Er[2]O[3] + Tm[2]O[3 ]+
         Yb[2]O[3] + Lu[2]O[3 ]+ Y[2]O[3].
(2)  The fine, middle, and coarse fractions comprise 28%, 53%, and 19% of
         the total whole rock REE content respectively. Assuming the
         proportional re-grind of the coarse fraction into the fine and middle
         fractions, the fine and middle fractions would comprise 35% and 65%
         of the total REE content respectively.
(3)  ICP provides a quantitative value for TREO. XRF TREO is calculated
         from Ce (metal) using a correlation factor as determined from
         multiple ICP analysis.
(4) Recovery is based on Ce and is assumed to be constant over all the
         REEs as is indicated from prior testing.
(5) Based on an average 1.95% TREO starting head grade.
(6) Assumes coarse fraction undergoes a proportional regrind into the
         fine and middle fractions.
(7) Test 58-20 uses a modified size classification approach where a
         portion of the fine fraction is further separated. The coarsest fine
         fraction is then added to the middle fraction for a total whole rock
         REE content of 78% as opposed to the 65% as outlined in footnote (2)
         above.

The  most  significant   upgrading  occurs  in   the  middle  fraction   where 
reproducible mineral concentrates of  20% to 40% TREO  at 65% to 88%  recovery 
have been achieved.  Upgrading in  the fine  fraction has  achieved 8+%  TREO 
mineral concentrates at 60+% recoveries,  although work completed to date  has 
not been as extensive as with other size fractions. Test work, including  lock 
cycle tests, is ongoing to confirm the regrind and proportional classification
of the coarse fraction and further  optimize the upgrading of each  fraction. 
Preliminary test work suggests  that a higher proportion  (up to 83% from  the 
initial 65%) of the reground coarse fraction reports to the middle fraction.

In addition to  producing high-grade  mineral concentrates, a  key benefit  of 
this method  is  the reduced  fluorite  content in  the  mineral  concentrates 
compared to those  previously produced.  This will  significantly reduce  the 
amount of  calcium  (Ca)  and  fluorine  (F)  present  during  the  sulphation 
roast-leach process  that  follows, and  is  expected to  allow  for  improved 
overall recoveries.

Flotation + WHIMS (Hazen Research Inc.)

The second method of physical upgrading  is being developed at Hazen  Research 
Inc. of Colorado, USA and involves the use of conventional flotation  followed 
by wet  high intensity  magnetic separation  (WHIMS). The  method treats  the 
whole rock material directly by flotation before undergoing WHIMS, rather than
using a sizing approach.

Using this method of flotation, mineral concentrates of 10-15% TREO at  69-83% 
recovery have been created with good reproducibility and minimal optimization,
leaving good potential for additional upgrading. Producing these concentrates
has resulted in a significant mass reduction  of 84-91% of the material to  be 
processed downstream. Representative results are listed in Table 2

Table 2: Test Results of Flotation Upgrading Without Sizing (Whole Rock)

                                     % of
Analytical Test ID    Upgrading    Original   Analysis  Recovery^(2)  Upgrade
Method^(1)             Process       Feed    (TREO)^(1)              Ratio^(3)
                                    Weight
                      Flotation
   ICP      3638-1  (Cleaner 1 of    9.1%      15.0%       68.9%     7.7 times
                     2 Roughers)
   ICP     3612-155   Flotation      11.2%     13.4%       75.0%     6.9 times
   ICP     3612-116   Flotation      15.1%     10.6%       79.6%     5.4 times
                      Flotation
   ICP      3638-1  (Cleaner 1 of    16.3%     10.1%       82.9%     5.2 times
                          4
                    Roughers)^(4)

(1) ICP analysis is quantitative with TREO defined as Ce[2]O[3] +
         La[2]O[3] + Pr[2]O[3 ]+ Nd[2]O[3] + Eu[2]O[3] + Sm[2]O[3 ]+ Gd[2]O[3]
         + Tb[2]O[3] + Dy[2]O[3 ]+ Ho[2]O[3] + Er[2]O[3] + Tm[2]O[3 ]+
         Yb[2]O[3] and + Y[2]O[3]. Lu[2]O[3 ]is [ ]not included in the
         summation.
(2) Recovery is based on ICP data of all available TREO.
(3) Based on an average 1.95% TREO starting head grade.
(4) Based on recycle of cleaner tails to preceding rougher stage

The WHIMS method  uses the  magnetic properties  inherent in  each mineral  to 
achieve separation. Flotation  produces a mineral  concentrate consisting  of 
fluorite (diamagnetic), carbonate  minerals (paramagnetic),  and REE  minerals 
(paramagnetic). As  such,  the fluorite  will  preferentially report  to  the 
non-magnetic fraction  and  the  carbonate  + REE  minerals  to  the  magnetic 
fraction.  The  following  figure  illustrates  visually  the  upgrading  as 
exemplified in test 3612-117.

Figure 1: WHIMS Products from Flotation Concentrate (Test 3612-117)
(http://files.newswire.ca/1071/WHIMS_Image-01.jpg)

Table 3: Select Test Result of Mineral Concentrate Upgrading via Conventional
Flotation and WHIMS

              Whole Rock     REE Mineral         WHIMS       WHIMS Referenced
              Material    Concentrate^(1)     (Magnetic            to
                                             Fraction)^(1)   Concentrate Feed
      Test ID      -           3638-10          3638-43             -
    Upgrading    None     Flotation of Whole   Flotation
      Process  (Original    Rock Material     (3638-10) +           -
                 Feed)                           WHIMS
       Weight   989.1g          163.0g           124.2g          - 38.8g
% of Original    100%           16.5%            12.6%       24% reduction in
  Feed Weight                                                     weight
     TREO^(2)    2.0%            9.7%            11.8%       22% increase in
      Content                                                     grade
         TREO    100%           79.5%            75.2%         95% recovery
 Recovery^(3)
 TREO Upgrade   0 times       4.9 times        5.9 times            -
        Ratio
                                                                
     Fluorite    5.9%           29.6%            15.2%       51% decrease in
  Content^(3)                                                 fluorite grade
     Fluorite    100%           82.3%            31.9%         61% fluorite
     Recovery                                                   rejection
                                                                

(1) Results referenced to Whole Rock Material (original feed)
(2) TREO determined by Portable XRF for the LREO (Ce[2]O[3], La[2]O[3],
         Pr[2]O[3], and Nd[2]O[3]) with extrapolation, based on known
         distribution, used to determine the value for the remaining REOs.
         The extrapolation assumes recovery remains constant across all the
         REOs. The Portable XRF (semi-quantitative) vs. ICP (quantitative)
         analytical methods have consistently shown to correlate well for
         Ce[2]O[3], La[2]O[3], Pr[2]O[3], and Nd[2]O[3] due to the fine grain
         size and homogenous character of the mineral concentrates, thereby
         allowing for a quick, economic, and effective means of characterizing
         a mineral concentrate.
(3) Fluorite is calculated from fluorine analysis by selective ion
         electrode using a conversion factor of 2.055. Assumes all fluorine
         is contained within fluorite.

The use of the WHIMS method has several significant attributes that make it an
attractive option to pursue because it:

1.Allows for a significant increase in TREO grade (>20%) at minimal loss of
    recovery (5%), as well as a considerable decrease in mass (~25%)
    referenced to the mineral concentrate feed.

2.Provides potential for a metallurgical grade fluorspar credit without
    additional refining. (Alternatively, the fluorite product may potentially
    be further upgraded by additional flotation to a more valuable ceramic or
    acid-grade product).

3.Significantly reduces fluorite in the flotation mineral concentrate which
    will reduce the acid consumption and may potentially allow further REE
    upgrading via additional flotation.

Sulphation Roast-Leach Tests ('Cracking')

Testwork on mineral concentrates  produced at Hazen  has continued to  provide 
promising results. A two acid approach using a dilute hydrochloric acid (HCl)
pre-leach to dissolve  the carbonate  gangue (waste) minerals,  followed by  a 
sulphuric acid  (H[2]SO[4]) attack  to  dissolve the  REE minerals,  is  being 
pursued. The method has shown  promise for reducing overall acid  consumption 
from the gangue  components and  may allow  for improved  REE recoveries  into 
solution. For example,  in an initial  test, dilute HCl  solution at  ambient 
temperature was added to a flotation concentrate at a ratio of 520kg (100% HCl
basis) per  tonne of  concentrate (~155kg  per  tonne of  whole rock  ore)  to 
dissolve the carbonate gangue.  The test resulted in  the removal of ~70%  of 
the concentrate's mass with only 3%  REE loss while increasing the grade  from 
~3.8% to ~9.9% TREO (an upgrade of 2.6 times)

This test was completed  on a low grade  mineral concentrate (~3.8% TREO)  and 
will be  repeated on  higher grade  concentrates (10-15+%  TREO) in  the  near 
term. This  will be  followed  with sulphuric  acid  attack on  the  residues 
allowing for  more  complete  characterization of  acid  consumption  and  REE 
recoveries into solution. The HCl consumption is a function of the amount  of 
carbonate and fluorite  in the  concentrate and  is expected  to decrease  for 
higher grade mineral concentrates containing less of these gangue components.

The  remaining  mineral   concentrate,  containing   ~9.9%  TREO,   consisting 
dominantly of rare earth and presumably fluorite minerals, may be subjected to
the WHIMS  method a  second  time. This  would provide  additional  upgrading 
before  undergoing  a  sulphuric  acid  roast  to  decompose  the  rare  earth 
minerals. Previous sulphation  roast-leach tests had  focused on a  sulphuric 
acid roast with no hydrochloric acid  pre-leach step, and although these  were 
successful, the  two-acid  approach offers  a  much more  efficient  process. 
Further, caustic cracking  (NaOH) is  also being evaluated  as an  alternative 
method of producing a rare earth end-product because of the high-grade mineral
concentrates now being produced.

Darren L.  Smith,  M.Sc.,  P.Geol., Dahrouge  Geological  Consulting  Ltd.,  a 
Qualified Person  as defined  by National  Instrument 43-101,  supervised  the 
preparation of the technical information in this news release.

Eric Larochelle, Eng,  and Alain  Dorval, Eng., Manager-  Process, Mining  and 
Mineral Processing.,  of Roche  Ltd, Consulting  Group, Qualified  Persons  as 
defined by  National Instrument  43-101,  reviewed the  technical  information 
presented in this news release.

About Hazen Research Inc.

Hazen Research  Inc., located  in Colorado  U.S.A, is  an industry  leader  in 
metallurgical processing  including  rare  earths.  Their  expertise  extends 
across many commodities including base, precious, and rare metals, as well  as 
pilot plant level studies.

Over their 50+ year  history, extensive experience in  the metallurgy of  rare 
earths has been developed via direct  involvement on many rare earth  projects 
having varying ore and gangue mineralogy. They are therefore, very well-known
to industry,  within  and  outside  North America,  as  a  leader  in  mineral 
beneficiation and hydrometallurgical  processing of  raw materials,  including 
rare earth mineralized material.

Hazen  is  the  primary  metallurgical   facility  focused  on  defining   the 
beneficiation and hydrometallurgical flowsheet for the Ashram Deposit.

About UVR-FIA GmbH
UVR-FIA GmbH,  located  in  Freiberg  Germany, is  a  mineral  processing  and 
research facility with roots dating back to 1954. The surrounding region  has 
a history of over 800 years of  mining and smelting with Freiberg hosting  the 
world oldest  university  of mining  and  metallurgy in  the  world  (Freiberg 
University of Mining and Technology, established in 1765).

R. Gerhard  Merker, a  mineral processing  engineer (Dipl.-Ing.)  and  leading 
expert in flotation  of carbonate  and fluorite-bearing  bastnaesite ores,  is 
consultant and manager of the Ashram Deposit's test work at UVR. Mr.  Merker 
has over  30 years'  experience in  the raw  material and  recycling  industry 
including several years studying  the Dong Pao Rare  Earth Deposit in  Vietnam 
and other RE deposits.

UVR-FIA is  working in  tandem  with Hazen  Research  to complete  the  Ashram 
Deposit`s flowsheet with a  focus on fluorite separation  from the rare  earth 
minerals.

About the Ashram Rare Earth Element Deposit

The Ashram Rare Earth Element (REE) Deposit is a carbonatite within the  Eldor 
Property, located  in north-eastern  Quebec. The  Deposit has  a measured  and 
indicated resource  of 29.3  million  tonnes at  1.90%  TREO and  an  inferred 
resource of  219.8  million  tonnes  at  1.88%  TREO.  The  deposit  boasts  a 
well-balanced distribution with enrichment in the light, middle and heavy rare
earth elements including all  five of the  most critical elements  (neodymium, 
europium, dysprosium, terbium, and yttrium).

The REEs  at Ashram  occur  in simple  and well-understood  mineralogy,  being 
primarily in the mineral  monazite and to a  lesser extent in bastnaesite  and 
xenotime. These minerals  dominate the currently  known commercial  extraction 
processes for rare earths.

A Preliminary Economic Assessment, completed in May of 2012 by SGS-Geostat  of 
Montreal (Blainville) (see news release  dated May 24, 2012), outlines  highly 
robust economics for the Ashram  Deposit. The PEA is  based on a 4,000  tonne 
per day open-pit  operation with an  initial 25-year mine  life (300 years  at 
economic cut-off  if  open-pit  +  underground  development),  a  pre-tax  and 
pre-finance Net Present Value (NPV) of $2.32 billion at a 10% discount rate, a
pre-tax/pre-finance  Internal   Rate   of  Return   (IRR)   of  44%,   and   a 
pre-tax/pre-finance payback period of 2.25 years.

The company  continues  to  advance  the  Ashram  Deposit  with  metallurgical 
programs at both UVR-FIA and Hazen Research.

About Commerce Resources Corp.

Commerce Resources  Corp. 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  Upper Fir Tantalum and  Niobium 
Deposit in  British Columbia  and the  Ashram Rare  Earth Element  Deposit  in 
Quebec.

On Behalf of the Board of Director
COMMERCE RESOURCES CORP.

"David Hodge"
President and Director
Tel: 604.484.2700

  Neither TSX Venture Exchange nor its Regulation Services Provider (as that
     term is defined in the policies of the TSX Venture Exchange) accepts
         responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements
This news release contains forward-looking information which are subject to  a 
variety of risks and uncertainties and  other factors that could cause  actual 
events or  results  to differ  from  those projected  in  the  forward-looking 
statements. Forward looking statements in this press release include the focus
of the metallurgical work, the results of the on-going metallurgical  programs 
the reported grades and potential cost reductions, that the Ashram deposit can
be  developed  economically  as  an  open-pit  mine;  all  reference  to   and 
information contained  in the  pre-feasibility study;  and that  we can  build 
shareholder value through the discovery and development of Canadian rare metal
and rare earth element deposits. These forward-looking statements are based on
the opinions and estimates of management  and its consultants at the date  the 
information is  disseminated. They  are  subject to  a  variety of  risks  and 
uncertainties and other factors that could  cause actual events or results  to 
differ materially  from those  projected in  the forward-looking  information. 
Risks that could change  or prevent these statements  from coming to  fruition 
include  the  ability   to  finance  ongoing   exploration,  development   and 
metallurgical programs,  changing costs  for mining  and processing;  changing 
forecasts of mine production  rates; the timing and  content of upcoming  work 
programs; geological interpretations  based on drilling  that may change  with 
more detailed information;  potential process methods  and mineral  recoveries 
assumption based  on test  work;  the availability  of labour,  equipment  and 
markets for the products produced;  market pricing for the products  produced; 
and despite the current expected viability of the project, conditions changing
such that the minerals on our  property cannot be economically mined, or  that 
the required permits to build and operate the envisaged mine can be  obtained. 
The forward-looking  information contained  herein  is given  as of  the  date 
hereof and the  Company assumes  no responsibility  to update  or revise  such 
information to reflect new events or circumstances, except as required by law.

SOURCE Commerce Resources Corp.

Image with caption: "Figure 1: WHIMS Products from Flotation Concentrate (Test
3612-117) (CNW Group/Commerce Resources Corp.)". Image available at:
http://photos.newswire.ca/images/download/20130220_C6904_PHOTO_EN_23880.jpg

Contact:

For more information on Commerce Resources Corp. visit the corporate website
athttp://www.commerceresources.com or emailinfo@commerceresources.com.

David Hodge
President and Director
Tel: 604.484.2700
 
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