News Release: Pre-feasibility Study Engaged with Roche Group
SCHEDULE “A”Commerce Resources Corp. Engages Roche Ltd. for the Ashram Rare Earth Element Deposit Pre-Feasibility StudySeptember 21, 2012 - Commerce Resources Corp. (TSXv: CCE; FSE: D7H; OTCQX:CMRZF) (the “Company”) is pleased to announce that it has engaged Roche Ltd. (Roche) tocomplete a Pre-feasibility Study (PFS) on the Ashram Rare Earth Element Deposit, locatedwithin the Labrador Trough in north-eastern Quebec. Work on the PFS has commenced and isplanned for completion in Q4 2013 / Q1 2014.Roche is an engineering firm with extensive experience in the mining industry in Quebec. Theyhave established a strong background in rare earth project development that is particularly suitedto the Ashram Rare Earth Element Deposit. Roche’s experience is multi-disciplinary (building,construction, environmental, energy, industrial etc.) and extends through the Feasibility Study(FS) level of mine planning and development with various commodities including rare earthelements, iron ore, base metals, and specialty metals.Also involved in the PFS, and under the direction of Roche, are the following specialistconsulting companies:- Forchemex Ltd., Consulting Group (Forchemex), a member of the Roche Group, is aconsultant group specializing in forestry services. The firm offers services relating to forest roadplanning and engineering, forest management and operations planning. Forchemex will focus onthe road layout from proposed mine site to Kuujjuaq,- Environnement Illimité Inc., is an environmental services company specializing in aquaticecosystem studies and related biophysical and technical surveys. Environnement Illimité willwork directly with Roche to collect and provide all environmental baseline data for the PFS.All metallurgical aspects of the project will continue under the supervision of Hazen ResearchInc. (Hazen) of Colorado, USA. Hazen has been involved with the project since April 2011, andis working with UVR-FIA GmbH (UVR) of Germany to further refine the metallurgicalflowsheet for the project. Roche representatives will be involved with Hazen and UVR as theywork to optimize the flowsheet required for the PFS.The metallurgical work at Hazen will focus on 1.) Improving mineral concentrate grades andrecoveries beyond the base case stated in the PEA, 2.) Testing to evaluate the potential for afluorine based by-product, 3.) Conducting test work to produce a pure rare earth oxide or rareearth carbonate saleable end-product, and 4.) Performing environmental characterization of allmineralized and waste material.
The metallurgical work at UVR will focus on 1.) Evaluation of optimization parameters for theflotation process (temperature, pH, etc.), and 2.) Improving separation of the rare earth mineralsfrom fluorite in order to increase mineral concentrate grades.An update on all current metallurgical programs will be forthcoming from the company.2012 Work ProgramThe 2012 field program at Ashram has focused on the extraction of a bulk sample, preparing thesite for additional drilling, and the collection of environmental baseline data.A bulk sample of approximately 30 metric tonnes of representative mineralized material wascollected from three sites located along an ~65 m strike length, within the southern portions ofthe planned pit. The material will be used for ongoing metallurgical test work and initial pilotplant studies at Hazen and UVR.In terms of site preparation, field crews have cleared drill site access, conducted structuralmapping, and upgraded the camp facilities. In addition, site visits for data collection bypersonnel of Roche and its affiliates, including mine site, road route, docking facilities nearMackays Island, and airstrip location have been completed.The PFS will be based on a National Instrument 43-101 updated resource estimate completed byRoche following drilling planned for Q1-Q2 of 2013.About the Ashram Rare Earth Element DepositThe Ashram Rare Earth Deposit is a carbonatite within the Eldor Property, located in north-eastern Quebec. The Ashram Deposit has a measured and indicated resource of 29.3 milliontonnes at 1.90% TREO and an inferred resource of 219.8 million tonnes at 1.88% TREO. Thedeposit boasts a well-balanced distribution with enrichment in the light, middle and heavy rareearth elements including all five of the most critical elements such as neodymium, europium,dysprosium, terbium, and yttrium.The rare earth elements at Ashram occur in simple and well-understood mineralogy, beingprimarily in the mineral monazite and to a lesser extent in bastnaesite and xenotime. Theseminerals 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 theAshram Project. The PEA is based on a 4,000 tonne per day open-pit operation with an initial25-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 periodof 2.25 years.Darren L. Smith, M.Sc., P.Geol., a 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 Corp. is an exploration and development company with a particular focuson rare metal and rare earth element deposits with the potential for economic grades and largetonnages. The Company is focused on the development of its Upper Fir Tantalum and NiobiumDeposit in British Columbia, and Ashram Rare Earth Element Project in northern Quebec.For more information on Commerce Resources Corp., visit the corporate website athttp://www.commerceresources.com or email firstname.lastname@example.org.On Behalf of the Board of DirectorsCOMMERCE RESOURCES CORP.“David Hodge”David HodgePresident and DirectorTel: 604 484 2700TF: 866.484.2700Email: email@example.comWeb: http://www.commerceresources.com 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 StatementsThis news release contains forward-looking information which are subject to a variety of risks and uncertainties and otherfactors that could cause actual events or results to differ from those projected in the forward-looking statements. Forwardlooking statements in this press release include our projected timeline and consultants for the PFS, the focus of our metallurgicalwork, our planned drilling program, that the Ashram deposit can be developed economically as an open-pit mine; all informationcontained in the pre-feasibility study; and that we can build shareholder value through the discovery and development ofCanadian rare metal and rare earth element deposits. These forward-looking statements are based on the opinions and estimatesof management and its consultants at the date the information is disseminated. They are subject to a variety of risks anduncertainties 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 changing costs formining 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 andmineral recoveries assumption based on limited test work; the availability of labour, equipment and markets for the productsproduced; market pricing for the products produced; and despite the current expected viability of the project, conditionschanging such that the minerals on our property cannot be economically mined, or that the required permits to build and operatethe envisaged mine can be obtained. The forward-looking information contained herein is given as of the date hereof and theCompany assumes no responsibility to update or revise such information to reflect new events or circumstances, except asrequired by law.