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Technical Report:  Blue River Resource Update
 

Technical Report: Blue River Resource Update

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On July 6, 2012, Commerce Resources Corp. (TSXv: CCE) released its National Instrument 43-101 Technical Report entitled "Technical Report on Mineral Resource Update" on its Blue River ...

On July 6, 2012, Commerce Resources Corp. (TSXv: CCE) released its National Instrument 43-101 Technical Report entitled "Technical Report on Mineral Resource Update" on its Blue River Tantalum-Niobium Project in British Columbia.

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    Technical Report:  Blue River Resource Update Technical Report: Blue River Resource Update Document Transcript

    • Commerce Resources Corp.Blue River Tantalum-Niobium ProjectBritish Columbia, CanadaNI 43-101 Technical Report on Mineral Resource UpdatePrepared for:Commerce Resources Corp.Prepared by:Albert Chong, P.Geo.Tomasz Postolski, P.Eng.Ramon Reyes Mendoza, P.Eng.Tony Lipiec, P.Eng.Behrang Omidvar, P.Eng.Effective Date: 22 June 2012Project No. 168967
    • IMPORTANT NOTICEThis report was prepared as a National Instrument 43-101 TechnicalReport for Commerce Resources Corporation (Commerce) by AMECAmericas Limited (AMEC). The quality of information, conclusions,and estimates contained herein is consistent with the level of effortinvolved in AMEC’s services, based on: i) information available at thetime of preparation, ii) data supplied by outside sources, and iii) theassumptions, conditions, and qualifications set forth in this report. Thisreport is intended for use by Commerce subject to the terms andconditions of its contract with AMEC. Except for the purposeslegislated under Canadian provincial securities law, any other uses ofthis report by any third party is at that party’s sole risk.
    • CERTIFICATE OF QUALIFIED PERSON Albert Chong, P.Geo. AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-4116 E-mail: albert.chong@amec.comI, Albert Chong, P.Geo., am employed as a Principal Geologist with AMEC Americas Limited.This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, BritishColumbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective dateof 22 June 2012 (the “Technical Report”).I am a Professional Geoscientist in the Province of British Columbia (P.Geo. #23773). I graduatedfrom McMaster University, Hamilton, Ontario with a B.Sc. degree in Geology, and from the Universityof Tasmania with a M.Sc. degree in Exploration Geoscience.I have practiced my profession for 27 years since graduation. I have been directly involved in greenfields and brown fields exploration, mining operations, consulting, and resource estimation of basemetal, precious metal and rare metal deposits.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the QualifiedPerson responsible for Sections 1 to 12, 20, and 23 to 27 of the Technical Report.I visited the Blue River property from 11 to 16 July 2010, 27 to 30 June 2011, and 6 to 14 September2011.I am independent of Commerce Resources Corporation as independence is described by Section1.5 of NI 43–101.I have been involved as an independent consultant on the Blue River Ta-Nb Project since 2010.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“signed and stamped”Albert Chong, P.Geo.Dated: 4 July 2012AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
    • CERTIFICATE OF QUALIFIED PERSON Tomasz Postolski, P.Eng. AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-6096 E-mail: tomasz.postolski@amec.comI, Tomasz Postolski, P.Eng., am employed as a Senior Geostatistician with AMEC Americas Limited.This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, BritishColumbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective dateof 22 June 2012 (the “Technical Report”).I am a Professional Engineer in the Province of British Columbia (P.Eng. #34784). I have graduatedfrom The University of Mining and Metallurgy, Krakow, Poland with a Magister Inzynier degree inGeological Engineering, and from the University of British Columbia with a Master of AppliedScience degree also in Geological Engineering. I have completed the Citation Program in AppliedGeostatistics at the Centre for Computational Geostatistics at the University of Alberta.I have 18 years of consulting, mine operations, and academic experience specializing ingeostatistical mineral resource estimation and geological evaluation of gold, copper, rare earthmetals and other mineral deposits in Canada and abroad.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the QualifiedPerson responsible for Section 14 and those portions of the Summary, Interpretation andConclusions, and Recommendations that pertain to this Section of the Technical Report.I visited the Blue River property 27 to 30 June 2011.I am independent of Commerce Resources Corporation as independence is described by Section1.5 of NI 43–101.I have been involved with mineral resource estimation on the Blue River Ta-Nb Project since 2010.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“signed and stamped”Tomasz Postolski, P.Eng.Dated: 4 July 2012AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
    • CERTIFICATE OF QUALIFIED PERSON Ramon Mendoza Reyes (P.Eng.) AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-3075 E-mail: ramon.mendoza@amec.comI, Ramon Mendoza Reyes (P.Eng.) am employed as a Principal Mining Engineer with AMECAmericas Limited.This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, BritishColumbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective dateof 22 June 2012 (the “Technical Report”).I am a Professional Engineer in the province of British Columbia. I graduated in 1989 from theNational Autonomous University of Mexico with a bachelor’s degree in Mining Engineering, and in2003 completed a M.Sc. Degree in Mining & Earth Systems Engineering from the Colorado Schoolof Mines in Golden, Colorado, USA. I have practiced my profession for 22 years, and havepreviously been involved with mine designs, mine planning and mine operations for base metal,disseminated sulphide and industrial mineral projects in North America and South America.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the QualifiedPerson responsible for Sections 15, 16, and 18 and those portions of the Summary, Cost EstimatesInterpretation and Conclusions, and Recommendations that pertain to the mining sections of theTechnical Report.I visited the Blue River property in British Columbia from 12 to 14 July 2010.I am independent of Commerce Resources Corporation as independence is described by Section1.5 of NI 43–101.I have been involved with the mining aspects of the Blue River Tantalum–Niobium Project sinceJanuary 2010.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“signed and stamped”Ramon Mendoza Reyes, P.Eng.Dated: 4 July 2012AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
    • CERTIFICATE OF QUALIFIED PERSON Ignacy (Tony) Lipiec (P.Eng.) AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel: 604-664-3130 E-mail: tony.lipiec@amec.comI, Ignacy (Tony) Lipiec (P.Eng.) am employed as a Principal Metallurgical Engineer with AMECAmericas Limited.This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, BritishColumbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective dateof 22 June 2012 (the “Technical Report”).I am a Professional Engineer in the province of British Columbia. I graduated from the University ofBritish Columbia with a B.A.Sc. degree in Mining & Mineral Process Engineering, in 1985. I havepracticed my profession for 27 years, and have previously been involved with metallurgical designand process engineering for precious metal, base metal and specialty product projects in NorthAmerica and South America.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the QualifiedPerson responsible for Sections 13, 17, 18, 21 and those portions of the Summary, Interpretationand Conclusions and Recommendations that pertain to those sections of the Technical Report.I did not visit the Blue River property.I am independent of Commerce Resources Corporation as independence is described by Section1.5 of NI 43–101.I have been involved as an independent consultant with the Blue River Ta-Nb Project since 2010.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“signed and stamped”Tony Lipiec, P.Eng.Dated: 4 July 2012AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
    • CERTIFICATE OF QUALIFIED PERSON Behrang Omidvar, P.Eng. AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-4522 E-mail: Behrang.omidvar@amec.comI, Behrang Omidvar, P.Eng., am employed as a Financial Analyst with AMEC Americas Limited.This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, BritishColumbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date22 June 2012 (the “Technical Report”).I am a Professional Engineer in the Province of British Columbia (P.Eng. #35500). I have graduatedfrom The University of British Columbia with a Mechanical Engineering degree.I have eight years of experience in engineering, project management and financial analysis formining and other projects. I have prepared cash-flow models and conducted financial andthroughput analyses of numerous mines and development properties in Canada and internationally.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the QualifiedPerson responsible for Sections 19, 21, 22 and those portions of the Summary, Interpretation andConclusions and Recommendations that pertain to those Sections of the Technical Report.I have not visited the Blue River property.I am independent of Commerce Resources Corporation as independence is described by Section1.5 of NI 43–101.I have been involved as an independent consultant with the Blue River Ta-Nb Project since 2010.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“signed and stamped”Behrang Omidvar, P.Eng.Dated: 4 July 2012AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateCONTENTS1.0 SUMMARY ................................................................................................................................... 1-1 1.1 Terms of Reference ......................................................................................................... 1-1 1.2 Key Outcomes ................................................................................................................. 1-1 1.2.1 Mineral Resource Update ............................................................................... 1-1 1.2.2 2011 PEA Outcomes ...................................................................................... 1-2 1.3 Project Setting ................................................................................................................. 1-2 1.4 Tenure, Surface Rights, Royalties, and Agreements ...................................................... 1-2 1.5 Environment, Permitting, and Socio-Economics ............................................................. 1-3 1.6 Geology and Mineralization ............................................................................................. 1-3 1.7 Exploration ....................................................................................................................... 1-4 1.8 Exploration Potential........................................................................................................ 1-4 1.9 Drilling .............................................................................................................................. 1-4 1.10 Sample Preparation, Analysis, and Security ................................................................... 1-5 1.11 Data Verification .............................................................................................................. 1-6 1.12 Metallurgical Testwork ..................................................................................................... 1-7 1.13 Mineral Resource Estimation........................................................................................... 1-8 1.14 Mineral Resource Statement ........................................................................................... 1-9 1.15 Preliminary Economic Assessment ............................................................................... 1-10 1.15.1 2011 PEA...................................................................................................... 1-10 1.15.2 Proposed Mining Method.............................................................................. 1-10 1.15.3 Geotechnical Considerations........................................................................ 1-10 1.15.4 Dilution Considerations................................................................................. 1-11 1.15.5 Drilling and Blasting ...................................................................................... 1-11 1.15.6 Mine Development ........................................................................................ 1-11 1.15.7 Mineralized Material and Waste Haulage ..................................................... 1-12 1.15.8 Mine Services ............................................................................................... 1-12 1.15.9 Mine Production Forecasts ........................................................................... 1-13 1.15.10 Process Design ............................................................................................ 1-13 1.15.11 Tailings and Waste Management ................................................................. 1-14 1.15.12 Planned Project Infrastructure ...................................................................... 1-14 1.15.13 Markets ......................................................................................................... 1-15 1.15.14 Capital Costs ................................................................................................ 1-16 1.15.15 Operating Costs ............................................................................................ 1-17 1.15.16 Financial Analysis ......................................................................................... 1-18 1.15.17 Sensitivity Analysis ....................................................................................... 1-20 1.16 Interpretation and Conclusions ...................................................................................... 1-21 1.16.1 2012 Mineral Resource Estimate Update..................................................... 1-21 1.16.2 2011 PEA...................................................................................................... 1-22 1.16.3 Project Opportunities .................................................................................... 1-23 1.16.4 Project Risks ................................................................................................. 1-23 1.17 Recommendations......................................................................................................... 1-242.0 INTRODUCTION .......................................................................................................................... 2-1 2.1 Terms of Reference ......................................................................................................... 2-1 2.2 Qualified Persons ............................................................................................................ 2-1 2.3 Site Visits and Scope of Personal Inspection .................................................................. 2-1 2.4 Effective Dates ................................................................................................................ 2-2 2.5 Information Sources and References .............................................................................. 2-3Project No.: 168967 TOC i22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 2.6 Previous Technical Reports............................................................................................. 2-43.0 RELIANCE ON OTHER EXPERTS .............................................................................................. 3-1 3.1 Mineral Tenure ................................................................................................................ 3-1 3.2 Surface Rights ................................................................................................................. 3-1 3.3 Royalties and Agreements .............................................................................................. 3-1 3.4 Environmental, Permitting, and Liability Issues ............................................................... 3-2 3.5 Markets ............................................................................................................................ 3-24.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 4-1 4.1 Project Ownership ........................................................................................................... 4-1 4.2 Mineral Tenure ................................................................................................................ 4-1 4.3 Surface Rights ................................................................................................................. 4-4 4.4 Royalties and Agreements .............................................................................................. 4-4 4.5 Permits............................................................................................................................. 4-4 4.6 Environment .................................................................................................................... 4-4 4.7 Social and Community Impact ......................................................................................... 4-4 4.8 Comment on Section 4 .................................................................................................... 4-55.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ......................................................................................................................... 5-1 5.1 Accessibility ..................................................................................................................... 5-1 5.2 Climate............................................................................................................................. 5-1 5.3 Local Resources and Infrastructure ................................................................................ 5-2 5.4 Physiography ................................................................................................................... 5-2 5.5 Comment on Section 5 .................................................................................................... 5-36.0 HISTORY ...................................................................................................................................... 6-1 6.1 Pre-Commerce Exploration ............................................................................................. 6-1 6.2 Commerce Exploration .................................................................................................... 6-1 6.3 Commerce Mineral Resource Estimates ......................................................................... 6-27.0 GEOLOGICAL SETTING AND MINERALIZATION ..................................................................... 7-1 7.1 Regional Geology ............................................................................................................ 7-1 7.2 Project Geology ............................................................................................................... 7-3 7.2.1 Metasedimentary Rocks ................................................................................. 7-3 7.2.2 Gneisses and Schists ..................................................................................... 7-5 7.2.3 Amphibolites ................................................................................................... 7-6 7.2.4 Intrusive Rocks ............................................................................................... 7-6 7.2.5 Pegmatite Dykes .......................................................................................... 7-14 7.3 Structural Geology and Metamorphism ......................................................................... 7-14 7.4 Geochronology .............................................................................................................. 7-16 7.5 Carbonatites .................................................................................................................. 7-16 7.5.1 Fir Carbonatite .............................................................................................. 7-16 7.5.2 Verity Carbonatite ......................................................................................... 7-17 7.5.3 Exploration Targets ...................................................................................... 7-18 7.6 Mineralogy ..................................................................................................................... 7-20 7.6.1 Ferrocolumbite .............................................................................................. 7-20 7.6.2 Pyrochlore..................................................................................................... 7-21 7.6.3 Fersmite ........................................................................................................ 7-21 7.6.4 Fenite Mineralization .................................................................................... 7-21 7.6.5 Mineral Zoning .............................................................................................. 7-21Project No.: 168967 TOC ii22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 7.7 Comment on Section 7 .................................................................................................. 7-228.0 DEPOSIT TYPES ......................................................................................................................... 8-1 8.1 Comment on Section 8 .................................................................................................... 8-39.0 EXPLORATION ............................................................................................................................ 9-1 9.1 Grids and Surveys ........................................................................................................... 9-1 9.2 Geological Mapping ......................................................................................................... 9-1 9.3 Geochemical Sampling.................................................................................................... 9-1 9.3.1 Stream Sediment Sampling ............................................................................ 9-1 9.3.2 Soil Sampling .................................................................................................. 9-2 9.3.3 Rock Chip, Grab, and Channel Sampling ...................................................... 9-3 9.4 Bulk Sampling .................................................................................................................. 9-4 9.5 Research Programs......................................................................................................... 9-4 9.6 Comment on Section 9 .................................................................................................... 9-510.0 DRILLING ................................................................................................................................... 10-1 10.1 Core Drilling Strategy .................................................................................................... 10-4 10.1.1 Core Sizes .................................................................................................... 10-4 10.1.2 Collar Surveys .............................................................................................. 10-4 10.1.3 Down-Hole Surveys ...................................................................................... 10-5 10.1.4 Oriented Drill Core ........................................................................................ 10-5 10.1.5 Core Handling ............................................................................................... 10-5 10.1.6 Core Recovery .............................................................................................. 10-5 10.2 Drill Intercepts ................................................................................................................ 10-6 10.3 Comment on Section 10 ................................................................................................ 10-611.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ........................................................ 11-1 11.1 Sampling Methods ......................................................................................................... 11-1 11.2 Metallurgical Sampling .................................................................................................. 11-2 11.3 Density Determinations ................................................................................................. 11-2 11.3.1 Density Check Program................................................................................ 11-4 11.4 Analytical Laboratories .................................................................................................. 11-4 11.5 Sample Preparation and Analysis ................................................................................. 11-5 11.6 Quality Assurance and Quality Control ......................................................................... 11-5 11.6.1 Assessment of Precision .............................................................................. 11-6 11.6.2 Assessment of Accuracy ............................................................................ 11-12 11.6.3 Assessment of Laboratory Bias .................................................................. 11-16 11.6.4 Assessment of Contamination .................................................................... 11-18 11.6.5 Assay QA/QC Conclusions......................................................................... 11-24 11.7 Databases ................................................................................................................... 11-25 11.8 Security ........................................................................................................................ 11-25 11.9 Comment on Section 11 .............................................................................................. 11-2612.0 DATA VERIFICATION ................................................................................................................ 12-1 12.1 Database Verification .................................................................................................... 12-1 12.2 Site Visits ....................................................................................................................... 12-1 12.2.1 Drill Collar Location Check ........................................................................... 12-2 12.2.2 Inspection of Drill Core and Verification of Mineralization ............................ 12-2 12.3 Comment on Section 12 ................................................................................................ 12-413.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................................................. 13-1 13.1 Head Samples for Initial Testing ................................................................................... 13-2Project No.: 168967 TOC iii22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 13.2 Phase I Testing .............................................................................................................. 13-3 13.2.1 Grinding Size ................................................................................................ 13-3 13.2.2 Roughing and Cleaning Gravity Concentration ............................................ 13-3 13.3 Phase II Testing ............................................................................................................. 13-6 13.3.1 Flotation Tests .............................................................................................. 13-6 13.4 Phase III Testing............................................................................................................ 13-8 13.4.1 2011 and 2012 Work .................................................................................... 13-8 13.4.2 Review of Concentrate Treatment Options .................................................. 13-8 13.5 Accuracy of Assaying .................................................................................................... 13-9 13.6 Comment on Section 13 ................................................................................................ 13-914.0 MINERAL RESOURCE ESTIMATES ......................................................................................... 14-1 14.1 Introduction .................................................................................................................... 14-1 14.2 Assay Data and Capping ............................................................................................... 14-1 14.3 Composites .................................................................................................................... 14-1 14.4 Exploratory Data Analysis ............................................................................................. 14-2 14.5 Contact Analysis ............................................................................................................ 14-4 14.6 Variography ................................................................................................................... 14-7 14.7 Carbonatite Solid Modeling ........................................................................................... 14-7 14.8 Block Model Dimensions ............................................................................................... 14-7 14.9 Assignment of Lithology and Specific Gravity to Blocks ............................................... 14-8 14.10 Block Model Grade Estimate ......................................................................................... 14-8 14.11 Block Model Validation .................................................................................................. 14-9 14.11.1 Visual Validation ........................................................................................... 14-9 14.11.2 Global Grade Bias Check ........................................................................... 14-12 14.11.3 Local Grade Bias Check (Swath Plots) ...................................................... 14-12 14.11.4 Selectivity Check ........................................................................................ 14-14 14.12 In Situ Block Model Carbonatite Reconciliation........................................................... 14-16 14.13 Mineral Resource Classification .................................................................................. 14-16 14.14 Reasonable Prospects for Economic Extraction ......................................................... 14-19 14.14.1 Market Study............................................................................................... 14-19 14.14.2 Commodity Price ........................................................................................ 14-19 14.14.3 Physical Assumptions................................................................................. 14-19 14.14.4 Operational Considerations ........................................................................ 14-19 14.14.5 Economic Assumptions .............................................................................. 14-20 14.14.6 Economic Cut-Off ....................................................................................... 14-20 14.15 Mineral Resource Statement ....................................................................................... 14-21 14.16 Comparison of Mineral Resources .............................................................................. 14-23 14.17 Comment on Section 14 .............................................................................................. 14-2415.0 MINERAL RESERVE ESTIMATE .............................................................................................. 15-116.0 MINING METHODS .................................................................................................................... 16-1 16.1 Introduction .................................................................................................................... 16-1 16.2 Optimization ................................................................................................................... 16-1 16.2.1 Assumptions ................................................................................................. 16-1 16.2.2 Mining Method .............................................................................................. 16-2 16.2.3 Mineral Resources considered for the 2011 PEA ........................................ 16-3 16.2.4 Production Rate ............................................................................................ 16-4 16.3 Geotechnical Conditions................................................................................................ 16-4 16.4 Conceptual Mining Method ............................................................................................ 16-5Project No.: 168967 TOC iv22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 16.4.1 Backfill Considerations ................................................................................. 16-5 16.5 Stoping Design .............................................................................................................. 16-6 16.5.1 Stability Analysis and Ground Support ......................................................... 16-6 16.5.2 Stope Geometry ........................................................................................... 16-7 16.5.3 Mining Sequence .......................................................................................... 16-7 16.5.4 Conceptual Mine Design .............................................................................. 16-7 16.5.5 Mining Dilution and Recovery ....................................................................... 16-7 16.6 Drilling and Blasting ....................................................................................................... 16-7 16.7 Mine Development......................................................................................................... 16-8 16.8 Mineralized Material and Waste Rock Haulage ............................................................ 16-9 16.9 Mine Services .............................................................................................................. 16-12 16.10 Mine Development and Production Forecasts ............................................................ 16-12 16.11 Mine Equipment Requirements ................................................................................... 16-14 16.12 Mine Infrastructure....................................................................................................... 16-14 16.13 Mining Personnel ......................................................................................................... 16-14 16.14 Comment on Section 16 .............................................................................................. 16-1417.0 RECOVERY METHODS ............................................................................................................ 17-1 17.1 Introduction .................................................................................................................... 17-1 17.2 Plant Design .................................................................................................................. 17-1 17.3 Comminution (Crushing, Storage, and Grinding) .......................................................... 17-2 17.4 De-Sliming and Flotation ............................................................................................... 17-3 17.5 Filtration ......................................................................................................................... 17-3 17.6 Concentrate Pre-Treatment ........................................................................................... 17-3 17.7 Chlorination and Distillation ........................................................................................... 17-4 17.8 Product / Materials Handling ......................................................................................... 17-4 17.9 Energy, Water, and Process Materials Requirements .................................................. 17-4 17.10 Comment on Section 17 ................................................................................................ 17-418.0 PROJECT INFRASTRUCTURE ................................................................................................. 18-1 18.1 Introduction .................................................................................................................... 18-1 18.2 Site Layout ..................................................................................................................... 18-1 18.3 Buildings ........................................................................................................................ 18-1 18.3.1 Mine Service Building ................................................................................... 18-1 18.3.2 Truck Shop ................................................................................................... 18-3 18.3.3 Warehouse ................................................................................................... 18-3 18.3.4 Process Building ........................................................................................... 18-3 18.3.5 Crushing and Screening Circuit .................................................................... 18-3 18.3.6 Portal Infrastructure ...................................................................................... 18-4 18.3.7 Explosives Storage ....................................................................................... 18-4 18.3.8 Aggregate Crushing and Concrete Batch Plants.......................................... 18-4 18.4 Roads and Logistics ...................................................................................................... 18-4 18.4.1 Access Road................................................................................................. 18-4 18.4.2 Haul Road ..................................................................................................... 18-5 18.5 Co-Disposal Storage Facilities ...................................................................................... 18-5 18.5.1 Drystack Considerations............................................................................... 18-5 18.5.2 Evaluation of Potential Sites ......................................................................... 18-6 18.5.3 Site Selection ................................................................................................ 18-7 18.5.4 Facility Design .............................................................................................. 18-8 18.5.5 Co-Disposal Facility Geohazards Considerations ........................................ 18-9 18.5.6 Co-Disposal Facility Stability Considerations ............................................... 18-9Project No.: 168967 TOC v22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 18.5.7 Co-Disposal Facility Surface Water Run-Off Considerations ..................... 18-10 18.5.8 Co-Disposal Facility Closure Considerations ............................................. 18-11 18.6 Avalanche Hazard ....................................................................................................... 18-11 18.7 Water Supply, Distribution, and Treatment Systems .................................................. 18-11 18.8 Waste Considerations ................................................................................................. 18-12 18.9 Accommodation ........................................................................................................... 18-12 18.10 Power and Electrical .................................................................................................... 18-12 18.11 Fuel .............................................................................................................................. 18-13 18.12 Comment on Section 18 .............................................................................................. 18-1319.0 MARKET STUDIES AND CONTRACTS .................................................................................... 19-1 19.1 Introduction .................................................................................................................... 19-1 19.2 2011 PEA Market Studies ............................................................................................. 19-1 19.3 2011 PEA Commodity Price .......................................................................................... 19-1 19.3.1 Tantalum ....................................................................................................... 19-1 19.3.2 Niobium......................................................................................................... 19-2 19.4 Price Assumption Discussion ........................................................................................ 19-2 19.5 Comment on Section 19 ................................................................................................ 19-420.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ....... 20-1 20.1 Environmental Assessment for Mining Projects ............................................................ 20-1 20.2 Project Studies .............................................................................................................. 20-2 20.3 Environmental Setting and Review of Environmental Baseline .................................... 20-3 20.4 Closure Considerations ................................................................................................. 20-9 20.5 Current Environmental Liabilities ................................................................................. 20-10 20.6 2011 PEA Closure Plan ............................................................................................... 20-10 20.7 Permitting..................................................................................................................... 20-10 20.8 Considerations of Social and Community Impacts ...................................................... 20-12 20.8.1 First Nations................................................................................................ 20-13 20.8.2 Local Communities ..................................................................................... 20-14 20.9 Comment on Section 20 .............................................................................................. 20-1421.0 2011 PEA CAPITAL AND OPERATING COSTS ....................................................................... 21-1 21.1 2011 PEA Basis of Estimate ......................................................................................... 21-1 21.2 2011 PEA Capital Costs ................................................................................................ 21-1 21.2.1 Infrastructure................................................................................................. 21-1 21.2.2 Material Handling .......................................................................................... 21-2 21.2.3 Process Plant................................................................................................ 21-2 21.2.4 Mining ........................................................................................................... 21-2 21.2.5 Contingency Costs ....................................................................................... 21-3 21.2.6 Indirect Costs ................................................................................................ 21-3 21.2.7 Sustaining Capital ......................................................................................... 21-4 21.2.8 Mine Closure................................................................................................. 21-4 21.2.9 Capital Cost Estimate Summary................................................................... 21-4 21.2.10 2011 PEA Operating Costs .......................................................................... 21-5 21.2.11 Capital and Operating Cost Discussion ........................................................ 21-6 21.3 Comment on Section 21 ................................................................................................ 21-622.0 2011 PEA ECONOMIC ANALYSIS ............................................................................................ 22-1 22.1 2011 PEA Valuation Method ......................................................................................... 22-1 22.2 2011 PEA Financial Model Parameters ........................................................................ 22-2 22.2.1 Mineral Resources and Mine Life ................................................................. 22-2Project No.: 168967 TOC vi22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 22.2.2 Metallurgical Process ................................................................................... 22-2 22.2.3 Commodity Prices and Foreign Exchange ................................................... 22-2 22.2.4 Taxes ............................................................................................................ 22-2 22.2.5 PEA Financial Results .................................................................................. 22-4 22.2.6 2011 PEA Cash Costs .................................................................................. 22-4 22.2.7 2011 PEA Sensitivity Analysis ...................................................................... 22-6 22.2.8 Financial Analysis Discussion ...................................................................... 22-7 22.3 Comment on Section 22 ................................................................................................ 22-723.0 ADJACENT PROPERTIES ........................................................................................................ 23-124.0 OTHER RELEVANT DATA AND INFORMATION ..................................................................... 24-125.0 INTERPRETATION AND CONCLUSIONS ................................................................................ 25-1 25.1 Mineral Resource Update (Effective Date 22 June 2012) ............................................. 25-1 25.2 2011 PEA ...................................................................................................................... 25-2 25.2.1 Opportunities ................................................................................................ 25-3 25.2.2 Risks ............................................................................................................. 25-426.0 RECOMMENDATIONS .............................................................................................................. 26-127.0 REFERENCES ........................................................................................................................... 27-1TABLESTable 1-1: Blue River Project Estimated Mineral Resources; Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified Person ...................................................................... 1-9Table 1-2: Summary of Estimated Capital Costs .............................................................................. 1-17Table 1-4: Summary Financial Analysis at Various Discount Rates (base case is highlighted) ....... 1-19Table 2-1: Site Visit and Areas of Report Responsibilities .................................................................. 2-2Table 6-1: Blue River Exploration History Summary ........................................................................... 6-1Table 9-1: Soil Sample Campaigns ..................................................................................................... 9-2Table 9-2: Rock Sample Campaigns................................................................................................... 9-3Table 10-1: Drill Campaign Summary ................................................................................................. 10-2Table 10-2: Upper Fir Deposit Trench and Bulk Samples................................................................... 10-2Table 10-3: Example Drill Hole Intercept Summary Table .................................................................. 10-7Table 11-1: 2005 – 2010 Specific Gravity Determinations by Campaign ........................................... 11-3Table 11-2: 2005 – 2010 Specific Gravity Constants .......................................................................... 11-3Table 11-3 Control Sample Insertion Rate Summary ........................................................................ 11-7Table 11-4: Cumulative Frequency ARD Summary for Tantalum ....................................................... 11-8Table 11-5: Cumulative Frequency ARD Summary for Niobium ........................................................ 11-9Table 11-6: Cumulative Frequency ARD Summary for Tantalum (Mean > than 50 ppm Ta) ............. 11-9Table 11-7: 2010 Nb XRF(F) Blue River SRM Control Chart Summary ........................................... 11-16Table 11-8: 2010 Ta XRF(F) Blue River SRM Control Chart Summary ........................................... 11-16Table 11-9: Pulp Check Between-Laboratory Bias ........................................................................... 11-17Table 12-1: AMEC Site Visit Confirmation of Mineralization ............................................................... 12-3Table 13-1: Head Assay Grades, Bulk Samples BS-2F and BS-2G................................................... 13-3Table 13-2: Results from F81 .............................................................................................................. 13-7Table 13-3: Results of a Sequential Hydrochloric Acid Leach of Flotation “Middling” ........................ 13-8Project No.: 168967 TOC vii22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 14-1: Capped Assays vs. 2.5 m Composites Statistics inside Carbonatites ............................. 14-1Table 14-2: Composite Statistics in Carbonatite ................................................................................. 14-2Table 14-3: Ta2O5 and Nb2O5 Correlogram Parameters in Carbonatite ............................................. 14-7Table 14-4: Block Model Dimensions .................................................................................................. 14-8Table 14-5: Estimation Parameters for Ta2O5 and Nb2O5 ................................................................... 14-9Table 14-6: Mean Grades for NN and ID3 Models............................................................................ 14-12Table 14-7: Blue River Project Estimated Mineral Resources; Effective Date 22 June, 2012, Tomasz Postolski, P.Eng, Qualified Person .................................................................. 14-22Table 14-8: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price; Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified Person ................... 14-23Table 16-1: Minimum Stope Dimensions for Constraining the Subset of Mineral Resources within Designed Stopes .............................................................................................................. 16-2Table 16-2: Blue River Project Estimated Mineral Resources Supporting 2011 PEA; Effective Date 29 September 2011, Tomasz Postolski, P.Eng., Qualified Person.................................. 16-3Table 16-3: Rock Mass Characteristics by Rock Group ..................................................................... 16-4Table 16-4: Major Joint Sets ............................................................................................................... 16-5Table 16-5: Stope Faces and Hydraulic Radius .................................................................................. 16-6Table 16-6: Mine Development and Production Forecasts ............................................................... 16-13Table 16-7: Mining and Tailings Facility Equipment Requirements .................................................. 16-15Table 16-8: Mining Personnel Requirements .................................................................................... 16-16Table 20-1: Provincial Permits, Approvals, Licences, and Authorizations ........................................ 20-11Table 20-2: Federal Permits, Approval, Licences, and Authorizations ............................................. 20-11Table 21-1: Summary of Estimated Capital Costs (CAD, 2011 constant dollars) ............................... 21-5Table 21-2: Average Life-of-Mine Operating Cost Summary (CAD, 2011 constant dollars) .............. 21-5Table 22-1: Summary Financial Analysis at Various Discount Rates ................................................. 22-4Table 22-3: Sensitivity Summary in CAD, 8% Discount Rate ............................................................. 22-6Table 26-1: Recommendations Summary ........................................................................................... 26-1FIGURESFigure 1-1: Sensitivity Summary, 8% Discount Rate.......................................................................... 1-21Figure 4-1: Project Location Map ......................................................................................................... 4-2Figure 4-2: Blue River Mineral Tenure Map ......................................................................................... 4-3Figure 7-1: Tectonic Belts of British Columbia and Carbonatite Occurrences ..................................... 7-2Figure 7-2: Blue River Project Local Geology Map .............................................................................. 7-4Figure 7-3: Blue River Local Geology Legend (for Figure 7-2) ............................................................ 7-5Figure 7-4: Deposit Area Surface Geology Map .................................................................................. 7-7Figure 7-5: Drill Collar and Vertical Section Locations ......................................................................... 7-8Figure 7-6: Longitudinal Section A – A’ (view SE)................................................................................ 7-9Figure 7-7: Geology Section 5796740 N ............................................................................................ 7-10Figure 7-8: Geology Section 5796425 N ............................................................................................ 7-11Figure 7-9: Fold Indicators (Hole F08-150: 121.8 m to 129.8 m) ....................................................... 7-13Figure 7-10: Fold Indicators (Hole F08-150: 143.5 m and 147.0 m) .................................................... 7-13Figure 7-11: Fold Indicators (Hole F08-151: 204.0 m to 204.5 m) ....................................................... 7-14Figure 7-12: Exploration Target Location Surface Map........................................................................ 7-19Project No.: 168967 TOC viii22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateFigure 10-1: Drill Collar Plan ................................................................................................................ 10-3Figure 11-1: 2005 to 2008 Quarter-Core Duplicate Pair Cumulative Frequency ARD Chart............... 11-8Figure 11-2: 2010 Drill Core Assay Program Cumulative Frequency ARD Chart .............................. 11-10Figure 11-3: 2009 Re-assay Program Ta XRF(F) Cumulative Frequency ARD Chart ...................... 11-11Figure 11-4: 2009 Re-assay Program Nb XRF(F) Cumulative Frequency ARD Chart ...................... 11-11Figure 11-5: 2005 to 2008 Ta ICP-MS BR-01 SRM Control Chart .................................................... 11-13Figure 11-6: 2005 to 2008 Nb ICP-MS BR-01 SRM Control Chart .................................................... 11-13Figure 11-7: 2009 Ta XRF(F) Blue River SRMs Control Chart ......................................................... 11-14Figure 11-8: 2009 Nb XRF(F) Blue River SRMs Control Chart .......................................................... 11-15Figure 11-9: 2010 Acme versus Stark Nb XRF(F) Check Pair RMA Chart ........................................ 11-18Figure 11-10: 2005 – 2008 Blank Ta ICP-MS Performance Chart ...................................................... 11-19Figure 11-11: 2005 - 2008 Blank Nb ICP-MS Performance Chart .................................................... 11-20Figure 11-12: 2009 Ta XRF(F) Blank Performance Chart.................................................................... 11-21Figure 11-13: 2009 Nb XRF(F) Blank Performance Chart ................................................................... 11-22Figure 11-14: 2010 Ta XRF(F) Blank Performance Chart.................................................................... 11-23Figure 11-15: 2010 Nb XRF(F) Blank Performance Chart ................................................................... 11-24Figure 13-1: Sample BS-2F – Gravity Separation (Different Grinds) ................................................... 13-4Figure 13-2: Sample BS-2G – Gravity Separation (Different Grinds) .................................................. 13-5Figure 13-3: Overall Rougher and Cleaner Recovery vs Grade by Centrifugal Gravity Concentration 13-5Figure 13-4: Upgrading by Wilfley and Mozley Units ........................................................................... 13-6Figure 14-1: Ta2O5 Histograms and Probability Plot within Carbonatite .............................................. 14-3Figure 14-2: Nb2O5 Histograms and Probability Plot within Carbonatite .............................................. 14-4Figure 14-3: Ta2O5 Contact Plots between Carbonatite and Fenite ..................................................... 14-5Figure 14-4: Nb2O5 Contact Plots between Carbonatite and Fenite .................................................... 14-6Figure 14-5: Ta2O5 ID3 Model within Carbonatite – Plan 1,146.25 .................................................... 14-10Figure 14-6: Ta2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 ...................................... 14-10Figure 14-7: Nb2O5 ID3 Model within Carbonatite – Plan 1,146.25 ................................................... 14-11Figure 14-8: Nb2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 ...................................... 14-11Figure 14-9: Swath Plot for Ta2O5 ID3 Model ..................................................................................... 14-13Figure 14-10: Swath Plot for Nb2O5 ID3 Model..................................................................................... 14-13Figure 14-11: Herco Grade – Tonnage Curves for Ta2O5 ID3 Model ................................................... 14-15Figure 14-12: Herco Grade – Tonnage Curves for Nb2O5 ID3 Model .................................................. 14-15Figure 14-13: Resource Classification – Plan 1,161.25 ....................................................................... 14-18Figure 14-14: Resource Classification – Section N 5,796,882.5 .......................................................... 14-18Figure 16-1: Conceptual Mine Layout Plan (plan view projection) ..................................................... 16-10Figure 16-2: Aerial View of the Mining Area from Upper Portal ......................................................... 16-11Figure 17-1: Concentration and Refining of Blue River Mineralization ................................................ 17-2Figure 18-1: Proposed Site Layout Plan............................................................................................... 18-2Figure 19-1: Ta Price Trend ................................................................................................................. 19-3Figure 19-2: Nb Price Trend ................................................................................................................. 19-4Figure 22-1: Sensitivity Summary in CAD, 8% Discount Rate ............................................................. 22-7Project No.: 168967 TOC ix22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateAPPENDICESA p p e n d i x A : List of ClaimsProject No.: 168967 TOC x22 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.0 SUMMARY1.1 Terms of Reference AMEC Americas Limited (AMEC) was commissioned by Commerce Resources Corporation (Commerce) to prepare a NI 43-101 compliant Mineral Resource update and technical report (the Report) on the wholly-owned Blue River tantalum–niobium Project (the Project), located within the North Thompson River valley of east–central British Columbia (B.C.), Canada. This technical report supports the findings of the Mineral Resource update and also includes summaries from a Preliminary Economic Assessment study completed on the Blue River Project with an effective date 29 September 2011 (2011 PEA). Results from the 2011 PEA mining studies have not changed in terms of their outcomes as their underlying assumptions remain reasonable.1.2 Key Outcomes1.2.1 Mineral Resource Update The key findings of the Mineral Resource update (effective date 22 June 2012) are summarized as follows:  Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5  Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5 The Mineral Resource update uses the same assumptions from the 2011 PEA for the following items:  Ta and Nb metal prices  Mining method and mining extraction factor  Processing method and recovery factor  CAPEX and OPEX costs  Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t for the selective mining method. The Mineral Resources have significantly increased in tonnage mostly due to a reduction in the block unit value cut-off by eliminating back-fill costs and, to a lesser extent, additional infill diamond drilling.Project No.: 168967 Page 1-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.2.2 2011 PEA Outcomes From the 2011 PEA, the following work and outcomes are considered to remain reasonable as their underlying assumptions have not changed.  Estimated Internal rate of return: 9.1% (before tax)  Estimated Net present value: CAD$18.5 million at 8% discount rate (before tax)  Estimated Payback: 6.3 years  Average diluted grade in the conceptual mine plan to the mill: 185 ppm Ta2O5 and 1,591 ppm Nb2O5  Conceptual Operating cost: CAD$38.44/t milled (mining ~ 55% of operating cost)  Conceptual Capital cost: CAD$379 million (process ~ 31% of initial capital cost)  Proposed product: High purity Ta and Nb chloride product that is suitable for several markets  Conceptual Mine Life: 10 years based upon the mineral resources (effective date 29 September 2011) defined using information to the end of 2009 drilling  NPV Sensitivity: The Upper Fir deposit is most sensitive to changes in exchange rate, commodity prices, and mining costs The above key outcomes contain forward looking information. The assumptions and risks regarding those assumptions are summarized and explained in more detail in Sections 1.15, and 1.16 of the Report.1.3 Project Setting The Blue River Project is situated 250 km north of the city of Kamloops, approximately 90 km south of the town of Valemount and 23 km north of the community of Blue River, in the North Thompson River valley of east–central British Columbia. The property is accessed from BC Highway 5 (Yellowhead Highway) via a 4 km well-groomed gravel road. Within the Project area, access is by forestry service and logging roads or by helicopter.1.4 Tenure, Surface Rights, Royalties, and Agreements The Project comprises 249 two-post claim, four-post claim, and mineral cell title submission (MCX) claims in good standing that encompass just over 1,000 km2 (105,195 ha) within the Kamloops Mining Division. These claims are wholly-owned by Commerce. Currently, all of the mineral claims are valid until 31 March 2021. All but two of the mineral claims are on Crown land.Project No.: 168967 Page 1-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update There are surveyed parcels along the western edge of the property with surface rights held by other parties which overlap the property mineral tenure claims. Commerce is not aware of any material issues that would prevent negotiation for access or surface rights of these surveyed parcels should they be required in the future. The overlapped claims do not host mineral resources, and currently no carbonatites are known within these claims. There are no known royalties, back-in rights, agreements, or encumbrances attributed to the claims.1.5 Environment, Permitting, and Socio-Economics Commerce has been pro-active with regard to environmental and socioeconomic issues. Environmental monitoring, baseline studies and site investigations have been ongoing at the Blue River Project site since the summer season of 2006. Kinetic test work for acid rock drainage and metals leaching was initiated in 2010. Additional environmental baseline programs are expected to continue, as required through 2012. First Nations engagement, with respect to exploration activities, began in 2007, and will continue for the duration of the Project. The Blue River Project lies on lands which comprise part of the traditional territory of the Simpcw First Nation. First Nations engagement, with respect to exploration activities, began in 2007. Public engagement to date has included meetings with local councils and informal discussions with local land-owners.1.6 Geology and Mineralization The Blue River deposit is hosted within polyfolded carbonatite rocks. The carbonatites intrude Late Proterozoic supracrustal rocks which lie on the north-eastern margin of the Shuswap Metamorphic Complex within the Omineca terrane. The Blue River carbonatites are hosted in the Mica Creek assemblage of the Horsethief Creek Group. Two units of the Mica Creek assemblage underlie much of the Project area. Carbonatites were emplaced as dikes or sills into the metasedimentary host rocks prior to regional deformation and metamorphism. Regional deformation has folded the carbonatite and its host rocks. Contacts between carbonatite and the host metasediments are typically sharp and mantled by zones of metasomatized host rock, known as fenite. The carbonatite has average thicknesses of 30 m, ranging between 5 m to about 90 m thick, and with strike lengths ranging between 50 m to 1,100 m. Both dolomitic carbonatites and calcitic carbonatite occur at Blue River.Project No.: 168967 Page 1-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Mineralization comprises niobium- and tantalum-bearing minerals that have crystallized in carbonatite by primary magmatic concentration and in fenite. Primary economic minerals, with their generic end-member formulae, are ferrocolumbite ((Fe,Mn,Mg)(Nb,Ta)2O6,) and pyrochlore ((Ca,Na,U)2(Nb,Ti,Ta)2O6(OH,F)). In the opinion of the QPs, knowledge of the deposit setting, lithologies, structural and alteration controls on mineralization, and mineralization style are sufficient to support mineral resource estimation.1.7 Exploration The Blue River area has been the subject of intermittent exploration since the discovery of vermiculite-bearing carbonatite rock in 1949. Since Project acquisition in 2000, Commerce has completed surface mapping, trenching, soil, rock chip, grab and channel sampling, core drilling, metallurgical testing, bulk sampling, environmental baseline studies, mineral resource estimation, and a PEA on the Project. In the opinion of the QPs, the exploration programs completed to date are appropriate to the style of the deposits and prospects within the Project. The exploration and research work supports the genetic and affinity interpretations.1.8 Exploration Potential The Upper Fir carbonatite has exploration potential directly northward of known deposit extents based on soil sample results. Additional resource definition drilling is warranted. The Bone Creek and Fir carbonatites have additional exploration potential along and across strike, based on soil sample anomalies. Additional in-fill soil sampling is warranted prior to diamond drilling to assess for potential connections with the Upper Fir carbonatite. In addition, Commerce has identified numerous tantalum-in-soil anomalies from geochemical programs that require follow up. In the opinion of the QPs, the Project retains significant exploration potential for additional carbonatite-hosted tantalum–niobium mineralization.1.9 Drilling AMEC received a drilling database from Commerce that had a database closure date of 29 September 2011. The database comprises a total of 269 core drill holes withinProject No.: 168967 Page 1-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update the Upper Fir, Bone Creek and Fir (Lower) carbonatites consisting of 54,065 m of HQ (63.5 mm) diameter core. Of the 269 core drill holes, 237 drill holes totalling 50,395 m of HQ diameter core, and 12,736 samples are used to support the Mineral Resource update. Six geotechnical drill holes comprising 1,271 m of HQ diameter oriented core were completed during 2010. In addition, optical and acoustic televiewer oriented core surveys were completed for two 2010 holes, four pre-2010 holes, and eighteen 2011 campaign holes during 2010 and 2011. Core recovery is very good within the waste and carbonatite rocks (typically >95%). The only area that may have core recovery issues would be within the fenite rocks located in the immediate hanging wall to the carbonatite. Core sampling methods and approaches have been consistent through the 2005 to 2011 drill programs and the protocols are consistent with industry standard. In the opinion of the QPs, the quantity and quality of the collar, down-hole survey, lithology, and geotechnical data collected in the exploration and infill drill programs completed by Commerce are sufficient to support mineral resource estimation.1.10 Sample Preparation, Analysis, and Security Drill hole samples were collected from an area approximately 1,600 m north–south by 1,000 m east-west. Average spacing between drill-hole intercepts in the Mineral Resource area varies from 40 to 50 m. Commerce regularly collected specific gravity measurements at 3 m core intervals using a water immersion method. Check sampling from field-collected core samples was completed by Met Solve Laboratories of Burnaby, B.C. for the 2005 – 2009 campaigns with good correlation to the field measurements recorded in the exploration database. Check specific gravity determinations for the 2010 campaign have yet to be completed. The entire carbonatite intersection and shoulder samples on each side of the intersection are sampled; samples are typically 1 m in length and geological contacts are generally respected. Half core is sent for analysis. Acme Analytical Laboratories (Acme) in Vancouver was the primary laboratory for sample preparation of the 2005 to 2008 drill core samples. Acme is an independent mineral testing laboratory registered under ISO 9001.Project No.: 168967 Page 1-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update PRA / Inspectorate Laboratories (Inspectorate) in Richmond, B.C., is the primary sample preparation laboratory for the 2009 to 2011 drill core samples. Inspectorate is also an independent mineral testing laboratory that reportedly works to internationally- recognized standards such as ISO and ASTM. The Inspectorate-Vancouver laboratory received ISO9001:2000 accreditation in 2006 and 2009. Acme has been the primary analytical laboratory since 2005 up to and including 2011 drill core samples. In October 2011 the Acme-Vancouver laboratory received formal approval of its ISO/IEC 17025:2005 accreditation. Sample preparation for samples that support the Mineral Resource estimate has followed a similar procedure for all of Commerce’s drill programs. The preparation procedure is consistent with industry-standard methods for sampling within carbonatite deposits. Analyses were completed at Acme Analytical Laboratories. Between 2005 and 2008, Ta and Nb were analysed by ICP-MS following a lithium metaborate / tetraborate fusion and nitric acid digestion. Analysis in 2009 and 2010 was by X-Ray fluorescence methods following a lithium metaborate fusion XRF(F) and ICP methods. Overall, the drill programs included insertion of blank, duplicate and standard reference material samples at a rate that meets industry-accepted standards of insertion rates. AMEC concludes the Blue River sample results show imprecision but no consistent bias and that the ICP-MS results from 2005 to 2008, and the XRF(F) results supporting the 2009 and 2010 drilling are suitable for use in mineral resource estimation. Caution should be applied in assigning a high level of confidence to the pre-2010 tantalum and niobium analytical results until precision and accuracy issues are resolved. Independent data audits have been conducted, and indicate that the sample collection and database entry procedures are acceptable. Sample security, storage facilities, and chain of custody procedures are consistent with industry standards. The QPs are of the opinion that the quality of the specific gravity, tantalum and niobium analytical data are sufficiently reliable to support mineral resource estimation and that sample preparation, analysis, and security are generally performed in accordance with exploration best practices and industry standards.1.11 Data Verification Based on site visit inspections, data quality checks, and a minimum 5% database verification completed by AMEC, the QPs are of the opinion that the collar coordinates,Project No.: 168967 Page 1-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update down-hole surveys, lithologies, and assay data are considered sufficiently free of error and that the data quality are suitable to support mineral resource estimation.1.12 Metallurgical Testwork Testwork began in 2009 and continued into 2010 to develop a process flowsheet for the Blue River Project. The testwork was based on material produced from two bulk samples, BS-2F and BS–2G. Mineralogical analysis was performed to obtain knowledge regarding the occurrence of the tantalum and niobium within the material. The testwork to date has primarily taken place in three phases:  Phase I – focused on the recovery of the tantalum–niobium minerals by gravity although grinding and mineralogy investigations were also performed.  Phase II – focused on the recovery and upgrading of the tantalum–niobium minerals by flotation.  Phase III – continued optimization of the process flowsheet for the production of a tantalum-niobium mineral concentrate. Phase I that showed gravity could concentrate the material to a low-grade product, but that upgrading increasingly gave lower levels of metallurgical recovery as grade was sought. Work in Phase II saw the use of flotation concentration technology similar to that being used for niobium-bearing carbonatites at Iamgold’s Niobec Mine in Quebec, Canada. There was immediate success in the first phases of the work. Although there are several stages to the concentration, the overall level of equipment, risk, and complexity to produce a saleable or treatable concentrate is lower than the gravity route. In the opinion of the QPs, the following conclusions are applicable:  Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are amenable to conventional flotation and proven refining processes with estimated recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22 of this Report, it was assumed that the process plant will have a 65% recovery for Ta and 69% recovery for Nb in the flotation stage.  The metallurgical testwork has shown that it is possible to collect the tantalum and niobium minerals into a concentrate suitable for extraction of the metals into saleable products. The first step of the process uses typical grinding followed by flotation. There is confidence that the secondary treatment or metal extraction ofProject No.: 168967 Page 1-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update the material is possible by an existing method such as aluminothermic reduction followed by chlorine refining. These results are suitable to support estimation of mineral resources for the deposits.1.13 Mineral Resource Estimation The resource model was constructed inside carbonatite using 237 diamond drill holes totalling 50,395 m of HQ diameter core and 12,736 samples. Geological interpretations were provided by Commerce to AMEC in the form of electronic 3D solid wireframes. Capped drill core assays were composited down the hole to a fixed length of 2.5 m respecting lithological boundaries. Exploratory data analysis (EDA) was performed on the composites. The coefficients of variation are low and support the use of linear grade interpolation methods such as inverse distance methods. Blocks within in the model were coded by lithology solids. Specific gravity values were assigned by lithological unit. Ta2O5 and Nb2O5 grades were estimated in the carbonatite using an inverse distance to the power of 3 (ID3) interpolation method. A four-pass interpolation approach was used with each successive pass having greater search distances. The block model grades were validated by visual inspection comparing composites to block grades on-screen, declustered global statistics checks, local biases checks using swath plots, and finally model selectivity checks. No issues were identified that would materially affect the Mineral Resource update. The current mineral resource classification at Blue River is restricted to Indicated or Inferred based on the following:  Confidence limits drill hole spacing studies  Concerns over analytical precision and provisional accuracy for the sample dataset from 2005 to 2009  Required metallurgical testwork on the final stage of the proposed metallurgical process is still ongoing to support proof-of–concept. To assess reasonable prospects for economic extraction, the updated Mineral Resources have been constrained using a “Stope Analyzer”. AMEC assumed that the Blue River deposit would be mined utilizing self-supported, underground bulk mining methods under a conceptual scenario that considers mining and processing at a rate of 7,500 tonnes per day. Mining and economic parameters applied were based on theProject No.: 168967 Page 1-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 2011 PEA assumptions which are still considered reasonable by the AMEC QPs. Since the block unit value is estimated using commodity prices expressed in US dollars, the costs and assumptions are also in US dollars.1.14 Mineral Resource Statement The Mineral Resource update is classified in accordance with the 2010 CIM Definition Standards for Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. The Mineral Resource update with effective date 22 June 2012 is summarized in Table 1-1. Table 1-1: Blue River Project Estimated Mineral Resources; Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified Person Contained Contained Ta price Confidence Ta2O5 Nb2O5 Ta2O5 Nb2O5 [US$/kg] Category Tonnes [ppm] [ppm] [1000s of kg] [1000s of kg] 317 Indicated 51,780,000 192 1,490 9,930 76,900 Inferred 8,800,000 186 1,660 1,600 14,600 Notes: 1. Assumptions include commodity prices of US$317/kg Ta, US$46/kg Nb, process recoveries of 65.4% for Ta2O5 and 68.2% for Nb2O5, US$24/tonne mining cost, US$13/tonne process and refining cost, US$3/tonne G&A cost. 2. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyzer” 3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to US$58/t (selective) 4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is included 5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding. The Mineral Resources used for 2011 PEA were those with an effective date of 29 September 2011 as follows:  Indicated: 36.35 million tonnes at 195 ppm Ta2O5 and 1,700 ppm Nb2O5  Inferred: 6.4 million tonnes at 199 ppm Ta2O5 and 1,890 ppm Nb2O5. There is a considerable increase in resource tonnes for the current Mineral Resource update relative to the 29 September 2011 tonnage estimate where the Indicated category has increased by 42% and the Inferred category by 37%. This increase in tonnes is mostly due to (1) lowering the bulk mining method block unit value cut-off from US$52/t to US$40/t by eliminating backfill costs and, to a lesser extent, (2) additional infill diamond drilling.Project No.: 168967 Page 1-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.15 Preliminary Economic Assessment1.15.1 2011 PEA This section incorporates assumptions, analysis and findings of the Preliminary Economic Assessment that has an effective date of 29 September 2011. The preliminary mine plan presented in this section is partly based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment based on these Mineral Resources will be realized. The information relevant to the preliminary mine plan, prepared during the 2011 PEA, is included in this section and has not been updated because AMEC considers that the assumptions supporting the outcomes remain reasonable. In a similar manner, AMEC’s opinion is that the assumptions made with respect to infrastructure, recovery methods, estimation of capital and operating costs, marketing studies and metal price assumptions and the resulting financial analysis remain reasonable. The effective date of the 2011 PEA results therefore remains 29 September 2011.1.15.2 Proposed Mining Method The 2011 PEA was developed assuming a sub-level open stoping mining method with no backfill and no pillar recovery. In agreement with Commerce, a processing rate of 7,500 t/d was assumed for Mineral Resource estimation and for the conceptual design of an underground mine for the Blue River Project. Price assumptions used in mine planning were US$317/kg tantalum metal and US$46/kg niobium metal contained in oxide product.1.15.3 Geotechnical Considerations Rock types of the Blue River Project have been grouped into two main geotechnical domains: Intrusive and Layered Rocks. The Intrusive group encompass carbonatite and fenite rocks, while the Layered Rocks group encompass gneiss and amphibolite rocks. Generally, the rock mass ratings (RMR) indicated rock that can be considered to be “good” in RMR terms.Project No.: 168967 Page 1-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.15.4 Dilution Considerations Material deemed to be mined by bulk mining methods represents 84% of the resources. Within the mineable shapes there was internal dilution of 2% waste rock. It was assumed that during mining 2% of waste material would be added as external dilution and 2% of the broken material would not be recovered from the stopes due to operational conditions. The geotechnical investigation indicates that an extraction ratio of 67.5% is reasonable. Applying this to the subset of the Mineral Resources considered in the mine plan results in an overall mining extraction of 58% and provides 25.0 Mt of material as run-of-mine (ROM) production to be processed. Applying internal and external mining dilution, the overall subset Mineral Resource grades were diluted to 185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for mine planning purposes.1.15.5 Drilling and Blasting AMEC considered the implementation of conventional drilling methods. Due to the high precipitation in the region and water continuity along fractures and rock layers, wet conditions were assumed for development and stoping areas. The use of bulk- blasting systems based on emulsion type explosives was assumed.1.15.6 Mine Development The deposit will be accessed through two main portals, the Upper and Lower Portals; these portals are located in places where the deposit crops out on the hillside. The Upper Portal will be located at Elevation 1,150 m. It will be used as the main entry and will have most of the mine services; the Lower Portal will be located at Elevation 1,030 m and will be used for haulage trucks access. Access to the portals will be by a road upgraded from existing exploration roads. The mine will be accessed by adits driven in pairs from the portals. For this study, all entries, ramps, drifts and crosscuts are considered to be 5 m wide by 5 m high with semi-arched backs. Ramps will be driven at grades to a maximum of 15% to provide access to the production areas. Two ramps or adits will be driven to each area to provide single-way traffic of haulage trucks and to facilitate the implementation of ventilation circuits. Top access crosscuts are driven from the main ramps to each level on vertical intervals between 20 to 30 m. Stope access crosscuts are driven at level from west to east. Bottom access crosscuts are driven to function as mucking drifts. UndergroundProject No.: 168967 Page 1-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update mine services such as ventilation and air heating, compressed air, water for drilling and power supply will be provided to the mine via the adits. The total underground development was estimated at 92,500 m for the life-of-mine.1.15.7 Mineralized Material and Waste Haulage Radio remote-controlled load-haul-dump units (LHDs) will be used to extract the mineralized material out of the stope beyond the safety of the brow. The mineralized material from stopes will be loaded directly to the haulage trucks that will be spotted at the end of the crosscut. Underground trucks will haul the mined material through the access drifts and ramps, unloading into the primary crusher surface stockpile near the Lower Portal. The PEA plan envisages that tailings material will be dry-stacked, and waste material will be stored in the same general area. For convenience, the combined tails and waste rock storage area is referred to as the “co-disposal facility”. Waste from development will be initially utilized for construction of a structural shell for the co-disposal site on surface, which will be located between Elevations 1,400 m and 1,600 m in an area east of the processing plant site. A conveyor will be used to transport this material from the mine to a stockpile by the plant site. A surface road developed at +10% grade will connect the plant with the co-disposal site. Trucks will haul waste from the plant to the co-disposal site when required.1.15.8 Mine Services Underground mine services such as ventilation and air heating, compressed air, water for drilling and power supply will be provided to the mine via adits from the portals. The sub-station for the main power distribution system and the air compressors will be installed in facilities located adjacent to the Upper Portal. Other mine services will include all the systems and supplies needed for the mining operations, including: explosives storage, communications, monitoring and control systems, road maintenance and mine equipment maintenance. Portable self-contained refuge stations will be provided for the mine and will be located at convenient locations.Project No.: 168967 Page 1-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.15.9 Mine Production Forecasts Production was estimated at 2.7 Mt/a of mill feed on average for 10 years. The first year was considered as preproduction, leaving nine years of full-scale production. At this preliminary level of study the stope mining sequence was not defined and therefore average grades were used for each year in the mine plan. There is opportunity to increase the net present value (NPV) of the project by mining higher-grade zones early in the mine life providing that the sequence and overall recovery of the stopes is not negatively affected. Mine equipment and personnel requirements were defined and are appropriate to the proposed production plan.1.15.10 Process Design The design for the process facilities considered a nominal processing capacity of 7,500 t/d. Where data were not available at the time of flowsheet development, AMEC developed criteria for sizing and selection of equipment based on comparable industry applications, benchmarking, and the use of modern modelling and simulation techniques. The mineral processing and the refining are based on conventional technology and industry-proven equipment. A mineral processing method using a standard grind- flotation procedure to make a concentrate of ferrocolumbite-pyrochlore is assumed for Blue River material. Metallurgical testing indicates a mineral concentrate assaying about 30% combined Nb–Ta pentoxide within the recovery range of 65% to 70% is possible. Run of mine mineralized material will be crushed to minus 5/8" and fed into a comminution circuit comprised of a rod and ball mill using cycloning for classification. After grinding, the flotation feed will be first de-slimed using high frequency fine screens and cyclones. The coarse product resulting from de-sliming will be sent to four concentration steps that will include pyrrhotite flotation, carbonate flotation, and magnetite separation with all three concentrates from these processes reporting to tailings. The fourth step, pyrochlore flotation, will recover a concentrate which is reground and cleaned in five stages of cleaning. The mass of material will be reduced substantially, to less than 1% of the feed into the plant.Project No.: 168967 Page 1-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update This concentrate would be further processed to produce marketable separate Ta and Nb products. The proposed processes are mature, are already used industrially, and consist of reducing the concentrate to metals as ferroalloys in a standard aluminothermic furnace followed by chlorinating the alloys and distilling the product to separate high purity metal chlorides, TaCl5 and NbCl5. Recoveries from concentrate to pure chlorides are expected to be 97%. Both Ta and Nb chloride products are then readily converted and marketed as high purity oxides Ta2O5 and Nb2O5 respectively.1.15.11 Tailings and Waste Management The PEA design for tailings and waste management is to construct a co-disposal drystack facility. A series of tailings storage location screening assessments were carried out during 2008, 2009, and 2010 focusing mainly on conventional tailings storage. Some evaluation of potential waste rock storage sites and a tailings drystack facility was undertaken during studies completed in 2009. Site WSF 3, about 8 km from the proposed plant site, and identified in 2009, was selected as the preferred location for a tailings drystack. WSF 3 has flatter slopes than other site alternatives and therefore has less stability concerns. It is also located in closer proximity to the proposed plant site, although uphill haulage will be required, and will not require crossing any major creeks. The facility was designed to hold a total storage volume of approximately 20.9 Mm3. Surface water management systems will likely be required for the tailings drystack to divert non-contact (clean) water around the facility, and to collect run-off water which had been in contact with the tailings drystack area.1.15.12 Planned Project Infrastructure The planned Upper and Lower Portals will be located about 4 km from the plant site. At the front of the Upper Portal (service portal) sufficient space will be provided to accommodate the required facilities for operation. The plant service building will be a multi-purpose complex in a two-story building to be located east of the process building. A 24 m by 36 m truck shop on the southwest end of the site will be operated by a qualified contractor. The warehouse will be a 24 m by 50 m Coverall-type fabric building.Project No.: 168967 Page 1-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The potable water system and layout is designed to service buildings and a process/administration workforce of 120 persons. Potable water for the mining area will be constructed as part of the portal/underground works. A modular sewage treatment system will be installed as part of the initial construction infrastructure. Waste-water treatment sludge will be trucked away to a nearby municipal facility or approved landfill. Waste lubrication and hydraulic oils from vehicle maintenance will be stored in dedicated tanks and sent to a recycling facility offsite. Contractors and employees will commute from nearby towns such as Blue River and Valemount during construction. No on-site permanent accommodation will be provided for personnel. It is assumed that the workforce, including management staff, will reside in the nearby communities and will commute, via buses on a daily basis. The road access design includes a short new road with a 7.2 m wide gravel surface from the existing road to plant site about 80 m in length and a 1.5 km new service road from the existing road to the Upper Portal and upgrades to the current access road. There are two main haul roads, one from the mine portal to site of about 4 km length, and the other from the site to the co-disposal facility, with a length of about 8 km. An existing 80 m-long bridge crossing over the Thompson River has a limited load capacity and might not qualify for crossing heavy loads during construction or long- term use during the life of the mine. Therefore a new bridge has been included in capital cost estimate. Using the existing railway for shipment should be investigated in the next phase of study. Ammonium nitrate, blended emulsion, and explosives will be delivered to site on demand by contractors. Fuel will be delivered to the mine site using tanker trucks. A crushing and stockpiling facility will be required during construction to provide crushed product for roads and surfacing. AMEC considers that there is no need to establish a concrete batch plant, and that concrete supply from nearby towns will be more economic.1.15.13 Markets Commerce has prepared assessments of the tantalum and niobium markets which outline the supply and demand for tantalum and niobium. The tantalum assessment was prepared by a tantalum market expert, although he is not independent of Commerce. His analysis reflects the general consensus of other analysts regarding the tantalum market expressed in publicly available information.Project No.: 168967 Page 1-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The niobium assessment was prepared by an independent niobium expert and also reflects the general consensus of analysts in publicly-available information for the niobium market. As the Project is still at an early evaluation stage, Commerce has not initiated requests from potential buyers for expression of interests from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements. The tantalum price assumption used in the 2011 PEA is based on 4th quarter 2010 information. The tantalum price moved significantly higher through 2011. AMEC has checked publicly available tantalum and niobium metal prices as at May 2012 and found the Ta and Nb prices used for both the current Mineral Resource estimate and the 2011 PEA remain as reasonable assumptions, which are US$317/kg tantalum metal and US$46/kg niobium metal.1.15.14 Capital Costs All costs are expressed in constant first quarter (Q1) 2011 Canadian (CAD) dollars. No allowance has been included for escalation, interest or financing fees, taxes or duties, or working capital during construction. The level of accuracy for the estimate is +40/-20% of estimated final costs, as per the Association of Advanced Cost Estimators (AACE) Class 5 (scoping level) definition. Contractor-mining is not envisaged for pre-production development. The estimate covers the direct field costs of executing the project, plus the Owner’s indirect costs associated with design, construction, and commissioning. The preproduction costs are capitalized and include all the expenditures before Year 1 of production. The total estimated capital cost to design and build the Blue River tantalum project at 7,500 t/d capacity is CAD$379 million. The estimate is summarized in Table 1-2.Project No.: 168967 Page 1-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 1-2: Summary of Estimated Capital Costs Total 2011 2012 Item (CAD$000’s) (CAD$000’s) (CAD$000’s) Project year 1 2 Production year -2 -1 Capital expenditure Initial Capital Infrastructure 29,491 10,322 19,169 Process Initial Capital 116,240 40,684 75,556 Mining Initial Capital 89,420 89,420 Material Handling 8,000 8,000 Contingency 43,613 12,751 30,862 Indirect/Owner Costs 92,268 29,627 62,641 Total 379,032 93,385 285,6471.15.15 Operating Costs All operating costs are expressed in Canadian (CAD) dollars. The operating costs for the Blue River project are based on an Owner-operated mining fleet and process facility and have been prepared in first quarter 2011 Canadian dollars. Operating costs over the life-of-mine are estimated at CAD$38.44/t milled. Operating costs include the three key areas of mining, process, and overall general and administrative costs (G&A). The estimates are based on the staffing level, consumables, and expenditures detailed as part of the underground mine plan and process design. Average operating costs are listed in Table 1-3. Table 1-3: Average Life-of-Mine Operating Cost Summary Cost per Tonne LOM Total Milled Summary of Average Production Costs (CAD$000’s) (CAD$/t) Mining 528,937 21.16 Process 338,500 13.54 Material Handling 18,516 0.74 G&A 74,998 3.00 Sub-total 960,951 38.44Project No.: 168967 Page 1-1722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update1.15.16 Financial Analysis The financial analysis is partly based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Assessment based on these Mineral Resources will be realized. Approximately 15% of the Mineral Resources that were included in the financial model are classified as Inferred Mineral Resources. The results of the economic analyses discussed in this section represent forward-looking information as defined under Canadian securities law. The results depend on inputs that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented here. Information that is forward-looking includes:  Mineral Resource estimates  Assumed commodity prices and exchange rates  Estimated capital and operating costs  The proposed mine production plan  Projected recovery rates  Infrastructure construction costs and schedules  Assumptions that an EA will be approved by Provincial and Federal authorities. The Project has been evaluated using a discounted cash flow (DCF) analysis. Cash inflows consist of annual revenue projections for the mine and two years of preproduction. Cash outflows such as capital and operating costs are subtracted from the inflows to arrive at the annual cash flow projections. The resulting net annual cash flows are discounted back to the date of valuation end- of-year 2010 dollars and totalled to determine NPVs at the selected discount rates. The IRR is calculated as the discount rate that yields a zero NPV. The payback period is calculated as the time needed to recover the initial capital spent. The Project Base Case (8% discount rate) returns an NPV of CAD$18.5 million before tax. Table 1-4 summarizes the NPV for the Project at a range of discount rates, with the Base Case highlighted.Project No.: 168967 Page 1-1822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 1-4: Summary Financial Analysis at Various Discount Rates (base case is highlighted) Summary of Cash Flow Pre-tax Cumulative net cash flow Undiscounted CAD$000 236,631 Net present value Discounted at 5% CAD$000 80,349 Discounted at 6% CAD$000 57,612 Discounted at 7% CAD$000 37,064 Discounted at 8% (Project Base Case) CAD$000 18,487 Discounted at 9% CAD$000 1,685 Discounted at 10% CAD$000 (13,514) Internal rate of return % 9.1 Payback period Years 6.3 Note: An exchange rate of US$0.95 to CAD$1.00 is used for all years of the financial model. The cash cost value represents the cost incurred to produce 1 kg of primary product after deducting the revenue from sales of secondary products. Since the price analysis for the report was performed around Ta price variation, Ta is chosen as the main product and Nb is treated as the secondary product for the assessment of cash cost. Using the Brook Hunt convention for reporting C1 cash costs1, the C1 cash cost of tantalum is CAD$24.91/kg contained in oxide product (after credit for niobium contribution) as shown in Table 1-5. The cash cost for production of tantalum during the earlier years of the proposed mining operation is CAD$57/kg and decreases over the life of the mine. The major driver behind the changing costs is the decrease in the mining costs over the life-of- mine. In the last three years of operation, the revenue generated from niobium exceeds the total operating costs (mining, processing and G&A). The mining cost for the entire Project (i.e. mining cost of both tantalum and niobium) drops from an average of CAD$24/t in the first few years to CAD$18/t in the last year of full production. It is reasonable to expect that there has been cost escalation since the base of first quarter 2011 but there has been no adjustment for this in the Report other than in the sensitivity analysis.1 Brook Hunt, established in 1975, is a global group that specializes in in-depth market analysis across the mining and metalsindustries. Brook Hunt has established a method of comparison of costs between projects, countries and commodities that isconsidered an industry standard. C1 cash costs are defined by Brook Hunt as: the costs of mining, milling and concentrating, on-site administration and general expenses, property and production royalties not related to revenues or profits, metal concentratetreatment charges, and freight and marketing costs less the net value of by-product credits.Project No.: 168967 Page 1-1922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 1-5: Life of Mine Cash Cost Summary Cost per Tonne LOM Total Cost per Kilogram Ta Payable Milled (CAD$000’s) (CAD$/kg) Section (CAD$/t) Cash costs Mining 528,937 21.16 220.13 Process 338,500 13.54 140.87 G&A 74,998 3.00 31.21 Material Handling 18,516 0.74 7.71 Sub-total 960,951 38.44 399.22 Credits Nb 901,094 36.04 375.01 Sub-total 901,094 36.04 375.01 Adjusted cash costs Total 59,857 2.40 24.91 Note: The figures in this table do not include considerations of working capital or royalty payments1.15.17 Sensitivity Analysis The Upper Fir deposit is most sensitive to changes in exchange rate, mining costs, and commodity prices. Since the sales currency is US dollars and operational costs are in Canadian dollars, a rising US dollar value versus Canadian dollar value improves the mine profitability. The Project is more sensitive to changes in operating expenditures than capital expenditures. The Project IRR increases to 14.4% at a Ta price of US$380/kg and the Project NPV increases to CAD$125 million at an 8% discount rate. Sensitivities are illustrated in Figure 1-1 for the 8% discount Base Case rate.Project No.: 168967 Page 1-2022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 1-1:Sensitivity Summary, 8% Discount Rate1.16 Interpretation and Conclusions1.16.1 2012 Mineral Resource Estimate Update The key findings of the Mineral Resource update (effective date 22 June 2012) are summarized as follows:  Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5  Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5 The Mineral Resource update is based on information of reasonable quantity and quality. The lithological, geotechnical, and collar location, down-hole survey, and drill core sample data collected by Commerce in the exploration and delineation drill programs meet and exceed industry standard practice. The deposit is amenable to conventional underground mining methods with estimated mining recovery that may vary from 65 to 85% depending on the mine and stope layout and the success in which pillars can be mined on retreat. Tantalum and niobium occur within the minerals pyrochlore and ferrocolumbite and are amenable to conventional flotation and proven refining processes with estimated recoveries of 65% to 70%.Project No.: 168967 Page 1-2122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update High-quality technical grade tantalum and niobium products proposed for production at-site are suitable for several markets. As the Project is still at an early evaluation stage, Commerce has not initiated requests from potential buyers for expression of interests from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements. The Mineral Resources have significantly increased in tonnage mostly due to a reduction in the block unit value cut-off by eliminating back-fill costs and, to a lesser extent, additional infill diamond drilling. The Mineral Resource update uses the same assumptions from the 2011 PEA for the following items:  Ta and Nb metal prices (US$317/kg tantalum metal and US$46/kg niobium metal)  Mining method and mining extraction factor  Processing method and recovery factor  CAPEX and OPEX costs  Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t for the selective mining method.1.16.2 2011 PEA From the 2011 PEA, the following work and outcomes are considered to remain reasonable as their underlying assumptions have not changed.  Estimated internal rate of return: 9.1% (before tax)  Estimated net present value: CAD$18.5 million at 8% discount rate (before tax)  Estimated payback: 6.3 years  Average diluted grade in the conceptual mine plan to the mill: 185 ppm Ta2O5 and 1,591 ppm Nb2O5  Conceptual operating cost: CAD$38.44/t milled (mining ~ 55% of cost)  Conceptual capital cost: CAD$379 million (process ~ 31% of initial cost)  Proposed product: High purity Ta and Nb chloride product that is suitable for several markets  Conceptual mine life: 10 years based upon the mineral resources (effective date 29 September 2011)  NPV sensitivity: The Upper Fir deposit is most sensitive to changes in exchange rate, mining costs, and commodity prices.Project No.: 168967 Page 1-2222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The above key outcomes for the 2011 PEA contain forward looking information. The assumptions and risks regarding those assumptions are explained in the body of the Report. AMEC has checked the publicly available tantalum and niobium metal prices as at May 2012 and found the Ta and Nb price assumptions used for both the current Mineral Resource estimate and the 2011 PEA to remain reasonable. A higher tantalum price would improve profitability and also increase the mine life. Additional exploration potential could also provide additional mine life. A two or more times capital payback is possible.1.16.3 Project Opportunities As a result of engineering work during the 2011 PEA, a lower block unit value cut-off can be achieved by revising the mine design to eliminate back-fill costs. This approach was used to support the current 22 June 2012 Mineral Resource update, which in turn has increased the Mineral Resource tonnage at the Project. The increase in Mineral Resources provides more flexibility for future mining studies and hence opportunities to improve the Project NPV are as follows:  Optimization of the mine plan by mining higher-grade zones earlier in the mine life providing that a practical mining sequence can be implemented and the overall recovery of the Mineral Resources is not negatively affected  Optimization of the mine layout to minimize development costs  Advanced geotechnical studies to identify and understand ground conditions which could allow an increase in the size of stopes and production drifts  Optimization of the supply and pricing of reagents for the refining.1.16.4 Project Risks In the opinion of the QPs, the top five risk factors identified for the Project are:  The current Mineral Resource estimate is supported by current tantalum and niobium prices which are higher than historic average prices and may not reflect long term prices.  Commerce has not initiated requests from potential buyers for expression of interests from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements.  The proposed refining methods have been used in commercial applications but have not been demonstrated in test work of Blue River material.Project No.: 168967 Page 1-2322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Testwork to date has not considered factors such as water recycling. A water treatment plant may be required and may result in increased capital costs.  The 2011 PEA financial analysis is partly based on Inferred Mineral Resources (effective date 29 September 2011) that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment based on these Mineral Resources will be realized. A more comprehensive risk factor list can be found in Section 25 of the Report.1.17 Recommendations AMEC recommends the following work programs: Project management, field work, and desk top studies total about $2.0 million and include the following: (1) project management and administration costs; (2) field costs comprising a re-sampling program for campaigns with poor precision and accuracy to improve confidence in their analyses, structural geology studies, and manpower and field support costs; (3) core farm security improvements; (4) on-going marketing work; (5) mining trade-off studies to optimize mine and stope design; (6) resource modeling trade-off studies to optimize grade distribution; and (7) a mineral resource estimate update. The re-sampling program should focus on re-assaying samples within an area where the first five years of mining is likely to occur. An additional mineral resource update is recommended after all the 2011 drilling data has been analysed, verified, updated into the drilling database, and interpreted. This mineral resource update would include all drilling information up to and including the 2011 campaign plus outcomes from any mining, resource modeling, or metallurgical optimization studies. Additional diamond drilling is recommended totalling about $3.2 million for drilling, sampling, assaying, and logging costs. The recommended drilling is to focus on the volume within the first 5 years of the conceptual mine plan. The recommended program has about 40 diamond drill holes comprising about 10,000 m of HQ diameter coring for resource infill and step-out drilling and about 8 diamond drill holes comprising around 2,000 m of PQ diameter coring for metallurgical testwork purposes.Project No.: 168967 Page 1-2422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update2.0 INTRODUCTION2.1 Terms of Reference AMEC Americas Limited (AMEC) was commissioned by Commerce Resources Corporation (Commerce) to prepare a NI 43-101 compliant Mineral Resource update and technical report on the wholly-owned Blue River tantalum–niobium Project (the Project), located within the North Thompson River valley of east–central British Columbia (B.C.), Canada. This technical report (the Report) supports the findings of the Mineral Resource update and also includes a summary of the Preliminary Economic Assessment study completed on the Blue River Project with an effective date 29 September 2011 (2011 PEA) . Results from the 2011 PEA mining studies have not changed in terms of their outcomes as their underlying assumptions remain reasonable. Commodity prices are quoted in US dollars. All other costs are in Canadian dollars unless otherwise indicated. Volumes, weights, and distances are metric unless otherwise indicated.2.2 Qualified Persons The Qualified Persons (QPs) for the Report are AMEC employees, based out of AMEC’s Vancouver office, as follows:  Mr. Albert Chong, P.Geo., Principal Geologist  Mr. Tomasz Postolski, P.Eng., Senior Geostatistician  Mr. Ramon Mendoza Reyes, P.Eng., Principal Engineer  Mr. Tony Lipiec, P.Eng., Principal Metallurgical Engineer  Mr. Behrang Omidvar, P.Eng., Financial Analyst2.3 Site Visits and Scope of Personal Inspection Mr. Chong visited the property on a number of occasions, between 11 to 16 July 2010, 27 to 30 June 2011, and 6 to 14 September 2011. During the site visits Mr. Chong inspected outcrops, drill hole collar locations, and reviewed the geologic interpretation. Mr. Chong reviewed procedures for diamond drilling, logging, sampling, core storage, and sample shipment. The drilling used for the current Mineral Resource update was reviewed during the site visits by Mr. Chong. In 2011 Mr. Chong also completed an aerial inspection of proposed future infrastructure locations.Project No.: 168967 Page 2-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Mr. Mendoza Reyes conducted a site visit from 12 to 16 July 2010. During the site visit Mr. Mendoza inspected sites amenable for locating potential infrastructure. Mr. Postolski conducted a site visit from 27 to 30 June 2011. During the site visit Mr. Postolski was unable to access the property due to a road wash-out but was able to complete an aerial inspection of proposed future infrastructure locations. During this visit Mr. Postolski was able to visit the core logging facilities, observe core logging procedures, and review progress on the mineral resource geology interpretation. A summary of QP site visits is shown in Table 2-1. Table 2-1: Site Visit and Areas of Report Responsibilities Qualified Person Site Visit Sections of Report Responsibility Albert Chong, P.Geo. 11 to 16 July 2010 Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 27 to 30 June 2011 12, 20, 23, 24, 25, 26, and 27 6 to 14 September 2011 Tomasz Postolski, P.Eng. 27 to 30 June 2011 Section 14 and those portions of the Summary, Interpretation and Conclusions, and Recommendations that pertain to that Section Ramon Mendoza Reyes, P.Eng 12 to 14 July 2010 Sections 15, 16, 18, and those portions of the Summary, Capital and Operating Costs, Interpretation and Conclusions, and Recommendations that pertain to those Sections Tony Lipiec, P.Eng No site visit Sections 13 17, 18, 21, and those portions of the Summary, Interpretation and Conclusions, and Recommendations that pertain to those Sections Behrang Omidvar, P.Eng No site visit Sections 19, 21, 22, and those portions of the Summary, Interpretation and Conclusions, and Recommendations that pertain to those Sections2.4 Effective Dates Information in this Report has a number of cut-off dates, as follows:  Effective date of the 2012 Mineral Resource update, the subject of this Report, is 22 June 2012 o The database closure date is 29 September 2011 and includes all drill information up to the end of 2010.Project No.: 168967 Page 2-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update o Results from 34 holes completed in 2011 were compared by AMEC to the existing resource model and the results were found to be reasonably consistent. o The 2011 preliminary drill results were inspected by AMEC at the Project site on vertical cross-sections by AMEC during September 2011, and the results were found to be consistent with the geological interpretation. Effective date of the 2011 PEA technical report work and the mineral resources upon which the PEA is based is 29 September 2011. In the opinion of AMEC:  The 2011 PEA was completed within the last 12 months which is a reasonable timeframe.  The 2011 PEA basis and underlying assumptions for the mining study remain reasonable and hence the outcomes also remain reasonable. The overall effective date of the Report is based on the completion date of the Mineral Resource update and review of the latest available drilling information and is 22 June 2012. There has been no material change to the Project scientific and technical information between the effective date of the Report, and the signature date.2.5 Information Sources and References Information for the Report was obtained from work completed by AMEC, and materials provided by, and discussions with, Commerce personnel and third-party contractors retained by Commerce. Additional information was provided by Commerce and third party personnel in the areas of environmental studies and permitting. This information was based on reports prepared by third-party consultants retained by Commerce. Marketing studies were provided to AMEC by Commerce. AMEC has reviewed the information provided and considers that the studies support the commodity prices used in the mineral resource estimates and financial evaluation. Except where noted, Report figures were generated by AMEC. Reports and documents listed in the Section 3, Reliance on Other Experts and Section 27, References sections of this Report were also used to support preparation of the Report. Additional information was sought from Commerce personnel where required to support preparation of this Report.Project No.: 168967 Page 2-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update2.6 Previous Technical Reports Commerce has previously filed the following technical reports on the Project: Chong, A., Postolski, T., Mendoza, R., Lipiec, T., and Omidvar, B. 2011: Commerce Resources Corporation, Blue River Tantalum–Niobium Project, Blue River, British Columbia, Preliminary Economic Assessment: unpublished technical report prepared by AMEC Americas Ltd. for Commerce Resources Corporation, effective date September 29, 2011. Chong, A., and Postolski, T., 2011: Commerce Resources Corporation, Blue River Ta- Nb Project, Blue River, British Columbia, NI 43-101 Technical Report: unpublished technical report prepared by AMEC Americas Ltd. for Commerce Resources Corporation, effective date 31 January 2011. Stone, M., and Selway, J., 2010: Independent Technical Report, Blue River Property, Blue River, British Columbia, Canada: unpublished technical report prepared by Caracle Creek International Consulting Inc. for Commerce Resources Corporation, effective date 24 August, 2009. Gorham, J., 2007: Technical Report on the Upper Fir Ta-Nb Bearing Carbonatite: unpublished technical report prepared for Commerce Resources Corporation, effective date 20 June 2007.Project No.: 168967 Page 2-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update3.0 RELIANCE ON OTHER EXPERTS The QPs state that they are qualified persons for those areas as identified in the appropriate QP “Certificate of Qualified Person” attached to this Report. The authors have relied upon and disclaim responsibility for information derived from the following reports pertaining to mineral tenure, surface rights, royalties, environment and permitting, and marketing.3.1 Mineral Tenure The AMEC QPs have not reviewed the mineral tenure, nor independently verified the legal status, ownership of the Project area or underlying property agreements. AMEC has fully relied upon, and disclaims responsibility for, information derived from legal experts for this information through the following document:  Letter from Clark Wilson LLP titled Commerce Resources Corp. – Mineral Claim Title Opinion to Mr. Albert Chong, dated 25 April 2012. Information from this letter has been used in Section 4.2 of this Report.3.2 Surface Rights The AMEC QPs have not reviewed the status of the Project surface rights, nor independently verified the surface rights status of the Project area. AMEC has fully relied upon, and disclaims responsibility for information derived from experts for this information through the following document:  Letter from David Hodge, President Commerce Resources Corp. to Mr Albert Chong, entitled “Commerce Resources Corp – Blue River Property Encumbrances and Surface Rights”, dated 08 May 2012. This information has been used in Section 4.3 of this Report.3.3 Royalties and Agreements The AMEC QPs have not reviewed the royalties and agreements for the Project, nor independently verified the royalties and agreements status of the Project area. AMEC has fully relied upon, and disclaims responsibility for information derived from experts for this information through the following document:Project No.: 168967 Page 3-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Letter from Clark Wilson LLP titled Commerce Resources Corp. – Mineral Claim Title Opinion to Mr. Albert Chong, dated 25 April 2012, including Schedule A: Claims List, and Schedule B: Officer’s Certificate from Mr. David Hodge, President and Chief Executive Officer of Commerce Resources Corp. This information has been used in Section 4.4 of this Report.3.4 Environmental, Permitting, and Liability Issues The AMEC QPs have not reviewed the permitting requirements, nor independently verified the permitting status of the Project area. AMEC has fully relied upon, and disclaims responsibility for information derived from experts for this information through the following document:  Letter from Sage Resource Consultants Ltd. titled Commerce Resources Corp. Upper Fir Deposit Mineral Resource Update – Independent Professional Opinion on Environmental Permitting and Liability to Mr. Albert Chong and dated 30 April 2012. This information has been used in Section 20 of this Report.3.5 Markets The AMEC QPs have relied on tantalum and niobium market analyses derived from experts for this information through the following documents:  Confidential e-mail: from Dr. Axel Hoppe titled “Ta-Pricing 2011” dated 01 February 2012 to Jenna Hardy, Technical Services Manager, Commerce Resource Corporation. Received 02 February 2012.  Memo from Dr. Axel Hoppe titled “Ap#6 Introduction to Tantalum Markets_Finalpdf_2June09.pdf” received 18 October 2010  Memo from Michel Robert titled “Niobium_v3jh.doc” received 18 October 2010  Memo from Michel Robert titled “Niobium_v3jh.doc” received 19 October 2010 Dr. Hoppe is an internationally acknowledged leader in the tantalum field and is Chairman of the Board of Directors for Commerce Resources. Mr. Robert has extensive experience in niobium markets and is independent of the company.Project No.: 168967 Page 3-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update This information has been used in Section 19 of this Report, and to assess reasonable prospects of economic extraction in Section 14.10.Project No.: 168967 Page 3-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update4.0 PROPERTY DESCRIPTION AND LOCATION The Project is located within the North Thompson River valley of east-central British Columbia 25 km to 60 km north and northeast of the community of Blue River, British Columbia (Figure 4-1). The NTS sheets which cover the Project are: 83D.004-.006; 83D.014-.016; 83D.024-.027; 83D.034-.037; 83D.045-.047. The Project is centered at approximately 52° 19 N latitude and 119° 10 W longitude.4.1 Project Ownership The Project is wholly-owned by Commerce and held in the name of Commerce Resources Corp.4.2 Mineral Tenure The Project comprises 249 two-post claim, four-post claim, and mineral cell title submission (MCX) claims in good standing that encompass just over 1,000 km2 (105,373 ha) within the Kamloops Mining Division. The claim boundaries are shown in Figure 4-2. A table listing claim details is included in Appendix A. Currently, all of the mineral claims are valid until 31 March 2021. Commerce filed a 2010 work program by the end of day on 24 June 2011 thus grouping two blocks of claims (Wasted and Joined) with the larger claims area. About $969,000 worth of eligible 2010 work was filed for assessment credit at a filing cost of approximately $48,700. This work has been approved by the British Columbia Ministry of Energy, Mines and Petroleum Resources, bringing all Blue River claims to a common expiry date of 31 March 2021. Property boundaries are established in accordance with the Mineral Tenure Act of British Columbia. Commerce has staked the claims by a combination of ground and on-line staking. Two-post and four-post claims were established through a legacy system of ground staking which involved physically establishing claim posts on the ground. MCX claims are established using the Government of British Columbia’s Mineral Titles Online (MTO) staking system. MTO is an Internet-based mineral titles administrationProject No.: 168967 Page 4-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update system that allows the mineral exploration industry to acquire and maintain mineral titles by selecting the area on a seamless digital GIS map of British Columbia. The electronic Internet map allows selection of single or multiple adjoining grid cells. Cells range in size from approximately 21 ha (457 m x 463 m) in the south to approximately 16 ha at the north of the province. All boundaries are oriented north–south and east– west. Figure 4-1: Project Location Map Figure courtesy Commerce Resources Corp., 2011.Project No.: 168967 Page 4-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 4-2: Blue River Mineral Tenure Map Note: Grid is in metres for UTM NAD83 Zone 11. The British Columbia Yellowhead Highway 5 is adjacent to the property claim boundary. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.Project No.: 168967 Page 4-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update4.3 Surface Rights Commerce holds no surface rights on the property. Legal access to the property is provided through the British Columbia Mineral Tenure Act. The Act provides for a recorded claim holder to use, enter and occupy the surface of a claim or lease for the exploration and development or production of minerals or placer minerals, including the treatment of ore and concentrates, and all operations related to the exploration and development or production of minerals or placer minerals and the business of mining. Access to surface rights held by third parties typically requires compensation to be paid. There are surveyed parcels with surface rights held by other parties which overlap the property mineral tenure claims. These parcels occur along the western edge of the property and most are tree farm licences. Commerce is not aware of any material issues that would prevent negotiation for access or surface rights of these surveyed parcels should they be required in the future. The claims do not host mineral resources, and currently no carbonatites are known within the claims.4.4 Royalties and Agreements There are no royalties, back-in rights, payments, or other agreements or encumbrances to which the Blue River property is subject to other than the annual claim maintenance fees due to the government as set out by the British Columbia Mineral Tenure Act and Regulations.4.5 Permits Permits required to support Project development are discussed in Section 20.4.6 Environment Environmental studies are discussed in Section 20.4.7 Social and Community Impact The social and community impact assessments of the Project are discussed in Section 20.Project No.: 168967 Page 4-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update4.8 Comment on Section 4 The AMEC QPs conclude the following conclusions are appropriate:  Legal opinion supplied supports Commerce’s ownership of the mineral tenure on the Project.  Work filed in 2011 with relevant regulatory authority updates all Blue River claims to a common expiry date of 31 March 2021.  There are no known royalties, back-in rights, agreements, or encumbrances attributed to the claims.  There are no known material issues at the Report effective date that would prevent negotiation for surface rights to access the Project should they be required in the future.  Exploration activities have been conducted within the regulatory framework required by the B.C. Government.  Additional permits will be required for Project development.Project No.: 168967 Page 4-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY5.1 Accessibility The Project is located 23 km north of the community of Blue River, British Columbia, approximately 250 km north of the city Kamloops and approximately 90 km south of the town of Valemount. The property is accessed from B.C. Highway 5 (Yellowhead Highway) via a 4 km well-groomed gravel road. The Upper Fir and Bone Creek deposits can be reached from the Bone and Gum Creek forestry service roads which branch east from Highway 5 approximately 23 km north of Blue River. The east side of the property can be reached by forest service roads along the west side of Kinbasket Lake and up Howard Creek. Logging roads on Serpentine, Bone, Hellroar and Mud Creeks allow four-wheel drive and quad bike access to most of the property. Access to remaining portions of the property is by helicopter.5.2 Climate The local climate is typical of the interior of British Columbia. The area is part of a “wet belt” that occupies part of eastern British Columbia. Heavy snow falls almost every winter, in which temperatures stay close to the freezing point when maritime air dominates. Rain is frequent in other seasons. Summer days are typically warm or occasionally hot, with thunderstorms often spawning over the nearby mountains. In July, the average daily temperature is 16.4°C and the average rainfall accumulation is 97.5 mm for Blue River (Environment Canada Climate Normals 1971–2000 web site: http://climate.weatheroffice.gc.ca/climate_normals/index_e.html. In January, the average daily temperature is -9°C and the average snowfall accumulation is 109 cm for Blue River. The average snow depth is 83 cm in February. Local rainfall and snowfall accumulations on parts of the property may be much higher due to elevation and orographic effects. Drilling is feasible from mid-May through early to mid-October. Snowfall can exceed 10 m on the property making winter drilling very expensive and difficult, but not impracticable. It is expected that any future mining activity could be conducted year- round.Project No.: 168967 Page 5-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update5.3 Local Resources and Infrastructure There is no existing Project infrastructure. Exploration activities are currently supplied from Kamloops, Clearwater and Valemount. The city of Kamloops currently supports mining operations at the New Afton and Highland Valley mines, and mineral exploration for the surrounding area. Services for mining operations are reasonably available at Prince George, Vancouver, or Edmonton. Power transmission lines, rail, paved, and gravel roads are all adjacent to the Project near the Yellowhead Highway. The Yellowhead Highway runs sub-parallel to the North Thompson River. The community of Blue River has a municipal airport for light aircraft and helicopter support. The main line of the Canadian National Railway passes through the western part of the property. Sidings currently exist at Lempriere and Blue River, located 16.5 km north and 23.7 km south of the Upper Fir deposit respectively. The flat area immediately north of Bone Creek may be suitable for a siding and is 4.9 km from the Upper Fir deposit. The BC Hydro 136,000 volt supply line for the North Thompson valley passes through the west side of the property adjacent to the rail line. The 20 megawatt Bone Creek run-of-river hydroelectricity project owned by Transalta Corp was commissioned in June 2011, and is adjacent to the Project area. Infrastructure requirements as detailed within the PEA for Project development are discussed in Section 18 of this Report.5.4 Physiography The Project topography ranges from 700 m to 3,100 m elevation above sea level and is located largely along the steep, west-facing slopes of the Monashee Mountains, to the east of the North Thompson River. The highest peak, Mt. Lempriere, is 3,183 m. Ice fields and glaciers dominate the higher elevations on the property. Significant major tributaries feeding into the North Thompson River in the area include Serpentine, Pyramid, Gum, Bone, Hellroar and Mud Creeks. Mountain slopes are typically covered by thick undergrowth consisting of grasses, buck brush, devil’s club, and shrubs of willow, alder, rhododendron, huckleberry,Project No.: 168967 Page 5-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update currants, gooseberry, thimbleberry, and raspberry. White spruce is common in replanted logging areas. Former trails and flat wet areas are typically overgrown by dense alder and willow. Areas not subjected to recent logging are covered by dense stands of hemlock, cedar, fir and white pine. Within the area, the tree line is at approximately 2,000 m elevation. Except for the Paradise Lake, Felix, Howard Creek and Gum Creek localities, all other carbonatites are below the tree line, and outcrop exposure is generally poor.5.5 Comment on Section 5 The existing and planned access, infrastructure, availability of staff, the existing power, water, and communications facilities, the methods whereby goods could be transported to any proposed mine, and any planned modifications or supporting studies are reasonably well-established. There is sufficient area in the Project tenure and in the vicinity of the Upper Fir deposit to support construction of plant, mining and disposal infrastructure. The requirements to establish such infrastructure are reasonably well understood by Commerce. In the opinion of the QPs, the access, physiography, local services, plus existing and planned infrastructure can support the declaration of mineral resources for the Upper Fir deposit. It is expected that any future mining operations will be able to be conducted year- round.Project No.: 168967 Page 5-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update6.0 HISTORY6.1 Pre-Commerce Exploration The Blue River area has been the subject of intermittent exploration since the discovery of vermiculite-bearing carbonatite rock in 1949. A summary of exploration activities on the Project is described below and summarized in Table 6-1. Table 6-1: Blue River Exploration History Summary Year Company Exploration 1949–1951 Oliver E. French Staking and prospecting; discovered vermiculite-bearing carbonatite near Blue River, discovered uranpyrochlore in dolomitic carbonatite 1952–1955 St. Eugene Optioned property, geological mapping, prospecting, stripping, trenching, and sampling 1967-1968 Vestor Staking, reconnaissance surface mapping in the area south of Paradise Lake 1976 J. Kruszewski Re-staked the area as the Verity and AR claims 1977–1978 J. Kruszewski / Magnetometer and scintillometer surveys, trenching and sampling E. Meyers 1980 AMC Optioned property, discovery of Fir and Bone Creek carbonatites 1980–1982 AMC 3,954.2 m of NQ diamond drilling at Verity, Mill, Fir and Bone Creek 1989 Diegel et al. Government survey discovered two new carbonatite localities near Serpentine Creek and Gum Creek 2000–Present Commerce Surface mapping, trenching, soil sampling, geophysics, diamond drilling, metallurgical testing, bulk sampling Abbreviations: St. Eugene = St. Eugene Mining Corporation Ltd.; Vestor = Vestor Exploration Ltd; AMC = Anschutz (Canada) Mining Ltd.; Commerce = Commerce Resources Corp.6.2 Commerce Exploration In 2000, Commerce acquired the Property, confirmed known tantalum mineralization at the Fir and Verity carbonatites, and explored for new carbonatite deposits. During the summer of 2002, the Upper Fir Carbonatite showing was discovered and defined by core drilling between 2005 and 2011. Additional work undertaken by Commerce included surface mapping, trenching, soil, rock chip, grab and channel sampling, geophysics, metallurgical testing, bulk sampling, and mineral resource estimation.Project No.: 168967 Page 6-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update6.3 Commerce Mineral Resource Estimates During 2009–2010, Commerce commissioned Caracle Creek International Consulting Inc. (CCIC) to prepare a mineral resource estimate for the Upper Fir. This estimate was based on the interpretation of 168 Upper Fir drill holes completed during 2005 to 2008. An initial NI 43-101 compliant mineral resource estimate for the Upper Fir tantalum and niobium bearing carbonatite was completed in early 2010 by CCIC (Stone and Selway, 2010). During 2011, Commerce commissioned AMEC to prepare a mineral resource estimate for the Upper Fir deposit (Chong and Postolski, 2011) and a preliminary economic assessment (PEA) (Chong et al., 2011). The current 2012 mineral resource estimate discussed in Section 14 is an update of the estimate that supports the 2011 PEA.Project No.: 168967 Page 6-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update7.0 GEOLOGICAL SETTING AND MINERALIZATION7.1 Regional Geology The regional geology is taken largely from Currie (1976), Pell (1987 and 1994), Gorham (2007), Stone and Selway (2010), and Chong and Postolski (2011a). British Columbia is divided into three discrete areas hosting carbonatites and alkaline rocks (Figure 7-1):  Eastern Area: the Foreland Belt, east of the Rocky Mountain Trench  Central Area: the eastern edge of the Omineca Belt  Western Area: the core of the Omineca Belt The age of emplacement for carbonatites and alkaline rocks of the Eastern and Central Areas typically range between Devonian–Mississippian (ca. 330–380 Ma). Some occurrences from the core, or Western Area of the Omineca Belt might be older (ca. 570 to 770 Ma). The Eastern Area hosts northwest to southeast trending carbonatite occurrences. They are often associated with syenite intrusions. Most of the Eastern Area carbonatites have relatively high niobium and rare earth element (REE) levels, and little or no tantalum. Some known Eastern Area carbonatite or carbonatite-associated properties are: Aley, Prince, Ice River and Rock Canyon Creek. The Central Area carbonatite intrusions occur along the eastern edge of the Omineca Belt. The carbonatites of the Omineca Belt commonly have high concentrations of niobium but low rare earth element (REE) values. Known carbonatite complexes include the Blue River (Upper Fir, Fir, and Verity systems) and Mud Lake areas. The Western Area includes both intrusive and extrusive carbonatites and syenitic gneisses in the core of the Omineca Belt. Examples are Mount Copeland, Mount Grace, and Three Valley Gap. All of the alkaline and carbonatite complexes and their host rocks within the Omineca Belt rocks were deformed and metamorphosed during the Jurassic-Cretaceous Columbian Orogeny and have been subjected to upper amphibolite facies metamorphism.Project No.: 168967 Page 7-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-1: Tectonic Belts of British Columbia and Carbonatite Occurrences Note: Adapted after Pell (1994). Figure courtesy of Dahrouge Geological Consulting Ltd., 2011.Project No.: 168967 Page 7-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update7.2 Project Geology The Project is located in the Central Area within the north-eastern margin of the Shuswap Metamorphic Complex. The area comprises polyfolded, metamorphosed Late Proterozoic (ca. 700–550 Ma) supracrustal rocks and is bounded on the east and west by steep, Eocene age, west-side down normal faults in the southern Rocky Mountain Trench to the east and the North Thompson valley to the west. The Malton gneissic complex lies to the north. The supracrustal rocks are part of a belt dominated by the Late Proterozoic Horsethief Creek Group and the overlying Kaza Group. The belt is continuous from the northern Selkirk Mountains in the southeast, through the Monashee Mountains, and into the Caribou Mountains in the northwest. The carbonatites within the Blue River Project area are hosted in the Mica Creek assemblage of the Horsethief Creek Group (Figure 7-2 and Figure 7-3).7.2.1 Metasedimentary Rocks Two units of the Mica Creek assemblage underlie much of the study area. The units are at least 1,000 m thick and comprise the lower pelite unit, and the stratigraphically overlying semipelite–amphibolite unit (refer to Figure 7-2 and Figure 7-3). The Mica Creek metasedimentary rock types include biotite gneiss, muscovite–biotite schist and gneiss, garnet–muscovite–biotite schist and gneiss, calc-silicate–biotite gneiss, amphibolite, garnet amphibolite, and calc-amphibolite. The high intensity of deformation precludes determination of tops in metasedimentary rocks, thus relative ages of individual units are not clear. Layering in the gneiss has been previously interpreted as relict bedding, but likely is dominantly compositional segregation due to the metamorphic grade.Project No.: 168967 Page 7-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-2: Blue River Project Local Geology Map Note: The Upper Fir deposit is located approximately 25 km north of the town Blue River near the western claim boundary and Yellowhead Highway. See Figure 7-3 for the local geology legend. Figure is courtesy Dahrouge Geological Consulting Ltd., 2012.Project No.: 168967 Page 7-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-3: Blue River Local Geology Legend (for Figure 7-2) Note: Figure courtesy Dahrouge Geological Consulting Ltd., 2012.7.2.2 Gneisses and Schists Metamorphosed quartzo-feldspathic biotite gneiss is the most abundant lithology that crops out at surface. Biotite gneiss is ubiquitous and is inter-layered with all other lithologies on the property. Outcrops are moderately weathered with characteristic 0.2 to >1 m thick layers of uniform, massive, medium grained quartz–feldspar–-biotite ± muscovite divided by recessive schistose bands or fine partings. Fresh surfaces have a uniform, equigranular, salt and pepper texture of quartz, feldspar and biotite. Muscovite occurs as thin schistose partings ranging from trace to abundant amounts. Sub-one millimeter to several centimeter diameter red garnet porphyroblasts occur in varying amounts. These units are interpreted to represent deformed and moderately re-crystallized turbidite. Calc-silicate-bearing biotite gneiss has pale green bands a few centimetres thick that may be related to microscopic traces of actinolite ± diopside.Project No.: 168967 Page 7-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update7.2.3 Amphibolites The amphibolite units occur as lenses within all gneiss and schist units. They are typically medium-grained, massive to moderately foliated amphibolites and can contain red garnets (almandine) typically <1 cm in diameter. Plagioclase and hornblende occur in varying proportions forming rocks ranging from tonalite to hornblendite composition (<10% hornblende to >90% hornblende respectively). Weak mineral lineations are present as observed by the alignment of hornblende. Rare banding is observed at centimetre scale. Locally, calc-amphibolite units are distinguished by an increase in mineral grain size, a strong contrasting black and white colour, local presence of garnets, and effervescent reaction with dilute hydrochloric acid. The amphibolite units are interpreted as metamorphosed mafic sills, dikes, and possibly subaqueous flows.7.2.4 Intrusive Rocks Ultramafic Rocks Ultramafic rocks associated with the carbonatites include fine- to medium-grained pyroxenites and cumulate pyroxene–hornblendites. The ultramafic units likely represent a metamorphosed ultramafic intrusion associated with mafic volcanism (amphibolite) roughly the same age as the intruded metasediments (Figure 7-4). Carbonatite Both dolomitic carbonatite and calcitic carbonatite occur at Blue River. Dolomitic carbonatite is often referred to as magnesio-carbonatite, rauhaugite, or beforsite. Coarse-grained, calcitic carbonatite is also often referred to as calcio-carbonatite or sövite. The Blue River Fir carbonatite is approximately 330 million years old (and possibly older) based on U–Pb geochronology data. The carbonatites were emplaced as dikes or sills into the metasedimentary rocks prior to the regional deformation and metamorphism that occurred c.a. 170 Ma. The carbonatites forms sill-like bodies with average thicknesses of 30 m, ranging between 5 m to about 90 m thick, and with strike lengths ranging between 50 m to 1,100 m (Figures 7-4 to 7-8). Bedding-parallel foliation in metasedimentary gneisses and the contacts of carbonatite intrusions generally strike 335° and 155° with shallow to moderate northeast and southeast dips.Project No.: 168967 Page 7-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-4: Deposit Area Surface Geology Map Note: The interpreted Upper Fir deposit surface expression is shown in blue. Inset shows the deposit location at the Project. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.Project No.: 168967 Page 7-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-5: Drill Collar and Vertical Section Locations Note: See Figure 7-6 for the longitudinal section A – A’; Figure 7-7 for section 5796740 N; Figure 7-8 for section 5796425 N. Carbonatite surface expressions are coloured blue. Bulk sample locations are noted at BS1 and BS2. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.Project No.: 168967 Page 7-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-6: Longitudinal Section A – A’ (view SE) A (NE) A’ (SW) Upper Fir Carbonatite LITHOPLT: Lithology Legend Colours Overburden Magnesiocarbonatite Bone Carbonatite Calciocarbonatite Silicocarbonatite Fenite Skarn Amphibolite Garnet amphibolite Pegmatite 50 m Garnet gneiss Diopside gneiss Gneiss Mylonite Ultramafic Note: The figure illustrates the carbonatite geometry and its NE – SW geological continuity approximately perpendicular to the local SE trending fold Viewport1 hinge orientations. Upper Fir Carbonatite = blue coloured domain. View is to the south-east. Section influence is +/- 25 m. Figure by AMEC, 2012.Project No.: 168967 Page 7-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-7: Geology Section 5796740 N West East Fenite Upper Fir LITHOPLT: Lithology Legend Colours Carbonatite Overburden Magnesiocarbonatite Calciocarbonatite Silicocarbonatite Fenite Skarn Amphibolite Bone Carbonatite Garnet amphibolite Pegmatite Garnet gneiss Diopside gneiss Gneiss 50 m Mylonite Ultramafic Note: Illustrates the carbonatite geometry, its east-west geological continuity, and relationship between drilled thickness versus true thickness. Viewport1 Additional 2010 drilling (F10 prefixed holes) has reasonably improved the local geological interpretation. Upper Fir Carbonatite = blue coloured domain. View is to the north. Section influence is +/- 25 m. Figure by AMEC, 2012.Project No.: 168967 Page 7-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-8: Geology Section 5796425 N West East Fenite (A) (B) (C) Upper Fir LITHOPLT: Lithology Legend Colours Carbonatite Overburden Magnesiocarbonatite Calciocarbonatite Silicocarbonatite Fenite Skarn Amphibolite Garnet amphibolite Pegmatite Garnet gneiss Bone Carbonatite 50 m Diopside gneiss Gneiss Mylonite Ultramafic Note: Illustrates the carbonatite geometry, east-west geological continuity, folding, and relationship between drilled. Additional 2010 drilling (F10 Viewport1 prefixed holes) has improved the local geological interpretation. Upper Fir Carbonatite = blue coloured domain. View is to the north. Section influence is +/- 25 m. Figure by AMEC, 2012.Project No.: 168967 Page 7-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Dolomitic and calcitic carbonatite usually form separate bodies but can occur together within single intrusions. At Blue River, dolomitic carbonatite typically makes up the cores of the carbonatite bodies. Crosscutting or gradational relationships can be observed from one variety of carbonatite into another. Dolomitic and calcitic carbonatites are medium to coarse-grained and have secondary tectonically-imposed textures. A cataclastic (porphyroclastic) texture is common in all the carbonatites. Most exposures display layering defined by varying quantities of accessory minerals. Accessory minerals include amphibole, pyroxene, phlogopite, olivine, magnetite, apatite, pyrite/pyrrhotite, ilmenite, zircon, and the tantalum and niobium bearing minerals pyrochlore and ferrocolumbite. Contacts between carbonatite and the host metasediments are typically sharp and mantled by zones of metasomatized host rock, known as fenite. At Blue River, the fenite rocks commonly, but not always, envelope the carbonatite rocks and can extend up to 50 m from the carbonatite intrusions. The metasedimentary host rocks are characterized by foliated calcite-richterite-biotite (± apatite, ± vermiculite) rock. Of lesser importance are contact metasomatic veins commonly less than 1 m thick that comprise amphibole-pyroxene (± vermiculite ± carbonate). Fold indicators in core intersections observed in holes F08-150 and F08-151 (Figure 7-8: locations A, B, and C) are shown in Figure 7-9 to Figure 7-11 respectively.Project No.: 168967 Page 7-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-9: Fold Indicators (Hole F08-150: 121.8 m to 129.8 m) T L, T P Notes: Left: Hole F08-150: 121.8m to 129.8m. HQ diameter diamond drill core. Hole was drilled vertical. Compositional layering (L) of biotite-quartz gneiss is typically at a high angle to the core axis indicating a sub-horizontal attitude when related to the sub-vertical dip of the drill hole. A ptygmatic fold is also observed (T). Top of hole is towards the top left of photo. Right: Hole F08-150: 125 m. Indications of folding include asymmetric parasitic folds with short and long limbs (P) bracketed by sub-horizontal compositional layering. Centimetre scale ptygmatic folds (T) are noted. Photos from Chong (2010). Figure 7-10: Fold Indicators (Hole F08-150: 143.5 m and 147.0 m) Note: Left: F08-150: 143.5 m. Right: F08-150: 147.0 m. Indications of folding include high and low angle layering indicating possible fold closures. Top of hole is towards the top left of photos. Photos from Chong (2010).Project No.: 168967 Page 7-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-11: Fold Indicators (Hole F08-151: 204.0 m to 204.5 m) Note: F08-151: 204.0 m to 204.5 m (top to bottom). Fold indicators include repetition of carbonatite to biotite-quartz gneiss and back into carbonatite. Upper carbonatite in figure has a contact at a high angle to core axis indicating that it is a flat lying contact (upper right dashed line). Middle gneiss has a trend of compositional layering with high - to low - to high angles relative to core axis (middle curved dashed line and lower middle dashed line). Black box highlights a possible fold closure which gives a characteristic bulls-eye appearance to the layering. Top of hole is towards the top left of photo. Photos from Chong (2010).7.2.5 Pegmatite Dykes Pegmatite dykes and pods up to 500 m long and 15 m thick crosscut all lithologies throughout the property. At least some of the pegmatites are folded. Among the pegmatites, two mineralogically-distinct types exist:  Two-mica (± garnet, ± tourmaline) granitic pegmatites  Syenitic pegmatites with minor biotite (± amphibole, ± pyroxene). Where pegmatites cross-cut carbonatite, a coarse-grained skarn assemblage of calcite, amphibole and/or diopside is developed at the contact.7.3 Structural Geology and Metamorphism The structural geology is summarized largely from Kraft (2010), Ghent et al. (1977), Simony et al. (1980), and Raeside and Simony (1983).Project No.: 168967 Page 7-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The style of structural deformation at the Project directly impacts the carbonatite geometry. A deformation model was developed on behalf of Commerce by J. Kraft during 2009 and early 2010. The structural deformation model was confirmed and enhanced by field work completed by J. Kraft during July and September of 2010 and by structural interpretation of sub-surface information by Gervais (2011). The following descriptions include the 2010 supporting observations and interpretations. Reviews by SRK (Couture and Nash, 2011a, 2011b) and Touchstone Geoscience Inc. (Touchstone) (Lee, 2012) generally support the deformation model. Three phases of compressional deformation have been mapped throughout most of the region, from the northern Selkirk Mountains into the Cariboo Mountains. At the Project, at least two additional deformation events are observed. The first deformation event (D1) produced large recumbent folds (F1) with limbs approximately 50 km long and an associated early foliation (S1). Features from F1 are not observed within the immediate deposit area. The second deformation event (D2) is associated with peak, mid-amphibolite facies metamorphism with an associated foliation (S2). In general the S1 and S2 foliations can rarely be distinguished from one another in the field and are mapped as S1+S2. D2 has created boudinage, or pinch and swell features attributed to competency contrasts between rock type layers. The third deformation event (D3) is characterized by centimetre to decametre scale recumbent folds (F3) that deform the S2 foliation. Axial planar schistosity that deforms S1+S2, within micaceous lithologies such as fenite, is known as S3. The style and attitude of F3 folds are variable, but axial planes are generally southeast-dipping. Touchstone (Lee, 2012) suggests that transpositional folding associated with D2 may play a larger part in carbonatite geometry than previously considered. The fourth deformation event (D4) is characterized by inclined, southwest trending folds that re-fold larger F3 folds in the deposit area. Open to tight upright folds with east to southeast hinges occur sporadically. D4 is suggested to include thrust faulting with top to the southwest vergence. The fifth deformation event (D5) is described as a brittle extensional event characterized by normal faults with slickensides, weak quartz-pyrite alteration of wall rocks, and cross-cutting relationships with D4 structures. A distinctive augen gneiss unit intersected below the carbonatite in many holes may represent a high strain zone defining a lower boundary for the carbonatites.Project No.: 168967 Page 7-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Folding is observed in wall rocks adjacent to the carbonatite in outcrop and in drill core, and is interpreted for carbonatite intercepts on large scale geological sections. Within carbonatite, compressional deformation with weak southeast elongation is suggested by zones with cataclastic to mylonitic foliation (Chudy and Ulry, 2012) and weakly to moderately developed mineral lineations defined by amphiboles. Carbonatite bodies are folded at metres to deposit scale, however their thickness and massive (non-layered) nature makes observation of folding indicators within the carbonatite comparatively difficult to observe in outcrop or drill core.7.4 Geochronology The geochronology is summarized largely from Pell (1994), Simonetti (2008), and Gervais (2009). An uranium–lead date of about 325 Ma was obtained from zircons from the Verity carbonatite. A lead–lead date of 332.5 ± 5.7 Ma age was obtained from zircons for the Upper Fir carbonatite. A preliminary uranium–lead date of 328 ± 30 Ma was obtained from zircons from the Mud Lake area carbonatite. Zircons separated from syenite at Paradise Lake yielded a uranium–lead age of about 340 Ma and lead-lead ages of about 351 and 363 Ma. Ongoing research on U/Th/Pb dating of zircons and monazites from the property shows a complex thermal history, indicating that the age of emplacement of the Blue River area carbonatites may be older than initial results have shown (pers. comm. L. Millonig to J. Gorham).7.5 Carbonatites The Upper Fir and Bone Creek carbonatites are assessed in the mining plan discussed in Section 16 of this report. However, for Report completeness purposes, all of the significant carbonatite deposits are described in this subsection.7.5.1 Fir Carbonatite Information summarized in this subsection on the Fir deposit is from the British Columbia Geological Survey website. The Fir showing is located 1.25 km north of the Bone Creek carbonatite. Carbonatite consisting of dolomitic and lesser calcitic carbonatite occurs as sills within the quartz- hornblende-mica schist of the Semipelite Amphibolite division of the Horsethief CreekProject No.: 168967 Page 7-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Group. Other lithologies include amphibole-biotite schist, biotite-muscovite gneiss and amphibole-biotite-garnet gneiss. The Fir carbonatite has a likely strike extent of at least 400 m in a northerly direction based on outcrop exposures. A 2 m exposure of dolomitic carbonatite was located 400 m north of the discovery outcrops. Additional exploration potential occurs south of the Fir discovery outcrops based upon tantalum and niobium soil anomalies. Dolomitic outcrops are coarsely crystalline and typically weather white. Accessory minerals in the carbonatites include apatite, amphibole, olivine, magnetite, pyrite, pyrrhotite, pyrochlore, and columbite. The dolomitic carbonatite is almost devoid of biotite and magnetite. Three distinct textures were observed: breccias composed of tightly- packed dolomite fragments within a finely crystalline dolomite groundmass; a porphyritic texture with ghost dolomitic crystals in a fine-grained matrix; and a massive texture with local banding of accessory minerals. Tantalum and niobium mineralization in the Fir carbonatite occurs as the minerals pyrochlore and columbite. The Fir carbonatite has the highest background niobium and tantalum values of all carbonatites in the area. Tantalum averages greater than 0.015 per cent. Sampling of the discovery outcrops returned assays of 1.02% Nb 2O5, 0.06% Ta2O5, and 6.31% P2O5. A sample from drill hole BC19 returned values of 0.18% tantalum and 8.51% phosphate from 119.0–119.6 m. The anomalous value may be the result of a pyrochlore–apatite band in the sample.7.5.2 Verity Carbonatite The Verity carbonatite is located about 40 km north of the community of Blue River. The Verity carbonatite has the most varied stratigraphy of all the carbonatites in the area. The Verity carbonatite consists of banded dolomitic and calcitic carbonatite that locally intrude each other. It occurs as a 15 m to 30 m thick sill within quartz-hornblende-mica schist of the Horsethief Creek Group. It can be traced up the hillside for 800 m to the east–northeast. A tectonic breccia showing hairline fractures is common in the dolomitic carbonatite. A banded texture caused by layering of the accessory minerals apatite, amphibole, olivine, magnetite, vermiculite, biotite, pyrite, pyrrhotite, pyrochlore, columbite, and zircon is common in calcitic carbonatite and less developed in the dolomitic carbonatite. Coarse olivine and apatite in calcitic dolomite form bands 1 cm to 5 cm thick. Magnetite occurs as discontinuous lenses in calcitic carbonatite layers; the lenses can be much as 20 cm in diameter.Project No.: 168967 Page 7-1722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Tantalum and niobium mineralization in the Verity carbonatite occurs in the minerals pyrochlore and columbite. The pyrochlore and columbite crystals occur as octahedrons that can reach 4 cm diameter. Calcitic carbonatite at the Verity occurrence also contains greater than 10.8% phosphate and has abundant apatite relative to other nearby carbonatites at the Project. Rare earth elements are interpreted to be hosted in fluorine-rich carbonate.7.5.3 Exploration Targets Geochemical sampling has outlined a number of potential exploration targets, including:  Upper Fir Extension target: strong tantalum anomalies on four adjacent soil lines north–northwest of Bulk Sample Pit #2 indicate that the carbonatite subcrop likely extends to the north, past the current drill coverage  Bone Creek Extension target: strong tantalum-in-soil anomalies on two widely- spaced lines centered at UTM 5,797,000 N indicate a near surface carbonatite body that is on strike with the Bone Creek carbonatite  Fir Exploration target: strong tantalum-in-soil anomalies on widely-spaced lines located north, south and above the known Fir showing indicate possible extensions of the Fir carbonatite  Mt. Cheadle Exploration target: a large diffuse tantalum-in-soil anomaly, with several spikes, stretching over 2 km, is located north of Gum Creek and along strike from the Upper Fir carbonatite  3050 Road target: Strong tantalum anomalies on soil lines to the north and east of current drilling on the Upper Fir deposit near 3050 Road indicate another carbonatite body may be located above the known extents of the deposit. Target locations are indicated on Figure 7-12.Project No.: 168967 Page 7-1822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 7-12: Exploration Target Location Surface Map Note: Figure courtesy Dahrouge Geological Consulting Ltd., 2012.Project No.: 168967 Page 7-1922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Soil sample results indicate the Upper Fir carbonatite has exploration potential directly northward of known deposit extents. Additional resource definition drilling is warranted. Soil sample results indicate the Bone Creek and Fir carbonatites have additional exploration potential along, and across, strike. Additional in-fill soil sampling is warranted prior to diamond drilling to assess for potential connections with the Upper Fir carbonatite.7.6 Mineralogy The discussion in this section is summarized largely from observations during AMEC’s site visits, Chudy (2008 and 2010), Chudy and Ulry (2012), Woolley and Kempe (1989), Aaquist (1982a), and Mariano (2000). There are two principal and one minor niobium- or tantalum-bearing minerals known at the Project. The minerals, using generic end-member compositions, are:  Ferrocolumbite ............ (Fe,Mn,Mg)(Nb,Ta)2O6  Pyrochlore ..... (Ca,Na,U)2(Nb,Ti,Ta)2O6(OH,F)  Fersmite ..... (Ca,Ce,Na)(Nb,Ta,Ti)2(O,OH,F)6.7.6.1 Ferrocolumbite Ferrocolumbite occurs predominantly in medium to coarse-grained, granoblastic dolomitic carbonatites which typically form relatively thin intervals (<6 m) or occur at margins of thicker intervals of carbonatite. These carbonatites contain the amphibole minerals winchite and barroisite. Ferrocolumbite forms subhedral to anhedral, sometimes strongly poikilitic, individual grains or agglomerates of grains. Mineral liberation analyses show that the majority (~80%) of liberated grains are less than 110 μm in diameter. Locally, individual grains and agglomerates of ferrocolumbite may exceed 2 cm in diameter. Ferrocolumbite grains from marginal zones may contain large amounts of tiny inclusions such as thorite (Th-silicate), monazite (La, Ce-phosphate) and pyrochlore. Ferrocolumbite may also occur sporadically as inclusions in apatite and amphibole. It is often associated with layers and micro-veins of apatite that fill the interstices between anhedral ferroan-dolomite grains.Project No.: 168967 Page 7-2022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update7.6.2 Pyrochlore Pyrochlore occurs predominantly in the fine-grained and porphyroblastic dolomitic carbonatite containing the amphibole richterite, which is commonly developed in the central portions of carbonatite intervals greater than 10 m thick. Such zones are less abundant or absent in thinner carbonatite intersections. Pyrochlore is the only tantalum mineral in the calcitic carbonatites that occurs in accessory amounts. Black and brownish-yellow coloured varieties of pyrochlore are present. The majority of the pyrochlore occurs as liberated grains in the dolomitic matrix. The vast majority (~ 85%) of pyrochlore forms subhedral to anhedral, rounded grains less than 200 μm in diameter. There are local larger grains and agglomerates, as well as accumulations or veins less than a few tens of centimetres in width with high pyrochlore abundance. This style of mineralization can result in locally high tantalum values (> 450 ppm Ta). Pyrochlore also occurs as inclusions in amphiboles (richterite), fluorapatite, and in ferrocolumbite. In some rare cases the pyrochlore grains can be coated with a thin film of pyrrhotite or pyrite.7.6.3 Fersmite Fersmite occurs as anhedral inclusions in apatite, primarily at the Verity carbonatite and is considered a minor economic mineral at the Project.7.6.4 Fenite Mineralization Mineralization in the fenite is dominantly ferrocolumbite, concentrated in apatite-rich layers. Ilmenite, with ferrocolumbite inclusions, appears to be a subdominant source of both niobium and tantalum. Niobium and tantalum grades within fenite at Blue River are considered to be sub-economic, but locally fenite may provide grade-bearing mining-dilution material.7.6.5 Mineral Zoning Mineral zoning, or distribution, of ferrocolumbite and pyrochlore within the carbonatites is not clear due to the variable thicknesses and polyfolded geometry of the carbonatite. On-going research (Chudy and Ulry, 2012) supports the association of dominantly pyrochlore mineralization with richterite-bearing, fine-grained, foliated carbonatite defining zones of retrograde deformation. Ferrocolumbite mineralization is dominant in winchite–barroisite-bearing, coarse-grained gneissic carbonatite. Carbonatite ofProject No.: 168967 Page 7-2122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update intermediate porphyroclastic textures may contain both minerals. Further work is required to improve the understanding of the mineral zoning and to locate potential material types required to support metallurgical testwork.7.7 Comment on Section 7 In the opinion of the QPs, knowledge of the deposit settings, lithologies, and structural and alteration controls on mineralization are sufficient to support mineral resource estimation. The mineralization style of the Project deposit is sufficiently well understood to support mineral resource estimation. Prospects and targets are at an earlier stage of exploration, and their lithologies, structural, and alteration controls on mineralization are at present not well understood and hence more work is required to support estimation of mineral resources.Project No.: 168967 Page 7-2222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update8.0 DEPOSIT TYPES The mineralization identified to date at the Project is consistent with magmatic, carbonatite-associated deposits. Carbonatite-associated deposits are classified as either magmatic, replacement, or residual. Global examples of magmatic carbonatite complexes or deposits include: Oka, Niobec (St. Honore) (Quebec); Kovdor (Russia); Iron Hill (Colorado); and Gardiner (Greenland) (Mitchell, 2010). Examples of replacement carbonatite deposits are Rock Canyon (B.C.), Bayan Obo (China), and Palabora (South Africa). Araxa and Catalao (Brazil) are classified as residual carbonatite deposits due to the degree of lateritic weathering. Carbonatites are the main source of niobium +/- tantalum, and important sources of rare earth elements. Magmatic carbonatite deposits have the following common features (Birkett and Simandl, 1999).  Commodities: Niobium, tantalum, rare earth elements, phosphate, vermiculite, copper, titanium, strontium, fluorine, thorium, uranium, magnetite.  Geological Setting: Carbonatites intrude all types of rocks and are emplaced at a variety of depths. Carbonatites occur mainly in a continental environment, rarely in oceanic environments (Canary Islands) and are generally related to large-scale, intra-plate fractures, grabens or rifts that correlate with periods of extension and may be associated with broad zones of uplift.  Age of Mineralization: Carbonatite intrusions are early Precambrian to Recent in age; they appear to be increasingly abundant with decreasing age. In British Columbia, carbonatites are mostly upper Devonian, Mississippian or Eocambrian in age.  Host Rocks: Host rocks are varied, including calcite carbonatite (sövite), dolomite carbonatite (beforsite), ferroan or ankeritic calcite-rich carbonatite (ferrocarbonatite), magnetite-olivine-apatite ± phlogopite rock, nephelinite, syenite, pyroxenite, peridotite and phonolite. Carbonatite lava flows and pyroclastic rocks are not known to contain economic mineralization. Country rocks are of various types and metamorphic grades.  Deposit Form: Carbonatites commonly occur as small, pipe-like bodies, dikes, sills, small plugs or irregular masses. The typical pipe-like bodies have sub- circular or elliptical cross sections and are up to 3-4 km in diameter. Magmatic mineralization within pipe-like carbonatites is commonly found in crescent-shaped and steeply-dipping zones. Metasomatic mineralization occurs as irregular forms or veins. Residual and other weathering-related deposits are controlled by topography, depth of weathering and drainage development.Project No.: 168967 Page 8-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Deposit Mineralogy: o Magmatic: bastnaesite, pyrochlore, columbite, apatite, anatase, zircon, baddeleyite, magnetite, monazite, parisite, fersmite. o Replacement/Veins: fluorite, vermiculite, bornite, chalcopyrite and other sulphides, hematite. o Residual: anatase, pyrochlore and apatite, locally crandallite-group minerals containing rare earth elements.  Gangue Mineralogy: Calcite, dolomite, siderite, ferroan calcite, ankerite, hematite, biotite, titanite, olivine, quartz.  Alteration: A fenite halo (alkali metasomatized country rocks) commonly surrounds carbonatite intrusions; alteration mineralogy depends largely on the composition of the host rock. Most fenites are zones of desilicification with addition of Fe3+, Na and K.  Mineralization Controls: Intrusive form and cooling history control primary igneous deposits (fractional crystallization). Tectonic and local structural controls influence the forms of metasomatic mineralization. The depth of weathering and drainage patterns control residual pyrochlore and apatite deposits, and vermiculite deposits. Many features of the mineralization identified within the Project to date are analogous to magmatic carbonatite deposits, in particular the Oka (Husereau Hill) and Niobec (St. Honoré) deposits in Quebec. Key features of the Blue River deposits supporting a magmatic carbonatite model are:  Commodities: niobium and tantalum  Geological Setting: occurs along the eastern portion of the Omineca Crystalline Belt and hence its tectonic setting is along a large scale zone with associated uplift  Age of Mineralization: data yields results of about 330 Ma which is consistent with other British Columbia carbonatite deposits  Host Rocks: dolomite and calcite-rich carbonatite intrusion rocks  Deposit Form: the Blue River carbonatites occur as sills and dykes  Deposit Mineralogy: ferrocolumbite and pyrochlore  Gangue Mineralogy: dolomite, calcite, amphibole (richterite), quartz, pyroxene, phlogopite, olivine, magnetite, apatite, pyrite/pyrrhotite, ilmenite, and zircon  Geochemistry: high strontium levels (>5,000 ppm)  Alteration: Fenite halos occur around most carbonatites at Blue RiverProject No.: 168967 Page 8-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Mineralization Controls: Carbonatites are the main host rocks to the Ta and Nb rich minerals pyrochlore and ferrocolumbite. The Blue River carbonatites have been deformed by multiple episodes of folding and faulting. The internal cooling history of the deposit is not clear. The spatial distribution of the Ta and Nb rich minerals varies throughout the carbonatite .8.1 Comment on Section 8 In the opinion of the QPs,  A polyfolded sill-like carbonatite model suitably describes the Blue River deposits  The deposit concepts being applied as the basis for exploration planning at the Project are reasonable.Project No.: 168967 Page 8-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update9.0 EXPLORATION The Blue River area has been the subject of intermittent exploration since the discovery of vermiculite-bearing carbonatite rock in 1949. Commerce acquired parts of the current property in 2000 and initiated exploration for new carbonatite deposits which culminated in the drilling of the Upper Fir carbonatite and delineation of the Fir and Upper Fir–Bone Creek carbonatite system.9.1 Grids and Surveys All surveys to date are in UTM NAD83 Zone 11 coordinates. In 2007, orthophotography and Lidar surveys were flown to create a 1:2,000 base map of the Upper Fir area. A topography map with 2 m contour intervals was created by Eagle Mapping Ltd.9.2 Geological Mapping Geological and structural mapping has been completed at 1:2,500 scale on a continuous basis since 2006. The mapping area coverage is between Bone and Gum Creeks; and from the North Thompson River to the ridge top located about 3 km east on the slope that is known locally as either Fir or Cedar Mountain. The mapping area includes the Fir, Upper Fir, Bone Creek (considered a single system) and Gum carbonatites plus the nearby Hodgie Zone. Mapping was used to determine the outcrop of carbonatite and provide geological and structural data.9.3 Geochemical Sampling9.3.1 Stream Sediment Sampling Reconnaissance stream sediment sampling was completed during 2001 to 2003, and 2006 to 2007. During 2008, 531 stream sediment samples were collected and analysed for the streams throughout the entire property. The key exploration pathfinder elements at Blue River are tantalum, niobium, and rare earth elements. Detailed sample analysis using microscopic mineral characterization was utilized, focusing on identifying pyrochlore, apatite, richterite, and monazite as pathfinder minerals.Project No.: 168967 Page 9-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update During the 2009 field season, a total of 20 stream pan concentrate samples were taken in the Fir and Mud Creek areas to follow up on creek-mouth areas inaccessible during the 2008 field season. Samples were analyzed at Acme Laboratories in Vancouver B.C. (Acme) primarily for tantalum, niobium, rare earth elements, phosphate, and carbonate using Acme’s 4B trace element package (lithium metaborate fusion-ICP-MS technique). Several samples anomalous in tantalum and niobium indicate that the Fir carbonatite likely extends further south.9.3.2 Soil Sampling Soil sampling (B-horizon) has proven the best way to follow up on stream pan concentrate sampling in the Blue River area as the niobium–tantalum-bearing ferrocolumbite and pyrochlore are residual in soils. The key exploration pathfinder elements from soil sampling are tantalum and niobium. During 2002, follow-up on an anomalous stream sediment sample led to the discovery of the Upper Fir carbonatite. Reconnaissance soil sampling was completed during 2001 to 2003 and 2006 to 2010 (Table 9-1). During the 2009 season, 1,694 soil samples were collected from several area grids. Sample grids typically have 200 m spaced lines and samples are taken at 25 m intervals. Soil sampling in 2010 followed up on 2009 soil sampling anomalies on the west slope of Mount Cheadle and extended the grid south towards Gum Creek. A total of 477 samples were taken by Dahrouge and analyzed by Acme using Acme’s 4Bpackage (lithium metaborate fusion-ICP-MS technique). A broad area of tantalum and niobium anomalies stretching north of Gum Creek indicates a possible extension of the Fir/Upper Fir carbonatite system. Table 9-1: Soil Sample Campaigns Number of Year Samples Grids 2001 144 Verity, Fir 2002 128 Verity, Fir 2003 117 Verity, Fir 2006 308 Fir, Bone Cr, Switch Cr 2007 1,996 Fir, Bone Cr, South Fir, Switch Cr, Hellroar, Tailings area, Mt. Cheadle, Pyramid Creek 2008 4,081 Bone Creek, Hellroar Creek, Mount Cheadle, Mud Lake, and Upper Fir 2009 1,694 Fir, Upper Fir, Hellroar, Switch Creek 2010 477 Mt. CheadleProject No.: 168967 Page 9-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update9.3.3 Rock Chip, Grab, and Channel Sampling Rock samples have been taken as part of prospecting and mapping activities on the Property since 2000 (Table 9-2). Rock samples from various new and known localities, primarily on the Wasted claims located west of the North Thompson River, were taken during 2010 prospecting to test for or verify the presence and abundance of tantalum–niobium and rare earth mineralization. A total of 25 in situ bedrock grab and chip samples were taken at Miledge Creek, the Hodgie Zone, the Felix, and the Mona carbonatites. The Mona carbonatite, south of the Fir carbonatite, is interpreted to be a late stage remobilization of carbonatite from the Fir system. One continuous chip sample of fenite at the Mona carbonatite averaged 1,474 ppm Nb and 0.66% total rare earth elements (TREE) over 28 cm. Two grab samples of carbonatite from the Mona averaged 1,743 ppm Nb and 1.36% TREE and 6 ppm Nb and 3.66% TREE respectively. Table 9-2: Rock Sample Campaigns Number of Year Samples Type Area 2000 15 Chip, grab Verity, Roadside 2001 17 Chip, grab, float Fir, Bone Creek, Roadside 2002 20 Grab, float Fir, Bone Cr, Serpentine, Gum Cr 2003 3 Grab Upper Fir 2006 131 Chip, grab, float Upper Fir, Bone Cr, Mt Cheadle, Gum Cr, Paradise L, Verity, Switch Cr, Serpentine 2007 110 Chip, grab, float Upper Fir, Bone Cr, Serpentine, Paradise L, Mt Cheadle, Windfall Cr, Howard Cr, Gum Cr, Pancake Cr 2008 117 Chip, grab, float, channel Upper Fir, Bone Cr ultramafic, Felix, Gum Cr, Hodgie, Little Chicago, Mud Cr, Serpentine 2009 113 Chip, grab, float, channel Fir, Gum, Mud Cr, Howard Cr, Paradise, Switch Cr-Roadside, 2010 25 Chip, grab, regolith Wasted Claims, Felix, Mona, Hodgie Three samples of the Felix carbonatite confirmed that it is not a tantalum-bearing unit, with Ta values below 1 ppm and TREE values below 0.01%. One sample of clinopyroxene-amphibole schist from the Hodgie Zone returned only 0.02% TREE. Sampling on the Wasted claims along Miledge Creek on the west side of the North Thompson River was undertaken to aid in condemnation of potential waste rock orProject No.: 168967 Page 9-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update tailings storage sites. The highest value found was a pyrite-muscovite schist yielding 49.5 ppm Nb, 3.3 ppm Ta, and 0.05% TREE.9.4 Bulk Sampling A bulk sample program was undertaken in the fall of 2008 by Dahrouge as part of on- going evaluation of the Upper Fir carbonatite. Approximately 2,000 t from a 10,000 t permitted volume were extracted from three bulk sample pits (BS-1, BS-2, and BS-3; refer to locations shown in Figure 7-5) and placed into 75 t to 150 t stockpiles that were comprised largely of -50 cm carbonatite material. The stockpiles were stored on a lined, well-drained pad at the Project site for later metallurgical testing. For each pit area, geological mapping was completed along with sampling of blast- hole material and channel samples of the bench walls. Both gneissic and porphyroclastic metamorphic textures and structures were exposed in the sample pits. Microscopic examination of oxide phases in the bulk sample material indicated that pyrochlore was the dominant mineral in pit BS-1 with the exception of benches at the upper and lower contacts. Ferrocolumbite with subordinate amounts of pyrochlore forms the mineralization in pits BS-2 and BS-3. Pit BS-1 was excavated in dominantly fine- to medium-grained, granular, foliated, apatite-bearing, dolomitic carbonatite. Pits BS-2 and BS-3 were excavated in dominantly light-grey, coarse-grained, porphyroclastic, apatite-bearing, dolomitic carbonatite. Crosscutting veins of dark green actinolite–calcite–diopside that are as much as 20 cm wide are common. Contacts in each pit are marked by approximately 1 m of fenite, with contorted layers of dolomitic carbonatite up to 10 cm thick. Material from the 2008 bulk sampling program appears to provide a sufficient range of tantalum and niobium grades to represent the Upper Fir carbonatite mineralization for initial metallurgical testing. Both pits, BS-1 and BS-2, were stabilized and grass seeded, while pit BS-3 was backfilled and reclaimed during 2009 and 2010. The bulk sampling permit expired on 31 December 2009 and has not been renewed, although bulk sample material remains stockpiled on the site for future testwork.9.5 Research Programs Doctoral (Thomas Chudy 2009 to present) and post-doctoral (Leo Millonig 2010 to present) studies on the geology, petrology and microscopy of the carbonatiteProject No.: 168967 Page 9-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update mineralization at Blue River are underway at the University of British Columbia. Publication of these studies is expected in late 2012.9.6 Comment on Section 9 In the opinion of the QPs, the exploration programs completed to date are appropriate to the style of the deposits and prospects within the Project. The exploration and research work supports the genetic and affinity interpretations. The project retains significant exploration potential for carbonatite-hosted tantalum– niobium mineralization.Project No.: 168967 Page 9-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update10.0 DRILLING Core (diamond) drilling is the most extensively used exploration tool at Blue River. AMEC received a drilling database from Commerce named CCE_Upper_Fir that had a database closure date of 29 September 2011. The database comprises a total of 269 core drill holes within the Upper Fir, Bone Creek and Fir (Lower) carbonatites consisting of 54,065 m of HQ (63.5 mm) and NQ (47.6 mm) diameter coring. Table 10-1 lists the core drilling campaigns at the Upper Fir and Bone Creek deposits. Core drilling by Commerce commenced in 2005 and continues to the present. Drill locations are included in Figure 10-1. Of the 269 core drill holes, 237 drill holes totalling 50,395 m of HQ diameter core (12,736 samples) are used to support the Mineral Resource estimate. Of the 269 core holes, Commerce drilled 11 holes in the Fir carbonatite area which are not part of this Mineral Resource update. Of the 269 core holes, 21 legacy holes were drilled by operators prior to Commerce’s involvement in the project. No sample intervals are present in the database for the 21 legacy holes as the assay data could not be verified. Therefore, these holes have not been used to estimate grades in this Mineral Resource update, but they were used to interpret geology. An additional 34 core holes, totalling 8,715 m of HQ drill core were drilled in 2011. The 2011 holes were not used in the preparation of this 2012 Mineral Resource update presented in this report. Preliminary results from 34 holes drilled in 2011 were reviewed by AMEC after completion of the current Mineral Resource estimate update. Drill log lithology information from these holes was reviewed on screen against the 3D carbonatite model used in the resource estimation. The new 2011 drilling information generally supports the geological interpretation. Some discrepancies were observed which warrant local re-interpretation for future updates. Laboratory analyses of the 2011 drill core samples are now complete and the quality control results are being reviewed by Commerce. The locations of the 2011 drill collars are shown in Figure 10-1 together with the 2005-2010 drill holes. Table 10-2 lists the three bulk sample pits (BS-1, BS-2, and BS-3) and four trenches (TR0, 0A, 1, and 1A) which have been sampled. These were only used for geology interpretation and domain modeling, not for grade interpolation.Project No.: 168967 Page 10-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 10-1: Drill Campaign Summary Category Deposit Operator Year # Holes Series Type # Metres # Samples % Samples Resource Bone Creek Commerce 2005 4 CF05-01 to CF05-04 HQ 300 14 <1% Resource Upper Fir Commerce 2005 4 CF0505 to CF0508 HQ 505 44 <1% Resource Upper Fir Commerce 2006 17 CF0601 to CF0617 HQ 3,021 1,139 9% Resource Upper Fir Commerce 2007 18 F0718 to F0735 HQ 4,310 1,053 8% Resource Upper Fir Commerce 2008 118 F08-36 to F08-153 HQ 23,723 5,126 40% Resource Upper Fir Commerce 2009 22 F09-154 to F09-176 HQ 5,587 842 7% Resource Upper Fir Commerce 2010 54 F10-177 to F10-230 HQ 12,949 4518 36% Resource Subtotal 237 50,395 12,736 100% Historical Bone Creek AMC 1980-1981 17 BC-1 to BC-17 NQ 697 na- Historical Fir AMC 1981 4 BC1-18 to BC-21 NQ 829 na- Target Fir Commerce 2001-2002 11 F-01 to F-11 HQ 2,144 na- (twins) Target Subtotal 32 3,670 Total Drilling 269 54,065Notes:Abbreviations: AMC = Anschutz Mining Corp.The Commerce 2011 campaign comprises 34 HQ diameter drill holes totalling 8,715 m. These holes were not completed during the database audit or blockmodeling for this 2012 Mineral Resource update. Preliminary analyses for the 2011 sampling are complete but pending QA/QC assessment.Table 10-2: Upper Fir Deposit Trench and Bulk Samples # Category Deposit Operator Year Number Series Type (m) Metallurgy Upper Fir Commerce 2008 3 BS01 to BS03 Bulk Sample 138 Exploration Upper Fir Commerce 2006 4 TR0, 0A, 1, 1A Trench-Chip 73Project No.: 168967 Page 10-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 10-1: Drill Collar Plan Note: Figure courtesy of Dahrouge Geological Ltd., 2012.Project No.: 168967 Page 10-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update10.1 Core Drilling Strategy The holes are collared on three primary drill roads (Upper, Middle, Lower roads and several intermediate trails) that are oriented sub-parallel to the Upper Fir carbonatite along the hillside. Drill pad set-ups are spaced about 50 m apart along drill roads. The majority of the known portions of the Upper Fir deposit are defined on 50 m centres. The at-depth Bone Creek carbonatite has only been intersected by a limited number of drill holes. The drill hole orientations appear to be approximately sub-perpendicular to the carbonatites. The relationship between sample length and true thickness varies with the dip of holes. True thicknesses are slightly less than drilled intercepts.10.1.1 Core Sizes Core holes are typically HQ diameter (96 mm) producing core with a diameter of 63.5 mm. Hole-diameter reductions due to poor ground conditions generally are not an issue at the Project. Approximately 45% of the holes are vertical. The remaining inclined holes typically have azimuths of 090° or 270° and dips that range from -60° to -80°. Drill hole depths range from a minimum of 32 m and a maximum of 388 m, averaging about 200 m.10.1.2 Collar Surveys The drill hole collars are spotted in the field with a hand-held global positioning system (GPS) instrument and oriented with a Brunton compass. In 2011, an azimuth positioning survey system (APS) was introduced to aid in lining up the drill and to obtain a more accurate preliminary collar location and orientation. During 2008 and 2009, collars were surveyed using a laser theodolite system by Steve Mosdell of Align Surveys of Louis Creek, B.C. In 2010, McElhanney Associates of Vancouver (McElhanney) undertook a differential GPS survey of all 2010 drill collars, as well as all historic collars still visible, including all Steve Mosdell’s work that could be verified, and all roads. McElhanney also established six reference markers on the property to support future surveys. Commerce advised AMEC that some earlier drill collar monuments have been destroyed due to subsequent construction activities. McElhanney conducted a follow-up differential GPS survey during September 2011. The survey included 2011 campaign drill collars, the three bulk sample pits, new road and trail construction, plus many culvert locations.Project No.: 168967 Page 10-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update10.1.3 Down-Hole Surveys In 2010, a Flexit Multishot down hole orientation tool was introduced for down-hole surveys. A Flexit Single Shot tool was used for ten holes when the multishot tool was not available or not working. The dip and azimuth of vertical and inclined drill holes were typically tested at five (vertical) to ten (inclined) points in each hole using the Flexit Single Shot tool. The Multishot tool recorded a reading every 3 m down-hole, yielding a much more reliable dataset. The instrumentation records magnetic inclination, azimuth, temperature and magnetic susceptibility at each survey depth. The Flexit instruments were calibrated at the start of each field season from 2007 to 2010. In 2011, a Reflex gyroscopic down-hole orientation tool was introduced, with a backup survey using a Flexit Multishot tool. Acid test was the main down-hole survey method for the 2005-2006 drill campaigns.10.1.4 Oriented Drill Core Six geotechnical drill holes comprising 1,271 m of HQ diameter oriented core were completed during 2010. In addition, an orientation survey was conducted by DGI Geoscience Inc., Mississauga, Ontario, using optical and acoustic televiewers capable of providing oriented drillhole information on two 2010 holes and four pre-2010 holes. The optical and acoustic televiewer surveys were expanded to 18 drillholes during the 2011 campaign.10.1.5 Core Handling Core was obtained using wire-line methods and placed in wooden core trays. Core trays were placed near the core barrel so that the core was placed in the tray in the same orientation as it came out of the barrel. Rubble, which was rarely encountered, was piled to about the length of the whole core that its volume would represent. Trays were marked with drill hole name and box number. The end of every run is marked by a wooden block depth marker. The core trays are transported by pick-up truck down to the core logging facility at the community of Blue River, B.C.10.1.6 Core Recovery Core recovery was determined prior to sampling. Typically, recovery measurements were completed before detailed logging was initiated. Standard core recovery forms were usually completed for each hole by the field assistant or geologist.Project No.: 168967 Page 10-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Core recovery is very good within the waste and carbonatite rocks (typically >95%). The only area that may have core recovery issues would be within the fenite rocks located in the immediate hanging wall to the carbonatite.10.2 Drill Intercepts Table 10-3 contains examples of the types of drill intercepts that have been returned for the Blue River deposit areas. Typical drill hole orientations are indicated on the cross-sections included in Section 7 of this Report. Due to the dip of the carbonatite, drilled thicknesses reported in the table are slightly longer than true thicknesses.10.3 Comment on Section 10 In the opinion of the QPs, the quantity and quality of the lithological, geotechnical, collar location and down-hole survey data collected in the exploration and infill drill programs completed by Commerce are sufficient to support mineral resource estimation.  Core logging meets industry standards for tantalum and niobium exploration within a carbonatite setting  Collar surveys have been performed using industry-standard instrumentation  Down-hole surveys were performed using industry-standard instrumentation  Recovery data from core drill programs are acceptable  Drill hole orientations are generally appropriate for the mineralization style, and have been drilled at orientations that are optimal to the orientation of mineralization for the bulk of the deposit area  Drill hole spacing is sufficient to show geometry of the deposit and an understanding of the variability of the grade and thicknesses  No material factors were identified with the data collection from the drill programs that could affect mineral resource estimation.Project No.: 168967 Page 10-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 10-3: Example Drill Hole Intercept Summary Table Length** Ta Nb Drill Hole Easting Northing Elevation Azimuth Dip From (m) To (m) (m) (ppm) (ppm) F0720 352816.7 5796722.0 1207.2 272.8 -60 38.4 86.4 48.0 120 2,032 F0720 146.7 158.5 11.8 129 1,456 F0720 244.1 248.8 4.7 150 1,240 F0728 352811.4 5796442.0 1214.3 91.8 -60 27.3 30.0 2.7 13 745 F0728 93.0 150.4 57.4 188 1,417 F08-064 352782.3 5796404.0 1211.6 0 -90 95.7 130.4 34.7 172 1,754 F08-084 353094.7 5796738.0 1317.0 0 -90 110.0 162.0 52.0 180 1,494 F08-084 185.0 202.3 17.3 143 990 F08-084 214.3 223.4 9.1 144 1,504 F08-084 230.2 233.7 3.5 155 929 F08-084 249.6 253.8 4.2 157 878 F08-084 262.3 268.1 5.8 180 1,003 F08-113 352904.7 5796762.0 1240.3 271.8 -60 99.5 130.0 30.5 196 622 F08-113 130.0 132.1 2.1 111 258 F08-113 132.1 138.0 5.9 190 1,258 F08-113 175.0 202.8 27.8 169 616 F08-150 353006.3 5796416.5 1301.8 0 -90 129.0 136.8 7.8 143 2,258 F08-150 150.8 165.8 15.0 109 2,264 F08-150 190.0 202.1 12.1 169 969 F09-169 353033.3 5796716.0 1291.4 0 -90 78.4 126.9 48.5 185 1,658 F09-169 156.1 165.0 8.9 129 396 F09-169 165.0 167.0 2.0 224 395 F09-169 167.0 198.6 31.6 155 492 F10-200 352879.7 5796436.0 1238.9 1.8 -90 65.6 69.5 3.9 157 1,361 F10-212 352949.7 5796427.7 1273.2 91.8 -60 130.6 132.1 1.5 323 2,095 F10-212 132.1 134.9 2.8 109 1,110 F10-212 134.9 144.1 9.2 144 2,482 F10-212 144.1 145.8 1.7 58 459 F10-212 145.8 159.0 13.2 154 2,875 F10-212 183.4 189.8 6.4 161 809Note: ** “Length” column represents drill intercept, or drilled thicknesses.Project No.: 168967 Page 10-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY11.1 Sampling Methods Samples were collected from an area approximately 1,600 m north–south by 1,000 m east-west. Sampling is from a combination of vertical and inclined holes drilled from common collar locations. This results in a drill hole or sample spacing which increases with depth. Average spacing between drill hole intercepts in the mineral resource area varies from 40 to 50 m. Core sampling method and approach has been consistent through the 2005 to 2011 drill programs. Core was boxed on site and delivered each day to a core facility in Blue River where the core was logged and sawn. Core logging involved both geotechnical and geological information. Geotechnical logging included measuring core recovery per core run, rock quality designation (RQD), fracture roughness and orientation. Core recovery and RQD were generally good for most drill core, with typically greater than 95% recovery. The geological logging included observations of colour, lithology, texture, structure, mineralization, and alteration. All drill core was digitally photographed under natural outdoor, or fluorescent indoor lighting prior to splitting, of reasonable quality. In 2011, additional ultraviolet light digital photography of core was introduced to better characterize structure and mineral variation within the carbonatite. All digital photos are stored in Commerce’s computerized archiving system. The sampling procedure used to collect core at Blue River is as follows:  The entire carbonatite intersection and shoulder samples on each side of the intersection are sampled  Samples intervals, generally 1 m in length, are marked on the core by a geologist  Sample intervals are assigned a unique sample number  The geological contacts are generally respected  Specific gravity measurements of the carbonatite are performed at approximately 3 m spacing  Carbonatite samples are checked over the entire sample interval with a GR-130 miniSPEC gamma ray spectrometer for the presence of U and Th  Core is sawn in half by diamond saw  Half of the core is sent for analysis  Half of the core is stored in labelled core boxes for reference or further sampling.Project No.: 168967 Page 11-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.2 Metallurgical Sampling The bulk sampling program conducted in 2008 to provide metallurgical samples is discussed in Section 9.3. Additional information on the metallurgical sampling is included in Section 13. Metallurgical samples were collected from bulk sample material originating from BS-2 (approximately 173 t) during January 2009 and from BS-1 (approximately 6 t) during November 2009. BS-2 samples were ferrocolumbite dominant and selected to best represent the average tantalum-niobium grades for the carbonatite. BS-1 samples were selected to best reflect pyrochlore dominant mineralization. The two bulk samples were crushed to a particle size of <1 inch diameter. After crushing, each group of samples was homogenized separately by a standard coning and quartering procedure. The blended samples were bagged into one tonne bags and put into storage. One tonne of each sample was delivered to Met Solve Laboratory (Metsolve) in Burnaby in B.C. to air dry and further reduce the size to - 10 mesh for bench testing.11.3 Density Determinations Commerce collected specific gravity (SG) measurements in 2010 and 2011 covering the spatial and temporal aspect of all drill campaigns and considering the various lithologies present. The methodology implemented was a water immersion method and determines the specific gravity by the following formula: SG = (weight in air) / (weight in air – weight in water) A 10 to 20 cm piece of whole, dry, HQ core is weighed dry on an Ohaus triple beam balance and the weight recorded. The weight in water is determined by attaching the core by a long nylon fishing line to the Ohaus balance, lowering the core piece into a large plastic tub located immediately below the scale and filled with purified water. The weight of the core while immersed is then recorded, and applied to the formula for determining the SG. Porous core samples of fenite are coated with a thin veneer of lacquer or sealant to seal any voids or fractures present in the sample. Calibration weights are occasionally used to verify the accuracy of the balance beam. The table used to complete the measurements is made of wood construction and tested for level by the technician. The SG results are summarized in Table 11-1 and Table 11-2.Project No.: 168967 Page 11-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 11-1: 2005 – 2010 Specific Gravity Determinations by Campaign Year Count (%) Comment 2005 10 1% 2006 45 2% 2007 96 5% 2008 216 11% 2009 51 3% 2010 1,495 78% Total 1,913 100% Includes samples < 0.1 m length, outliers, and Other 12 rock types of mylonite or altered gneiss Table 11-2: 2005 – 2010 Specific Gravity Constants Rock Type Count Min Max Mean CV Comments Mg-Carbonatite 845 2.71 3.49 2.97 0.01 Ca-Carbonatite 72 2.85 3.28 3.01 0.03 Silico- Carbonatite 4 2.98 3.06 3.03 0.01 Insufficient number of samples for constants Carbonatite- Total 921 2.71 3.49 2.97 0.01 Amphibolite 235 2.64 3.29 3.02 0.03 Calc-silicate 42 2.89 3.24 3.08 0.03 Fenite 101 2.82 3.06 2.96 0.01 Gneiss 467 2.65 3.21 2.82 0.03 Pegmatite 58 2.56 2.70 2.62 0.01 Quartzite 10 2.6 2.71 2.64 0.01 Insufficient number of samples for constants Schist 20 2.70 3.09 2.89 0.04 Skarn 48 2.81 3.22 3.03 0.03 Ultramafic 8 2.98 3.21 3.10 0.03 Insufficient number of samples for constants Vein 3 2.77 2.87 2.81 0.02 Insufficient number of samples for constants Total 1,913 2.56 3.49 2.93 0.04 Includes samples < 0.1 m length, outliers, and Others 12 rock types of mylonite or altered gneiss Note: By volume, the rock types with insufficient number of samples are not material to the Mineral Resource update.Project No.: 168967 Page 11-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.3.1 Density Check Program Specific gravity check measurements were completed during the 2010 season by Commerce. One hundred and nine samples of the 2005 – 2009 drill campaigns were sent to Met Solve Laboratories of Burnaby, B.C. for SG determinations by wax coat preparation followed by water immersion method. The check values compared well to the water immersion field measurements recorded in the exploration database with a correlation of determination (R2) of 0.98. The check samples completed do not cover the 2010 drill campaign samples which comprise approximately 78% of the SG data used to support the Mineral Resource update. In the opinion of AMEC, the risk related to no checks for the 2010 SG data is considered not materially significant for this estimate based upon the strong correlation observed for the checks completed to date. For the upcoming 2012 field season, AMEC recommends Commerce-Dahrouge continue using the water immersion method and complete a 5% check of the 2010 and 2011 density determinations using wax immersion preparation followed by the water immersion method.11.4 Analytical Laboratories Acme Analytical Laboratories (Acme) in Vancouver was the primary laboratory for sample preparation of the 2005 to 2008 drill core samples. PRA/Inspectorate Laboratories (Inspectorate) in Richmond, B.C., was the primary laboratory for sample preparation of the 2009 to 2011 drill core samples. Acme was the primary laboratory for sample analysis since 2005 up to and including 2011 drill core samples. Acme is an independent mineral testing laboratory which, in 1996, became the first commercial geochemical analysis and assaying laboratory in North America registered under ISO 9001. The laboratory has maintained its registration in good standing since then. ISO 9001 addresses data and organizational management to ensure appropriate output of all product and client service. Acme regularly participates in proficiency testing and in October 2011 the Vancouver laboratory received formal approval of its ISO/IEC 17025:2005 accreditation from Standards Council of Canada for Au by fire assay. Acme is working on adding additional accredited methods but acknowledges there are no internationally recognized routine programs for Nb and Ta proficiency testing. Inspectorate is also an independent mineral testing laboratory that reportedly works to internationally-recognized standards such as ISO and ASTM. The Vancouver laboratory received ISO9001:2000 accreditation in 2006 and 2009 and participates in proficiency testing programs.Project No.: 168967 Page 11-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.5 Sample Preparation and Analysis Between 2005 and 2008 sawn core samples were shipped to Acme where the entire sample was crushed in a jaw crusher to 70% passing -10 mesh (2 mm) from which a 250 g riffle split sample was pulverized in a ring-and-puck mill to 85% passing 200 mesh (75 µm). Split core samples from the 2009 to 2011 drill programs were shipped to Inspectorate where the entire sample was crushed to 80% passing 10 mesh and a 300 g split of the crushed material was pulverized to 100% passing 200 mesh. In 2011, pulverization was to 95% passing 200 mesh. Between 2005 and 2008 drill core samples were analyzed at Acme for rare earth metals and refractory elements including Ta and Nb by inductively coupled plasma mass spectrometry (ICP-MS) following a lithium metaborate/tetraborate fusion of a 0.2 g sample followed by dilute nitric acid digestion of the fused pellet. Major oxides and several minor elements were analyzed by ICP-emission spectrometry (ICP-ES) using the same procedure preceding the instrumental analysis. In addition, 36 elements were analyzed by ICP-MS of a 0.5 g sample digested in aqua regia. Between 2009 and 2011 drill core samples were analyzed at Acme by X-ray fluorescence analysis following a lithium metaborate fusion of a 2 g sample (XRF(F)).11.6 Quality Assurance and Quality Control Assessing the accuracy of Ta and Nb results presents challenges not encountered with other commonly analysed metals. Base and precious metal assays have a wide selection of certified reference materials (CRMs) with their associated round robins and proficiency assessment programs. Without such feedback mechanisms, assay laboratories can be expected to show poorer agreement for the less commonly analysed metals. Some host minerals of these elements may be resistant to strong acid dissolution and/or form unstable solutions in dilute acid take-up after dissolution, which may impact ICP-MS and ICP-AES results. XRF(F) determinations may be impacted by background corrections that impact instrument calibration, particularly at low concentrations or short counting times. Quality control procedures used by Commerce to monitor laboratory results have evolved over the life of the project. Between 2005 and 2007 Commerce inserted very few blank, duplicate, or standard reference material (SRM) control samples. During this period, analysis of several pulp check samples was completed at six different laboratories. In 2008 the control sample insertion frequency was increased to an average of 3% for each of blanks, quarter core field duplicates, and SRM controlProject No.: 168967 Page 11-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update samples. In 2009 control sample insertion rates were increased to an average of 5% per control sample type and pulp duplicates were added. Similar control sample insertion rates were used for analysis of 2010 and 2011 drill core samples. Control sample insertions are summarized in Table 11-3.11.6.1 Assessment of Precision Duplicates are used to assess laboratory precision. Duplicates in this case are samples of the same material assayed at the same laboratory, using the same procedure, and ideally analyzed in the same batch. Duplicate paired results are assessed using Cumulative Frequency Absolute Relative Difference (ARD) charts. For resource estimation purposes, a generally acceptable precision is achieved if 90% of the duplicate pairs have an ARD less than 10% for pulp duplicates, less than 20% for coarse reject duplicates, and less than 30% field duplicates. Two hundred and twenty-nine quarter-core field duplicates were submitted between 2005 and 2008 as part of the regular QC program to support ICP-MS results. These show a marginally acceptable precision for Ta ICP-MS (35% ARD at 90% cumulative frequency, Figure 11-1). Nb paired results also have marginally acceptable precision.Project No.: 168967 Page 11-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 11-3 Control Sample Insertion Rate Summary No. of 1/4 Core Coarse Primary Primary Field Insertion Reject Insertion Pulp Insertion Year Analysis Samples Duplicates Rate Duplicates Rate Duplicates Rate 2010 XRF(F) 4,518 105 2.3% 272 6.0% 258 5.7% 2009 XRF(F) 794 48 6.0% 0 0.0% 48 6.0% 2008 ICP-MS 5,882 191 3.2% 0 0.0% 268 4.6% 2007 ICP-MS 1,017 36 3.5% 0 0.0% 0 0.0% 2006 ICP-MS 1,140 2 0.2% 0 0.0% 0 0.0% 2005 ICP-MS 58 0 0.0% 0 0.0% 0 0.0% No. of Primary Primary Blue River Insertion "BR-01" Insertion Insertion Year Analysis Samples SRMs Rate SRMs Rate Blanks Rate 2010 XRF(F) 4,518 291 6.5% 0 0.0% 248 5.5% 2009 XRF(F) 794 49 6.2% 0 0.0% 34 4.3% 2008 ICP-MS 5,882 0 0.0% 206 3.5% 222 3.8% 2007 ICP-MS 1,017 0 0.0% 49 4.8% 63 6.2% 2006 ICP-MS 1,140 0 0.0% 0 0.0% 48 4.2% 2005 ICP-MS 58 0 0.0% 3 5.2% 0 0.0% No. of 1/4 Core Coarse Primary Primary Field Insertion Reject Insertion Pulp Insertion Year Analysis Samples Checks Rate Checks Rate Checks Rate 2010 XRF(F) 4,518 105 2.3% 272 6.0% 258 5.7% 2009 XRF(F) 794 0 0.0% 0 0.0% 49 6.2% 2008 ICP-MS 5,882 0 0.0% 0 0.0% 232 3.9% 2007 ICP-MS 1,017 0 0.0% 0 0.0% 373 36.7% 2006 ICP-MS 1,140 0 0.0% 0 0.0% 102 8.9% 2005 ICP-MS 58 0 0.0% 0 0.0% 58 100%Table abbreviations: XRF(F) = X-ray fluorescence analysis following a lithium metaborate fusion; ICP-MS=inductively coupled plasma mass spectrometry; Blue River SRMs = In 2008, fifteen SRMs were prepared forCommerce by Process Research Associates (PRA, later Inspectorate) using core samples from the Blue Rivercarbonatite; "BR-01" SRMs = In 2005 SRM control sample BR-01 was prepared for Commerce by Acme, usingsample material from the Verity Carbonatite.Project No.: 168967 Page 11-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-1: 2005 to 2008 Quarter-Core Duplicate Pair Cumulative Frequency ARD Chart ARD Chart: Quarter Core Duplicate Pairs 2005 to 2008 Ta ICP-MS 100% 90% 80% |Pair Dif f erence| / (Pair Mean) 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Frequency (Percentile Rank) ACME Ta ICP-MS ACME Ta ICP-MS>50 Forty-eight quarter-core and 48 pulp duplicates were submitted to support the 2009 drill program XRF(F) results. One hundred and five quarter core, 272 coarse reject, and 258 pulp duplicate pairs were submitted to support the 2010 drill program results. Cumulative frequency ARD chart results for duplicate pairs submitted as part of the 2005 to 2010 quality control program are summarized in Table 11-4 and Table 11-5. Table 11-4: Cumulative Frequency ARD Summary for Tantalum 90% Cumulative Frequency ARD Coarse Quarter Year Pulp Reject Core 2005 – 2008 ICP - 37% 2009 XRF(F) >100% 70% 2010 XRF(F) 15% 40% 55%Project No.: 168967 Page 11-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 11-5: Cumulative Frequency ARD Summary for Niobium 90% Cumulative Frequency ARD Coarse Quarter Year Pulp Reject Core 2005 – 2008 ICP - 40% 2009 XRF(F) 20% 40% 2010 XRF(F) 10% 18% 45% The 2009 pulp and quarter core duplicate precision is poor for Ta and Nb XRF(F). The 2010 pulp and coarse reject duplicates achieve acceptable precision for Nb XRF(F) but marginal to poor precision for Ta XRF(F). As sample grades approach the lower detection limits of the given analytical procedure, the ARD typically increases. The 2010 Ta pulp and coarse reject duplicate precision improves to an acceptable level for paired duplicates with a mean grade greater than 50 ppm (Table 11-6, Figure 11-2). Table 11-6: Cumulative Frequency ARD Summary for Tantalum (Mean > than 50 ppm Ta) 90% Cumulative Frequency ARD Coarse Quarter Year Pulp Reject Core 2005 – 2008 ICP - 37% 2009 XRF(F) 89% 68% 2010 XRF(F) 11% 22% 50%Project No.: 168967 Page 11-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-2: 2010 Drill Core Assay Program Cumulative Frequency ARD Chart ARD Chart: Commerce Pulp Duplicate Pairs 100% 90% 80% |Pair Dif f erence| / (Pair Mean) 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Frequency (Percentile Rank) ACME Acme Ta 8x (XRF-F) ACME Acme Ta 8x (XRF-F)>50 Note: Black line represents cumulative frequency with no exclusion of paired data. Green line represents cumulative frequency after exclusion of pairs with mean grade < 50 ppm. Acme 8x refers to Acme’s Group 8 single element analysis by XRF(F). In 2008, 300 pulps were resubmitted after initial assaying as a separate batch to Acme for ICP-MS analysis. This work was part of a check program investigating accuracy and precision differences between ICP-MS and XRF(F). The ARD at 90% cumulative frequency was 28% for Ta and 22% for Nb. An acceptable level of precision was not achieved even at a 50 ppm Ta cut-off. However, no significant bias between the duplicate pairs for either Ta or Nb was apparent. An XRF(F) re-assay program of 2008 coarse rejects was initiated in 2009. Pulp duplicate results for 118 pairs show acceptable precision was achieved for Nb but not for Ta (Figure 11-3 and Figure 11-4).Project No.: 168967 Page 11-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-3: 2009 Re-assay Program Ta XRF(F) Cumulative Frequency ARD Chart ARD Chart: Pulp Duplicate Pairs for 2009 Re-assay Ta XRF(F) 100% 90% 80% |Pair Dif f erence| / (Pair Mean) 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Frequency (Percentile Rank) ACME Ta XRF(F) ACME Ta XRF(F)>50 Note: Black line represents cumulative frequency with no exclusion of paired data. Green line represents cumulative frequency after exclusion of pairs with mean grade < 50 ppm. Figure 11-4: 2009 Re-assay Program Nb XRF(F) Cumulative Frequency ARD Chart ARD Chart: Pulp Duplicate Pairs for 2009 Re-assay Nb XRF(F) 100% 90% 80% |Pair Dif f erence| / (Pair Mean) 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Frequency (Percentile Rank) ACME Nb XRF(F) ACME Nb XRF(F)>0 Note: Green line represents cumulative frequency with no exclusion of paired data.Project No.: 168967 Page 11-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.6.2 Assessment of Accuracy Standard Reference Material (SRM) control samples are used to assess laboratory accuracy. Accuracy is commonly measured as a bias between the Best Value (BV) of the SRM and the SRM results from the drill sample batches. Biases less than ±5% are commonplace and within the industry are widely accepted for the purposes of resource estimation. A bias between five and ten percent is considered marginal and usually warrants investigation. A bias exceeding 10% is considered significant and usually warrants remedial action before samples are used to support resource estimations. In 2005 SRM control sample BR-01 was prepared for Commerce by Acme, using sample material from the Verity Carbonatite. The BR-01 SRM did not undergo round robin testing: the best value (BV) is not certified and is used provisionally. In 2008, fifteen SRMs (Blue River SRMs) were prepared for Commerce by Process Research Associates (PRA, later Inspectorate) using core samples from the Blue River carbonatite. Three samples of each standard were sent to six laboratories, for Ta analysis, and seven laboratories for Nb analysis. Analytical procedures included XRF(F) and XRF/pressed pellet, ICP-AES, ICP-MS, ICP-M, and atomic absorption. The Blue River SRM round robin program used a small number of laboratories, providing less reliable estimates of the BVs. The calculated 95% confidences of the Ta BVs are unacceptably wide (greater than 5% and commonly greater than 10%). The 95% confidences for most of the Nb BVs are acceptably narrow (less than 5%), but the small number of laboratories in the round robin increases the risk that the confidence estimate is fortuitously small. The BVs could change significantly if more laboratories were used in the round robin. The calculated BVs of these 15 SRMs are used on a provisional basis and conclusions on accuracy are supported with results from check samples. Two hundred and six BR-01 SRMs were inserted by Acme into sample batches to support the 2005 to 2008 ICP-MS drill sample results. Control sample results were generally within ±5% of the best value. Less than 5% of the results exceeded ±2 standard deviations of the mean grade of all BR-01 results (Figure 11-5 and Figure 11-6). Forty-seven Blue River SRMs were inserted to support the 2009 XRF(F) drill sample results. There is an apparent negative bias for Ta results greater than 150 ppm and no apparent bias for Nb results (Figure 11-7 and Figure 11-8). These charts show the spread of Blue River SRM batch results around the expected value. Ta results are quite variable; Nb results are quite tight.Project No.: 168967 Page 11-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-5: 2005 to 2008 Ta ICP-MS BR-01 SRM Control Chart SRM BR-01 Ta 2005 to 2008 ICP-MS 150 Standard BR-01, Ta 4B ppm 145 140 135 Data 130 Mean +/- 2 125 120 std.dev.s 115 Best Value 110 105 Moving Average 100 1.05 x Best 95 0.95 x Best 90 85 High Clusters 80 Low Clusters 2005 2007 2008 2008 2008 2008 2008 2008 2008 2008 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 In order Assayed, by Date Figure 11-6: 2005 to 2008 Nb ICP-MS BR-01 SRM Control Chart SRM BR-01 Nb 2005 to 2008 ICP-MS 1000 Standard BR-01, Nb 4B ppm 950 900 Data Mean +/- 2 850 std.dev.s 800 Best Value 750 Moving Average 1.05 x Best 700 0.95 x Best 650 High Clusters 600 Low Clusters 2005 2007 2008 2008 2008 2008 2008 2008 2008 2008 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 In order Assayed, by DateProject No.: 168967 Page 11-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-7: 2009 Ta XRF(F) Blue River SRMs Control Chart 2009 Drill Program Blue River SRM Ta XRF(F) Results 400 y = 0.9214x + 4.3841 R² = 0.9664 350 300 Ta ppm XRF(F) from batch runs 250 200 150 100 50 0 0 50 100 150 200 250 300 350 400 Ta ppm XRF(F) Best value 2009 Batch SRM Results Result <± 5% of expected value y=x Linear (2009 Batch SRM Results)Project No.: 168967 Page 11-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-8: 2009 Nb XRF(F) Blue River SRMs Control Chart 2009 Drill Program Blue River SRM Nb XRF(F) Results 4500 4000 3500 y = 1.0198x - 29.878 R² = 0.9982 Nb ppm XRF(F) from batch runs 3000 2500 2000 1500 1000 500 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Nb ppm XRF(F) Best value 2009 Batch SRM Results Result < 5% of expected value y=x Linear (2009 Batch SRM Results) Two hundred and ninety-one Blue River SRMs were inserted to support the 2010 XRF(F) drill sample results. There was no significant bias observed for Nb (Table 11-7). Ta results show a predominantly negative bias up to -9.7% relative to the provisional BVs for most grade ranges (Table 11-8).Project No.: 168967 Page 11-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 11-7: 2010 Nb XRF(F) Blue River SRM Control Chart Summary Standard Best Mean Number of Lab Sample Value 95% CI 95%CI/BV Value Bias Samples Acme Uf-STD-03 3048 ±83 3% 3112 2.1% 33 Acme Uf-STD-04 3907 ±117 3% 4012 2.7% 34 Acme Uf-STD-06 2297 ±86 4% 2390 4.0% 6 Acme Uf-STD-07 1753 ±72 4% 1818 3.7% 37 Acme Uf-STD-08 244 ±29 12% 238 -2.4% 31 Acme Uf-STD-09 313 ±29 9% 316 0.9% 29 Acme Uf-STD-10 956 ±92 10% 996 4.2% 26 Acme Uf-STD-12 1478 ±85 6% 1540 4.2% 28 Acme Uf-STD-13 1744 ±74 4% 1810 3.8% 25 Acme Uf-STD-14 282 ±35 12% 274 -2.7% 31 Acme Uf-STD-15 2524 ±95 4% 2601 3.1% 11 Table 11-8: 2010 Ta XRF(F) Blue River SRM Control Chart Summary Number Standard Best 95% 95%CI/ of Lab Sample Value CI BV Mean Value Bias Samples Acme Uf-STD-03 74 ±18 24% 73 -1.8% 27 Acme Uf-STD-04 122 ±17 14% 136 11.5% 28 Acme Uf-STD-06 172 ±20 12% 169 -1.7% 6 Acme Uf-STD-07 179 ±17 10% 178 -0.8% 31 Acme Uf-STD-08 175 ±11 6% 158 -9.7% 28 Acme Uf-STD-09 193 ±15 8% 174 -9.7% 24 Acme Uf-STD-10 221 ±14 7% 210 -5.1% 23 Acme Uf-STD-12 241 ±17 7% 233 -3.2% 24 Acme Uf-STD-13 280 ±28 10% 281 0.4% 23 Acme Uf-STD-14 256 ±20 8% 235 -8.0% 25 Acme Uf-STD-15 377 ±31 8% 377 -0.1% 811.6.3 Assessment of Laboratory Bias Check samples, typically pulp samples, are sent to secondary laboratories to assess for between-laboratory bias. Between laboratory bias is assessed here using Reduction to Major Axis (RMA) charts which take into consideration that laboratory results are independent and that one set of the paired results may be more “erratic” than the other. Between-laboratory biases less than ±5% are generally considered acceptable.Project No.: 168967 Page 11-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Pulp check sample analyses were not systematically performed between 2005 and 2008, and SRMs were not consistently included with the check sample batches. Therefore the results for this period are considered an indicator of laboratory bias, but in isolation are not considered to be definitive. Since 2009, most check sample programs are supported with adequate control samples. A summary of RMA calculated biases between primary and secondary lab results by year, shown in Table 11-9, indicates a general reduction in between-laboratory bias for Nb between 2005 and 2009 drill programs. Ta bias has an acceptable level of ±5% between 2006 and 2010 drill programs. Table 11-9: Pulp Check Between-Laboratory Bias Check Year Ta Bias (%) Nb Bias (%) Laboratory 2005 -43.6 11.65 GDL 2006 -1.9 - Becquerel 2007 -6.6 36.8 ActLab 2007 -0.6 22 ALS 2008 -3.4 -9.4 GDL 2008 4.0 5.0 Acme 2009 -0.21 2.61 Stark 2010 -5% -1% Stark Figure 11-9 shows the RMA chart used to assess between-laboratory bias for 2010 Nb XRF(F) check pair results.Project No.: 168967 Page 11-1722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-9: 2010 Acme versus Stark Nb XRF(F) Check Pair RMA Chart Commerce Pulp Check Pair Results for ACME XRF(F) vs STARK ICP-AES 6000 5000 STARK ICP Nb ppm 4000 Data Outliers (1) Fit, all data 3000 Fit, exclude Outliers (1) Outliers (2) Fit, excludes Outliers(2) 2000 1000 0 0 1000 2000 3000 4000 5000 6000 ACME XRF (F) Nb ppm All Excluding Excluding Data Outliers (1) Outliers (2) N 254 253 252 Percent Rejected 0.0% 0.4% 0.8% R squared 0.99 0.99 0.99 R 0.99 1.00 1.00 slope m 1.02 1.01 1.01 intercept b -2.39 1.05 2.79 error in slope 1% 1% 1% error in intercept 15.7 15.7 15.7 Bias -2% -1% -1%11.6.4 Assessment of Contamination Blanks are used to assess contamination during sample preparation and analysis. Commerce uses coarse crushed, optical quartz material sourced from Jim Coleman Crystal Mines located near Hotsprings, Arkansas for their blank material.Project No.: 168967 Page 11-1822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Three hundred and five coarse blank control samples were inserted to support the 2005 to 2008 ICP-MS drill sample results; Thirty-two coarse blanks were inserted to support the 2009 XRF(F) drill sample results. Two hundred and forty-eight coarse blanks were inserted to support the 2010 XRF(F) drill sample results. There is no indication of systematic contamination for 2005 to 2008 ICP-MS results (Figure 11-10 and Figure 11-11). The blank performance charts show a few blank sample results well in excess of background values. These results may indicate periodic contamination but may also be a result of sample swaps or transcription errors. The impact of these outliers in considered minor. Figure 11-10: 2005 – 2008 Blank Ta ICP-MS Performance Chart QTZ BLK Blank Ta ICP-MS 2005 to 2008 180 160 140 120 Blank Ta ppm 100 80 60 40 20 0 0 50 100 150 200 250 300 350 400 Previous Sample Ta ppm Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample number order.Project No.: 168967 Page 11-1922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-11: 2005 - 2008 Blank Nb ICP-MS Performance Chart QTZ BLK Blank Nb ICP-MS 2005 to 2008 1800 1600 1400 1200 Blank Nb ppm 1000 800 600 400 200 0 0 500 1000 1500 2000 2500 3000 3500 4000 Previous Sample Nb ppm Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample number order. There is no indication of systematic contamination of 2009 Ta XRF(F) results but Nb XRF(F) results show an apparent systematic carry-over contamination of blanks for Nb grades greater than 2,000 ppm (Figure 11-12 and Figure 11-13).Project No.: 168967 Page 11-2022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-12: 2009 Ta XRF(F) Blank Performance Chart QTZ BLK Blank Ta_ppm XRF(F) 2009 90 80 70 60 Ta_ppm XRF(F) 50 40 30 20 10 0 0 50 100 150 200 250 300 350 400 450 500 Previous Sample Ta_ppm XRF(F) Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample number order.Project No.: 168967 Page 11-2122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-13: 2009 Nb XRF(F) Blank Performance Chart QTZ BLK Blank Nb_ppm XRF(F) 2009 60 50 40 Nb_ppm XRF(F) 30 20 10 0 0 500 1000 1500 2000 2500 3000 3500 4000 Previous Sample Nb_ppm XRF(F) Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample number order. Blank performance charts for 2010 show no systematic contamination for Ta or Nb XRF(F) results (Figure 11-14 and Figure 11-15).Project No.: 168967 Page 11-2222 June 2012
    • 22 June 2012 XRF(F) Ta ppm 0 10 20 30 40 50 60 70Project No.: 168967 BR177018 BR179075 BR181024 BR181149 BR180118 BR184020 BR184076 BR182220 BR185070 BR187116 BR186108 BR189045 BR190051 BR191049 BR193050 BR192097 BR194099 BR195097 BR198071 BR199045 BR201048 BR205025 Page 11-23 BR203053 Sample Number BR208050 BR211065 BR209089 BR214050 BR215095 BR219004 Figure 11-14: 2010 Ta XRF(F) Blank Performance Chart Blanks Ta XRF(F) for 2010 BR221005 BR218005 BR226125 BR216005 BR216145 BR204005 BR223124 BR229006 BR229098 BR220115 BR222050 BR225050 BR227047 0 10 20 30 40 50 60 70 LDL Blanks 10* LDL NI 43-101 Technical Report on Mineral Resource Update Blue River Tantalum–Niobium Project Commerce Resources Corp. British Columbia, Canada
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 11-15: 2010 Nb XRF(F) Blank Performance Chart Blanks Nb XRF(F) Nb 70 70 60 60 50 50 40 40 XRF(F) Nb ppm Blanks 30 30 LDL 10* LDL 20 20 10 10 0 0 BR177018 BR180099 BR182097 BR186092 BR190026 BR193084 BR197043 BR205069 BR210016 BR216005 BR219004 BR222143 BR225125 BR230049 BR236012 BR248036 BR178050 BR179075 BR181099 BR183045 BR185016 BR187116 BR191065 BR192050 BR195002 BR198109 BR200104 BR202029 BR204050 BR208090 BR213005 BR214005 BR216195 BR220033 BR221054 BR224006 BR226147 BR228048 BR233041 BR245045 BR246145 Sample Number11.6.5 Assay QA/QC Conclusions Quality control sample insertion rates are sufficient to allow assessment of precision, laboratory bias, and contamination. Accuracy assessment remains provisional due to the difficulty of obtaining standards with suitable quality. ICP-MS results for the 2005 to 2008 drill program have marginally acceptable precision. XRF(F) precision is poor for 2009 results. XRF(F) precision is acceptable for 2010 XRF(F) results for Ta and Nb grades above 50 ppm. Except for 2009 Ta (XRF(F) results, no systematic accuracy or contamination problems are indicated for these programs. A re-assay program of 2008 coarse rejects resulted in poor precision for Ta XRF(F) and acceptable precision for Nb XRF(F) results. ICP-MS results supporting the 2005 to 2008 drill program and initial XRF(F) results supporting the 2009 and 2010 drill programs are considered suitable for use in mineralProject No.: 168967 Page 11-2422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update resource estimation. Caution should be applied in assigning a high level of confidence to the 2005 to 2009 results until precision and accuracy issues are resolved.11.7 Databases Collar, down-hole survey, geology, specific gravity and assays were stored in a Gems™ database format. Prior to GEMS™, data capture occurs in a variety of formats from hand logs and Excel files. Assay data are received from the laboratories via comma-separated value (CSV) data files. Collected data are subjected to validation prior to upload into the database using built-in program triggers that automatically check the data. Verification checks include collar co-ordinates, surveys, lithology, and assay data. After data are imported into GEMS™, visual checks are completed to ensure that data placement was correct within the various database fields. Commerce has migrated to a Fusion data management system by Century Systems Technologies Inc. during 2011 for all data captured during 2011 exploration activity. Pre-2011 data are being migrated to the Fusion database on an incremental basis with completion anticipated during 2012.11.8 Security The drill crew transports drill core to the Commerce field office in Blue River at the end of every shift by pick-up truck. The boxes are laid out in order on saw horses and inspected by the project manager. Dahrouge geologists and technicians log and sample the drill. The core storage, logging and sampling facilities are not secured. Samples are placed in pails and stored in the locked quonset hut for security prior to shipping. A commercial delivery service, Monashee Painting and Services of Blue River, B.C., transports the samples, to the preparation laboratory in Richmond, B.C. Sample sheet manifests are submitted with the core samples. The manifests include information on the operator, sample preparation laboratory, and a sample list. Sample rejects returned from the laboratory are stored in the onsite quonset hut. Archived 2010 and 2011 core is stored on pallets at the Blue River field office. The pre-2010 core is stored on pallets in a field located at Valemount, B.C. During 2011, Commerce initiated construction of a cold storage building and fenced compound at the Valemount storage facility. Commerce plans to move the archived core into the new storage facility at Valemount during 2012.Project No.: 168967 Page 11-2522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update11.9 Comment on Section 11 The majority of drill core samples used to support the 2012 Mineral Resource estimate were prepared at an independent laboratory before submission to the primary laboratory for analysis. All drill core samples were analysed by independent laboratories using ICP and XRF methods. Typically, drill programs included insertion of blank, duplicate and standard reference material samples. QA/QC submission rates meet industry-accepted standards for insertion rates. Quality control work completed by Commerce between 2005 and 2009 identified laboratory precision and accuracy concerns. Achieving precision for tantalum by XRF(F) and ICP-MS methods was difficult and is likely related to the difficulty of digesting tantalum prior to ICP-MS analysis and the relatively high detection limit for tantalum by XRF methods. The XRF(F) detection limit initially provided was close to the lower economic cut-off for tantalum. Submission of the 2010 drill program samples was delayed while Commerce and their primary laboratory, Acme, worked together to address this concern. Procedures for XRF(F) analysis were modified and quality control sample results supporting the 2010 drill program sample analysis indicate Acme has achieved acceptable precision and accuracy for tantalum and niobium using XRF(F) methods. During preparation of the 2012 Mineral Resource update reported in Section 14, AMEC and Commerce examined the sample preparation and analysis of Blue River core. The principal findings of this work were as follows:  SRM control samples indicate provisionally acceptable levels of accuracy are for the most part, achieved for Nb by either XRF(F) or ICP-MS methods;  SRM control samples indicated a low bias may exist for Ta by either XRF(F) or ICP-MS methods;  Poor laboratory precision is evident for Ta and Nb results collected in 2008 and 2009, but no consistent bias is evident;  Acceptable precision is evident for 2010 Ta and Nb results;  Significant inter-laboratory grade biases are evident for Ta and Nb in the 2005 and 2006 sampling; these samples represent a small portion of the database and would likely not materially impact the resource estimate;  Acceptable inter-laboratory biases are achieved in the remaining 2007 to 2010 sampling programs;Project No.: 168967 Page 11-2622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update AMEC concludes that the Blue River sample results show imprecision but no consistent bias and that the ICP-MS results from 2005 to 2008, and the XRF(F) results supporting the 2009 and 2010 drilling are suitable for use in mineral resource estimation. Caution should be applied in assigning a high level of confidence to the pre-2010 tantalum and niobium analytical results until precision and accuracy issues are resolved. AMEC concludes the SG field determinations are reasonable for the 2005 – 2009 campaigns. Additional SG checks at an independent laboratory are recommended for the 2010 and 2011 drill campaigns using a wax immersion preparation, followed by a water immersion determination. Collected data are subjected to validation prior to upload into the database using built- in program triggers that automatically check the data. Verification checks include collar co-ordinates, surveys, lithology, and assay data. The checks are appropriate, and consistent with industry standards. Independent data audits have been conducted, and indicate that the sample collection and database entry procedures are acceptable. Sample security has relied upon the fact that the samples were always attended or locked in appropriate storage facilities. Chain-of-custody procedures consist of filling out sample submittal forms that are sent to the laboratory with sample shipments to make certain that all samples are received by the laboratory; Current sample storage procedures and indoor storage areas are consistent with industry standards. Security for core on pallets stored outdoors in unfenced fields is under improvement by Commerce. The QPs are of the opinion that the quality of the specific gravity, tantalum and niobium analytical data are sufficiently reliable to support mineral resource estimation and that sample preparation, analysis, and security are generally performed in accordance with exploration best practices and industry standards.Project No.: 168967 Page 11-2722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update12.0 DATA VERIFICATION Commerce implemented an industry-acceptable quality control program to manage logging, sampling, and analysis. This section summarizes the database and site visit verification work by AMEC.12.1 Database Verification AMEC completed a minimum 5% database verification check and concluded the collar coordinates, down-hole surveys, lithologies, and assay databases are sufficiently free of error (Chong and Postolski, 2011; Thompson, 2011). Other verification reviews include calculation checks on the density determinations, rock quality designation, and total core recovery using source record data. AMEC concludes that the density determinations, total core recovery, and the rock quality designation database values have been calculated appropriately. Down-hole survey data quality was checked by AMEC for proper magnetic deviation adjustments and for potential, erroneous, down-hole surveys that result in drill hole deviations that exceed typical deviations expected for drill holes. AMEC concludes the down-hole deviation surveys are reasonable and suitable for mineral resource estimation (Chong and Postolski, 2011; Thompson, 2011).12.2 Site Visits The AMEC QPs were assisted by Dahrouge managers, geologists and technicians during their site visits. The AMEC geology QP, Albert Chong, P.Geo. visited the Project during 11 to 16 July 2010, and 6 to 14 September 2011 to verify the 2005–2010 drilling, sampling and surface mapping campaigns. Outcrops, drill core and sampling method protocols were reviewed to verify the data, the exploration protocols, and the resulting geological interpretation. During the September 2011 site visit, the AMEC QP was assisted by SRK structural geologists J.F. Couture, P.Geo., and I. Nash to verify the enhanced structural geology interpretation of the Upper Fir deposit. The AMEC Mining QP, Ramon Mendoza Reyes, P.Eng., visited the Project during 2010 to assess the site for infrastructure planning purposes.Project No.: 168967 Page 12-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update12.2.1 Drill Collar Location Check The AMEC audit included 32 drill collars of 237 drill holes from the 2005–2010 drill campaigns, or approximately 14% of the mineral resource drill holes. AMEC checked the location of the drill collars using a hand-held Garmin GPS Map 60 CSX unit. The 2006 to 2009 drilling campaigns were verified based upon holes from 10 setups. All holes checked were within ±8 m and most were within ±3 m. The drill hole locations with discrepancies greater than 3 m were found to be related to disturbance of markers from drill road construction. Upon completion of a drill hole, 4" x 4" wooden posts are placed into the hole. The drill hole collar casings are in some cases still in place. Steel plates with the drill hole names have been cemented into the ground adjacent to the hole collars making hole identification relatively easy. At the recommendation of AMEC, Commerce-Dahrouge commissioned McElhanney Land Surveying of Vancouver (McElhanney) to re-survey all the available 2005–2009 drill collars, and complete primary surveys for the 2010 drilling. During November 2011, McElhanney completed a second primary survey of the 2011 drilling and the bulk sample pits (BS1 and BS2). The drill hole collar database has S. Mosdell data for the 2005–2008 campaigns, both S. Mosdell and McElhanney data for the 2009 campaign, and McElhanney data for the 2010 campaign.12.2.2 Inspection of Drill Core and Verification of Mineralization During the site visits, the AMEC QP checked drill log entries by re-logging drill core from 14 (6%) Upper Fir deposit drill holes with a focus on as-logged lithology, structural deformation observations, mineralization, sample intervals, and visual checks on the total core recovery (Chong, 2010, 2012). Based upon the holes reviewed, the AMEC QP concludes the database records reasonably reflects the as- logged drill core observations by Commerce observed in the audited drill core. AMEC collected and submitted 31 quarter-core samples to Acme in Vancouver for preparation and analysis by Package 4B ICP-MS methods. A comparison of AMEC results with matched interval results reported in the resource database reasonably support the grades reported in the resource database (Table 12-1). The mean grade of the original and check results show noteworthy agreement for a comparison of this size and type.Project No.: 168967 Page 12-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 12-1: AMEC Site Visit Confirmation of Mineralization Original Half Core Samples AMEC Quarter Core Samples DHID From (m) To (m) Ta (ppm) Nb (ppm) Ta (ppm) Nb (ppm) F07-028 135 136 421 4,405 244 2,404 F08-150 129.7 131 210 4,739 143 1,727 F08-151 194.3 195 219 2,887 187 2,084 F08-150 134 135 181 2,742 189 2,667 CF0612 105.3 106.3 365 1,494 287 1,305 F08-151 195 196 91 2,040 78* 1,786* F08-150 158 159 86 1,559 134* 2,034* F08-150 133 134 101 1,365 118 1,566 F07-028 134 135 128 1,261 64** 553** F07-028 133 134 75 910 141** 1,734** F08-151 192 193 143 744 140 798 CF0612 104.3 105.3 194 506 146 367 CF0612 106.3 107.3 122 466 146 565 CF0612 103.3 104.3 121 360 131 328 CF0612 108.2 109.2 43 128 112 392 F10-222 238 239 969 6,904 900 6,653 F10-184 249.5 250.76 382 4,462 483 5,141 F10-184 158.41 159.6 241 1,565 235 1,426 F10-184 260.46 261.57 252 1,526 327 2,006 F10-222 278 279 243 1,404 421 3,796 F10-222 248 249 213 1,455 218 1,430 F10-222 263 264 72 1,564 99 1,876 F10-184 196.6 197.84 176 1,057 218 1,338 F10-184 168.57 170 100 1,110 63 693 F10-184 228.22 229.3 188 926 145 749 F10-184 187.45 188.68 174 683 190 733 F10-220 301 301.5 173 380 110 281 F10-222 310 311 148 342 166 363 F10-220 317 318 120 226 155 228 F10-222 289.44 290.45 70 189 50 156 F10-220 308 309 26 69 37 83 Count 31 31 31 31 Mean 195 1,596 196 1,525 Relative Difference 0% -4% Notes: The table is generally sorted by pre-2010 sampling versus 2010 sampling and then by Ta and Nb grade. Grey shaded records indicate samples with potential sample swaps. * possible sample swap on the AMEC check sample analyses. ** possible sample swap on the AMEC check sample analyses.Project No.: 168967 Page 12-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update12.3 Comment on Section 12 Based upon the database and site visit verification audits completed by AMEC, the opinion of the QPs is that the collar coordinates, down-hole surveys, lithologies, and assays are considered sufficiently free of error and that the data are suitable to support mineral resource estimation.Project No.: 168967 Page 12-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update13.0 MINERAL PROCESSING AND METALLURGICAL TESTING Testwork began in 2009 and continued into 2010 to develop a process flowsheet for the Blue River Project. The testwork was based on material produced from two bulk samples, BS-2F and BS–2G. Mineralogical analysis was performed to obtain knowledge regarding the occurrence of the tantalum and niobium within the material. Given the complexities with assaying for the tantalum, a fair amount of effort also went into developing the appropriate routine for the assaying of samples. The 2009-2010 testwork primarily took place in two phases:  Phase I – focused on the recovery of the tantalum–niobium minerals by gravity although grinding and mineralogy investigations were also performed.  Phase II – focused on the recovery and upgrading of the tantalum–niobium minerals by flotation. Work has continued in 2011 and 2012:  Phase III – continued optimization of the process flowsheet at the laboratory scale for the production of a tantalum-niobium mineral concentrate. A large amount of work was performed in Phase I that showed gravity could concentrate the material to a low-grade product, but that upgrading increasingly gave lower levels of metallurgical recovery as grade was sought. Mineralogical work completed before and during this phase of work showed that the tantalum was not present as tantalite but rather as the minerals ferrocolumbite and pyrochlore, which limits recovery by the gravity route due to the low differential specific gravity between pyrochlore and gangue minerals. Work in Phase II saw the use of flotation concentration technology similar to that being used for niobium-bearing carbonatites at Iamgold’s Niobec Mine in Quebec, Canada. There was immediate success in the first phases of the work. Although there are several stages to the concentration, the overall level of equipment, risk, and complexity to produce a saleable or treatable concentrate is lower than the gravity route. Process development work is continuing in this area, but for the purposes of the PEA, the process suggested by Test F81 was selected as the basis of initial concentration design because recoveries were good (approx. 70% for Ta) for this type of mineralization and because a combined grade of 10% Ta–Nb was achieved. It is expected that with further work, a combined grade of 30% Ta–Nb should be achievable.Project No.: 168967 Page 13-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update In both work phases, the emphasis of concentration techniques was to create a material which would be easily upgraded by hydrometallurgical methods, pyrometallurgical methods, or a combination of both. These processes would permit the separation of Ta from Nb, allowing payment for both products. To this end, an in- depth review was completed of those technologies for the production of high-value intermediate products and final products. There is confidence that the concentrate could be reduced to metal by the aluminothermic process. Subsequently there would be chlorination of the granulated metal alloy product and distillation of the anhydrous metal chloride products to produce high purity Nb and Ta chlorides. Tantalum chloride is the precursor to capacitor grade Ta powder and can be marketed as such. However, both Ta and Nb chlorides can also be hydrolyzed and calcined to generate high purity oxide products for other applications. In 2011 and 2012, work has continued into Phase III which is the optimization of work conducted in Phase II. This optimization work has concentrated on de-sliming of flotation feed, rejection flotation of carbonates and pyrrhotite, and subsequent flotation of a tantalum-niobium concentrate for processing through extractive metallurgy. Although progress has been made in the testwork, there is no material change from the results indicated by the Phase I and II testwork. As a result there is no impact on the performance assumptions, or the capital and operating costs in the PEA. Confidence in the process design has been enhanced.13.1 Head Samples for Initial Testing In 2009, two bulk samples, BS-2F and BS–2G, sourced from a small pit in the Upper Fir zone, and weighing approximately 200 t in total, were contract-crushed to a particle size of <1 inch diameter. After crushing, each group of samples was homogenized separately by a standard coning and quartering procedure. The well-mixed samples were bagged into one tonne bags and put into storage. One tonne of each sample was delivered to Met-Solve Laboratory (Met-Solve) in Burnaby B.C. to air dry and further reduce the size to -10 mesh for bench testing. Met-Solve is a commercial mineral and metallurgical testing facility that is independent of Commerce, and specializes in mineral beneficiation and hydrometallurgical testwork. The mineralogical examinations of all the bulk samples taken during the 2008 exploration program are described by Chudy (2009). Additional mineralogical examinations were performed on some of the test products during the mineral processing investigations.Project No.: 168967 Page 13-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The head assays, established using X-ray fluorescence (XRF) analysis, for the two bulk samples are tabulated in Table 13-1. Table 13-1: Head Assay Grades, Bulk Samples BS-2F and BS-2G Sample Ta (ppm) Nb (ppm) BS-2F 194 1,300 BS -2G 114 76413.2 Phase I Testing13.2.1 Grinding Size Each sample was subjected to gravity separation tests at five different grind sizes of 80% passing 500 µm, 230 µm, 100 µm, 74 µm and 45 µm to determine the liberation size using a centrifugal concentrator. A standard seven-pass procedure was used to simulate continuous gravity concentrator action. This work indicates that the liberation size for both samples is coarser than P80 of 76 µm. The relative position of the curves (Figure 13-1 and Figure 13-2) indicates that effective liberation for gravity is likely achievable at a grind size slightly coarser than 120 µm. The results for niobium are similar. Assaying of the individual size fractions of the tailings from the BS-2G tests indicate that there are still a few locked particles between 74 µm and 106 µm when ground to P80 112 µm but that material coarser than 150 µm does not contain any tantalum. Given the natural size distribution obtained in grinding, this implies that effective liberation for processing, is about P80 of 125 µm for gravity treatment and slightly coarser for flotation (P80 up to 160 µm). These numbers are in line with independent findings from the mineralogical examination of all bulk samples of the 2008 exploration program.13.2.2 Roughing and Cleaning Gravity Concentration With the establishment of the grind size and initial gravity results, it was decided to progress with the gravity concentration work. The two samples were treated with a centrifugal concentrator, using 10 consecutive stages for rougher concentration followed by three cleaning stages of the combined rougher concentrates. Four different grind sizes were tested for each sample. All results were similar, with recoveries falling off quickly in cleaning and inability to raise the grades any higherProject No.: 168967 Page 13-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update than Ta 3,500 ppm (0.35% Ta). Results from sample BS-2G are shown on Figure 13-3. Large batch samples of 60 kg were tested using a Falcon Centrifugal Gravity Concentrator in 10 consecutive stages to produce a rougher and a scavenger concentrate at a grind size of P80 100 µm. The rougher concentrate only was screened to produce three size fractions as follows:  +74 µm  37 to 74 µm  -37 µm. Figure 13-1: Sample BS-2F – Gravity Separation (Different Grinds) BS-2F - Gravity Separation Tantalum Grade/Recovery Curves 100 P80 500 um 90 P80 233 um 80 P80 112 um 70 P80 76 um Recovery (%) 60 P80 45 um 50 40 30 20 10 0 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Grade Ta (ppm)Project No.: 168967 Page 13-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 13-2: Sample BS-2G – Gravity Separation (Different Grinds) BS-2G - Gravity Separation Tantalum Grade/Recovery Curves 100 90 P80 650 um P80 250 um 80 P80 120 um P80 76 um 70 P80 45 um Recovery (%) 60 50 40 30 20 10 0 0 200 400 600 800 1000 Grade Ta (ppm) Figure 13-3: Overall Rougher and Cleaner Recovery vs Grade by Centrifugal Gravity Concentration Ta Grade Recovery Curve P80 116um 100 P80 83 um 90 P46 um 80 P80 238 um 70 Ta Recovery, % 60 50 40 30 20 10 0 0 500 1000 1500 2000 2500 3000 3500 4000 Ta Grade, ppm Each fraction was then cleaned by gravity using a Wilfley shaking table, with a medium-size deck. Results were similar to the gravity separation using centrifugal separator only, with no improvement in recoveries or grades. These fractions were also tested using a Mozley table concentrator to determine the upgrading characteristics of the products. Results showed that while it would be possible to increase the grades by up to six times at the laboratory level, the recoveries would drop accordingly. The results are shown in Figure 13-4.Project No.: 168967 Page 13-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Tests were also performed to determine the benefits of additional steps, such as de- sliming and de-sulphidization. These procedures were incorporated into the testwork but essentially AMEC was of the opinion that concentration by gravity as the primary method was not the optimum choice for Project development. Figure 13-4: Upgrading by Wilfley and Mozley Units Gravity Concentration 100 Mozley Characterization 90 Ta Recovery (%) Wilfley Table 80 70 60 50 40 100 1,000 10,000 100,000 Grade Ta (ppm)13.3 Phase II Testing13.3.1 Flotation Tests Testwork in flotation has centered around using the same procedures in de-sliming and flotation as used at the Niobec Mine. Flotation testwork achieved higher recoveries and rougher grades than the gravity method. While the rougher stage gave good results, the initial cleaning stage tests were problematic due primarily to non-optimized conditions at this preliminary stage of testing. These tests indicated that a total oxide grade of more than 30% combined Nb2O5 and Ta2O5 is achievable although not at high recoveries. Later flotation testwork used improved de-sliming equipment. Testwork with this equipment and further flotation work indicated optimum ranges are similar to those obtained at Niobec. Approximately 11% of the tantalum and 11% of the niobium was lost in this de-sliming stage. A further 8% of the tantalum and 6% of the niobium were lost in the carbonate and pyrrhotite rejection steps. Tests were also performed to optimize the kinetics of the rougher tantalum–niobium flotation and to test reagent conditions. It has been shown that control of the pH through the stages is critical. The use of a tallow diamine acetate collector has also proven to be important. Although this reagent is no longer available as a commercial product, current practitioners such as the Niobec Mine now purchase the two main reagents (the amine and acetic acid) and prepare the collector at site.Project No.: 168967 Page 13-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Process development work is continuing in this area, but for this report, the process suggested by Test F81 (see Table 13-2) has been chosen as the basis of initial concentration design as recoveries were good (approx. 70% Ta) for this type of mineralization and due to a combined grade of 10% Ta–Nb (equivalent to approximately 14% combined oxides) being achieved. It is expected that with further work, a combined grade of 30% combined oxides should be achievable.Table 13-2: Results from F81 Mass Assay Recovery Products Ta Nb S Ta Nb S % ppm ppm % % % % Cyclone Overflow #1 16.5 49 338 0.35 6.9 7.4 9.0 Cyclone Overflow #2 7.1 73 410 0.41 4.4 3.8 4.5 Carbonate Concentrate 28.0 25 151 0.17 5.9 5.6 7.3 Pyrrhotite Concentrate 1.7 152 275 27.38 2.2 0.6 73.5 Magnetic product 0.1 56 395 21.59 0.0 0.0 2.3 Stage 5 Pyrochlore Cleaner Con 0.6 12,839 86,732 1.14 69.8 72.7 1.1 Stage 5 Pyrochlore Cleaner Tail 0.4 228 1816 0.15 0.7 0.9 0.1 Stage 4 Pyrochlore Cleaner Con 1.0 8,121 54,962 0.77 70.6 73.6 1.2 Stage 4 Pyrochlore Cleaner Tail 3.9 179 1397 0.06 6.0 7.3 0.4 Stage 3 Pyrochlore Cleaner Con 5.0 1,806 12,372 0.21 76.6 80.8 1.6 Stage 3 Pyrochlore Cleaner Tail 1.0 63 499 0.08 0.5 0.6 0.1 Stage 2 Pyrochlore Cleaner Con 5.9 1,525 10,459 0.19 77.1 81.5 1.7 Stage 2 Pyrochlore Cleaner Tail 5.3 10 96 0.02 0.5 0.7 0.2 Stage 1 Pyrochlore Cleaner Con 11.2 810 5,570 0.11 77.6 82.1 1.9 Stage 1 Pyrochlore Cleaner Tail 13.9 10 10 0.04 1.2 0.2 0.9 Total Pyrochlore Rougher Concentrate 25.1 367 2,492 0.07 78.7 82.3 2.8 Flotation Tails 21.5 10 10 0.02 1.8 0.3 0.7 Calculated Feed 117 760 0.64 100 100 100 Assayed Feed 113 764 In addition to flotation tests, preliminary dilute hydrochloric acid leaching tests were performed. These indicated that low- to intermediate-grade gravity and flotation products can be upgraded significantly with negligible loss of Ta + Nb. The final upgrading flowsheet will be based on an economic comparison between pay metal losses from physical beneficiation and the cost of acid plus stabilization/disposal of the leach products. Table 13-3 presents results of a four-stage hydrochloric acid (pH 2, pH 1.2, 6N/1h/100°C, 6N/5h/100°C) on a flotation middling product.Project No.: 168967 Page 13-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 13-3: Results of a Sequential Hydrochloric Acid Leach of Flotation “Middling” Products Weight Assay (ppm) Distribution (%) (g) Ta Nb Ta Nb Stage 1 Filtrate 180.0 0.002 0.00 0.0001 0.000004 Stage 2 Filtrate 220.0 0.031 0.34 0.001 0.002 Stage 3 Filtrate 255.0 0.024 0.63 0.001 0.003 Stage 4 Filtrate 210.0 1.491 12.27 0.056 0.053 Filter Cake 10.7 51,813 453,168 99.9 99.9 Calculated Head 26,824 234,609 100.0 100.0 Assayed Head 20.0 27,663 245,813 There was an indication of the technical feasibility of upgrading by acid leaching with negligible solution loss of Ta + Nb. The final leach residue assay is > 50% Ta + Nb. The Stage 3 and 4 strong acid leaches were designed to investigate the possibility of dissolving Ta + Nb, but the minerals appear to be entirely resistant to this relatively aggressive leach.13.4 Phase III Testing13.4.1 2011 and 2012 Work A series of tests were performed by AcmeMet, a metallurgical testing facility located in Vancouver, Canada, in the period up to the first quarter of in 2012. These tests were performed to optimize the concentration of the tantalum and niobium into a mineral concentrate. These tests focused on optimizing the flowsheet developed in Phase II. This optimization work has concentrated on the reduction of reagents involved in the de-sliming of flotation feed, rejection flotation of carbonates and pyrrhotite and the subsequent flotation of a tantalum-niobium concentrate for processing through extractive metallurgy. Although progress has been made in the testwork and the levels of reagents, there is no major material change from the results indicated by the Phase I and II testwork. Thus, the performance assumptions, capital and operating costs are unchanged from those presented in the 2011 PEA. The Phase III testwork is ongoing.13.4.2 Review of Concentrate Treatment Options In Phases I and II, the emphasis of concentration techniques was to create a material which would be easily upgraded by hydrometallurgical methods, pyrometallurgical methods, or a combination of both. This has led to a review of those technologies for the production of high value intermediate products and final products. The processProject No.: 168967 Page 13-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update selected is a process which has been used commercially for the extraction of the tantalum. The first stage of the process involves the reduction of the concentrate into metal through the use of the aluminothermic process. Subsequently there would be chlorination of the granulated metal alloy product and distillation of the anhydrous metal chloride products to produce high purity Nb and Ta chlorides. Tantalum chloride is the precursor to capacitor-grade Ta powder, so would be marketed in this form. Niobium chloride can be sold as a chemical precursor. Both Ta and Nb chloride products can be readily converted and marketed as high purity Ta 2O5 and Nb2O5 oxides respectively.13.5 Accuracy of Assaying A review of all calculated and measured feed assay results for tests using bulk sample BS-2G was performed to check on the accuracy of the chemical analysis and the tests results. It was decided to continue the assaying of low values, such as tailings, in duplicate on separate aliquots; this procedure will continue as these assays could introduce variations to results.13.6 Comment on Section 13 In the opinion of the QPs, the following conclusions are applicable:  Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are amenable to conventional flotation and proven refining processes with estimated recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22 of this Report, it was assumed that the process plant will have a 65% recovery for Ta and 69% recovery for Nb in the flotation stage.  The metallurgical testwork has shown that it is possible to collect the tantalum and niobium minerals into a concentrate suitable for extraction of the metals into saleable products. The first step of the process uses typical grinding followed by flotation. The secondary treatment or metal extraction of the material is possible by an existing method such as aluminothermic reduction followed by chlorine refining. These results are suitable to support estimation of mineral resources for the deposits.Project No.: 168967 Page 13-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.0 MINERAL RESOURCE ESTIMATES14.1 Introduction The current resource block model was constructed inside carbonatite only. All surrounding lithologies including fenite carry fairly low Ta2O5 and Nb2O5 grades and are considered sub-economic. Generally assay data exist only for carbonatite. There are some assay values for fenite and other wall rocks but not in sufficient numbers to support creation of a block model for these lithologies.14.2 Assay Data and Capping The resource model was constructed inside carbonatite using 237 diamond drill holes. Collar, survey, lithology and assay files were exported from the database as csv files, imported into MineSight® commercial mine modeling software, and combined into a drill hole assay file. AMEC conducted grade capping on original samples that are mostly 1 m long. Capping was required to limit the influence of outliers. The choice of capping was based on visual inspection of histograms and probability plots. The amount of capping was small; top-cuts of 1,000 ppm Ta2O5 and 10,000 ppm Nb2O5 were used in carbonatite. Only six Ta2O5 samples and 13 Nb2O5 samples were capped resulting in an expected metal removal of 0.24% Ta2O5 and 0.63% Nb2O5.14.3 Composites Capped drill core assays were composited down the hole to a fixed length of 2.5 m. Compositing of Ta2O5 and Nb2O5 was performed in MineSight® software honouring geologic boundaries. Composites with length less than 1.25 m were merged with the previous composite. AMEC confirmed that the pre- and post-compositing Ta2O5 and Nb2O5 means were identical and that compositing resulted in a reduced variability as indicated by lower CV (CV=coefficient of variation; CV=standard deviation / mean). This exercise demonstrated that no bias was introduced during compositing. Table 14-1 shows a summary of this check for carbonatite. Table 14-1: Capped Assays vs. 2.5 m Composites Statistics inside Carbonatites 2.5 m 2.5 m Mean diff Assay Assay Composites Composites (from assays Variable Capped Mean Capped CV Mean CV capped to comps) Ta2O5 187.4 0.47 187.4 0.35 0.0% Nb2O5 1465.4 0.91 1465.6 0.78 0.0%Project No.: 168967 Page 14-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.4 Exploratory Data Analysis Exploratory data analysis (EDA) was performed on the composites to better understand the data used in the resource estimation. This type of investigation reveals the underlying characteristics of the data. Table 14-2 contains a summary of univariate statistics for Ta2O5 and Nb2O5 in carbonatite. Table 14-2: Composite Statistics in Carbonatite Area/Variable No. Mean Min Max Std. Dev. CV Carbonatite Ta2O5 4,171 187.4 3.1 598.9 64.9 0.35 Nb2O5 4,171 1,465.6 7.2 8,293.6 1,147.9 0.78 Note: CV is the Coefficient of Variation and is equal to the standard deviation divided by mean. Figure 14-1 and Figure 14-2 show arithmetic and log histograms and probability plots of Ta2O5 and Nb2O5 composites in carbonatite. Both distributions are positively skewed, and the Nb2O5 distribution is approximately lognormal. The coefficients of variation are low and support the use of linear grade interpolation methods such as inverse distance methods.Project No.: 168967 Page 14-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-1: Ta2O5 Histograms and Probability Plot within Carbonatite Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-2: Nb2O5 Histograms and Probability Plot within Carbonatite Note: Figure prepared by AMEC, June 2012.14.5 Contact Analysis AMEC calculated contact profiles on composite data using in-house software to analyze grade behaviour at lithology boundaries. There were sharp differences in grade for each of the variables at the carbonatite/fenite boundary, meaning that values from outside the carbonatite should be disregarded in the interpolation process of Ta2O5 and Nb2O5 grade inside the carbonatite. Figure 14-3 and Figure 14-4 show contact profiles for respectively Ta2O5 and Nb2O5 grade at carbonatite and fenite boundary.Project No.: 168967 Page 14-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-3: Ta2O5 Contact Plots between Carbonatite and Fenite Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-4: Nb2O5 Contact Plots between Carbonatite and Fenite Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.6 Variography Variograms and correlograms are tools used to quantify the spatial variability of a variable in a geological domain. AMEC used both in-house software and commercially available Sage2001 software to produce variogram maps, and to construct down-the- hole and directional correlograms for carbonatite composites. Ta2O5 and Nb2O5 correlograms were created within the entire carbonatite zone. Two spherical models were used to fit the experimental correlograms; a summary of their parameters is shown in Table 14-3.Table 14-3: Ta2O5 and Nb2O5 Correlogram Parameters in Carbonatite st nd 1 Structure 2 Structure Rotation (°) Range (m) Rotation (°) Range (m) Metal C0* C1* Z X Y X Y Z C2* Z X Y X Y Z Ta2O5 0.336 0.554 -44 0 80 14.2 29.8 21.8 0.110 -44 0 80 32.8 158.4 92.2 Nb2O5 0.118 0.321 -157 -11 90 8.6 11.1 14.6 0.561 -157 -11 90 61.4 214.3 361.3*C0 – nugget effect; C1-contribution of the 1st structure to the sill; C2-contribution of the 2nd structure to the sill; sillhas been standardized to value of 1. The first rotation uses a left hand rule around positive Z axis, the second rotation is a right hand rule around positive X axis and finally the third rotation is a right hand rule around positive Y axis. The nugget effects (C0) were modelled from the down-hole correlograms.14.7 Carbonatite Solid Modeling Geological interpretations were provided by Commerce to AMEC in the form of 3D solids in DXF format. The solids were created by Dahrouge geologists using GEMS™ geological modeling software for the major lithologies with the exception of gneiss, which was left as a default. The carbonatite solids were provided as 48 structural (different strike, dip and / or pitch) domains. AMEC reviewed the geological interpretations and 3D solids and considers them to be appropriate for resource estimation work.14.8 Block Model Dimensions The block model consists of unrotated regular blocks. The block model framework parameters are listed in Table 14-4.Project No.: 168967 Page 14-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 14-4: Block Model Dimensions Axis Origin* Block Size (m) No. of Blocks Model Extension (m) X 352,350 5 250 1,250 Y 5,795,850 5 390 1,950 Z 925 2.5 244 610 Note: *Origin is defined as the bottom southwest corner of the model, located at the lowest combined northing and easting coordinates and the lowest elevation.14.9 Assignment of Lithology and Specific Gravity to Blocks Blocks in the block model were coded by lithology solids. A block was tagged by a particular solid code if at least 50% of the block volume belonged to this solid. The volume of each lithology solid was then compared with the volume of the blocks inside a particular solid. The block model and corresponding lithology solid volumes compared within ±1%. Resource block model specific gravity was not estimated; instead a specific gravity value was assigned by lithology to all blocks in the block model (including blocks outside of carbonatite) as follows:  2.97 value was assigned to all blocks in carbonatite  2.96 value was assigned to all blocks in fenite  2.82 value was assigned to all blocks in gneiss  3.02 value was assigned to all blocks in amphibolite  2.62 value was assigned to all blocks in pegmatite  3.03 value was assigned to all blocks in skarn All the above specific gravity values were derived as described in Section 11.3.14.10 Block Model Grade Estimate Ta2O5 and Nb2O5 grades were estimated in the carbonatite using an inverse distance to the power of 3 (ID3) interpolation method. A four-pass interpolation approach was used with each successive pass having greater search distances. A hard boundary was used, meaning that composites from outside the carbonatite were not used in the interpolation process. Estimation was done separately within each domain of the carbonatite folds. Forty-eight different structural domains were identified and used in the estimation process. Table 14-5 shows the estimation search parameters for Ta2O5 and Nb2O5.Project No.: 168967 Page 14-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 14-5: Estimation Parameters for Ta2O5 and Nb2O5 Search Ellipse Min. Max. Max. Rotation (°) Ranges(m) No. No. Comp. Domain Pass Z X Z X Y Z Comp Comp /Hole 1 50 50 5 5 8 2 2 differ differ differ 100 100 5 3 8 2 Common to by by by all domains 3 150 150 5 2 8 2 domain domain domain 4 300 300 50 2 8 2 The rotation angles of the search ellipse are the same for each pass, but they are different for each of the 48 structural domains. They reflect average strike, dip, and pitch of each fold limb / domain.14.11 Block Model Validation The block model grades were validated by visual inspection comparing composites to block grades on-screen, declustered global statistics checks, local biases checks using swath plots, and finally model selectivity checks.14.11.1 Visual Validation AMEC completed a visual inspection of composites and blocks in vertical sections and plan views. Figures 14-5 to 14-8 show colour-coded Ta2O5 or Nb2O5 composites and corresponding ID3 block models on plan and in section. The model generally honours both Ta2O5 and Nb2O5 data well, and grade extrapolation is well-controlled where sufficient data exist.Project No.: 168967 Page 14-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-5: Ta2O5 ID3 Model within Carbonatite – Plan 1,146.25 Note: Figure prepared by AMEC, June 2012. Figure 14-6: Ta2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-7: Nb2O5 ID3 Model within Carbonatite – Plan 1,146.25 Note: Figure prepared by AMEC, June 2012. Figure 14-8: Nb2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.11.2 Global Grade Bias Check The ID3 block models were checked for global bias by comparing the average grade (with no cut-off) from these models with that obtained from nearest-neighbour (NN) model estimates (Table 14-6). The NN estimator produces a globally unbiased estimate of the average value when no cut-off grade is imposed and is a good basis for checking the performance of different estimation methods. Table 14-6 shows that global biases are well below the AMEC-recommended guideline of ±5% (relative difference). Table 14-6: Mean Grades for NN and ID3 Models Model Ta2O5 Nb2O5 Nearest Neighbour 188.3 1,449.6 Inverse Distance (ID3) 188.5 1,439.2 % Diff (ID3 – NN)/NN 0.1% -0.7% AMEC also estimated the impact of outlier capping on the estimated global mean of the model. A comparison of global means of capped and uncapped ID3 models showed the amount of metal removed by capping is minor (0.2% for Ta 2O5 and 0.6% for Nb2O5); it is almost identical to the expected metal removal based on composite analysis (see Section 14.2).14.11.3 Local Grade Bias Check (Swath Plots) Checks for local biases were performed for Ta2O5 and Nb2O5 by creating and analyzing local trends in the grade estimates using swath plots. This was done by plotting the mean values from the NN estimate versus the ID3 estimates in east-west, north-south and vertical swaths or increments. Swath intervals are 50 m in both the northerly and easterly directions, and 10 m vertically. Swath plot checks using only Indicated blocks for the ID3 Ta2O5 model are shown on Figure 14-9. Figure 14-10 shows corresponding swath plots using only Indicated blocks for Nb2O5.Project No.: 168967 Page 14-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-9: Swath Plot for Ta2O5 ID3 Model Note: Figure prepared by AMEC, June 2012. Figure 14-10: Swath Plot for Nb2O5 ID3 Model Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update In the upper row of the swath plots, the black line represents the ID3 model grades, the red line represents the NN model grades, and the blue line represents the composite grades. In the lower row of swath plots, the lines represent the number of blocks contained in each swath, and the number of composites. Because the NN model is declustered, it is a better reference to validate the resource block model. Composites are not declustered and only provide an indicative check. Swath plot checks conducted by AMEC show that there are no local biases between ID3 and NN models for estimated Ta2O5 and Nb2O5 in the carbonatite.14.11.4 Selectivity Check Selectivity analysis for Ta2O5 and Nb2O5 was completed using the Discrete Gaussian Model for change of support from composite size to a selective mining unit (SMU) size. This was done using AMEC in-house software (Herco). The aim of this analysis was to assess whether the estimated resource reasonably represents the recoverable resources (represented by Herco curves) relative to the proposed mining method. The selectivity analysis assumed a 10 m by 10 m by 5 m block as the smallest SMU size for Blue River. The results of the Herco analysis are generally discussed in terms of smoothness. An over-smoothed model may over-estimate the tonnes and under-estimate the grade. The model with an appropriate amount of smoothing will follow the Herco grade and tonnage curves for values corresponding to different economic, or grade cut-offs. The Herco analyses were undertaken using only Indicated blocks in order to obtain a good understanding of the model selectivity, or smoothness. Inferred blocks are often extrapolated and over-smoothed for lack of data are not recommended for use in this analysis. Herco grade–tonnage curves checks using only Indicated blocks for ID3 Ta2O5 model are shown in Figure 14-11. Figure 14-12 shows the corresponding Herco checks for Nb2O5. On both graphs, the upward-trending blue line represents the ID3 model grades, while the paired red line represents the Herco model grades. The downward trending blue line represents the ID3 model tonnage, while the paired red line represents the Herco model tonnes. The Herco selectivity analyses show that the Ta2O5 and Nb2O5 ID3 models are properly smoothed for the cut-offs of interest. These models are used for tabulating the Blue River Mineral Resources.Project No.: 168967 Page 14-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-11: Herco Grade – Tonnage Curves for Ta2O5 ID3 Model Note: Figure prepared by AMEC, June 2012. Figure 14-12: Herco Grade – Tonnage Curves for Nb2O5 ID3 Model Note: Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.12 In Situ Block Model Carbonatite Reconciliation There is a 6% change in block model carbonatite volume going from the block model used for the 2011 PEA to the current block model. The reason for this difference is a change in the structural geology interpretation in carbonatite, resulting in a slight increase of the overall carbonatite 3D solid volume. There are 23% of blocks from the 2011 PEA block model that are not in the current model, and there are 27.4% of blocks from the current model that are not in the block model used for the 2011 PEA. The reason for these changes is again the result of the structural geology interpretation of the carbonatite which modified somewhat the position of the carbonatite in 3D space. The differences in average grade from the block model used for the 2011 PEA to the current block model within only those blocks estimated in both models are 1.4% for Nb2O5 and 1.5% for Ta2O5.14.13 Mineral Resource Classification The Mineral Resources were classified in accordance with the 2010 Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. Mineral resources are required to be classified as Inferred, Indicated, and Measured according to increasing confidence in geological, grade continuity, and other aspects impacting the resources. However, there are no regulatory specifications as to the procedure to use to achieve that classification. In addition to criteria such as sufficient geological continuity, grade continuity, and data integrity, one AMEC guideline for resource classification is to have drill hole spacing sufficient to predict potential production with reasonable precision. As such AMEC conducted drill hole spacing studies taking into account both grade continuity and ore tonnage / volume uncertainty. Based on these drill hole spacing studies AMEC established the following criteria for classification of mineral resources at Blue River: Inferred Mineral Resources:  Minimum one drill hole  Distance to the closest composite less than 100 mProject No.: 168967 Page 14-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Indicated Mineral Resources:  Minimum two drill holes  Distance to the closest composite less than 40 m  Distance to the second closest composite less than 60 m Measured Mineral Resources:  Minimum three drill holes  Distance to the closest composite less than 20 m  Distance to the second closest composite less than 30 m The above criteria are somewhat more restrictive than the criteria given in the. 2011 PEA, because the tonnage / volume uncertainties are now better understood and were incorporated in the most recent drill hole spacing studies. The current mineral resource classification at Blue River is restricted to Indicated or Inferred, based on the following:  Confidence limits drill hole spacing studies  Concerns over analytical precision and provisional accuracy for the sample dataset from 2005 to 2009  Required metallurgical testwork on the final stage of the proposed metallurgical process is still ongoing to support proof-of–concept. Eighty-two per cent of the carbonatite blocks are classified as Indicated. Seventeen per cent of the carbonatite blocks are classified as Inferred. One per cent of the block model in carbonatite is unclassified. Blocks that fall into the unclassified category are within carbonatite solids that were intersected typically by one isolated drill hole. The geological continuity and volume of those solids cannot be reasonably assumed. Figure 14-13 and Figure 14-14 show examples of the resource classification.Project No.: 168967 Page 14-1722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 14-13: Resource Classification – Plan 1,161.25 Note: The following block colour scheme is used in the figure: Green – Indicated; Yellow – Inferred; Red – Unclassified; drill hole projection ± 2.5 m. Figure prepared by AMEC, June 2012. Figure 14-14: Resource Classification – Section N 5,796,882.5 Note: The following block colour scheme is used in the figure: Green – Indicated; Yellow – Inferred; Red – Unclassified; drill hole projection ± 20 m; view north. Figure prepared by AMEC, June 2012.Project No.: 168967 Page 14-1822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update14.14 Reasonable Prospects for Economic Extraction To assess reasonable prospects for economic extraction, AMEC assumed that the Blue River deposit would be mined utilizing self-supported mining methods under a conceptual scenario that considers mining and processing at a rate of 7,500 tonnes per day. Mining and economic parameters applied for the 2012 estimate were adjusted based on the results from the 2011 PEA.14.14.1 Market Study The marketing assumptions are discussed in Section 19.14.14.2 Commodity Price Commodity price assumptions are discussed in Section 19.14.14.3 Physical Assumptions  Tantalum-niobium mineralization is hosted in carbonatite  Continuous mineralization is found in moderately flat and wide carbonatite bodies with modest dips  Mineralized areas 20 m to 70 m in height are expected in several zones  Steep topography provides access to the mineralized areas in the form of adits on the hillsides  Fair to good rock conditions are expected in the majority of the deposit  Identified faulted zones may require wider pillars to avoid unstable mining conditions.14.14.4 Operational Considerations  The underground mining methods envisaged are sublevel open stoping and room and pillar without backfill  Mining recovery is assumed to vary from 65% to 85% depending on the mine and stope layout and the success in which pillars can be mined on retreat. The rest of the resource is expected to remain in place as pillars for stability considerations.  A bulk mining method with minimum stope size of 10 m x 10 m rooms with 15 m height is assumed in order to attain a relatively high production rate of 7,500 tonnes per dayProject No.: 168967 Page 14-1922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  A more selective method with stopes size of 10 m x 10 m rooms with 5 m height is assumed to capture higher-grade material located on the thinner edges of the mineralized zones  An external dilution factor was not considered during this estimation  Planned internal dilution within the minimum stope size is included  The concentration method considered is flotation followed by a refining process on site; global recoveries to obtain metal grade products were assumed to be 65.4% for tantalum and 68.2% for niobium.14.14.5 Economic Assumptions Since the block unit value (see Section 14.14.6) is estimated using commodity prices expressed in US dollars, the costs and assumptions are also expressed in US dollars. The following operating cost and price assumptions were adopted from the 2011 PEA, but rounded. The exchange rate used to calculate the block unit value is US$0.92 = CAD$1.00.  Mining cost – bulk mining method ................................. $US24/tonne  Mining cost – selective mining method .......................... $US42/tonne  Processing and refining cost ......................................... $US13/tonne  General and Administration ............................................. $US3/tonne  Base case scenario price of tantalum$US317/kg Ta metal in an oxide product  Base case scenario price of niobium $US46/kg Nb metal in an oxide product14.14.6 Economic Cut-Off Block Unit Value The block model was adapted to represent the two payable metal contents in terms of Block Unit Value (BUV) in US$/t using the following formula: BUV = (Ta2O5 grade in ppm * Ta recovery factor * Ta price in US$/g * proportion of 2Ta:Ta2O5) + (Nb2O5 grade in ppm * Nb recovery factor * Nb price in US$/g * proportion of 2Nb:Nb2O5) For the base case scenario: BUV = (Ta2O5 * 0.654 * 0.317 * 0.819) + (Nb2O5 * 0.682 * 0.046 * 0.699)Project No.: 168967 Page 14-2022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The tool “Stope Analyzer” from Vulcan® was utilized to identify the blocks that exceed the cut-off value while complying with the aggregation constraint of minimum stope size. This tool “floats” a stope with the specified dimensions and flags each block when the average block unit value of the contained blocks within a stope exceeds the designated cut-off value. For constraining resources deemed to be mined by underground methods, the use of this tool as an alternative to a conventional economic grade-shell provides an advantage based on the ability to aggregate blocks into the minimum stope dimensions and the automatic elimination of outliers that do not comply with this condition. For purposes of estimating the current model Mineral Resources, an underground mining cut-off value of US$40/t BUV was established for the material susceptible to be mined by bulk methods; the direct operating cost estimate for the bulk mining method is the result of the 2011 PEA mine plan and its associated costs. For material to be mined by a selective mining method a cut-off value of US$58/t BUV was adopted; the direct operating cost for the selective mining method is an estimate of the associated costs when a room and pillar mining method is assumed and was based on the work performed during the 2011 PEA.14.15 Mineral Resource Statement The Mineral Resources were classified in accordance with the 2010 CIM Definition Standards for Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. Table 14-7 shows the estimated mineral resources. The Indicated Mineral Resources are 51.78 million tonnes at 192 ppm Ta2O5 and 1,490 ppm Nb2O5. Inferred Mineral Resources are 8.8 million tonnes at 186 ppm Ta2O5 and 1,660 ppm Nb2O5.Project No.: 168967 Page 14-2122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 14-7: Blue River Project Estimated Mineral Resources; Effective Date 22 June, 2012, Tomasz Postolski, P.Eng, Qualified Person Contained Contained Ta price Confidence Ta2O5 Nb2O5 Ta2O5 Nb2O5 [US$/kg] Category Tonnes [ppm] [ppm] [1000s of kg] [1000s of kg] 317 Indicated 51,780,000 192 1,490 9,930 76,900 Inferred 8,800,000 186 1,660 1,600 14,600 Notes: 1. Assumptions include commodity prices of US$317/kg Ta, US$46/kg Nb, process recoveries of 65.4% for Ta2O5 and 68.2% for Nb2O5, US$24/tonne mining cost, US$13/tonne process and refining cost, US$3/tonne G&A cost 2. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyzer” 3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to US$58/t (selective) 4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is included 5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding. This Mineral Resource estimate is supported by a base case price assumption of US$317/kg Ta, which is higher than historic average prices. The Ta and Nb metal prices assumptions are the same as those used in the 2011 PEA and are considered still reasonable based on publicly available information on the current market prices. Table 14-8 shows the sensitivity of the Blue River Mineral Resources to tantalum metal price. Sensitivities are based on a fluctuating metal price but could also represent fluctuating mining or processing costs or metallurgical recoveries or a combination of all of these factors.Project No.: 168967 Page 14-2222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 14-8: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price; Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified Person Contained Contained Ta price Confidence Mass Ta2O5 Nb2O5 Ta2O5 Nb2O5 [US$/kg] Category [tonnes] [ppm] [ppm] [1000s of kg] [1000s of kg] 470 Indicated 55,050,000 189 1,430 10,430 78,750 Inferred 9,800,000 182 1,610 1,800 15,700 381 Indicated 54,230,000 190 1,440 10,310 78,270 Inferred 9,300,000 184 1,630 1,700 15,300 317 Indicated 51,780,000 192 1,490 9,930 76,900 Inferred 8,800,000 186 1,660 1,600 14,600 272 Indicated 47,700,000 194 1,560 9,250 74,400 Inferred 8,100,000 187 1,700 1,500 13,900 238 Indicated 43,170,000 196 1,650 8,440 71,270 Inferred 7,500,000 188 1,760 1,400 13,200 Notes: 1. Ta price was varied and all other assumptions remained the same as base case. Base case is in bold. 2. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyzer”. 3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to US$58/t (selective) 4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is included. 5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding. The Mineral Resources have been assessed for reasonable prospects for economic extraction using assumptions based on similar deposits. Economic viability of the Mineral Resource can only be demonstrated by Pre-Feasibility and Feasibility Studies, and there is no assurance that the stated resources can be upgraded in confidence and converted to mineral reserves. Since underground mining methods are envisioned, the mining recovery may vary from 65% to 85% depending on the success in which pillars can be mined on retreat and/or fill is utilized.14.16 Comparison of Mineral Resources The Indicated Mineral Resources in the current model total 51.78 million tonnes at 192 ppm Ta2O5 and 1,490 ppm Nb2O5. Inferred Mineral Resources total 8.8 million tonnes at 186 ppm Ta2O5 and 1,660 ppm Nb2O5.Project No.: 168967 Page 14-2322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The Indicated Mineral Resources in the model used for 2011 PEA were 36.35 million tonnes at 195 ppm Ta2O5 and 1,700 ppm Nb2O5. Inferred Mineral Resources were 6.4 million tonnes at 199 ppm Ta2O5 and 1,890 ppm Nb2O5. There is a considerable increase in resource tonnes for the current Mineral Resource update relative to the 29 September 2011 tonnage estimate where the Indicated category has increased by 42% and the Inferred category by 37%. This increase in tonnes is mostly due to (1) lowering the bulk mining method block unit value cut-off from US$52/t to US$40/t by eliminating backfill costs, and to a lesser extent (2) additional infill diamond drilling.14.17 Comment on Section 14 The QPs are of the opinion that the Mineral Resources for the Project, which have been estimated using core drill data, have been completed using industry best practices, and conform to the requirements of CIM (2010). The QPs are not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that could materially affect the Mineral Resource estimate. From the 2011 PEA, the Project is most sensitive to the American to Canadian exchange rate, the operating costs, and the Ta and Nb metal commodity prices.Project No.: 168967 Page 14-2422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update15.0 MINERAL RESERVE ESTIMATE No Mineral Reserves have been estimated for the Project.Project No.: 168967 Page 15-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update16.0 MINING METHODS16.1 Introduction This mining section incorporates assumptions, analysis and findings of the Preliminary Economic Assessment that had an effective date of 29 September 2011 (the 2011 PEA) by AMEC (Chong et al., 2011). The mineral resources used in the 2011 PEA mine plan were those with an effective date of 29 September 2011. The preliminary mine plan presented in this section is partly based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment based on these Mineral Resources will be realized. The information relevant to the preliminary mine plan prepared during the 2011 PEA based on a bulk mining method is included in this section and has not been updated because AMEC considers that the assumptions supporting the outcomes remain reasonable. The effective date of the 2011 PEA results remains 29 September 2011.16.2 Optimization16.2.1 Assumptions Mining assumptions used to define the Mineral Resource estimate in Section 14 were adapted from the 2011 PEA mine design. The block model consists of regular blocks with dimensions of 5 m x 5 m in the horizontal plane and 2.5 m vertically; no rotation was adopted. The block model was adapted to represent the unit value per tonne of material considering two payable metal contents. This value was named the block unit value (BUV) in US$/t and was estimated using the following formula: BUV = (Ta2O5 grade in ppm * Ta recovery factor * Ta price in US$/g * proportion of 2Ta: Ta2O5) + (Nb2O5 grade in ppm * Nb recovery factor * Nb price in US$/g * proportion of 2Nb:Nb2O5) Price assumptions were US$317/kg tantalum metal and US$46/kg niobium metal, contained in oxide product.Project No.: 168967 Page 16-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Tantalum and niobium mineral occurrences are amenable to conventional flotation and refining processes with estimated overall recoveries of 65.4% and 68.2%. The block model was valued using the following formula, incorporating the specific grades in each block: BUV = (Ta2O5 * 0.654 * 0.317 * 0.819) + (Nb2O5 * 0.682 * 0.046 * 0.699) The 29 September 2011 Mineral Resource estimates used an underground mining cut-off value of US$52/t for the material susceptible to be mined by bulk methods and a cut-off value of US$59/t for material to be mined by the selective methods. Mineral Resources considered in the preliminary mine plan are those tabulated in Table 16-2. The “Stope Analyzer” tool from commercially-available Vulcan® software was utilized to identify blocks within the resource model for which the block unit value (BUV) exceeded the cut-off value while complying with an aggregation constraint of a specified minimum stope size. This tool “floats” a stope with previously specified dimensions and flags each block when the average block unit value of the contained blocks within a stope exceeds the designated cut-off value. The use of this tool is an alternative to a conventional economic grade-shell for constraining Mineral Resources deemed to be mined by underground methods, and provides an advantage based on the ability to aggregate blocks into the minimum stope dimensions and the automatic elimination of outliers that do not comply with this condition. Stope dimensions are detailed in Table 16-1. Table 16-1: Minimum Stope Dimensions for Constraining the Subset of Mineral Resources within Designed Stopes Mining Method Width (m) Length (m) Height (m) Sub-level Open Stoping 10 10 15 Room and Pillar 10 10 516.2.2 Mining Method Blue River Project is located largely along the steep, west-facing slopes of the Monashee Mountains and it is closely positioned to, and just east of, the North Thompson River. As mineralization is close to surface, extraction of the mineralized material could potentially be by either open pit or underground methods, or a combination of both.Project No.: 168967 Page 16-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Initial assessment identified technical challenges and increased costs for tailings and waste rock disposition related to local topography, stream courses and climate. For this reason a decision was made to consider an underground mining scenario for PEA purposes.16.2.3 Mineral Resources considered for the 2011 PEA The 2011 PEA was based on a mineral resource estimate announced in February 2011 (“Blue River Ta-Nb Project NI 43-101 Technical Report, Blue River, British Columbia” by AMEC with effective date 31 January 2011). For this estimate, AMEC used the drill results up to the end of 2009, which includes 183 drill holes comprising 37,446 metres of HQ drill core and 8,218 sawn core samples to develop the mineral resource estimate. By inspection, the volume of rock (tonnes and grade) above cut-off considered in the 2011 PEA are not materially different from the volume of rock above the same cut-off in the updated 22 June 2012 mineral resource estimate. Table 16-2 shows the estimated mineral resources used in the 2011 PEA. AMEC cautions that Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. Table 16-2: Blue River Project Estimated Mineral Resources Supporting 2011 PEA; Effective Date 29 September 2011, Tomasz Postolski, P.Eng., Qualified Person Contained Contained Ta price Confidence Ta2O5 Nb2O5 Ta2O5 Nb2O5 [US$/kg] Category Mass [tonnes] [ppm] [ppm] [1,000s of kg] [1,000s of kg] 317 Indicated 36,350,000 195 1,700 7,090 61,650 Inferred 6,400,000 199 1,890 1,300 12,100 Notes: 1. Assumptions include US$317/kg Ta, US$46/kg Nb, 65.4% Ta2O5 recovery, 68.2% Nb2O5 recovery, US$32/tonne mining cost, US$17/tonne process and refining cost. Mining losses = 0% and dilution = 0%. 2. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyzer”. 3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective mining method. The block unit value cut-off ranged from US$52/t (bulk) to US$59/t (selective) 4. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding. To support the 2010 Mineral Resource estimate underground mining methods were envisioned (room and pillar or variants), with mining recovery assumed to vary from 65% to 85% depending on the success in which pillars could be mined on retreat and/or fill is utilized.Project No.: 168967 Page 16-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update16.2.4 Production Rate In 2009, AMEC carried out an “order of magnitude” financial analysis to evaluate a range of processing throughput rates. This analysis indicated that the Project required processing rates of greater than 5,000 t/d to provide economies of scale that allowed a reasonable economic return on investment. A processing rate of 7,500 t/d was assumed for Mineral Resource estimation and for the conceptual design of an underground mine for the Project. It is AMEC’s opinion that this mining rate is reasonable based on the geometry of the deposit and the mining method selected.16.3 Geotechnical Conditions In the second half of 2010 AMEC carried out a geotechnical program to provide design guidelines for the Blue River Project. This program included:  A geotechnical site investigation program;  Training for site geologists and geological technicians in oriented core logging;  QA/QC site visits during the geotechnical drilling program; and  Engineering analysis and recommendations applicable to the underground mining method. Rock types have been grouped into two main geotechnical domains: Intrusive and Layered Rocks. The Intrusive group encompasses carbonatite and fenite rocks while the Layered Rocks group encompasses gneiss and amphibolite. Based on rock strength analysis and assessment of rock quality designation (RQD), joint spacing, joint condition and groundwater condition assumptions, the rock mass characteristics detailed in Table 16-3 were obtained for each rock group. Table 16-3: Rock Mass Characteristics by Rock GroupProject No.: 168967 Page 16-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update A structural set analysis showed similarities between the Intrusive and Layered Rock groups with a strong concentration of flat joints dipping between 0° to 30° to the east/northeast and sub-vertical joints striking northwest/southeast. The major joint sets were identified as shown in Table 16-4. Table 16-4: Major Joint Sets16.4 Conceptual Mining Method The major items governing the selection of underground mining methods include the geology and geometry of the deposit and geotechnical properties of the mineralized material and country rock. AMEC followed the technique proposed by Nicholas (1992) to rank the underground mining methods suitable for the Blue River deposit. AMEC classified the deposit as a thick, tabular, and flat deposit with relatively uniform low grades and moderate geotechnical conditions in the deposit as well as in the host rock. The three methods with higher ranking are:  Sub-level stoping  Cut-and-fill  Sub-level caving The first two methods were considered for this study. The first was evaluated for areas where the carbonatite is greater than 15 m in thickness and the second for thinner areas towards the edges of the carbonatite folds.16.4.1 Backfill Considerations During economic analysis it was found that the cut-and-fill method was likely to prove uneconomic and it was excluded from the mine plan. The 2011 PEA was developed assuming a sub-level open stoping mining method with no backfill and no pillar recovery.Project No.: 168967 Page 16-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update16.5 Stoping Design The Upper Fir deposit geological model shows thicknesses between 20 m to 80 m and strike lengths between 50 m to 200 m in the east–west direction. Transverse dimensions in the north–south direction range between 100 m to 500 m. Vertical stopes oriented east–west with maximum dimensions of 30 m high, 15 m wide and 60 m long were selected for preliminary analysis. Based on these stope dimensions, the following stope faces and hydraulic radius are defined (Table 16-5). Table 16-5: Stope Faces and Hydraulic Radius Face A Face B Face C Longwall Endwall Back Height (m) 30 30 Width (m) 15 15 Length (m) 60 60 Hydraulic radius (m) 10 5 616.5.1 Stability Analysis and Ground Support As part of geotechnical analysis, AMEC carried out stability analysis based on the empirical Mathews/Potvin Stability Graph method. Results of the analysis indicated:  Face A – Longwall: This wall is expected to be composed of competent Intact to Blocky rock mass. The main jointing is sub-horizontal crosscut by two sub-vertical joint sets. The stope wall is vertical and should be inherently stable unless disturbed by over-blasting. Sloughing up to 0.5 m thick is expected. Cable bolting may be required in certain places.  Face B – Endwall: Numerical modeling suggests that the stress is relatively high compared with the rock strength and the joint set configuration favours sliding failure. Cable bolts are required to provide stability. A square cable pattern of 2 m by 2 m is recommended and will be installed from the sill drift fanning upwards to cover the unsupported span between level drifts.  Face C – Back: This face is horizontal and as such is expected to be in a relaxed stress state. Gravity driven rock fall is likely the dominant failure mode. Face reinforcement is required with the development of a self supporting rock arch overProject No.: 168967 Page 16-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update the back face. A 15 m wide face requires cable bolting in square pattern of 2 m by 2 m and cable bolts of 9 m long.16.5.2 Stope Geometry AMEC made adjustments to the preliminary stope design to reduce the demand for cable bolting; specifically the Back was reduced to a 5 m-wide entry. This requires the stope drilling pattern to be changed from vertical to fanned holes.16.5.3 Mining Sequence The stope face will advance from the east end of each block to the west in a retreat manner. Once the maximum unsupported stable length of the stope has been reached, a pillar will be established, and mining will resume from a new stope.16.5.4 Conceptual Mine Design AMEC developed a conceptual design for one of the potential areas to be mined, geological domain A110. This domain was selected because it was one of the thicker areas within the deposit and represented a reasonable test area for mine design.16.5.5 Mining Dilution and Recovery Material deemed to be mined by bulk mining methods represents 84% of the Mineral Resources. Within the mineable shapes there was internal dilution of 2% waste rock. It was assumed that during mining 2% of waste material would be added as external dilution and 2% of the broken material would not be recovered from the stopes due to operational conditions. The geotechnical investigation indicates that an extraction ratio of 67.5% is reasonable. Applying this factor to subset the Mineral Resources considered in the mine plan results in an overall mining extraction of 58% and provides 25.0 Mt of material as run-of-mine (ROM) production to be processed. Applying internal and external mining dilution, the overall subset Mineral Resource grades were diluted to 185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for mine planning purposes.16.6 Drilling and Blasting AMEC assumed conventional drilling methods: electro-hydraulic jumbos for face drift rounds and electro-hydraulic long-hole drills for stope drilling.Project No.: 168967 Page 16-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Due to the high precipitation in the region and water continuity along fractures and rock layers, wet conditions were assumed for development and stoping areas requiring the use of emulsion type explosives. AMEC assumed the utilization of specifically-designed tanks to store emulsion explosives in trucks delivering and loading explosives at development faces and stopes. A centralized blasting system where all blasts are initiated sequentially from a single location at the end of each shift will be used to reduce potential safety and ventilation risks.16.7 Mine Development The deposit will be accessed through two main portals, the Upper and Lower Portals, located in positions where the deposit outcrops on the hillside. The Upper Portal will be located at Elevation 1,150 m. It will be used as the main entry and will have most of the mine services. The Lower Portal will be located at Elevation 1,030 m and will be used for haulage trucks access. Access to the portals will be by a road upgraded from existing exploration roads. Location plans for the portals are included in Section 18. The mine will be accessed by adits driven in pairs from the portals. All entries, ramps, drifts and crosscuts will be 5 m wide by 5 m high with a semi-arched back to accommodate the haulage trucks plus mine services, including pipelines for compressed air, drill and drainage water, for ventilation ducts and electric and communication cables. Ramps will be driven at grades to a maximum of 15% to provide access to the production areas. Two ramps or adits will be driven to each area to provide single-way traffic of haulage trucks and to facilitate ventilation. Top access crosscuts are driven from the main ramps to each level on vertical intervals between 20 m to 30 m. Stope access crosscuts are driven along the levels from west to east. Bottom-access crosscuts are driven to function as mucking drifts. Ground support will be by grouted bolts in all man-entry drifts with steel mats, wire mesh and plates assumed to be installed in 20% of the areas. The length of development necessary was calculated by designing centrelines of ramps and drifts to provide access to all potentially mineable areas of the mine. Additional development for re-mucking cut-outs, sumps, substation rooms, storage and any other excavation needed for infrastructure was included as an allowance of 20% of the semi-permanent development entries. The total development was estimated at 92,500 m during the life-of-mine.Project No.: 168967 Page 16-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update A conceptual preliminary overall mine plan is included as Figure 16-1. Figure 16-2 displays an aerial view of the mining area from the Upper Portal.16.8 Mineralized Material and Waste Rock Haulage The PEA envisages that tailings material will be dry-stacked and waste rock will be stored in the same general area. For convenience, the combined storage area is referred to as the “co-disposal facility”. Radio remote-controlled load-haul-dumps (LHDs) will be used to extract the mineralized material from beyond the safety of the stope brow. This material will then be loaded directly into the haulage trucks that will be spotted at the end of each stope crosscut. Underground trucks will haul the mined material through the access drifts and ramps, unloading into the primary crusher surface stockpile located close to the Lower Portal. Crushed material will be transferred to the process plant by a belt conveyor. Waste from development will initially be utilized for construction of a structural shell for the tailings co-disposal site located between Elevations 1,400 m and 1,600 m in an area east of the process plant. The conveyor will be used to transport this material in batches from the mine to a stockpile by the plant site. A road developed at +10% grade will connect the plant with the co-disposal site. Surface trucks will haul waste from the plant to the co-disposal site.Project No.: 168967 Page 16-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 16-1: Conceptual Mine Layout Plan (plan view projection) Note: image figure colours may appear darker than reference key colours due to over-plotting of design layers. Figure prepared by AMEC, 2011.Project No.: 168967 Page 16-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 16-2: Aerial View of the Mining Area from Upper Portal Note: image figure colours may appear darker than reference key colours due to over-plotting of design layers. Light brown blocks in background of figure are the potentially-mineable blocks. Figure prepared by AMEC, 2011.Project No.: 168967 Page 16-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update16.9 Mine Services Underground mine services such as ventilation and air heating, compressed air, water for drilling and electric power supply will be provided to the mine via adits from the portals. The main power substation and the air compressors will be installed in facilities located adjacent to the Upper Portal. Other mine services will include all the systems and supplies needed for the mining operations, including explosives storage, communications, monitoring and control systems, road maintenance and an underground equipment maintenance facility. Portable self-contained refuge stations will be provided for the mine and will be located at convenient locations. Refuge stations provide a common assembly area in the event of a mine fire or other emergency and are portable so they can be easily relocated to the next active area.16.10 Mine Development and Production Forecasts The forecast preproduction development is 12,000 m and the annual development over the ten-year mine life is forecast to decrease from 15,000 m in the first full production year to about 2,150 m in the final year. Production was estimated at 2.7 Mt/a of mineralized material. Following the preproduction development year full production is maintained for nine years followed by decreased production in Year 10 as the subset of the Mineral Resources considered in the mine plan are exhausted. At this preliminary level of study the stope mining sequence was not defined and therefore average grades were used for each year in the mine plan. There is opportunity to increase the net present value (NPV) of the project by mining higher-grade zones early in the mine life providing that the sequence and overall recovery of the stopes is not negatively affected. The development and production forecasts are shown in Table 16-6.Project No.: 168967 Page 16-1222 Jun e2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 16-6: Mine Development and Production Forecasts Production Schedule Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Nominal Production Rate tpd 7,500 7,500 7,500 7,500 7,500 Scheduled working days days/year 360 360 360 360 360 360 Production of Mineralized Material t/year 2,700,000 2,700,000 2,700,000 2,700,000 2,700,000 Ta2O5 Grade ppm 185 185 185 185 185 Nb2O5 Grade ppm 1,591 1,591 1,591 1,591 1,591 Development (total) m/year 12,000 15,000 12,834 10,980 9,394 8,038 Capital Development m/year 12,000 5,000 1,216 1,040 890 761 Operational Development m/year 0 10,000 11,618 9,940 8,505 7,276 Production Schedule Units Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total Nominal Production Rate tpd 7,500 7,500 7,500 7,500 7,500 Scheduled working days days/year 360 360 360 360 360 Production of Mineralized Material t/year 2,700,000 2,700,000 2,700,000 2,700,000 700,000 25,000,000 Ta2O5 Grade ppm 185 185 185 185 185 185 Nb2O5 Grade ppm 1,591 1,591 1,591 1,591 1,591 1,591 Development (total) m/year 6,877 5,884 5,034 4,307 2,153 92,500 Capital Development m/year 651 557 477 408 0 23,000 Operational Development m/year 6,225 5,326 4,557 3,899 2,153 69,500Project No.: 168967 Page 16-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update16.11 Mine Equipment Requirements Table 16-7 shows the major mining equipment and the support equipment required each year for the life of mine and includes allowances for equipment utilization and availability due to maintenance downtime. The table includes equipment required for the tailings and waste co-disposal facility. The “Equipment additions” reflect additional requirements based on increased activity levels and replacements assuming typical useful operating lives for the units.16.12 Mine Infrastructure The mine infrastructure planned for the Project is listed in the capital costs section of this report and includes establishment of mine portals, access roads to portals underground maintenance bays, ventilation and heating systems, air compressors, fuel tanks, explosives magazines, pumps, electrical transformers and ancillary equipment.16.13 Mining Personnel The mine is scheduled for three 8-hour shifts per day, 360 days per year. This will require an equivalent of 4.5 mine crews working a rotating schedule for activities scheduled seven days a week and three crews for activities scheduled five days a week. The annual personnel requirements are shown in Table 16-8. This includes management and supervisory personnel and personnel to operate and maintain equipment used to service the surface roads and the tailings disposal site.16.14 Comment on Section 16 In the opinion of the QPs, the following conclusions are appropriate:  The deposits are amenable to underground mining, and the PEA developed assuming a Base Case sub-level open stoping mining method with no backfill is still valid  Material deemed to be mined by bulk mining methods is a subset of the Mineral Resources supporting the 2011 PEA, and represents 84% of the Mineral Resources estimated at that time; within the stopeable shape, an additional 2% of waste was identified as internal dilution.Project No.: 168967 Page 16-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 16-7: Mining and Tailings Facility Equipment Requirements Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Major Equipment Units Required Jumbo - 2 boom 4 4 4 4 3 3 3 3 2 2 2 Longhole drill - 5 5 5 5 5 5 6 6 6 4 Bolter 3 3 3 3 3 2 2 2 2 1 2 Emulsion Truck 3 4 4 3 3 3 3 3 2 2 3 Scissor Lift 4 4 4 4 3 3 3 3 2 2 2 LHD - Ejector - 7 m3 3 5 5 5 5 5 5 5 4 4 4 Trucks 3 9 9 9 8 8 8 8 8 8 7 Major Equipment Purchases Jumbo - 2 boom 4 - - - - 2 1 - - - - Longhole drill - 5 - - - 3 2 - - - - Bolter 3 - - - - 1 1 - - - - Emulsion Truck 3 1 - - - 2 1 - - - - Scissor Lift 4 - - - - 2 1 - - - - LHD - Ejector - 7 m3 3 2 - - - 3 2 - - - - Trucks 3 6 - - - 4 4 - - - - Support Equipment Purchases Low profile U/G Motor Grader 1 - - - - 1 - - - - - Crane truck 1 - - - - 1 - - - - - Fuel/lube vehicle 2 - - - - 2 - - - - - Service truck w/ scissor lift 2 - - - - 2 - - - - - Forklift/Cable reeler 1 - - - - 1 - - - - - Mancarrier - 16 person 2 - - - 2 - - - 2 - - Shotcrete Machine 2 - - - 2 - - - 2 - - Mechanics truck w/ flat deck 2 - - - 2 - - - 2 - - Supply truck w/ flat deck 2 - - - 2 - - - 2 - - Crew cab 4 - - - 4 - - - 4 - - Mine rescue van 1 - - - 1 - - - 1 - - Surface Equipment Required Grader 2 2 2 2 2 2 2 2 2 2 2 Water Truck 1 1 1 1 1 1 1 1 1 1 1 Compactor 1 1 1 1 1 1 1 1 1 1 1 Dozer 3 4 4 4 3 3 3 3 3 3 3 Excavator 1 2 2 2 2 2 2 2 2 2 1 Haul Truck 5 13 13 13 13 13 13 13 13 13 10 Surface Equipment Purchases Grader 2 - - - - - 1 - - - - Water Truck 1 - - - - - - - - - - Compactor 1 - - - - - - - - - - Dozer 3 1 - - - - 2 1 - - - Excavator 1 1 - - - - 1 - - - - Haul Truck 5 8 - - - - - - - - -Project No.: 168967 Page 16-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 16-8: Mining Personnel RequirementsMine Operations Personnel Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Operators for Major EquipmentJumbo - 2 boom 14 17 15 13 11 9 8 7 6 5 8Longhole drill 0 14 14 14 15 15 15 15 16 16 13Bolter 21 26 22 19 16 14 12 11 9 8 10Emulsion Truck 9 13 11 10 9 8 8 7 6 6 7Scissor Lift 14 17 15 13 11 9 8 7 6 5 8LHD - Ejector - 7 m3 9 20 19 18 17 16 16 15 15 14 14Trucks 9 34 32 31 31 30 30 30 29 29 26 Operators for Support EquipmentLow profile U/G Motor Grader 5 5 5 5 5 5 5 5 5 5 5Service truck w/ scissor lift 9 9 9 9 9 9 9 9 9 9 9Forklift/Cable reeler 3 3 3 3 3 3 3 3 3 3 3 Operators for Surface EquipmentGrader 9 10 9 9 9 9 9 9 9 9 9Water Truck 5 5 5 5 5 5 5 5 5 5 5Compactor 3 6 3 3 3 3 3 3 3 3 3Dozer 14 23 23 18 14 14 14 14 14 14 14Excavator 3 6 6 6 6 6 6 6 6 6 3Haul Truck 23 59 59 59 59 59 59 59 59 59 50 MaintenanceCrane truck 3 3 3 3 3 3 3 3 3 3 3Fuel/lube vehicle 5 9 9 9 9 9 9 9 9 9 7Mechanics truck w/ flat deck 10 18 18 18 18 15 15 15 15 15 10Supply truck w/ flat deck 10 18 18 18 18 15 15 15 15 15 10Maintenance Shop 13 20 14 9 5 8 7 5 3 2 6 Mine ServicesServices installations 5 5 5 5 5 5 5 5 5 5 3Grouting/shotcrete 5 5 5 5 5 5 5 5 5 5 3Construction 5 5 5 5 5 5 5 5 5 5 3Level maintenance 2 2 2 2 2 2 2 2 2 2 2Nipper 2 2 2 2 2 2 2 2 2 2 2 General Mine Administration, Technical and ServicesMine Administration 19 19 19 19 19 19 19 19 19 19 15Maintenance 11 11 11 11 11 11 11 11 11 11 8Technical Services 23 23 23 23 23 23 23 23 23 23 20Subtotal Mine Operations 263 407 384 364 348 336 331 324 317 312 279Project No.: 168967 Page 16-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  The geotechnical investigation indicates that an extraction of 67.5% can be achieved, resulting in an overall mining recovery of 58%. It was assumed that an additional 2% of waste material would be added as external dilution and 2% of mineralization losses were incurred due to operating conditions. An overall mining recovery factor of 58% of the estimated Mineral Resources was considered in this study; this accounts for 25.0 Mt of mineralized material that is a subset of the Mineral Resources as run-of-mine (ROM) production to be processed inclusive of diluting material.  For the preliminary mine plan, considering waste inside stopes and external dilution, the overall subset Mineral Resource estimate grades were diluted to 185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for the ROM estimates.  Production was estimated at 2.7 Mt/a of mineralized material to be extracted over 10 years; the first year was considered as preproduction, leaving nine years of full-scale production.  Developments were modeled following a decreasing activity level from the beginning to the end of the life of mine. A total of 92,500 m of development was estimated.  The deposit will be accessed through two main portals, Upper and Lower, and a series of adits from the portals. Top access crosscuts will be driven from the main ramps to each level on vertical intervals between 20 to 30 m. Stope access crosscuts will be driven at level from west to east. Bottom access crosscuts will be driven to function as mucking drifts. Underground mine services such as ventilation and air heating, compressed air, water for drilling and power supply will be provided to the mine via the adits.  Radio remote-controlled load-haul-dump units (LHDs) will be used to extract the mineralized material from the stope beyond the safety of the brow. The mineralized material from stopes will be loaded directly to the haulage trucks that will be spotted at the end of the crosscut. The trucks will drive down the ramps and will exit the mine at the Lower Portal. The trucks will deliver the mined material to a surface stockpile at the primary crusher close to the portal. Crushed material will be transferred to the process plant by a belt conveyor.  Waste from development will be initially utilized for construction of a structural shell of the tailings co-disposal site on surface, which is located in an area east of the processing plant site. This material will be transferred to the plant site in batches on the conveyor system.  Several areas of investigation are required to support a detailed mine plan. These include underground geotechnical and geo-hydrological conditions for mine design, the possible use of mining methods utilizing un-cemented backfill, and continuousProject No.: 168967 Page 16-1722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update handling systems for mineralized material and waste rock. Opportunities include possible better ground conditions than assumed. With improved ground conditions the size of stopes and production drifts could be increased.  There is opportunity to increase the net present value (NPV) of the Project by mining higher-grade zones early in the mine life providing that a practical mining sequence can be implemented and the overall recovery of the Mineral Resources is not negatively affected.  There is opportunity to increase the net present value (NPV) of the Project by optimising the mine layout to minimize development costs.Project No.: 168967 Page 16-1822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update17.0 RECOVERY METHODS17.1 Introduction This section on recovery methods incorporates assumptions, analysis and findings of the Preliminary Economic Assessment that has an effective date of 29 September 2011. The information relevant to the plant design supporting the financial analysis prepared during the 2011 PEA is included in this section and has not been updated because AMEC considers that the assumptions supporting the outcomes remain reasonable. The effective date of the 2011 PEA results remains 29 September 2011.17.2 Plant Design The design for the process facilities considered a nominal processing capacity of 7,500 t/d. Where data were not available at the time of flowsheet development, AMEC developed criteria for sizing and selection of equipment based on comparable industry applications, benchmarking, and the use of modern modelling and simulation techniques. The mineral processing and the refining are based on conventional technology and industry-proven equipment. Run-of-mine (ROM) mineralized material from the underground will be crushed and conveyed to the concentrator where the mineralization will be ground to liberate the mineral values from the host rock and then separated by flotation. The bulk tantalum-niobium concentrate produced will be filtered, dried, and introduced into the refining plant. There the concentrate will undergo a thermal reduction which will remove most of the gangue material and create a smaller, higher purity material for chlorine processing. The distillation of the anhydrous metal chloride products will produce separated high-purity Nb and Ta chlorides. Tantalum chloride is the precursor to capacitor grade Ta powder, so would be marketed in this form. Niobium chloride can be sold as a chemical precursor. Both Ta and Nb chloride products can be readily converted and marketed as high-purity technical grade Ta2O5 and Nb2O5 oxides respectively. The simplified flowsheet is shown in Figure 17-1.Project No.: 168967 Page 17-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update17.3 Comminution (Crushing, Storage, and Grinding) The primary crushing station will be a fixed jaw crusher. Mine haul trucks will dump ROM mineralized material into the ROM surface stockpile located close to the Lower Portal. Mineralized material will be fed to the crusher using an apron feeder. Crushed mineralized material will fall onto a conveyor and be fed to a fine crushing circuit at the plant site which will further reduce the material to -8 mm. The material will be stored in a fine ore silo. It will be withdrawn by feeder into a rod mill. The discharge from the rod mill will flow into the cyclone feed pumpbox. The cyclone feed pump will transfer the material to the cyclone circuit which will produce finished product in the overflow (a P80 size of 100 µm). The cyclone underflow will report to a ball mill for additional grinding. The discharge from the ball mill will join the rod mill discharge as feed to the cyclone pumpbox. Figure 17-1: Concentration and Refining of Blue River Mineralization Note: Figure generated by AMEC, 2011Project No.: 168967 Page 17-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update17.4 De-Sliming and Flotation In both cases, the pyrrhotite and carbonate concentrates will join the de-sliming fines in the tailings filtration system. After the rejection flotation work, the carbonate tails will be processed through a magnetic separator to recover any magnetite to tailings. The water will be exchanged at this point to allow a higher level of control in the subsequent pyrochlore flotation to recover tantalum and niobium. Flotation of Nb-Ta-bearing minerals to a mineral concentrate will occur at a pH of 7.0 employing a pH modifier/promoter (fluosilicic acid), a collector (a Duomac-T equivalent) and a frother (MIBC) as required. The pyrochlore tails will pass to the tailings filtration system. The pyrochlore rougher concentrate will be reground and cleaned in five stages with the same reagents. The mass of material will be reduced substantially, to less than 1% of the feed into the plant. All cleaner tails will be sent directly to the tailings filtration system.17.5 Filtration After de-sliming, magnetic separation, and flotation, the combined tailings will be pumped to two separate tailings thickeners for water recovery. After thickening, the material will be pumped into one of four tailings pressure filters. These filters will reduce the moisture to a level for disposal to dry stacked tails. Should a paste backfill option be considered during future studies, material after filtration could be sent to a paste silo feed thickener. In this latter case, the material could be withdrawn for use as required and transported to the underground mine portal where it would be mixed with cement prior to use underground as backfill. The pyrochlore concentrate product will be a much smaller mass and will first be sent to a small concentrate thickener and filtered.17.6 Concentrate Pre-Treatment There are two options to pre-treat the flotation concentrate. If the concentrate grade is between 10% and 30% Ta and Nb, then it is possible to perform a pre-leach with strong acid to dissolve some of the gangue after which the material would be sent for filtration. If the concentrate is more than 30% the non-acidified material would be sent directly to filtration. After filtration, the concentrate would be dried and sent to the concentrate receiving bin.Project No.: 168967 Page 17-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Material would be recovered from the concentrate bin to a blender where flux (calcium fluoride, quicklime), iron oxide, scrap aluminum and fuse mix would be added. After blending the material is charged to burn pits. The aluminothermic reduction occurs in these pits. After smelting and solidification, the alloy ingot (with adhering slag) is removed from the burn pit by crane. After further cooling, the alloy ingot and adhering slag would be broken, crushed and separated through the use of magnetic separation. The slag material would be disposed of to tailings while the alloy material containing the tantalum and niobium would be charged to the chlorination system.17.7 Chlorination and Distillation The material, which is charged into the chlorination system, will be set into fixed charge pots where chlorine will be added and the mixture will be heated to 350°C. The mixed chloride product from chlorination of the ferroalloy smelting product will then be distilled to achieve high purity Ta and Nb chlorides. These distillation products will be captured by separate condensers.17.8 Product / Materials Handling A conveyor is planned to transport materials from the portal to the plant.17.9 Energy, Water, and Process Materials Requirements Power for the proposed operation will be sourced from B.C. Hydro. The most appropriate source will be investigated during more detailed Project studies.17.10 Comment on Section 17 In the opinion of the QP, the metallurgical programs completed on the Blue River Project have met their objective of identifying a processing method allowing for the extraction of tantalum and niobium mineralization that has reasonable prospects of being economic. Additional work is required to confirm the extractive metallurgy of the concentrate, produce the target flotation concentrate grade and examine the response of the process to variability of mineralization within the deposit and process conditions. The following interpretations apply to the plant design and metallurgical testwork results:  Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are amenable to conventional flotation and proven refining processes with estimated recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22Project No.: 168967 Page 17-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update of this Report, it was assumed that the process plant will have a 65% recovery for Ta and 69% recovery for Nb in the flotation stage. The refining process will have a 97% recovery for both Ta and Nb.  Optimization of the supply and pricing of reagents for the refining process may support lower operating cost assumptions.  Metallurgical testing has not yet attempted to demonstrate that a 30% combined oxidized concentrate grade as a feed for the refining stage is achievable.  The proposed refining methods have been used in commercial applications but have not been demonstrated in test work of Blue River material.Project No.: 168967 Page 17-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update18.0 PROJECT INFRASTRUCTURE18.1 Introduction This project infrastructure section incorporates assumptions, analysis and findings of the Preliminary Economic Assessment that has an effective date of 29 September 2011. The information relevant to the project infrastructure supporting the preliminary mine plan prepared during the 2011 PEA is included in this section and has not been updated because AMEC considers that the assumptions supporting the outcomes remain reasonable. The effective date of the 2011 PEA results remains 29 September 2011.18.2 Site Layout The overall Project site layout plan is included as Figure 18-1. The planned Upper and Lower Portals will be located about 4 km from the plant site. At the front of the Upper Portal (service portal) sufficient space will be provided to accommodate the required facilities for operation.18.3 Buildings18.3.1 Mine Service Building The plant service building will be a multi-purpose complex in a two story building east of the process building. The first floor (18 m by 40 m) will be a maintenance bay for minor repairs and maintenance of the mobile equipment and will have an office for the maintenance foreman, a small parts area, a tool crib, and a storage area for safety equipment. Part of the first floor will contain the men’s and women’s dry. The second floor will be the administration offices. The complex will be connected to the process building by a covered walkway.Project No.: 168967 Page 18-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 18-1: Proposed Site Layout Plan Note: Figure prepared by AMEC, 2011Project No.: 168967 Page 18-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update18.3.2 Truck Shop A 24 m by 36 m truck shop on the southwest end of the site will be operated by a qualified contractor. The required equipment and tools for regular maintenance and possible repair of the haul trucks are assumed to be supplied by the contractor.18.3.3 Warehouse To save cost and construction time, the warehouse will be a 24 m by 50 m Coverall-type fabric building. One third or more of the building will be dedicated to warehouse cold storage, and the remainder allocated to fire water and potable water tanks and a fire pump skid. The building will be equipped with an interior liner as an insulation layer to minimize the potential of freezing inside the warehouse. This will save the cost of insulation and heat tracing of the tanks, pipes and all equipment and is easier for operation and maintenance. Forklifts, pallet racking, bins, and carousels will be provided for handling materials. Flammable products such as solvents and paints will be stored separately. The Coverall-type building life expectancy is 15 years and it will withstand design snow and wind loads.18.3.4 Process Building The process building will be a 22 m by 52 m steel structure building sitting on a concrete foundation. The mill foundation will be on bed rock; a geotechnical investigation is required prior to determination of the final location of the mill. A 15 m diameter tailing thickener will be located to the south of the process building with a walkway/pipe rack connection to the building.18.3.5 Crushing and Screening Circuit The preliminary site layout is designed to take advantage of the topography to minimize earthworks. The secondary crusher will be located in the northeast corner of the site at a higher elevation. The conveyor span from the secondary crusher discharge will rise at 12° (an access safety constraint) to reach the height of the screen above the fine ore bin. Screen oversize will pass via a return conveyor to the tertiary crusher.Project No.: 168967 Page 18-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update18.3.6 Portal Infrastructure A yard will be constructed in front of the Upper Portal, which will accommodate an electrical substation and generator set, and office building, provision for storage, ventilation infrastructure, and heater, air compressor, diesel storage, a first aid rescue vehicle bay and a water tank. The buildings and related facilities will be pre-engineered as much as possible. Drinking water will be provided from the plant site water treatment plant by containers. A portable wash room will be provided for workers. Sewage will be trucked to the site wastewater treatment plant.18.3.7 Explosives Storage Ammonium nitrate, blended emulsion, and explosives will be delivered to site on demand by contractors. A small storage magazine will be constructed at a distance of about 200 m from the Upper Portal. Room for explosive storage will be provided by excavating into the rock. The walls and roof will be reinforced and a lockable door will be provided, as per the requirements of the Quantity-Distance Principles User’s Manual published by the Explosives Regulatory Division of NRCan. The magazine will hold boosters, delays, detonating cords, detonating caps, and other explosive accessories.18.3.8 Aggregate Crushing and Concrete Batch Plants A crushing and stockpiling facility will be required during construction to provide crushed product for roads and surfacing. The mobile plant assembly will include a jaw crusher, screening plant, closed-circuit secondary crushing unit, and washing plant. Concrete supply from nearby towns is assumed adequate for construction purposes. An on-site concrete batch plant is not proposed for the project. Availability of existing concrete supply should be examined in the next phase of study.18.4 Roads and Logistics18.4.1 Access Road The road access design includes a short new road with a 7.2 m wide gravel surface from the existing road to plant site about 80 m in length and a 1.5 km new service road from the existing road to the Upper Portal and upgrades to the current access road.Project No.: 168967 Page 18-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update An existing 80 m-long bridge crossing over the Thompson River has a limited load capacity and might not qualify for crossing heavy loads during construction or long-term use during the life of the mine. Therefore a new bridge has been included in capital cost estimate. Using the existing railway for shipment should be investigated in next phase of study.18.4.2 Haul Road Dual-lane traffic requires a travel width (16.2 m) of not less than three times the width of the widest haulage vehicle used on the road (assumed to be trucks of the size of CAT 775F with 5.4 m of overall width). Single-lane traffic requires a travel width (11 m) of not less than two times the width of the widest haulage vehicle used on the road. Shoulder barriers should be at least three-quarters of the height of the largest tire on any vehicle hauling on the road wherever a drop-off greater than 3 m exists. The shoulder barriers are designed at 1.5:1 (H:V). The width of the barrier is excluded from the travel width. There is one main haul road, from the site to the waste rock stock pile, that will have a length of about 8 km (refer to Figure 18-1). The road from the upper portal to the plant will be a service road for personnel and supplies.18.5 Co-Disposal Storage Facilities The PEA design for tailings and waste management is to construct a co-disposal drystack facility.18.5.1 Drystack Considerations Filtered tailings stacks are often referred to as “drystacks” and that nomenclature is used in this chapter. However, these facilities are not “dry” per se as the tailings, while placed in an unsaturated state, do have moisture contents that are typically 70% to 85% of saturation. Generally the tailings are filtered to within a few percent of optimum standard Proctor moisture content, which is typically on the order of 15% (wt water : wt solids). The main distinguishing feature from other tailings deposits is that filtered tailings stacks are a solid rather than the more typical slurry and need to be transported using mechanical means versus hydraulic methods.Project No.: 168967 Page 18-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Tailings drystacks are particularly suited to locations with flat or gently sloping storage sites and arid environments where it is relatively easy to place and compact filtered tailings into a stable geometry. However, unlike conventional slurried tailings, tailings drystacks can also be placed on relatively steep terrain in a similar manner to conventional waste rock facilities. Placement practices and drystack design can be adapted to different environments and drystacks have been successfully constructed in cold climates. The Blue River site is expected to have about 1.5 m of precipitation annually (KCB 2009a). The site experiences a cold winter and steep topography which can present challenges for construction of a tailings drystack. AMEC notes, however, there are operating drystacks in even wetter environments. The general drystack concept for the Blue River site is to have an outer shell zone with a general tailings placement area located upstream of the shell. The shell zone would consist of well-compacted tailings placed only when it can be assured that such compaction can be achieved. The waste rock could be placed inter-layered or mixed with the tailings in the shell or could be used as armour on the face of the shell to prevent erosion of the tailings surface. The outer shell would support a general tailings placement area where tailings could be placed in poor weather and with less ability to achieve compaction during winter months. The same operating attempts at compaction would be made in winter/wet weather conditions but it is more difficult to get assured densities. As a consequence, having a general placement area for such materials where structural integrity of the overall stack is not at jeopardy if lower densities are achieved is sound tailings management. It would also be possible to store waste rock in the general placement area where it could be encapsulated within the tailings. In order to effectively co-dispose of waste rock in the general fill area, waste rock and tailings disposal would have to be appropriately timed and managed. Typically, slopes of tailings drystacks are designed to be 3H:1V or less to minimize erosion of the tailings on the downstream slope. This is particularly a consideration for closure. Steeper slopes will be required at the Blue River site due to topographical constraints. The steeper slopes are achievable but require a potentially wider shell zone of good compaction, confirmed foundation conditions for the shell and the slopes will require erosion protection.18.5.2 Evaluation of Potential Sites A series of tailings storage location screening assessments were carried out during 2008, 2009, and 2010 (KCB 2009a, 2009b; AMEC 2010a, 2010b, 2010c), focusingProject No.: 168967 Page 18-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update mainly on conventional tailings storage. Some evaluation of potential waste rock storage sites and a tailings drystack facility was undertaken in the 2009 studies. The initial 2009 study (KCB 2009a) focused on the area in the immediate vicinity of the deposits and was based on a desk study using available topography and other information. Five conventional storage sites, using containment dams, were assessed. The potential tailings drystack locations identified by KCB in 2009 are located on valley sidehills and in flatter areas adjacent to the North Thompson River The tailings storage facilities (TSFs) were assumed to be constructed of local borrow with slopes of 2.5H:1V and a settled density of 1.3 t/m3 was assumed for the tailings. The second study carried out in 2009 (KCB 2009b) reviewed a number of alternative sites for TSF storage away from the proposed mine site. The main focus of the study was an industrial land parcel near Valemount, B.C., and consideration was given to construction of a 40 Mt TSF, a plant, 30 kt of rock storage, and a rail-siding facility on the property. Four other areas around Valemount were also considered as TSF alternatives. None of the options were considered ideal and additional studies were carried out over an increasingly large area and with varying constraints to identify potential tailings storage areas (AMEC 2010a, b, and c). Generally topographic and climatic conditions are challenging for surface storage of tailings and no ideal location has been identified. Given the current stage of project development and the constraints imposed, the input provided should be considered as conceptual. Tailings storage site locations determined by Klohn Crippen Berger (KCB) in 2009 were visually identified by AMEC staff during a reconnaissance flight in July 2010 and were visited on foot by AMEC personnel. However, the proposed tailings storage sites have not been visited by geotechnical personnel, there have been no site investigations and there have been no specific technical analyses in support of facility layout. The suggestions presented in the PEA for tailings storage were based on engineering judgment, AMEC’s experience with filtered tailings, and standard industry practice for similar facilities.18.5.3 Site Selection Additional review for the PEA indicated that a site identified by KCB in 2009, termed WSF3 and shown in Figure 18-1 as the co-disposal site, could be utilized, since the volume of tailings storage had been revised downward from about 30 Mt as conceptualized in 2009 to 22 Mt in the PEA. The facility was moved uphill slightlyProject No.: 168967 Page 18-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update relative to the 2009 study to take advantage of locally flatter areas and reduce the footprint of the facility in steeper areas. Additional optimization of the facility layout could be carried out in consideration of local topography and stability; however the volumes and areas would not be expected to be significantly altered.18.5.4 Facility Design The facility was laid out with 2H:1V slopes. Attempts were made to use flatter slopes; however, due to the topography, they were not feasible. If the project is advanced to a later stage, the slopes could potentially be locally flattened in specific areas of flatter topography. The facility will have the following dimensions:  Total storage volume: 20.9 Mm3  Total footprint area: 534,000 m2  Total surface area of drystack: 559,000 m2  Volume of sloped (shell) portion of facility (shell portion of facility): 13.2 Mm3  Footprint surface area under slope (shell): 385,000 m2  Surface area of sloped (shell) portion of tailings: 416,000 m2. Conceptually, the sloped portion of the drystack would form a structural shell, supporting the general tailings placement area behind it. The shell zone would consist of compacted filtered tailings possibly interlayered or mixed with waste rock. Stringent placement control and compaction would be required in the shell. It is possible that the limits of the shell zone could be optimized at a later stage. The general tailings placement zone would allow for placement in wet and cold weather when there would be less assured compaction. Operating practices for the general tailings placement zone will be identical to those required in the shell area. Depending on the timing of any mine start-up and the tailings production schedule, it may be necessary to construct a starter berm from non-tailings material to provide sufficient storage for the first winter of tailings placement. The starter berm could be constructed of non acid generating waste rock, general rockfill or granular overburden obtained from a local borrow source. Based on the volumetric proportions of the shell and general placement areas and assuming a six-month period available for shell construction, there may be a deficit with respect to the amount of tailings and waste rock available to construct the shellProject No.: 168967 Page 18-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update zone at certain points during operation. It is likely that the configuration of the facility could be optimized during design to overcome this deficit. If supplemental fill material were required in the shell, it could consist of general rock fill or granular overburden. The option of storing some of the tailings produced during the winter for placement in the drystack during the summer construction season could also be considered.18.5.5 Co-Disposal Facility Geohazards Considerations The area in the vicinity of the deposits has steep-sided valleys with glaciers located in the upper portions of many of the catchments and visible avalanche tracks. The WSF3 site is located on a side-hill near the mouth of the valley, away from the glaciers located farther up the valley. It is also located on a spur minimizing the risk of avalanches. A site-specific geohazards evaluation for the site has not been completed, however, and should be carried out as the Project is advanced.18.5.6 Co-Disposal Facility Stability Considerations The 2H:1V slope required because the topography at the Blue River site is steep compared to typical tailings drystacks. However, in such situations, flatter slopes are often developed to minimize operating and closure erosion concerns. From a purely structural stability perspective, provided the shell zone of appropriate size can be developed while meeting compaction criteria, the use of 2H:1V slopes is acceptable. Additionally, the general fill zone behind the shell is intended to allow placement of tailings during poor weather and will potentially have lower strength and likely areas of wetter tailings. The shell zone is therefore necessary to support the facility and will require significant compaction and placement control to provide sufficient resistance. The foundation is expected to consist of colluvium and/or silty to sandy tills which should not be a concern with regard to overall stability, although this will require confirmation as the project is advanced. A toe berm or shear key may be required for stability of the drystack depending on specific foundation conditions. This should be assessed in future design stages. The Project is located in a moderately seismic area (KCB 2009a) and stability under seismic loading will have to be considered during design of the facility. Because of their unsaturated nature, the general placement tailings are considered unlikely to liquefy and the shell tailings will not present a concern because the compacted nature of the downstream shell will result in dilative behaviour under shear further improving liquefaction resistance. Rain, ice, and snow may potentially create isolated areas in the general placement area that are saturated and poorly compacted, and therefore locally susceptible to liquefaction. It is highly unlikely that the entire zone would liquefyProject No.: 168967 Page 18-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update and over time the pore water in any saturated zones would seep out of the stack, leaving it unsaturated and resistant to liquefaction in the long term. Although liquefaction is not considered a concern, deformations due to increased loading during seismic events will occur and should be quantified during detailed design phases. For the Project base case it is assumed that the tailings facility does not require lining. A requirement to line the facility would involve clearing and stripping the entire footprint at start up, placing and compacting a bedding layer over the entire footprint, installing the liner system over the entire footprint, and placing a protective cover layer over the entire liner.18.5.7 Co-Disposal Facility Surface Water Run-Off Considerations Two surface water management systems will likely be required for the tailings drystack.  The first system would divert non-contact (clean) water around the facility.  The second would collect run-off water which had been in contact with the tailings drystack area. Contact run-off water would have to be collected and potentially treated prior to release, whereas the clean water would be diverted around the facility and into the creeks downstream of the tailings facility. The non-contact water diversion system would consist of a ditch located beyond the final footprint of the drystack and would be a long-term structure. The contact water collection system would consist of a ditch around the perimeter of the drystack footprint and would be reconstructed annually, so as to be located slightly ahead of the advancing drystack footprint. The perimeter ditch would require sediment-control structures within it to help contain any tailings mobilized from the drystack. The perimeter ditch would direct the contact run-off water to a collection and sedimentation pond where eroded tailings could settle out and water treatment could be carried out if required. Located as it is on a side-slope and near the nose of the ridge, there is little catchment area uphill of the drystack facility and it may be feasible to combine the two water management systems, particularly upon closure. Combining the two systems would increase the volume of water collected and potentially requiring treatment, however, the increased water volume may also contribute to dilution of the contact water.Project No.: 168967 Page 18-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update18.5.8 Co-Disposal Facility Closure Considerations At mine closure, the surface of the drystack would be sloped/contoured for drainage, covered with an appropriate material and vegetated to enhance erosion protection. The shell face will require armouring to reduce erosion. The perimeter ditches will be increased in size and lined with rip-rap following mine closure to minimize the amount of run-off water that comes into contact with the stack, further reducing the potential for erosion. Depending on the chemistry and flows, it may be possible to combine the water diversion ditch with the closure perimeter ditch. The Project base case is that the uranium and thorium levels are sufficiently low to not be a concern. If the levels were found to be an issue, however, it would affect closure requirements. In addition to the potential difficulty of treating any seepage, if radon gas emission was above regulatory levels, the cover system would have to be designed to contain radon gas. Specific details of the cover would be based on applicable regulations but it may well require that the cover last for a very long period of time necessitating rock armouring among other considerations.18.6 Avalanche Hazard No allowance for avalanche protection for any infrastructure has been considered at this stage, but considering the steep slope and possible heavy snow at the area an avalanche study is recommended during more detailed studies.18.7 Water Supply, Distribution, and Treatment Systems The potable water system and layout for the process and administrative area is designed to service buildings and a workforce of 120 persons. Potable water for the mining section will be constructed as part of the portal and underground infrastructure. Raw water will be provided from a well and a prefabricated water treatment module will treat water to standard drinking water requirements. Treated water will be stored in a potable water tank. Fire protection water for the construction camp and later for all buildings will be provided by a prefabricated diesel-driven fire and electric jockey pump on a skid that will be located in the coverall building. Both the potable and the dedicated fire water tanks will be located under the coverall building adjacent to the fire pump skid and the water treatment module.Project No.: 168967 Page 18-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Potable and fire water will be distributed to the plant buildings through separate pipes. All water mains will be buried to a depth in excess of 3 m, or will be insulated providing an equivalent degree of cover to prevent freezing.18.8 Waste Considerations Waste-water treatment sludge will be trucked away to a nearby municipal facility or approved landfill. Waste lubrication and hydraulic oils from vehicle maintenance will be stored in dedicated tanks and sent to a recycling facility offsite. Their disposal will be contracted to an approved contractor. A modular sewage treatment system will be installed as part of the initial construction infrastructure. A small package treatment plant will provide treatment to the domestic sewage at the site. Effluent from this plant will meet specified water discharge guidelines prior to discharge into the environment. Buried gravity sewer lines and manholes will collect and direct sewage from the service building and truck shop to an equalization tank adjacent to the wastewater treatment module for treatment.18.9 Accommodation Contractors and employees will commute from the nearby towns, such as Blue River and Valemount, during construction. No on-site permanent accommodation will be provided for personnel. It is assumed that the workforce, including management staff, will reside in the nearby communities and will commute, via buses, on a daily basis. For safety reasons, no private vehicles will be permitted on the site access road or at the site.18.10 Power and Electrical Power supplies in the region have been assumed to be sufficient for Project requirements, and no allocation for additional power line construction has been included. The BC Hydro 136,000 volt supply line for the North Thompson valley passes through the west side of the property adjacent to the rail line. The 20 megawatt Bone Creek run-of-river hydroelectricity project, owned by Transalta Corp., was commissioned inProject No.: 168967 Page 18-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update June 2011, and is adjacent to the Project area its powerhouse is located approximately 4.4 km south of the Lower Portal. The mill will be the greatest consumer of power. The high voltage line from the grid would go to a main substation close to the mill. From this sub-station, lower voltage power will be distributed to the mill, offices, maintenance shop, and other infrastructure, and to the proposed mine substation. The PEA assumes power will be supplied to the mine via the portals. The sub-station for the main power distribution system and the air compressors will be installed in facilities located adjacent to the Upper Portal.18.11 Fuel Fuel will be delivered to the mine site using tanker trucks. The fuel storage tanks will be single-walled within a lined containment berm. Tank design will comply with the appropriate regulatory requirements.18.12 Comment on Section 18 In the opinion of the QPs, the following conclusions are appropriate:  The project infrastructure supporting the preliminary mine plan prepared for the 2011 PEA remains appropriate and current for the conceptual mining method, mineral processing method, treatment plant and planned throughput rate.  Infrastructure envisaged includes a plant, plant service building, truckshop, potable and process water systems, a sewerage system, co-disposal site, underground mining operation, conveyor system, and various haul and access roads. The planned Upper and Lower Portals will be located about 4 km from the plant site. The co-disposal facility will be about 8 km from the plant site.  Facilities to support mine operations will require construction.  No on-site permanent accommodation will be provided for personnel. It is assumed that the workforce, including management staff, will reside in the nearby communities and will commute, via buses, on a daily basis.  Geohazards are present in the area, and will require careful consideration in future studies.  Water management studies, in particular for the co-disposal site, will be required.Project No.: 168967 Page 18-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update19.0 MARKET STUDIES AND CONTRACTS19.1 Introduction This section includes a summary from the 29 September 2011 Preliminary Economic Assessment (the PEA) by AMEC (Chong et al., 2011). AMEC has reviewed recent publicly available information for Ta metal prices and Nb metal prices as at May 2012 and found that the Ta and Nb prices used for both the 22 June 2012 Mineral Resource update and the 2011 PEA to remain as reasonable assumptions, which are US$317/kg tantalum metal and US$46/kg niobium metal.19.2 2011 PEA Market Studies For the 2011 PEA, Commerce prepared assessments of the tantalum and niobium markets which outlined their supply and demand. The tantalum assessment was prepared by a tantalum market expert employed by Commerce who is not independent. His analysis reflected the general consensus of other analysts regarding the tantalum market expressed in publicly available information. The 2011 PEA niobium assessment was prepared by an independent niobium expert and also reflected the general consensus of analysts in publicly-available information for the niobium market. As the Project is still at an early evaluation stage, Commerce has not initiated requests for expression of interests from potential buyers of the proposed Blue River products and has not negotiated any purchases or off-take agreements.19.3 2011 PEA Commodity Price19.3.1 Tantalum Tantalum is commonly quoted in two separate forms:  Ta2O5 in tantalite concentrate: a non-refined, tantalum-bearing concentrate of variable composition and trace element content; and  Tantalum metal scrap (99.9% pure Ta): this form of tantalum product receives a premium price in the market relative to tantalite concentrate. Over the five years from 2005 to 2010 tantalite concentrate prices ranged from US$75/kg contained Ta2O5 to US$100/kg contained Ta2O5 (US$35/lb to US$45/lb). InProject No.: 168967 Page 19-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update the same period tantalum metal scrap prices ranged from US$110/kg Ta to US$180/kg Ta metal (US$50/lb to US$80/lb). In 2010, prices rose dramatically in response to changing market conditions including reduced production, increased concerns about conflict-tantalum production in Africa, depletion of known strategic stockpiles, and curtailed exports from China. In mid- October 2010 the price for Ta2O5 in tantalite concentrate was US$195/kg and for tantalum metal scrap was US$280/kg. The higher price for tantalum metal scrap compared to the price for Ta 2O5 in concentrate is considered a proxy to the added value Commerce should recognize by refining the Blue River concentrate to high purity Ta2O5. In AMEC’s opinion, the base case price for tantalum (US$317/kg) is reasonable for constraining mineral resources based on recent market conditions, but notes it is significantly higher than historical prices. There is a risk that using current price assumptions may not reflect the long term price of Ta and Nb, particularly in the present volatile market conditions.19.3.2 Niobium Niobium generally trades as Nb metal, or ferroalloy, and the price has remained relatively constant at US$44.08/kg Nb metal (US$20/lb Nb) over the last several years. A base case price of US$46/kg Nb metal was assumed.19.4 Price Assumption Discussion Review of recent publicly available information on Ta and Nb prices by AMEC notes that the market prices have not changed significantly enough to warrant altering the 2011 PEA price assumptions (Ta US$317/kg and Nb US$46/kg) for the current mineral resource update (Figure 19-1 and Figure 19-2). AMEC believes the market studies prepared for the 2011 PEA provide a reasonable basis for the long-term Ta and Nb prices used in the 2011 PEA and that the assumption that there will be a market for future mine production is also reasonable.Project No.: 168967 Page 19-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 19-1: Ta Price Trend 2011 PEA Price $US 92 /lb Tantalite Note: Table and Ta price trend from www.metalprices.com on 22 May 2012. US$92/lb Tantalite is equivalent to US$317/kg Tantalum.Project No.: 168967 Page 19-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 19-2: Nb Price Trend PEA 2011 $US 21/lb Nb Note: Table and Nb price trend from www.metalprices.com on 22 May 2012. US$21/lb Nb is equivalent to $US 46/kg Nb.19.5 Comment on Section 19 In the opinion of the QPs, the following conclusions can be drawn from the marketing strategy used to support the PEA:  Commerce has prepared assessments of the tantalum and niobium markets which outline the supply and demand for tantalum and niobium.  As the Project is still at an early evaluation stage, Commerce has not initiated requests for expression of interests from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements.  The price assumptions from the 2011 PEA are still reasonable and are suitable to use in the current (22 June 2012) mineral resource estimate.Project No.: 168967 Page 19-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT20.1 Environmental Assessment for Mining Projects The Blue River Project will require approval under the Federal and Provincial environmental assessment (EA) processes prior to applying for the necessary permits and authorizations for construction and mine operation. This section discusses the environmental assessment and permitting process as it stands today, and describes the principal licences and permits which would be required for the Blue River Project. The British Columbia Environmental Assessment Office (BCEAO) and the Canadian Environmental Assessment Agency (CEAA) would both conduct an environmental review of the Upper Fir Project, as defined respectively under the B.C. Environmental Management Act and the Canadian Environmental Assessment Act. Overall the environmental review of a project is a process that could take up to 24 months to complete. The process would include the development of several important documents by Commerce, including the Project Description, Assessment Information Requirements and an Environmental Impact Assessment application, followed by the review of these documents by the public, interested stakeholders, First Nations and regulators. Both the Provincial and Federal processes have defined timelines for project review though these timelines are not yet currently harmonized and past attempts to do so have not been overly successful. Though this is under review, enabling regulations have not yet been passed, and under present legislation, the Federal timeline is likely to be the longer of the two at up to two years to review the Environmental Assessment application and make a decision, while the provincial application review stage is 180 days plus 45 days for decision. Additionally, the Federal clock is stopped each time CEAA submits comments to the proponent for review, to respond to, or revise; this can possibly extend the time line. There is also a need for additional time on the front end of the process to develop the Project Description. This document must first be accepted by the regulators, and then will be used to develop Assessment Information Requirements or Terms of Reference which must be put out for public review prior to acceptance. These Assessment Information Requirements will define the content required for the Environmental Assessment application. The Federal government allows 90 days for this, while the Provincial government has no timeline on this process.Project No.: 168967 Page 20-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The environmental review and assessment process results in a decision with respect to whether or not the Project should be issued an Environmental Assessment Certificate by the Provincial government, as well as receive Federal Ministerial approval based on the recommendations put forth to the Minister of Environment in a Comprehensive Study Report prepared by the Major Projects Management Office. Both are required for a project to proceed to permitting and development.20.2 Project Studies Environmental monitoring, baseline studies and site investigations have been ongoing at the Blue River Project site since the summer season of 2006 with the selection of local and regional studies areas for each biophysical discipline. Field studies completed by specialist consultants independent of Commerce Resources include:  Site hydrology (2006–present);  Snow course depths (2007, 2008);  Fisheries and aquatics (2006–2008);  Soils, flora and fauna assessments (2006, 2007), including studies of rare, threatened and endangered plants (2007), breeding birds (2007) and terrestrial ecosystem mapping (2006, 2007), wildlife studies and habitat suitability mapping (2006–2008);  Geochemistry, mineralized material and waste rock characterization with baseline ABA and metals analyses (2007, 2008);  Surface water and sediment quality (2006–present);  Groundwater (2007–2009); and  Terrain stability assessment for roads (2007–present). Kinetic test work for ARD/ML was initiated in June 2010 and is ongoing; results of this work will give an indication of the type of management strategies required for handling PAG waste rock. Additional environmental baseline programs are expected to continue, as required through 2012. Monitoring of meteorology, air quality, hydrology, and water quality will continue throughout the construction, operation, closure and post-closure phases.Project No.: 168967 Page 20-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update It is anticipated that with this work and the results of the PEA in hand, Commerce will have the necessary information to start development of a draft Project Description which is a prerequisite to entering the Environmental Assessment process. These data will provide a strong base to initiate meetings with the BCEAO and CEAA, as well as with key provincial regulators such as Ministries of Energy and Mines, Forests Lands and Natural Resource Operations, and Environment, to discuss specific project requirements under the Provincial and Federal environmental assessment processes. Summaries will be prepared of baseline data collected and work plans as appropriate for submission, review and input by Federal and Provincial regulators.20.3 Environmental Setting and Review of Environmental Baseline Characterization of existing environmental conditions, which began in 2006, is an important component of the risk management and permitting process for the Blue River Project. The Blue River Project area is located within the B.C. Ministry of Environment Thompson-Nicola Region (Region 3), what was the Ministry of Forests and Range Headwaters Forest District and Fisheries and Oceans Canada Sub-district 29J (Clearwater). It falls towards the northern end of the Kamloops Land Resource Management Plan (LRMP) which was approved by the province in 1995. This LRMP is the first plan of its kind in British Columbia in that it is a locally-developed plan that is designed to guide land and resource management decisions in a way to balance community needs, environmental concerns and economic values. This LRMP is termed a sub-regional integrated land use plan in that it establishes the framework for land use and resource management objectives and strategies. The Plan requires that more detailed operational plans which are subsequently developed be consistent with the management strategies and objectives defined in the LRMP. Following implementation of the B.C. Mountain Caribou Recovery Strategy, site- specific objectives and strategies for caribou management were developed (first in 2006, then updated in 2009) which included objectives pertaining to mineral exploration. The Blue River Project area falls within the Wells Gray-Thompson caribou planning unit (unit 4A). In this case, the relevant portion of the LRMP was repealed and replaced under a Government Actions Regulation (GAR) by a caribou-management strategy, specifically the identification of Ungulate Winter Range (UWR) zones. The GAR order states that exploration and mine development activities within the UWR are considered by the government to be an acceptable risk to caribou, and are allowed to proceed without requiring an exemption from the Ministry of Forests, Lands and Natural Resource Operations.Project No.: 168967 Page 20-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The bulk of the infrastructure proposed for the Blue River Project falls within an area identified as a Modified Harvest Zone. In such zones, operational activity is expected to be considerate of caribou habitat and disturbance in caribou areas. Commerce is committed to seeking specialized professional advice to minimize or eliminate disturbances to caribou using best management or other practices. Wildlife studies to date suggest that caribou are recorded only rarely in the area of the proposed Project. The larger Blue River Project area lies on the eastern side of the south-flowing North Thompson River where claims held encompass portions of the Bone, Gum, Moonbeam, Paradise Lake, Pyramid, and Serpentine Creek watersheds. The overall relief is moderate to steep, with an average elevation of 1,625 m, a maximum elevation of 3,225 m, and a minimum elevation of 580 m. Some small glaciers exist in the easternmost part of the Project area, and moderate to steep forested slopes rise above the North Thompson River valley. The North Thompson River drainage continues south to join the South Thompson River at Kamloops, B.C. Proposed Project infrastructure is located along a western-facing slope immediately above a gravelly part of the North Thompson River valley, and includes portions of the Bone and Gum Creek watersheds as well as residual areas draining directly into the North Thompson River. The tree line is located at approximately 2,000 m elevation, and the Upper Fir deposit centre is located at 1,180 m elevation along a network of previously-constructed logging and skid roads. Much of the area of the proposed Project infrastructure, including the Upper Fir deposit had been logged prior to the commencement of mineral exploration. Naturally-occurring outcrop is generally poor, with limited exposure of underlying country rocks along road cuts and locally in streams. The area has a continental climate which is subject to frequent modification by maritime air masses from the Pacific Ocean. The area is part of a "wet belt" which occupies part of eastern British Columbia. Heavy snow falls occur almost every winter, in which temperatures stay close to the freezing point when maritime air dominates. The most severe cold spells may send thermometer readings below - 40°C/F. Rain is frequent in other seasons. Summer days are warm or occasionally hot, with thunderstorms often spawning over the nearby mountains. The optimal field exploration season is mid-June through mid-September. Streams within the Project Area are generally characterized by a snowmelt-dominated peak rising in April or May and peaking sometime between June and July. Rain-on- snow events occasionally occur in this region and these can enhance both winter flows and spring peaks. In addition, late fall rainstorms are common, recharging soil moisture heading into winter and producing short-duration peak flows. Low flows occur generally from the end of November to March, and in hot summer months, withProject No.: 168967 Page 20-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update the lowest flows commonly occurring in January or February. No wetlands have been identified within areas of proposed Project infrastructure. Surficial materials were typed for texture, drainage, moisture and nutrient regime, and parent material. This not only supports ecosystem classification, but also provides baseline soils data for eventual environmental impact assessment and reclamation planning. Materials range from colluvial veneers to fluvial plains, glaciofluvial terraces, rock, and morainal blankets. On the Upper Fir slope, morainal materials are most common, while fluvial and glaciofluvial deposits are limited to lower elevations near the valley bottom. Silts and sands are the most prevalent soil textures, although mixed fragments, rubble, and gravel also occur. Overall the deposits are relatively shallow, although blankets, which have more than 1 m of surficial materials (e.g., glacial till), are much more common than veneers, which have less than 1 m of surficial materials. Soil moisture and nutrient regime are generally average over the majority of the site and have formed in place within morainal and glaciofluvial landforms. Brunisols are the most dominant soil order found, while podzols are secondary, becoming more prominent in areas with increasing rainfall and elevations above 1,500 m. Soil quality and quantity appear to be adequate to support soil salvage and reclamation activities in the area of the proposed development. Soil fertility suggests normal levels of soil nutrients as compared to other mine sites in B.C. Soils are moderately acidic (i.e., pH 4-5.5) and considered normal for mesic, conifer-dominated, forested vegetation in similar areas. Soils are very rapidly to imperfectly-drained with soil moisture regimes ranging from sub-xeric to hygric and soil nutrient regimes limited to moderate and rich. Terrestrial Ecosystem Mapping (TEM) was completed to describe terrestrial ecosystems according to the bioterrain base and standards established by British Columbia’s Resource Information Standards Committee. The Blue River Project falls within the Cariboo Mountain Ecosection of the Northern Columbia Mountains. Two biogeoclimatic zones are found in the project study area. These are the Interior Cedar Hemlock (ICH) zone, which occurs at lower elevations, and the Engelmann Spruce Subalpine Fir (ESSF) zone which occurs at higher elevations above the ICH zone. Biogeoclimatic zones, subzones and variants within the Study Area were classified using the Ministry of Forests Biogeoclimatic Ecosystem system. The following subzones/variants are present within the larger project study area:  Wells Gray Wet Cool Interior Cedar – Hemlock Variant (ICHwk1)  Mica Very Wet Cool Interior Cedar – Hemlock Variant (ICHvk1)  Northern Monashee Wet Cold Engelmann Spruce – Subalpine Fir Variant (ESSFwc2)Project No.: 168967 Page 20-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Wet Cold Engelmann Spruce –Subalpine Fir Woodland Subzone (ESSFwcw)  Wet Cold Engelmann Spruce – Subalpine Fir Parkland Subzone. Much of the area is forested, although avalanche chutes punctuate the landscape at seemingly regular intervals and forest harvesting has been extensive at lower to mid elevations. In terms of vegetation, the area directly covered by the proposed Blue River Project infrastructure is relatively small and generally characterized by common plant communities associated with five biogeoclimatic subzones (ICHwk1, ICHvk1, ESSFwc2, ESSFwcw and ESSFwcp). Based on an assessment of biogeoclimatic units in the Study Area and the B.C. Conservation Data Centre species at risk list for the Headwaters Forest District (B.C. Conservation Data Centre 2006), at least 37 ranked plants may occur within the larger study area. However, a field study of rare vascular plants identified only four populations of two Provincially-listed rare plants (Galium trifidum ssp. trifidum and Carex paysonis) occurring outside the current project envelope. No Federally-listed plant species or plant communities were identified. The region encompassing the proposed Project infrastructure is likely home to many terrestrial wildlife species including black and grizzly bears, deer, moose and mountain goats; birds are likely to include osprey, eagle, woodpecker and raven, migratory songbirds, raptors; and numerous small mammals. Wildlife species of concern, whose confirmed distribution intersects that of the Blue River Project area, include the blue-listed grizzly bear (Ursus arctos) and red-listed mountain caribou (Rangifer tarandus caribou). Mountain caribou presence on the larger area of the mining claims making up the property and in the general area has been confirmed through ongoing government radio-telemetry studies. Mountain caribou are a Federally- and Provincially-listed species and are of considerable concern to the public. They have the greatest potential to interact with the Project property in early winter. Due to deep snow pack in the region, and considerable management and local interest, other species of concern include mountain goat (Oreamnos americanus) and moose (Alces alces). Mountain goat winter range exists throughout the area, with occupied ranges within 2 km of the area of potential Project development. Moose are the most heavily-hunted ungulate in the area. Moose winter range occurs throughout the North Thompson valley, with valley wetlands and early seral stage habitats of prime importance. Habitat suitability was assessed for wildlife focal species selected based on their at-risk status under the British Columbia Conservation Data Centre (CDC) and theProject No.: 168967 Page 20-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Committee on the Status of Endangered Wildlife in Canada (COSEWIC) systems, and their level of local concern. Species include mountain caribou (Rangifer tarandus tarandus; southern populations), moose (Alces alces), grizzly bear (Ursus arctos), mountain goat (Oreamnos americanus), and marten (Martes americana). Specific habitat notes were also recorded for other species such as deer (Odocoileus sp.), elk (Cervus canadensis), wolves (Canis lupis), and black bear (Ursus americanus). Habitat ratings suggest moderate and high suitability for mountain caribou during the early winter season in the ICH. Moderate ratings were also assigned to marten in many sites in the ICH. No sites were rated as high or moderate suitability for mountain goat in the immediate areas of potential Project infrastructure. Regional and site specific fisheries studies show that bull trout and mountain whitefish are utilizing lower Gum Creek for rearing. Bull trout consisted of both juveniles and young-of-the-year suggesting that it is being used for spawning by this species. The lower reach of Bone Creek is being utilized by coho salmon, parr, and torrent sculpin. Benthic invertebrate data were also collected. Habitat available for fish within Gum and Bone creeks is limited to their lowermost reaches, near their mouths. Gum Creek fish habitat use is limited to the lowermost portion of the creek, from the mouth to 600 m upstream before a falls/gradient barrier (>20%) and fish distribution in Bone Creek is limited to the section from its confluence with the North Thompson River to approximately 2,100 m upstream before an impassable water fall. Water quality studies were conducted at various sites within the Project area from 2006 to the present, with the objective of providing a long-term record of the relative chemical stability of the project area. Samples were analyzed for physical variables, anions, nutrients, total organic carbon, and total and dissolved metals. Data for each site were compared to the Canadian Council of Ministers of the Environment (CCME) and B.C. water quality guidelines (BCWQG). Total suspended solids (TSS) and turbidity values tend to be the highest at sample sites in the North Thompson River and Bone Creek, the latter the result of small scale debris flows upstream caused by larger rain events. Metals that exceeded the applicable aquatic life protection guidelines included total and dissolved aluminum, total and dissolved cadmium, total chromium, total cobalt, total and dissolved copper, total and dissolved iron, and total lead, total manganese, total selenium, total silver, total thallium and total zinc. Of these, dissolved cadmium, total cobalt, dissolved copper, total and dissolved iron, total manganese, total selenium, total silver, total thallium and total zinc did not exceed the applicable guidelines in most years. In most years, concentrations of total chromium and total copper tend to be naturally elevated in the North Thompson River and Bone Creek compared to other sites. As the Project is at the exploration stage, these values reflect natural background values. While elevated metal concentrations were noted in the sediment samples from selectedProject No.: 168967 Page 20-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update streams, chromium was the only metal to exceed CCME Sediment Guidelines in one sample collected from Bone Creek. Samples from surface rocks and drill core were collected and tested as part of the Upper Fir acid rock drainage/metal leaching (ARD/ML) characterization program. Laboratory tests included static acid-base accounting, total inorganic carbon and a standard multi-element ICP suite on material solids. A subset of samples were submitted for additional testing including solids trace element/rare earth element (REE) chemistry, short-term leach extraction tests, acid buffering characteristic curves (ABCC) and mineralogical analysis including petrography and Rietveld XRD. All carbonatite samples tested were classified as non- potentially acid generating (non-PAG). Paste pHs for nearly all host rock samples were near-neutral to alkaline indicating currently available buffering capacity in the samples at the time of testing. Most country rock in the Upper Fir deposit was characterized by generally low to moderate sulphide content (<1% sulphur) and low to moderate neutralization potential predominantly provided by slower reacting silicate minerals. However, a minor proportion of country rock (~10% of samples) was associated with elevated sulphide content (>1% sulphur). These rock units showed a range in acid generation potential classifications, and in particular, a significant proportion of gneiss (~52% of gneiss samples) was considered potentially acid generating (PAG). The majority of amphibolite (~85%) and pegmatite (~65%) samples were classified as non-acid generating (non-PAG), with a minor proportion classifying as PAG, typically associated with higher sulphide samples. Fenite material was considered to be non-PAG. Based on this initial characterization program, though some proportion of waste rock appears to be PAG, it would appear that the Blue River Mineral Resource has an overall low potential for acid rock drainage/metal leaching (ARD/ML) generation, especially if waste segregation strategies can be incorporated into proposed mining methods. Kinetic test work on two composite samples remains ongoing and results will be incorporated into planning for additional sampling as well as modeling of PAG. No work has yet been completed on the ARD/ML potential of tailings. Hydrogeologic investigations show that groundwater elevation in bedrock roughly mimics topography in the Project area, so flow in the vicinity of the Upper Fir Deposit is generally from east to west. Groundwater depth in boreholes was observed to range from 15 m to 130 m in the area of the deposit, and is near the surface at lower elevations. Most groundwater flow through bedrock occurs through fractures, and the bulk hydraulic conductivity of bedrock was estimated to range from 10-8 m/s toProject No.: 168967 Page 20-822 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update 10-6 m/s. Due to fracture-control, flow through bedrock is likely complex, and may not be well connected to the surface. Of the six groundwater samples collected in 2009, the British Columbia Ministry of the Environment Water Quality Criteria for Freshwater Aquatic Life (BCMOE) and the Canadian Water Quality Guidelines for the Protection of Aquatic Life (CCREM) criteria for aquatic life were exceeded in five samples for fluoride, one sample for aluminum, three samples for chromium, one sample for copper, and three samples for zinc. No other parameters exceeded these criteria. However, as the boreholes used in this and past hydrogeology studies of the Project site are deep exploration holes, and were not developed or purged prior to sampling, sample chemistry may not be accurately characterizing existing groundwater conditions. Current air quality at the site is considered excellent with limited influence from road traffic and forestry activities. No site specific data has been collected to date. An initial review of environmental conditions and planned project features indicates that proactive design and mitigation can be successful in addressing environmental impacts associated with developing, constructing, operating and closing the proposed Blue River Project. As with other projects in the many B.C. mines located in mountainous terrains, water management will be a key issue.20.4 Closure Considerations Commerce has engaged in progressive reclamation activities during exploration since geological work and drilling began to focus on the area of, and around, the Upper Fir resource. Conceptual closure planning for the Blue River Project involves staged reclamation and closure over the life of the exploration, development, construction and operation of the mine. This will include appropriate contouring and revegetation of any waste dumps, the Upper and Lower Portals, the drystack tailings storage facility, closure of exploration roads, trails and platforms, closure of mine roads and removal of all mine facilities, as well as post-closure management and monitoring plans for a defined period of time. It is expected that the initial design of the drystack tailings storage facility, water storage, diversion and water management structures, waste rock dumps, and other mine and plant facilities will be integrated into closure designs for each component as well as for the mine as a whole.Project No.: 168967 Page 20-922 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update20.5 Current Environmental Liabilities Current environmental liabilities are believed to be restricted to exploration drilling programs. Existing disturbances due to exploration include drill pads, trails and access ways, which are remediated in an ongoing program of progressive closure once Commerce establishes exploration has been completed in a particular area. Under the existing exploration permit, a reclamation bond is in place which will cover the cost of any outstanding reclamation from these activities.20.6 2011 PEA Closure Plan For the purposes of the PEA, a closure estimate of CAD$10 million was incorporated in the financial analysis. The figure was obtained by benchmarking to similar-size mines with the same level of complexity.20.7 Permitting Following environmental assessment approval, permits needed for construction and mine operations can be issued. In B.C. there is an option to apply for concurrent permitting. This allows a review for permit applications to be processed at the same time as the environmental assessment is being conducted, resulting in the permits required for construction being issued shortly after a positive environmental review decision. Table 20-1 and Table 20-2 provide a listing of possible federal and provincial permits that will be required for construction, mine operations, closure and post-closure. This listing cannot be considered comprehensive due to the complexity of government regulatory processes, which evolve over time, and the large number of minor permits, licences, approvals, consents, and authorizations, and potential amendments that will be required throughout the life of the mine. The permit requirements will be reviewed and updated as the Project advances.Project No.: 168967 Page 20-1022 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource UpdateTable 20-1: Provincial Permits, Approvals, Licences, and Authorizations Provincial Permits Description ACT Notice of Work Approval for exploration and site programs Mines Act to be conducted to gather geological and other site information Mines Act permit Approval to construct, operate and reclaim Mines Act mine and its infrastructure Mining Lease Land occupancy for mine (sub-surface Mineral Tenure Act rights) Surface Lease Surface land occupancy for mine and site Land Act infrastructure Licence of Occupation Land occupancy for other features (e.g. Land Act borrow pits) Statutory Right of Way Land occupancy for linear features Land Act Waste Discharge Permit – Water Approval to discharge mine effluent and Environmental sewage into the environment Management Act Waste Discharge Permit – Air Approval to discharge air emissions into the Environmental environment Management Act Occupant Licence to Cut Approval to remove timber (mine, Forest Act infrastructure, borrow areas) Road Use permits Approval to use existing forestry roads Forest and Range Practices Act Special Use permit Approval to construct new roads Forest Practices Code of B.C. Water Licence Approval to construct, maintain and Water Act decommission water works Section 9 Approval Approval for changes in and about a stream Water Act Section 8 Approval Approval for short term use of surface water Water Act Authorization for Public Highway Use Approval to use public highways Transportation Act Exemption Permit Approval to haul concentrate (if required) Transportation Act Construction Permit To construct a potable water system Drinking Water Protection ActTable 20-2: Federal Permits, Approval, Licences, and Authorizations Federal Permits Description ACT Navigable Waters Approval Approval to build bridges across streams Navigable Waters Protection Act Section 35(2) Authorization Allows harmful alteration or disruption of Fisheries Act fish habitat (HADD) (e.g. bridge upgrade) Explosives Magazine Licence Approval to store explosives Explosives Act Radio Licences Approval to operate radios Radio Communications ActProject No.: 168967 Page 20-1122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update20.8 Considerations of Social and Community Impacts Socioeconomic and cultural heritage studies have not yet been initiated for the Blue River Project. Basic community profiling has been completed of the individual communities nearby as well as relevant regional government and planning organizations. This work shows that as with other areas of rural B.C., there is a large dependence on primary resource industries, and overall the population of the area is in decline. The Blue River Project is located in the North Thompson River valley within the Thompson-Nicola Regional District (TNRD). TNRD functions as a partnership of 11 member municipalities (Ashcroft, Barriere, Cache Creek, Chase, Clearwater, Clinton, Kamloops, Logan Lake, Lytton, Merritt and Sun Peaks) as well as 10 electoral areas whose voices at the Board table are representative of many small unincorporated communities, member municipalities and electoral areas. The area has a population of over 122,286 (2006 census) and a total area of 45,279 km2. The Regional District is active in providing over 115 services including planning and building inspection, emergency preparedness and 911 services, recreation, utilities, TV rebroadcasting, river buoys, transit, tourism, economic development as well as environmental health services, which include waste reduction, mosquito and weed control. The closest town to the Project is the small community of Blue River located about 20 km south of the project. Blue River is an unincorporated village, located at the confluence of the Blue and North Thompson Rivers along the Yellowhead Highway about halfway between Kamloops, B.C. and Jasper, Alberta. It currently has a declining population of about 260 residents, with a local economy supported by logging, tourism, and transportation industries. Accommodation is available for exploration crews by way of hotels and rental housing. Commerce maintains an active presence in the town with a field office open during the exploration season. The Project is about 90 km south of the village of Valemount, B.C., a rural community of about 1,150 situated between the Rocky, Monashee, and Cariboo Mountains. It is the nearest community to the west of Jasper National Park, and is also the nearest community to Mount Robson Provincial Park. Outdoor recreation is popular in summer and winter; hiking, skiing, snowmobiling, and horseback riding are common activities. Economic activities include logging, railway, transport and tourism. Valemount is considered a fully-serviced village, boasting high- speed wireless internet, train, bus and highway service. The town serves as a supply centre for another 700 people who live in the Regional District of Fraser-Fort George,Project No.: 168967 Page 20-1222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update from Albreda to Small River. Today Valemount’s economy is based on logging and a rapidly-growing tourism industry.20.8.1 First Nations The Blue River Project lies on lands which comprise part of the traditional territory of the Simpcw First Nation. Simpcw First Nation is a member of Secwepemc (Shuswap) Nation Tribal Council (SNTC), a political organization, which works on matters of common concern, including the development of self-government and the settlement of the aboriginal land title questions. The SNTC is involved with natural resource management within the Secwepemc Nations territory and the creation of economic development opportunities for Secwepemc communities. Commerce is very aware of its responsibility to appropriately engage local and regional First Nations early in the planning and development stages of the project. On behalf of Commerce, members of the Simpcw First Nation completed Archaeological Overview Assessments (AOA) over all areas of proposed disturbance related to Commerce exploration activities, as well as over key areas of potential project infrastructure. No concerns were noted by the archaeology field technicians and exploration activities were approved to proceed by the Simpcw archaeologist with no further recommendations for work necessary in the areas surveyed. Traditional Knowledge/Traditional Use (TK/TU) studies, as well as a detailed archaeological impact assessment will need to be undertaken and will also involve Simpcw First Nation participation. Such studies may identify areas and seasons where Simpcw have engaged in traditional activities such as hunting, fishing, gathering and spiritual ceremonies, and the outcomes will be used to inform the overall design and operation of the Project. First Nations engagement, with respect to exploration activities, began in May 2007, and will be continuing for the duration of the project. Engagement activities have included presentations and discussions with Chief and Council and Sustainable Resources Department staff, one-on-one meetings and a site visit by elders. On 25 October 2010, Simpcw First Nation and Commerce signed a confidential Exploration Agreement with respect to exploration activities on the Blue River project, which formalized a process for ongoing discussion regarding all exploration activities, recognizes the traditional cultural, heritage, and environmental interest of the Simpcw, and ensures that benefits from the project are realized by Simpcw First Nation. Commerce has also committed to involve the Simpcw in environmental plans to gain from their knowledge of the region, as well as to keep them informed of project goals.Project No.: 168967 Page 20-1322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update20.8.2 Local Communities The Blue River Project is only at the exploration and early economic evaluation stage; however, to introduce Commerce and its Project to its communities, Commerce has hosted one community meeting in each of Blue River and Valemount, and has made presentations to the Valemount Council. The Valemount Mayor and Council have also toured the property and continue to receive regular updates on the project. Periodic community newsletters provide updates on the Blue River Project; these are distributed in the town of Blue River and are readily available on Commerce’s website. In the summer of 2010, Commerce hosted a community barbeque in Blue River to thank its neighbours and the local people for their assistance and support over the past exploration seasons. As the project moves forward, open houses/information sessions and meetings will take place in other local communities such as Barriere, Clearwater and Chu Chua. Public engagement to date has included meetings with local councils (e.g., Valemount, Barriere) and informal discussions with local land-owners.20.9 Comment on Section 20 In the opinion of the QPs, the following conclusions are appropriate:  The Blue River Project will require approval under the Federal and Provincial environmental assessment (EA) processes prior to receiving the necessary permits and authorizations for construction and mine operation.  Overall the environmental review of a project is a process that will take at least 18 months to complete. The process would include the development of several important documents by Commerce, including the Project Description, Assessment Information Requirements and an Environmental Impact Assessment application, followed by the review of these documents by the public, interested stakeholders, First Nations and regulators.  The environmental review and assessment process results in a decision with respect to whether or not the Project should be issued an Environmental Assessment Certificate by the provincial government, as well as receive federal Ministerial approval based on the recommendations put forth to the Minister of Environment in a Comprehensive Study Report prepared by the Major Projects Management Office. Both are required for a project to proceed to permitting and development.  Environmental monitoring, baseline studies and site investigations have been ongoing at the Blue River Project site since the summer season of 2006 with theProject No.: 168967 Page 20-1422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update selection of local and regional studies areas for each biophysical discipline. Field studies completed by specialist consultants independent of Commerce include: site hydrology (2006–present); snow course depths (2007, 2008); fisheries and aquatics (2006–2008); soils, flora and fauna assessments (2006, 2007), including studies of rare, threatened and endangered plants (2007), breeding birds (2007) and terrestrial ecosystem mapping (2006, 2007); wildlife studies and habitat suitability mapping (2006–2008); geochemistry, mineralized material and waste rock characterization with baseline ABA and metals analyses (2007, 2008), surface water and sediment quality (2006–present), groundwater (2007–2009) and terrain stability assessment for roads (2007–present).  Kinetic test work for ARD/ML was initiated in June 2010 and remains ongoing; results of this work will give an indication of the type of management strategies required for handling PAG waste rock.  Additional environmental baseline programs are expected to continue, as required through 2012.  A preliminary list of the Federal and Provincial permits required for operation of a mine has been developed. This listing cannot be considered comprehensive due to the complexity of government regulatory processes, which evolve over time, and the large number of minor permits, licences, approvals, consents, and authorizations, and potential amendments that will be required throughout the life of the mine. The permit requirements will be reviewed and updated as the Project advances.  Socioeconomic and cultural heritage studies have not yet been initiated for the Blue River Project. Basic community profiling has been completed of the individual communities nearby, as well as relevant regional government and planning organizations. This work shows that as with other areas of rural B.C., there is a large dependence on primary resource industries, and overall the population of the area is in decline.  The Blue River Project lies on lands which comprise part of the traditional territory of the Simpcw First Nation.  First Nations engagement, with respect to exploration activities, began in May 2007, and will be continuing for the duration of the project. Engagement activities have included presentations and discussions with Chief and Council and Sustainable Resources Department staff, one-on-one meetings and a site visit by elders. On behalf of Commerce, members of the Simpcw First Nation completed Archaeological Overview Assessments (AOA) over all areas of proposed disturbance related to Commerce exploration activities, as well as over key areas of potential project infrastructure. Traditional Knowledge/Traditional Use (TK/TU)Project No.: 168967 Page 20-1522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update studies, as well as a detailed archaeological impact assessment will need to be undertaken and will also involve Simpcw First Nation participation.  On 25 October 2010, Simpcw First Nation and Commerce signed an Exploration Agreement with respect to exploration activities on the Blue River project, which, amongst other aspects, formalized a process for ongoing discussion regarding all exploration activities, recognizes the traditional cultural, heritage, and environmental interest of the Simpcw, and ensures that benefits from the project are realized by Simpcw First Nation. Commerce has also committed to involve the Simpcw in environmental plans to gain from their knowledge of the region, as well as to keep them informed of project goals.  Public engagement to date has included meetings with local councils (e.g., Valemount, Barriere) and informal discussions with local land-owners.Project No.: 168967 Page 20-1622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update21.0 2011 PEA CAPITAL AND OPERATING COSTS This section includes a summary from the 29 September 2011 Preliminary Economic Assessment (the 2011 PEA) by AMEC (Chong et al., 2011).21.1 2011 PEA Basis of Estimate All costs in the 2011 PEA were expressed in constant first quarter (Q1) 2011 Canadian dollars. No allowance had been included for escalation, interest or financing fees, taxes or duties, or working capital during construction. The level of accuracy for the estimate was +40 /-20% of estimated final costs, as per the Association of Advanced Cost Estimators (AACE) Class 5 (scoping level) definition. The estimate scope is limited to the battery limits of the plant and mine sites with no allowance for off-site facilities. The estimate covered the direct field costs of executing the project, plus the Owner’s indirect costs associated with design, construction, and commissioning. The preproduction costs were capitalized and included all the expenditures before Year 1 of production.21.2 2011 PEA Capital Costs The costs are divided into five areas: (1) infrastructure, (2) material handling, (3) process, (4) mining, (5) contingency, and (6) indirect.21.2.1 Infrastructure Blue River initial direct civil infrastructure capital costs amount to CAD$30 million. This area covers the infrastructure and facilities required to support the mine/mill operations including site preparation, civil work, services, roads, explosive facilities and electrical substation. The planned surface conveyor system is included as a material handling item, and does not appear in the civil infrastructure total. Power supplies in the region have been assumed to be sufficient for Project requirements, and no allocation for additional power line construction has been included.Project No.: 168967 Page 21-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update21.2.2 Material Handling Blue River initial direct material handling capital costs amount to CAD$8 million. This area covers belt conveyors and transfer stations and is based on in-house AMEC data and benchmarking against comparable projects. The cost estimate for the primary crusher, bin and structure is included in the process plant capital estimates.21.2.3 Process Plant Blue River initial direct process plant capital costs amount to CAD$116 million. This area covers all the process equipment and structures from mills to tailing filters, as well as pre-treatment and refinery facilities.21.2.4 Mining Blue River initial direct mining capital costs amount to CAD$89 million. Mining direct capital costs include pre-production mining, capital development costs, mine mobile equipment, and mine infrastructure. Development to be completed prior to the commencement of production at full rate was classified as pre-production development. This development was assumed to be undertaken by Owner’s mining crews with unit costs rates as shown in the operating cost section. Development associated with semi-permanent excavations, when used for more than two years, was treated as capital development. Based on preliminary designs, an estimate of 20% of all development was treated as capital development. The equipment hours required for each unit of activity and daily service equipment requirements were estimated. The required equipment operating hours for each equipment type were aggregated. Assuming typical yearly operating hours for each type of equipment, AMEC has estimated minimum equipment fleets to forecast capital expenditure. AMEC used a database of budget costs for mine equipment. Where necessary, the budget costs were factored to reflect Q1 2011 costs. AMEC used a database of costs estimates for mining infrastructure and fixed service equipment. Where necessary, the budget costs were factored to reflect Q1 2011 costs.Project No.: 168967 Page 21-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Initial direct mining capital requirements include major equipment for underground operations (drilling, loading and hauling), support equipment for underground operations, equipment for surface road maintenance and hauling and handling of tailings from the process plant to the drystack (co-disposal) area. Mining capital requirements were allocated to Year -1, but during more detailed studies, consideration should be given to allocating the capital requirements over more than one year, as it is likely that payments for equipment will be required prior to the equipment being delivered to site. In a similar manner, the development metreage achieved during the pre-production year should be re-evaluated during more detailed studies, and a formal pre-production development schedule with achievable monthly development metreage targets should be developed.21.2.5 Contingency Costs Blue River contingency costs amount to CAD$44 million. Contingency accounts for unforeseen costs within the project scope. Contingency costs were calculated using a factor of 25% of civil infrastructure, material handling, process plant, and mine infrastructure direct capital costs. A contingency factor of 5% was applied to the mine mobile equipment direct capital costs. No contingency was calculated for pre-production mining and capital development costs. The contingency factors are considered appropriate for the level of engineering work performed in the preparation of this Report. Input variables used in calculating the contingency are a result of information gathered from previous projects and industry standards.21.2.6 Indirect Costs The indirect costs of CAD$92 million cover temporary construction facilities and services, construction equipment, freight, vendor’s representatives, start-up and commissioning, engineering, procurement and contract management (EPCM), working capital, warehousing spares, and first fill. Indirect costs were calculated using a factor of 30% of civil infrastructure, material handling, process plant, and mine infrastructure direct capital and contingency costs. An indirect costs factor of 5% was applied to the mine mobile equipment direct capital and contingency costs. No indirect cost was calculated for pre-production mining and capital development costs.Project No.: 168967 Page 21-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update21.2.7 Sustaining Capital The sustaining capital costs of Blue River total CAD$116 million. The primary sustaining capital components of the proposed mine are:  Underground mine development, CAD$34 million  Fleet replacement, CAD$73 million For underground development, the cost of development of the entire mine life was estimated, and then factors were applied to distribute this cost over the life-of-mine, with costs decreasing as time increased. A unit cost in CAD$/m was then applied against the annual metres. The second portion of the initial truck purchases in the first production year was categorized as sustaining capital. Equipment fleet replacement costs were based on actual requirements as the useful life of each unit was reached. Major mobile equipment replacements were considered in Years 5–6 of operation, smaller mobile equipment was considered to be replaced in four-year intervals.21.2.8 Mine Closure A total of CAD$10 million was estimated for mine closure and was benchmarked to similar-size mines with the same level of complexity.21.2.9 Capital Cost Estimate Summary The total estimated capital cost to design and build the Blue River tantalum project at 7,500 t/d capacity is CAD$379 million. The estimate is summarized in Table 21-1.Project No.: 168967 Page 21-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Table 21-1: Summary of Estimated Capital Costs (CAD, 2011 constant dollars) Total Item (CAD$000’s) (CAD$000’s) (CAD$000’s) Project year 1 2 Production year -2 -1 Capital expenditure Initial Capital Infrastructure 29,500 10,300 19,200 Process Initial Capital 116,200 40,700 75,600 Mining Initial Capital 89,400 89,400 Material Handling 8,000 8,000 Contingency 43,600 12,800 30,900 Indirect/Owner Costs 92,300 29,600 62,600 Total 379,000 93,400 285,600 Note: Summation discrepancy due to rounding.21.2.10 2011 PEA Operating Costs The operating costs for the Blue River project are based on an Owner-operated mining fleet and process facility and are stated in first quarter 2011 Canadian dollars. Operating costs over the life-of-mine are estimated at CAD$38.44/t milled. Operating costs include the three key areas of mining, process, and overall general and administrative costs. The estimates are based upon the staffing level, consumables, and expenditures detailed as part of the underground mine plan and process design. Average operating costs are listed in Table 21-2. Table 21-2: Average Life-of-Mine Operating Cost Summary (CAD, 2011 constant dollars) Cost per Tonne LOM Total Milled Summary of Average Production Costs (CAD$000’s) (CAD$/t) Mining 528,900 21.16 Process 338,500 13.54 Material Handling 18,500 0.74 G&A 75,000 3.00 Sub-total 960,900 38.44Project No.: 168967 Page 21-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update21.2.11 Capital and Operating Cost Discussion AMEC assumes the price assumptions, mining, and process recovery methods from the 2011 PEA remain as reasonable assumptions. AMECs opinion is that the 2011 PEA capital and operating costs for the Project also remain reasonable for this technical report.21.3 Comment on Section 21 It is the opinion of the QPs that:  The 2011 PEA price assumptions, conceptual mining, and conceptual recovery methods are considered reasonable for the purposes of the technical report.  The assumptions used for capital and operating costs in the 2011 PEA are considered reasonable for the purposes of this Technical Report. Regarding the 2011 PEA results, the following key outcomes are concluded:  The total estimated capital cost to design and build the Blue River Project at an assumed 7,500 t/d capacity is CAD$379 million  A total of CAD$10 million was included in the capital cost estimate for mine closure and was benchmarked to similar-size mines with the same level of complexity  Operating costs over the life-of-mine are estimated at CAD$38.44/t milled.Project No.: 168967 Page 21-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update22.0 2011 PEA ECONOMIC ANALYSIS This section includes a summary from the 29 September 2011 Preliminary Economic Assessment (the 2011 PEA) by AMEC (Chong et al., 2011). In addition, AMEC believes the PEA economic analysis assumptions and outcomes remain reasonable. The results of the PEA economic analyses discussed in this section represent forward- looking information as defined under Canadian securities law. The results depend on inputs that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented here. Information that is forward-looking includes:  Mineral Resource estimates  Assumed metallurgical recoveries  Assumed commodity prices, exchange rates, and markets for mine production  The proposed mine production plan  Projected recovery rates  Capital costs, operating costs, and schedules  Assumptions that an EA will be approved by Provincial and Federal authorities. The financial analysis of the 2011 PEA was partly based on Inferred Mineral Resources that were considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Assessment based on these Mineral Resources will be realized. Approximately 15% of the Mineral Resources that support the financial model had been classified as Inferred Mineral Resources.22.1 2011 PEA Valuation Method The Project is valued using a discounted cash flow (DCF) analysis, assuming all equity financing (no debt). Cash flows are assumed to occur at the end of each period. Cash inflows consisted of annual revenue projections for the mine. Cash outflows such as capital and operating costs were subtracted from the inflows to arrive at the annual cash flow projections. The resulting net annual cash flows were discounted back to the date of valuation the beginning of 2011 and totalled to determine the net present value (NPV) at the selected discount rates. Constant 2011 dollars were used for the entire DCF model.Project No.: 168967 Page 22-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update All NPVs in this report are on a pre-tax basis. The project’s internal rate of return (IRR) was calculated as the discount rate that yields a zero NPV. The simple payback period was calculated as the time needed to recover the initial capital spent from the start of production22.2 2011 PEA Financial Model Parameters22.2.1 Mineral Resources and Mine Life The model includes 36,349 kt of Indicated Mineral Resources as well as 6,385 kt of Inferred Mineral Resources. For this study AMEC utilized average grades of mineralized materials throughout the mine life at 195 ppm for Ta and 1,700 ppm for Nb. The diluted grades as the result of the proposed mining method were assumed at 185 ppm Ta and 1,591 ppm Nb. After applying mine recovery and dilution factors, the financial model assumes that the mine life is 10 years, assuming the plant will process 25 Mt at a 7.5 kt/d plant throughput rate (2.7 Mt/a).22.2.2 Metallurgical Process Recovery assumptions from the process plant include 65% recovery for Ta and 69% recovery for Nb in the flotation stage. The refining process has an estimated 97% recovery for both Ta and Nb.22.2.3 Commodity Prices and Foreign Exchange Publicly-available tantalum and niobium pricing information is very limited as the markets tend to be based on long-term relationships between few buyers and sellers. Slightly more information is available for niobium than for tantalum. A tantalum price of US$317/kg of contained metal in the oxide product is supported by the prices for tantalum reported on subscription news services. The niobium price was set at US$46/kg of contained metal in the oxide product over the life-of-mine. An exchange rate of US$0.95 to CAD$1.00 is used for all years of the financial model.22.2.4 Taxes The discounted cash flow model is pre-tax. Publicly-available taxation information suggests that the following taxes could be levied.Project No.: 168967 Page 22-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Taxation considerations comprise Provincial and Federal corporate income taxes and BC Mineral taxes. The following discussion outlines the main Federal and Provincial taxation and considerations for mining ventures in B.C.:  Federal taxes: Includes income tax, customs duties, fuel taxes, payroll taxes and transaction taxes. The general rate of Federal income tax on active business income earned by a corporation for 2011 is 16.5% and is legislated to decrease to 15% starting in 2012.  Provincial income tax: The general rate of BC Provincial income tax on active business income earned by a corporation in the Province is 10%.  Provincial mineral taxes: The BC Mineral Tax provides for the Crowns financial share of mineral production in two ways. The primary way is to receive 13% of a producer’s profit that is in excess of a normal return on investment over the life of a mine. This is referred to as Net Revenue Tax. To minimize any disincentive to investment, the Province does not receive this share until the producer’s investment and a reasonable return on it have been recovered. The second way is to receive 2% of operating cash flow from production in each year. This is referred to as Net Current Proceeds Tax. It is intended to provide compensation for depletion of the resource when production yields less than a reasonable profit for the producer. So that only one or the other share is paid, Net Current Proceeds Tax is fully creditable against Net Revenue Tax. Depreciation/Salvage Value No depreciation is incorporated in the model. Financing The project is assumed to be 100% Owner-financed. Capital Costs The total estimated capital cost to design and build the Blue River Project at 7,500 t/d capacity is CAD$379 million. Operating Costs Operating costs over the life-of-mine are estimated at CAD$38.44/t milled.Project No.: 168967 Page 22-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Working Capital No working capital is incorporated in the model. Working capital allowances required to operate this Project are not expected to have a significant impact on the cash flow of the mine. Inflation No inflation adjustments are incorporated in the model. Capital and operating costs are based on first quarter 2011 Canadian dollars. Royalty The Project is not subject to any royalties.22.2.5 PEA Financial Results The Project Base Case (8% discount rate) returns an NPV of CAD$18.5 million and an IRR of 9.1% before tax, and a 6.3 year payback period. Table 22-1 summarizes the NPV for the Project at a range of discount rates, with the base case highlighted. Table 22-1: Summary Financial Analysis at Various Discount Rates Summary of Cash Flow Pre-tax Cumulative net cash flow Undiscounted CAD$000 236,631 Net present value Discounted at 5% CAD$000 80,349 Discounted at 6% CAD$000 57,612 Discounted at 7% CAD$000 37,064 Discounted at 8% (Project Base Case) CAD$000 18,487 Discounted at 9% CAD$000 1,685 Discounted at 10% CAD$000 (13,514) Internal rate of return % 9.1 Payback period Years 6.3 Note: base case is highlighted. Exchange rate is US$0.95 to CAD$1.00.22.2.6 2011 PEA Cash Costs The cash cost value represents the cost incurred to produce 1 kg of primary product after deducting the revenue from sales of secondary products. Since the price analysis for the report was performed around Ta price variation, Ta was chosen as theProject No.: 168967 Page 22-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update main product and Nb was treated as the secondary product for the assessment of cash cost. Cash costs are derived through the following formulae: Production costs = (Mining + Process + G&A + Material Handling) Cash cost = (Production costs - Revenue of Nb sales) ÷ tantalum production in kg Using the Brook Hunt convention for reporting C1 cash costs2 , after credit for Niobium contribution, the tantalum cash cost is calculated to be approximately $24.91/kg contained in oxide product (equivalent to US$23.66/kg contained in oxide product with the PEA study exchange rate of US$0.95 to C$1). The tantalum cash cost was calculated to be approximately CAD$24.91/kg contained in oxide product (after credit for niobium contribution) as shown in Table 22-2. Table 22-2: Life of Mine Cash Cost Summary LOM Total Cost per Tonne Milled Cost per Kg Ta Payable Section (CAD$000’s) (CAD$/t) (CAD$/kg) Cash costs Mining 528,900 21.16 220.13 Process 338,500 13.54 140.87 G&A 75,000 3.00 31.21 Material Handling 18,500 0.74 7.71 Sub-total 960,900 38.44 399.92 Credits Nb (901,100) (36.04) (375.01) Sub-total (901,100) (36.04) (375.01) Adjusted cash costs Total 59,800 2.40 24.91 Note: The figures in this table do not include considerations of working capital or royalty payments The cash cost for production of tantalum during the earlier years of the proposed mining operation is $57/kg and decreases over the life of the mine. The major driver behind the changing costs is the decrease in the mining costs over the life-of-mine. In the last three years of operation, the revenue generated from niobium exceeds the2 Brook Hunt, established in 1975, is a global group that specializes in in-depth market analysis across the mining and metalsindustries. Brook Hunt has established a method of comparison of costs between projects, countries and commodities that isconsidered an industry standard. C1 cash costs are defined by Brook Hunt as: the costs of mining, milling and concentrating, on-site administration and general expenses, property and production royalties not related to revenues or profits, metal concentratetreatment charges, and freight and marketing costs less the net value of by-product credits.Project No.: 168967 Page 22-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update total operating costs (mining, processing and G&A). The mining cost for the entire Project (i.e. mining cost of both tantalum and niobium) drops from an average of $24/t in the first few years to $18/t in the last year of full production.22.2.7 2011 PEA Sensitivity Analysis The sensitivity analysis showed that the project was more sensitive to changes in operating expenditures than capital expenditures. The project was most sensitive, in order, to changes in exchange rate, operating expenditure, niobium price, tantalum price and capital expenditure. Since the sales currency was US dollars and operational costs were in Canadian dollars, a rising US dollar value versus Canadian dollar value improved the mine profitability. The project IRR increased to 14.4% and the NPV increased to CAD$125 million at an 8% discount rate if a Ta price of US$380/kg (20% increase) was assumed. Sensitivities are summarized in Table 22-3 and Figure 22-1 for the 8% discount base case rate. Table 22-3: Sensitivity Summary in CAD, 8% Discount Rate Change in Factor SENSITIVITY OF NPV @ 8% -30% -20% -10% 0% 10% 20% 30% Exchange rate 448.7 269.5 130.0 18.5 (72.8) (148.8) (213.2) Capital expenditure 117.9 84.8 51.6 18.5 (14.6) (47.8) (80.9) Factor Operating expenditure 190.5 133.1 75.8 18.5 (38.8) (96.2) (153.5) Nb price (140.9) (87.8) (34.6) 18.5 71.6 124.7 177.9 Ta price (123.3) (76.1) (28.8) 18.5 65.8 113.0 160.3Project No.: 168967 Page 22-622 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Figure 22-1: Sensitivity Summary in CAD, 8% Discount Rate22.2.8 Financial Analysis Discussion It is reasonable to expect that there has been cost escalation since the base of first quarter 2011 but this has not been quantified for this Technical Report. However, the sensitivity analysis in this report shows the Project’s sensitivity to the capital and operating costs.22.3 Comment on Section 22 In the opinion of the QPs:  The PEA financial analysis remains reasonable and current for the price assumptions, conceptual mining method, mineral processing and recovery factors, and costs.  Based on the assumptions in this Report, the financial analysis for the Blue River project, using a discount rate of 8%, returns an NPV of about CAD$18.5 million and an IRR of 9.1% before tax.  The Project is most sensitive, in order, to changes in exchange rate, operating costs, niobium price, and less sensitive to changes in tantalum price , and least sensitive to changes in capital costs.Project No.: 168967 Page 22-722 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update23.0 ADJACENT PROPERTIES There are no adjacent properties that are relevant to the Report.Project No.: 168967 Page 23-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update24.0 OTHER RELEVANT DATA AND INFORMATION AMEC is not aware of any other relevant data or required information for inclusion to make the report not misleading.Project No.: 168967 Page 24-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update25.0 INTERPRETATION AND CONCLUSIONS25.1 Mineral Resource Update (Effective Date 22 June 2012) Commerce has delineated a significant tantalum- and niobium-rich carbonatite deposit near the town of Blue River in central eastern British Columbia. The company holds a 100% interest in the project. Commerce has professionally executed an exploration program. The quantity and quality of the lithological, geotechnical, and collar location, down-hole survey, and drill-core sample data collected by Commerce in the exploration and delineation drill programs meet and exceed industry standard practice. The Blue River Project has very good access and supporting infrastructure. The Blue River Mineral Resources have the following characteristics:  The mineralization is hosted by a polyfolded carbonatite sill swarm averaging 30 m thick and 1,100 m long  Close-spaced drilling has confirmed local continuity of the carbonatite  The deposit is amenable to conventional underground mining methods with estimated mining recoveries that may vary from 65 – 85% depending on the mine and stope layout and the success in which pillars can be mined on retreat  Tantalum and niobium occur in the minerals pyrochlore and ferrocolumbite and are amenable to conventional flotation and proven refining processes with estimated recoveries of 65% to 70%  The Mineral Resource estimate is based on information of reasonable quality  There are reasonable prospects for economic extraction  The deposit and Mineral Resource geometry allows for large-scale and selective mining methods  The Mineral Resources have significantly increased in tonnage mostly due to reducing the block unit value (BUV) cut-off by eliminating back-fill costs and, to a lesser extent, additional infill diamond drilling.Project No.: 168967 Page 25-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update The key findings of the Mineral Resource update (effective date 22 June 2012) are summarized as follows:  Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5  Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5 The updated Mineral Resources use the same assumptions from the 2011 PEA for the following items:  Ta and Nb metal prices  Mining method and mining extraction factor  Processing method and recovery factor  CAPEX and OPEX costs  Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t for the selective mining method. It is expected that any future mining operations will be able to be conducted year- round. High-quality technical grade tantalum and niobium products proposed for production at-site are suitable for several markets. Commerce has been pro-active with regard to environmental and socioeconomic issues. Environmental monitoring, baseline studies and site investigations have been ongoing at the Blue River Project site since the summer season of 2006. Kinetic test work for acid rock drainage and metals leaching was initiated in 2010. Additional environmental baseline programs are expected to continue, as required through 2012. First Nations engagement, with respect to exploration activities, began in 2007, and will continue for the duration of the Project. The Blue River Project lies on lands which comprise part of the traditional territory of the Simpcw First Nation. First Nations engagement, with respect to exploration activities, began in 2007. Public engagement to date has included meetings with local councils and informal discussions with local land-owners. As the Project is still at an early evaluation stage, Commerce has not initiated requests for expressions of interest from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements.25.2 2011 PEA From the 2011 PEA, the following work and outcomes are considered to remain reasonable as their underlying assumptions have not changed.Project No.: 168967 Page 25-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Estimated internal rate of return: 9.1% (before tax)  Estimated net present value: CAD$18.5 million at 8% discount rate (before tax)  Estimated payback: 6.3 years  Average diluted grade in the conceptual mine plan to the mill: 185 ppm Ta2O5 and 1,591 ppm Nb2O5  Conceptual project operating cost: CAD$38.44/t milled  Conceptual capital cost: CAD$379 million  Proposed product: High purity Ta and Nb chloride product that is suitable for several markets  Conceptual mine life: 10 years based upon the Mineral Resources (effective date 20 September 2011)  Most significant conceptual OPEX costs: mining (55%)  Most significant conceptual CAPEX cost: process initial capital (31%)  NPV sensitivity: The Upper Fir deposit is most sensitive to changes in exchange rate, mining costs, and commodity prices. The tantalum price assumption used in the 2011 PEA is based on 4th quarter 2010 information. The tantalum price moved significantly higher through 2011. AMEC has checked the publicly available tantalum and niobium metal prices as at May 2012 and found the Ta and Nb price assumptions used for both the current Mineral Resource estimate and the 2011 PEA to remain reasonable. A higher tantalum price would improve profitability and also increase the mine life. Additional exploration potential could also provide additional mine life. A two or more times capital payback is possible.25.2.1 Opportunities As a result of engineering work during the 2011 PEA, a lower block unit value cut-off can be achieved by revising the mine design to eliminate back-fill costs. This approach was used support the current 22 June 2012 Mineral Resource update, which in turn has increased the Mineral Resource tonnage at the Project. The increase in Mineral Resources provides more flexibility for future mining studies and hence opportunities to improve the Project NPV are as follows:  Optimization of the mine plan by mining higher-grade zones earlier in the mine life, providing that a practical mining sequence can be implemented and the overall recovery of the Mineral Resources is not negatively affected  Optimization of the mine layout to minimize development costsProject No.: 168967 Page 25-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  Advanced geotechnical studied to identify and understand ground conditions which could allow an increase in the size of stopes and production drifts  Optimization of the supply and pricing of reagents for the refining.25.2.2 Risks The risk factors are:  The current Mineral Resource estimate is supported by current tantalum and niobium prices which are higher than historic average prices and may not reflect long term prices.  Commerce has not initiated requests for expressions of interest from potential buyers of the proposed Blue River products and has not negotiated any purchase or off-take agreements.  The proposed refining methods have been used in commercial applications but have not been demonstrated in test work of Blue River material.  Testwork to date has not considered factors such as water recycling. A water treatment plant may be required and may result in increased capital costs.  The 2011 PEA financial analysis is partly based on Inferred Mineral Resources (effective date 29 September 2011) that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the Preliminary Economic Assessment based on these Mineral Resources will be realized.  The Blue River Project will require approval under the federal and provincial environmental assessment (EA) processes prior to receiving the necessary permits and authorizations for construction and mine operation. Overall the environmental review of a project is a process that can take up to 24 months to complete.  Traditional Knowledge/Traditional Use (TK/TU) studies, as well as a detailed archaeological impact assessment will need to be undertaken.  The Project warrants additional work to examine the opportunities and mitigate the risks. On completion of this work, Commerce may consider proceeding with a pre- feasibility study.  Uranium and thorium are present in the resource and waste rocks. Any radon produced in the mine and process plant is likely manageable with ventilation, dust control, and monitoring. Expected CAPEX and OPEX costs will not be significantly increased as a result of these safety measures.Project No.: 168967 Page 25-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update  An extensional faulting event has potential for displacements of greater than 10 m. Such offsets would certainly impact deposit geometry and future mine designs.  Mining recovery may vary from 65% to 85% depending on the success in which pillars can be mined on retreat and/or fill is utilized, however mining recovery could be lower and dilution increased in areas with moderate dips greater than 10°.Project No.: 168967 Page 25-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update26.0 RECOMMENDATIONS AMEC recommends a work program for an estimated total cost of CAD$5.2 million. The recommendations are based on the current Mineral Resource estimate with effective date 22 June 2012. Table 26-1 summarizes the recommended work program with estimated costs. Table 26-1: Recommendations Summary Estimated Task Budget Comment Project Management + $630,000 Claims + Socio-Economic + Administration 2012 Field work $625,000 Geology mapping; re-sampling; core review; structural geology reviews; on-going research; assay QA/QC SRM replenishment program. Security (Valemount core $75,000 On-going upgrades to Valemount facility. facility) Marketing $50,000 Mining trade-off studies $200,000 Trade-off studies on mine and stope design Resource modeling trade- $40,000 Studies to optimize grade distribution and domains off studies Mineral Resource Update $360,000 Incorporate 2011 drilling, 2012 exploration data, and new 2013 information from mining or metallurgical optimization trade-off studies. Diamond drilling: $2,660,000 About 40 diamond drill holes comprising an estimate for mineral resource 10,000 m of HQ diameter coring for infill and step-out definition drilling to support confidence category upgrades Diamond drilling: $560,000 to supply metallurgical About 8 diamond drill holes comprising approximately testwork 2,000 m of PQ diameter coring Metallurgical testwork $ - $1M budgeted for metallurgical testwork in the 2011 PEA. This work is on-going and results will lead to a more definitive budget going forward. Total $5,200,000 Project management, field work, and desk top studies total about $2.0 million and includes the following: (1) project management and administration costs; (2) field costs comprising a re-sampling program for campaigns with poor precision and accuracy to improve confidence in their analyses, structural geology studies, and manpower and field support costs; (3) core farm security improvements; (4) on-going marketing work; (5) mining trade-off studies to optimize mine and stope design; (6)Project No.: 168967 Page 26-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update resource modeling trade-off studies to optimize grade distribution; and (7) a mineral resource estimate update. The re-sampling program should focus on re-assaying samples within an area where the first five years of mining is likely to occur. An additional mineral resource update is recommended after all the 2011 drilling data has been analysed, verified, updated into the drilling database, and interpreted. This mineral resource update would include all drilling information up to and including the 2011 campaign plus outcomes from any mining, resource modeling, or metallurgical optimization studies. Additional diamond drilling is recommended totalling about $3.2 million for drilling, sampling, assaying, and logging costs. The recommended drilling is to focus on the volume within the first 5 years of the conceptual mine plan. The recommended program has about 40 diamond drill holes comprising about 10,000 m of HQ diameter coring for resource infill and step-out drilling and about 8 diamond drill holes comprising about 2,000 m of PQ diameter coring for metallurgical testwork purposes.Project No.: 168967 Page 26-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update27.0 REFERENCES Aaquist, B., 1982a: Blue River Carbonatites, British Columbia: Final Report. B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 10 274, 30 p. Aaquist, B., 1982b: Assessment Report Blue River Carbonatites, British Columbia: B.C. Min. Energy Mines Petr. Res. Ass. Rept. 11 130, 15 p. Aaquist, B., 1982c: Assessment Report on Verity First 1,2,3, Claims, Blue River British Columbia: B.C. Min. Energy Mines Petr. Res. Ass. Rept. 10 955. Birkett, T.C. and Simandl, G.J., 1999: Carbonatite-associated Deposits: Magmatic, Replacement and Residual: in Selected British Columbia Mineral Deposit Profiles, Volume 3, Industrial Minerals, G.J. Simandl, Z.D. Hora and D.V. Lefebure, Editors, British Columbia Ministry of Energy and Mines. Canadian Institute of Mining, Metallurgy and Petroleum (CIM), (2010). CIM Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines: Canadian Institute of Mining, Metallurgy and Petroleum, November 2010, http://www.cim.org/committees/CIMDefStds_Dec11_05.pdf Chong, A., 2010. Upper Fir Ta-Nb Project, Blue River, B.C., Site Visit Report – July 2010. Confidential AMEC Americas Ltd. report for Commerce Resources Corporation. 31 p. Chong, A., 2011. Upper Fir Ta-Nb Project, Blue River, B.C., Site Visit Report – September 2011. Confidential AMEC Americas Ltd. report for Commerce Resources Corporation. 43 p. Chong, A., and Postolski, T., 2011: NI 43-101 Technical Report, Blue River Ta-Nb Project, Blue River, British Columbia. 145 p. Chong, A., Postolski, P., Mendoza, R., Lipiec, T., and Omidvar, B., 2011. NI 43-101 Technical Report on Preliminary Economic Assessment, Blue River Ta-Nb Project, Blue River, British Columbia, Canada. 208 p. Chudy, T., 2008: Mineralogical Report on samples from the Upper Fir Carbonatite, Blue River, British Columbia. PART A: Petrographic description; PART B: Mineral Liberation Analysis, December 2008. Chudy, T., 2010: The Niobium-Tantalum Mineralization In The Upper Fir Carbonatite: A Summary Of Current Knowledge, 4 p.Project No.: 168967 Page 27-122 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Chudy, T. and Ulry, B., 2012. The Petrogrphy, Geochemistry and Mineral Chemistry of the Upper Fir Carbonatite System: an Update of Current Knowledge with Implications for Exploration. Confidential report for Commerce Resource Corporation. 54p. Couture, J.F. and Nash, I., 2011a: Upper Fir Site Visit Report. Confidential SRK memorandum for Commerce Resources Corporation. 5p. Couture, J.F. and Nash, I., 2011b. Blue River Site Visit. Confidential SRK memorandum for Commerce Resources Corporation. 10p. Currie, K.L. 1976: The Alkaline Rocks of Canada: Geol. Surv. Can., Bull. 239, 228 p. Dahrouge, J., 2001a: 2000 Geologic Mapping and Sampling on the Verity Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept 26550, 7 p. Dahrouge, J., 2001b: 2000 Geologic Mapping and Sampling on the Fir Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept 26549, 7 p. Dahrouge, J. and Reeder J., 2001: 2001 Geologic Mapping, Sampling and Geophysical Surveys on the Mara Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 26733, 14 p. Dahrouge, J. and Reeder J., 2002: 2001 Geologic Mapping, Sampling and Geophysical Surveys on the Fir Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 26781, 9 p. Davis, C., 2006: 2005 Diamond Drilling and Exploration at the Blue River Property: B.C. Min. Energy Mines Petr. Res. Ass. Rept, 10 p. Diegel, S.G., Ghent, E.D., and Simony, P.S., 1989: Metamorphism and Structure of the Mount Cheadle area, Monashee Mountains: in Current Research, Part E, Geol. Surv. Can., Paper 89–1E, pp. 95–100. Ghent, E.D., Simony, P.S., Mitchell, W., Perry, J., Robbins, D. and Wagner, J., 1977: Structure and Metamorphism in the Southeast Canoe River area, British Columbia: in Report of Activities, Part C, Geological Survey of Canada, Paper 77–1C, pp. 13– 17. Gervais, F., 2011. Summary Report - Integration of Surface and Underground Geology of the Upper Fir Carbonatite Deposit, Blue River, B.C., 4p. Gervais, F., 2009: Personal Communication to John Gorham.Project No.: 168967 Page 27-222 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Gorham, J., 2007: Technical Report on the Upper Fir Ta-Nb Bearing Carbonatite 20 June 2007, 48 p. plus appendices. Gorham, J., 2008: Report on 2007 Diamond Drilling and Exploration at the Blue River Property 20 June 2008: 48 p. plus appendices and maps. Gorham, J., Ulry, B. And Brown, J., 2009: 2008 Diamond Drilling and Exploration at the Blue River Property, Kamloops Mining Division B.C Ministry of Energy, Mines and Petroleum Resources, Assessment Report 31174, 79 p (plus appendices and maps).. Klohn, Crippen Berger, 2009a: Blue River-Upper Fir Deposit Tailings and Waste Rock Scoping Study: Prepared for Commerce Resources Corp. Klohn, Crippen Berger, 2009b: Valemount Tailings Storage Options Scoping Study: Prepared for Commerce Resources Corp. Kraft, J., 2010: Structural geology of the Upper Fir carbonatite deposit, Blue River, British Columbia: Confidential report for Dahrouge Geological Consulting Ltd. and Commerce Resources Corp., 15 p. Lee, C., 2012. Blue River Ta-Nb Project – Structural Geology Review. Confidential Touchstone Geoscience Inc. memorandum prepared for AMEC Americas Ltd. 5 p. Mariano, A.N., 1982: Petrology, Mineralogy and Geochemistry of the Blue River Carbonatites: Confidential report, 130 p. Mariano, A.N. 2000: Personal communication to J. Dahrouge. MESH Environmental Inc. 2008: Static Test Characterization of Rock Units from the Upper Fir Deposit, Blue River Tantalum-Niobium Project: Confidential report prepared for Commerce Resources, August 2008. MESH Environmental Inc. 2009: Static Test Characterization Of Rock Units From The Upper Fir Deposit, Blue River Tantalum-Niobium Project. Phase 2 Static Test Report: Confidential report prepared for Commerce Resources, April 2009. McCrea, J. 2001: Summary Report on the Blue River Carbonatite Property, East-Central British Columbia: Prepared for Commerce Resources Corp., 34 p. McCrea, J. 2002: Fir Carbonatite Property, Resource Estimate: Prepared for Commerce Resources Corp.Project No.: 168967 Page 27-322 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Mitchell, R.H., 2010b: Niobium Mineralization in Carbonatites: Paragenesis and Origins: in International Workshop of Geology of Rare Metals, edited by Simandl, G.J. and Lefebure, D.V., extended abstracts volume, November 9–10, 2010, Victoria, Canada British Columbia Geological Survey, Open File 2010-10, pp 13–14. Nicholas, D., 1992: SME Mining Engineering Handbook, 2nd Edition, Volume 2 Pell, J. 1987: Alkaline Ultrabasic Rocks in British Columbia: Carbonatites, Nepheline Syenites, Kimberlites and Related Rocks: B.C. Min. Energy, Mines Petr. Res. Open File 1987-17, 109 p. Pell, J. 1994: Carbonatites, Nepheline Syenites, Kimberlites and Related Rocks in British Columbia: B.C. Min. Energy, Mines, Petr. Res., Bulletin 88, 136 p. Pell, J. and Hoy, T. 1989: Carbonatites in a Continental Margin Environment - the Canadian Cordillera: in: Carbonatites: Genesis and Evolution (K. Bell, ed.). Unwin Hyman, London, UK. pp. 200–220. Raeside, R.P. and Simony, P.S. 1983: Stratigraphy and Deformational History of the Scripp Nappe, Monashee Mountains, British Columbia: Canadian Journal of Earth Sciences, 20, pp. 639–650. Rukhlov, A and Gorham, J. 2007: 2006 Diamond Drilling and Exploration at the Blue River Property: B.C., Min. Energy, Mines Petr. Res. Ass. Rept. 29024, 383 p. with appendices. Simonetti, A. 2008: Personal communication to John Gorham. Simony, P.S., Ghent, E.D., Craw, D, Mitchell, W., and Robbins, D.B. 1980: Structural and Metamorphic Evolution of the Northeast Flank of the Shuswap Complex, Southern Canoe River Area, British Columbia: Geological Society of America, Memoir 153, pp. 445-461. Smith, M. and Dahrouge, J. 2002a: 2001 Diamond Drilling on the Fir Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 26911, 13 p. with appendices. Smith, M. and Dahrouge, J. 2003: 2002 Diamond Drilling and Exploration on the Blue River Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 27131, 20 p. with appendices. Smith, T., 2008: Terrain stability study for the development of an environmental baseline for the Fir Property near Blue River B.C: Confidential report prepared for Commerce Resources Corp.Project No.: 168967 Page 27-422 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update Stone, M., and Selway, J., 2010: Independent Technical Report, Blue River Property, Blue River, British Columbia, Canada. 116 p. Thompson, G., 2011. Drill Hole Database Review and Audit of 2010 Drill Holes in the Blue River Ta-Nb Project. 16 p. White, G.P.E. 1985: Further Notes on Carbonatites in Central British Columbia: B.C. Ministry of Energy, Mines and Petroleum Resources, Geological Fieldwork, 1984, Paper 1985-1, pp. 95-100. Woolley, A.R. and Kempe, D.R.C. 1989: Carbonatites: Nomenclature, Average Chemical Compositions, and Element Distribution: in: Carbonatites, Genesis and Evolution (K. Bell, ed.). Unwin Hyman, London. pp. 1–37.Project No.: 168967 Page 27-522 June 2012
    • Commerce Resources Corp. Blue River Tantalum–Niobium Project British Columbia, Canada NI 43-101 Technical Report on Mineral Resource Update APPENDIX A LIST OF C L A I M SProject No.: 168967 Appendix22 June 2012
    • SCHEDULE A Blue River Property, located in the Kamloops Mining Division, north and northeast of Blue River, British Columbia, Canada. TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)374665 FIR 3 142572 (100%) Mineral Claim 083D025 2000/feb/I 6 2021 /mar/31 GOOD 25.0374670 FIR 8 142572 (100%) Mineral Claim 083D035 2000/feb/I 6 2021/mar/31 GOOD 25.0380034 MARA 5 142572(100%) Mineral Claim 083D045 2000/aug/18 2021/mar/31 GOOD 25.0382164 FIR II 142572 (100%) Mineral Claim 083D035 2000/oct/28 2021/mar/31 GOOD 500.0506262 142572 (100%) Mineral Claim 083D 2005/feb/08 2021/mar/3 I GOOD 98.623506263 142572(100%) Mineral Claim 083D 2005/feb/08 2021/mar/3 1 GOOD 295.727506264 142572 (100%) Mineral Claim 083D 2005/fŁb/08 202 1/mar/31 GOOD 236.8506265 142572 (100%) Mineral Claim 083D 2005/feb/08 2021/mar/31 GOOD 79.069506267 142572 (100%) Mineral Claim 083D 2005/feb/08 2021/mar/31 GOOD 98.817506270 142572(100%) Mineral Claim 083D 2005/feb/08 2021/mar/31 GOOD 1225.766506273 142572 (100%) Mineral Claim 083D 2005/feb/08 2021 /mar/31 GOOD 1619.061506274 142572(100%) Mineral Claim 083D 2005/feb/08 202 1/mar/31 GOOD 1244.47506387 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 98.638506391 142572(100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 39.459506392 142572(100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 39.46506393 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 39.447506395 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 39.452506397 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 19.728506399 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 79.084506401 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/3I GOOD 39.542506402 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 19.768506403 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 19.766506405 142572 (100%) Mineral Claim 083D 2005/feb/09 202 1/mar/31 GOOD 19.765506407 142572(100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 591.699506408 142572(100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 118.38506423 142572 (100%) Mineral Claim 083D 2005/feb/09 202 1/mar/31 GOOD 591.653506425 142572(100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 157.847506426 142572 (100%) Mineral Claim 083D 2005/feb/09 202 1/mar/31 GOOD 39.439506427 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 19.717506428 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 551.916506429 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 78.924506430 142572 (100%) Mineral Claim 083D 2005/feb/09 202 1/mar/31 GOOD 414.436506431 142572 (100%) Mineral Claim 083D 2005/fcb/09 202 1/mar/31 GOOD 315.765506433 142572 (100%) Mineral Claim 083D 2005/feb/09 2021 /mar/31 GOOD 533.482506445 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 355.921506450 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 236.589506459 142572 (100%) Mineral Claim 083D 2005/feb/09 202 1/mar/31 GOOD 473.37506461 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 315.725506464 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 78.95506466 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 217.118506468 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 355.271506473 142572 (100%) Mineral Claim 083D 2005/feb/09 2021/mar/31 GOOD 474.81 CW523273 I I
    • A-2 TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)506475 142572(100%) Mineral Claim 083D 2005/feb/09 202l/mar/3l GOOD 395.675507391 142572 (100%) Mineral Claim 083D 2005/feb/17 2021/mar/31 GOOD 553.698530510 LIGHTNING 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 494.525530511 LIGHTNING 2 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 395.741530513 LIGHTNING 3 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 217.556537452 PYRAMID 1 142572(100%) Mineral Claim 083D 2006/jul/20 202I/mar/31 GOOD 493.795537454 PYRAMID 2 142572 (100%) Mineral Claim 083D 2006/jul/20 2021/mar/31 GOOD 494.024537456 PYRAMID 3 142572 (100%) Mineral Claim 083D 2006/jul/20 2021/mar/31 GOOD 197.674550560 MUD 10 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 495.976550562 MUD 11 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 475.2631550563 MUD 13 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 454.3769550565 MUD 14 142572 (100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 376.8803550568 MUDI5 142572 (100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 178.5237550603 ARIANEI 142572 (100%) Mineral Claim 0831) 2007/jan/30 2021/mar/31 GOOD 493.6076550605 ARIANE2 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.8371550607 ARIANF3 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.6181550608 ARIANE4 142572 (100%) Mineral Claim 083D 2007/jan/30 202 1/mar/31 GOOD 493.8457550609 ARIANE5 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.6292550610 ARIANE6 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.8557550612 ARIANE7 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3I GOOD 473.8467550613 ARIANE8 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.8462550614 ARIANE9 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7679550615 ARIANEIO 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3l GOOD 474.1587550616 ARIANEI 1 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4837550620 ARIANEI2 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1158550621 4512124519227384 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.5925550622 ARIANEI3 142572 (100%) Mineral Claim 083D 2007/jan/30 202I/mar/31 GOOD 474.8547550623 ARIANE 14 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3431550624 ARIANE 15 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.5709550626 ARIANE 16 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.2518550628 ARIANEI7 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9972550629 ARIANE 18 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.2487550632 ARIANE 19 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.2489550633 ARIANE 20 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.104550636 ARIANE 20 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3 1 GOOD 493.7078550637 ARIANE 21 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.646550638 ARIANE 22 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.9378550639 ARIANE 23 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1652550640 ARIANE 24 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3914550641 ARIANE 25 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6757550643 ARIANE 26 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4941550645 ARIANE 27 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7162550646 ARIANE 28 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.945550647 ARIANE 29 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.17550648 ARIANE 30 142572 (100%) Mineral Claim 083D 2007/Jan/30 2021/mar/31 GOOD 494.3939550649 ARIANE 31 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6765550651 ARIANE 32 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/3l GOOD 493.2738550652 ARIANE 33 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/31 GOOD 493.0544 CW523273 I . I
    • A-3 TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)550655 ARIANE 34 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 1971623550658 AR1ANE 35 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9679550661 ARIANE 36 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1803550662 ARIANE 37 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.3343550663 ARIANE 38 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4895550664 ARIANE 39 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7116550665 ARIANE 40 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.9411550666 ARIANE 41 142572 (100%) Mineral Claim 0831) 2007/jan/30 2021/mar/31 GOOD 494.1665550667 ARIANE 42 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3907550668 ARIANE 43 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6735550669 ARIANE 44 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.5726550670 ARIANE 45 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3505550671 ARIANE 46 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1291550672 ARIANE 47 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.9194550673 ARIANE 48 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.7999550675 ARIANE 49 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.6872550676 ARIANE 51 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 276.3955550679 ARIANE 52 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.4994550681 ARIANE 53 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/31 GOOD 493.2689550683 ARIANE 54 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.0508550685 ARIANE 55 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.1645550687 ARIANE 56 142572(100%) Mineral Claim 083D 2007/Jan/30 2021/mar/31 GOOD 473.5216550689 ARIANE 57 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.2768550691 ARIANE 58 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9774550693 ARIANE 59 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1813550695 ARIANE 60 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4055550697 ARIANE 61 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 454.5639550698 ARIANE 62 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.077550700 ARIANE 63 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.0662550701 ARIANE 64 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.6254550703 ARIANE 65 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3049550704 ARIANE 66 142572 (100%) Mineral Claim 0831) 2007/jan/30 202l/mar/3l GOOD 494.2991550706 ARIANE 67 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.2915550707 ARIANE 68 142572 (100%) Mineral Claim 0831) 2007/an/30 2021/mar/31 GOOD 435.0935550709 AR1ANE 69 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.7668550711 ARIANE 70 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/3l GOOD 474.7626550714 ARIANE 71 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.7591550715 ARIANE 72 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 356.0679550718 ARIANE 73 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.3919550721 ARIANE 74 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.3791550726 ARIANE 75 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1657550728 ARIANE 76 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1504550731 ARIANE 77 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9639550734 ARIANE 78 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9498550886 HELLROAR 142572(100%) Mineral Claim 0831) 2007/feb/01 2021/mar/31 GOOD 435.4711550887 IIELLROARS 142572 (100%) Mineral Claim 083D 2007/feb/01 2021/mar/31 GOOD 475.2464550888 BAT OUT OF HELL 142572 (100%) Mineral Claim 083D 2007/feb/01 2021/mar/31 GOOD 475.3964 TI IF MONSTER IS550889 LOOSE 142572(100%) Mineral Claim 083D 2007/feb/Ol 2021/mar/31 GOOD 475.2026 CW5232731 I
    • BE TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)565127 PROSPER 1 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.099565128 PROSPER 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 474.9845565129 PROPSER 3 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7982565130 PROSPER 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 237.5248565131 PROSPERS 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.798565132 PROSPER 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.799565133 PROSPER 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7994565135 PROSPER 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7979565136 PROSPER 9 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.8015565138 PROSPER 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.8003565139 PROSPER II 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7982565140 PROSIER 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1588565141 PROSPER 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1812565143 PROSPER 14 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1819565144 PROSPER 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1839565145 PROSPER 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1849565146 PROSPER 16 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1878565147 PROSPER 17 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3l GOOD 178.195565148 PROSPER 18 142572 (100%) Mineral Claim 083D 2007/aug/28 202l/mar/31 GOOD 336.7507565149 PROSPER 19 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1628565150 PROSPER 20 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1627565152 PROSPER 21 142572(100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 495.164565153 PROSPER 22 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1312565154 PROSPER 23 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1312565156 PROSPER 25 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1664565157 PROSPER 26 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1327565158 PROSPER 27 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1328565159 PROSPER 28 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 455.5466565160 PROSPER 29 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.4003565161 PROSPER 30 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3904565162 PROSPER 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3914565163 PROSPER 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3913565164 PROSPER 32 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3917565165 PROSPER 33 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.393565166 PROSPER 34 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.393565167 PROSPER 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3941565168 PROSPER 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3 I GOOD 495.3947565169 PROSPER 36 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3944565170 IROSPER 37 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.5681565171 SHADOWI 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6504565172 SHADOW 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 436.1667565173 SI IADOW 3 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6211565174 SHADOW 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6207565175 SHADOWS 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6219565176 SHADOW 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6221565177 SHADOW 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6222565178 SHADOW 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6232565179 SHADOW 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 317.1876 CW5232731 I
    • TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)565180 SHADOW 9 142572(100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 475.9524565181 SHADOW 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.9516565182 SHADOW II 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.8402565183 SHADOW 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.9419565184 SHADOW 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3I GOOD 495.9423565185 SHADOW 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.9411565186 SHADOW 15 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 456.3659565187 FALKOR 1 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 456.0848565188 FALKOR 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.763565189 FALKOR 3 142572(100%) Mineral Claim 083D 2007/aug/28 202l/mar/31 GOOD 396.7453565190 FALKOR 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.993565191 FALKOR 5 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 374.6441565192 FALKOR 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.1392565193 FALKOR 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 4717231565194 FALKOR 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.4453565195 FALKOR 9 142572(100%) Mineral Claim 083D 2007/aug/28 202l/mar/3l GOOD 496.3699565196 FALKOR 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.5252565197 FALKOR II 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.401565198 FALKOR 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.497565199 MINI 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 39.7012565200 FALKOR 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.5167565201 FALKOR 14 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 357.3435565202 FALKOR 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.1679565203 FALKOR 15 142572 (100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 496.169565204 FALKOR 16 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 377.0984565205 FALKOR 17 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.7777565206 MINI 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 39.6939565207 FALKOR 18 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 437.0555565208 FALKOR 19 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.5879565209 FALKOR 20 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.3959565210 FALKOR 21 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.7461565211 FALKOR 22 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.9548565212 FALKOR 23 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.3943565213 FALKOR 24 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 238.4882565214 FALKOR 25 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6332565215 FALKOR 26 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 397.4372565216 FALKOR 27 142572(100%) Mineral Claim 083D 2007/aug/28 202I/mar/31 GOOD 496.6269565217 FALKOR 28 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.9699565218 FALKOR 29 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.626565219 FALKOR 30 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.863565220 FALKOR 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6276565221 FALKOR 32 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.859565222 FALKOR 33 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/3 1 GOOD 397.1157565223 FALKOR 34 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.8588565224 FALKOR 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6289588427 WASTED 1 142572(100%) Mineral Claim 083D 2008/jul/l8 2021/mar/31 GOOD 494.2937588428 WASTED 2 142572(100%) Mineral Claim 083D 2008/jul/l8 2021/mar/31 GOOD 474.3304588429 WASTED 3 142572(100%) Mineral Claim 083D 2008/jul/18 2021/mar/31 GOOD 474.1507 CW5232731,1
    • TenureTenure Tenure Sub MapNumber Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)588430 WASTED 4 142572 (100%) Mineral Claim 083D 2008/jul/I 8 202 1/mar/31 GOOD 473.977589537 FELIX! 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 496.3964589538 FELIX2 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 496.3976589539 FELIX3 142572 (100%) Mineral Claim 083D 2008/augI05 2021 /mar/31 GOOD 377.1036589540 FELIX4 142572 (100%) Mineral Claim 083D 2008/aug/05 2021 /mar/31 GOOD 496.1697589541 FELIX5 142572(100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 495.9655589542 FELIX6 142572 (100%) Mineral Claim 083D 2008/aug/05 2O21/mar/31 GOOD 436.3101589544 FELIX7 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 376.6839589551 FELIX8 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 475.8199589554 FELIX9 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 396.317589556 FELIX1O 142572 (100%) Mineral Claim 083D 2008/aug/05 202 1/mar/31 GOOD 495.4715589557 FELIXII 142572(100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 415.9727589559 FELIXI2 142572 (100%) Mineral Claim 083D 2008/aug/05 2021/mar/31 GOOD 495.1674589563 FELIXI3 142572 (100%) Mineral Claim 083D 2008/aug/05 202 1/mar/31 GOOD 356.6787798362 JOIN 142572 (100%) Mineral Claim 083D 201 0/jun/25 2021/mar/31 GOOD 177.9794 CW5232731 I