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Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
Presentation: Commerce Resources (May 2011)
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Presentation: Commerce Resources (May 2011)

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Corporate Presentation by Commerce Resources Corp. (TSXv: CCE). Metals for the Future: Rare Metals and Rare Earth Elements. …

Corporate Presentation by Commerce Resources Corp. (TSXv: CCE). Metals for the Future: Rare Metals and Rare Earth Elements.

Commerce Resources Corp. is an exploration and development company with a particular focus on deposits of rare metals and rare earth elements. The Company is specifically focused on the development of its Upper Fir deposit on its Blue River Tantalum/Niobium Project in British Columbia, Canada. Commerce has sufficient capital to continue to evaluate the economic potential of this deposit and advance its development.

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  • 1. MAY 2011Metals for the FutureRare Metals and Rare Earth ElementsTSXv: CCE / FSE: D7H / OTCQX: CMRZF / www.commerceresources.com
  • 2. TSXv: CCE / FSE: D7H / OTCQX: CMRZFForward Looking StatementsExcept for historical information contained herein, this presentation may contain forward lookingstatements including but not limited to comments regarding predictions and projections.Forward looking statements address future events and conditions and therefore involve inherentrisks and uncertainties. Although Commerce Resources Corp. believes that such expectationsare reasonable, there can be no assurance that such expectations will prove to be correct, andtherefore actual results may differ materially from those currently anticipated in such statements.You are cautioned not to place undue reliance on any such forward looking statements, whethermade in this presentation or in any question and answer period related to this presentation.Suite 1450 – 789 West Pender StreetVancouver, BC V6C 1H2 CanadaToll Free: 1.866.484.2700 info@commerceresources.comPhone: 604.484.2700 www.commerceresources.com Page: 02
  • 3. TSXv: CCE / FSE: D7H / OTCQX: CMRZFSignificant Achievements:Past 12 MonthsP Rare earth element discovery at Eldor Property in QuebecP New NI 43-101 resource estimate for Blue River Property expanding tantalum-niobium resourceP Initial NI 43-101 resource estimate for rare earth element discovery at Eldor (Ashram Deposit)P Coverage by independent newsletter analyst John KaiserP Increased market capitalization with 156% increase in share priceP Listing on OTCQX Market in the United States Page: 03
  • 4. TSXv: CCE / FSE: D7H / OTCQX: CMRZFCommerce Resources Corp.Commerce Resources Corp. is a Canadian ELDORjunior exploration and development company, Rare Earth Elements Quebecfocused on rare metals and rare earth elements.Two advanced projects: BLUE RIVER• Eldor Rare Earth Element Project, Quebec: Tantalum and Niobium British Columbia - Major new large tonnage rare earth deposit - Potential for heavy rare earth enrichment • Experienced and dedicated• Blue River Tantalum / Niobium Project, BC: management - Moving through development • Founded in 1999 Page: 04
  • 5. TSXv: CCE / FSE: D7H / OTCQX: CMRZFStructure and Market InformationSymbols: TSX-V (Canada): CCE FSE (Germany): D7H OTCQX (USA): CMRZFShares Outstanding: 134 MOptions: 9.6 MWarrants: 34.1 MBroker Warrants: 0.3 MFully Diluted: 178 MRecent Price: $0.7552-Week Range: $0.20 - $1.08Market Cap: $100 Million  Avg. Volume (3M): 445,000$10 million in cash and investments *Data as at May 2011 Page: 05
  • 6. TSXv: CCE / FSE: D7H / OTCQX: CMRZFRare Earth ElementsRare earth elements are a group of 17 chemical elementsthat are critical to two of the fastest-growing sectors:energy and high technologyEnergy: High technology:- Hybrid/Electric cars - Flat panel displays- Wind turbines - Refrigeration- Rechargeable batteries - Water filtration- Catalysts - Defense applicationsNew applications are constantly being developed forrare earths given their unique attributes Page: 06
  • 7. TSXv: CCE / FSE: D7H / OTCQX: CMRZFRare Earth Elements:Performance of EquitiesSource: Capital IQ. Peer groupincludes: Molycorp, Lynas, Arafura,Alkane, Great Western, Avalon,  Greenland Minerals, Quest,Matamec, Rare Element Resources,Frontier, Hudson, Commerce,Wealth Minerals, Tasman Page: 07
  • 8. TSXv: CCE / FSE: D7H / OTCQX: CMRZFRare Earth Elements: PricesChina’s exportquota hastriggered recentincrease in oxideprices  Source: Ernst & Young “TechnologyMinerals: The rare earth race is on!”April 2011 Page: 08
  • 9. TSXv: CCE / FSE: D7H / OTCQX: CMRZFChinese Perspective: Rare Earth SupplyTargets 2013 & 2015 and BeyondChina isanticipating new FORECAST ON SUPPLY FORECAST ON TARGET SUPPLY IN 2013 (TONNES) AFTER 2015 (TONNES)supply from the China ROW China ROWrest of the world(ROW) China 87000 ROW China 178000Opportunity for ROW 47400 65% 64% 100000 36%new suppliers 35%Source: Dr. Chen Zhanheng, PhD,The Chinese Society of Rare Earths,Critical Metals Investment SummitJanuary 2011 Page: 09
  • 10. TSXv: CCE / FSE: D7H / OTCQX: CMRZFEldor Rare Earth Property,QuebecSituated in northern Quebec;130 km south of the communityof Kuujjuaq100% owned; One claim blockcovering 200 km2 Page: 10
  • 11. TSXv: CCE / FSE: D7H / OTCQX: CMRZFExploration Focus: Ashram ZoneLocated in the centre of the Eldor PropertyDefined by an aeromagnetic low measuring1,000 by 800 metresTested in 2010 over an area measuring 650by 350 metres to depths of up to 365 metres(12 holes – 3,300 metres)All holes intersected significant rare earthmineralization; Majority bottomed inmineralizationZone is open to the north, south, east, atdepth, and is not fully constrained to the west Page: 11
  • 12. TSXv: CCE / FSE: D7H / OTCQX: CMRZFAshram Zone:Cross SectionLarge, consistently mineralizedore body with mineralizedintervals from surface – potentiallyamenable to open pit mining Page: 12
  • 13. TSXv: CCE / FSE: D7H / OTCQX: CMRZFInitial NI 43-101 Resource: Ashram DepositDefined resources to end of 2010: Cut-off Grade (% TREO) Tonnes (Mt) Average Grade (% TREO) Contained TREO (t) Inferred Resource 1.25% 117.34 1.74% 2,040,543Notes:1. Effective date March 1, 2011 / 2. Mineral resources are not mineral reserves and donot have demonstrated economic viability / 3. Full details as well as relative distributionof individual TREOs for the Ashram Deposit available in news release dated March 3,2011Based on drilling from 2010(12 holes – 3,300 metres) Page: 13
  • 14. TSXv: CCE / FSE: D7H / OTCQX: CMRZFRare Earth Peer Group: Valuations Potential TREO Market Cap Enterprise EV / TREO Company - Flagship Project Production Contained ($M) Value (EV) Tonne ADVANCED DEVELOPERS Molycorp. - Mt. Pass 2012 2,072,000 5,774 5,436 2624 Lynas Corp. - Mt. Weld 2011 1,414,000 3,654 3,234 2287 Arafura Resources - Nolans 2013 848,000 427 334 394 Alkane Resources - Dubbo 2014 651,000 560 551 846 Selected Average 1538 DEVELOPERS Avalon Rare Metals - Nechalacho 2015 4,298,000 737 698 162 Quest Rare Minerals - Strange Lake 2016 2,098,000 481 437 208 Rare Element Resources - Bear Lodge 2015 548,000 557 490 894 Selected Average 422 EARLY STAGE Frontier Rare Earth - Zandkopsdrift n/a 946,000 240 183 193 Tasman Metals - Norra Karr n/a 327,000 317 302 924 COMMERCE RESOURCES - ELDOR n/a 2,041,000 107 95 47 Hudson Resources - Sarfartoq n/a 213,000 83 79 371 Matamec - Zeus n/a 120,000 64 57 475 Selected Average 402Notes: Potential Production (Source: Deloitte & Touche LLP) / TREO Contained (Source: TMR AdvancedRare-Earth Project Dataset - April 2011) / Market Cap and EV in $CAD (Source: Company Reports) / EVequals Market Capitalization minus Current Assets Page: 14
  • 15. TSXv: CCE / FSE: D7H / OTCQX: CMRZFAshram: Heavy Rare Earth EnrichmentPotential for near surface heavy rare RE Oxide Commerce Molycorp Rare Element Lynas Avalon HREO Zone Mtn Pass Bear Lodge Mt Weld Nechalachoearth enrichment within the Ashram Lanthanum 13.98% 33.20% 31.27% 25.14% 17.13%Deposit Cerium 37.85% 49.10% 47.19% 44.97% 39.50% LREO Praseodymium 5.11% 4.30% 4.05% 4.90% 4.92% Neodymium 23.99% 12.00% 11.87% 17.18% 19.20%• Hole EC10-047 encountered a Samarium 4.52% 0.80% 2.35% 2.44% 3.77% 61 metre interval starting at a Europium 1.24% 0.10% 0.55% 0.56% 0.46% Gadolinium 3.26% 0.20% 1.22% 1.54% 3.11% depth of only 6 metres that Terbium 0.41% 0.10% 0.17% 0.17% 0.41% averaged 1.41% TREO of which Dysprosium 1.72% 0.10% 0.41% 0.58% 1.81% Holmium 0.24% 0.00% 0.03% 0.08% 0.31% HREO 14.56% is represented by heavies Erbium 0.46% 0.00% 0.06% 0.22% 0.76% Thulium 0.05% 0.00% 0.00% 0.02% 0.09%• Heavy enrichment encountered Ytterbium 0.21% 0.00% 0.03% 0.09% 0.59% Lutetium 0.02% 0.00% 0.00% 0.02% 0.09% again in holes EC10-044 and Yttrium 6.95% 0.10% 0.81% 2.09% 7.83% EC10-045 100 metres to the east Total 100.00% 100.00% 100.00% 100.00% 100.00% Carbonatite Carbonatite Carbonatite Carbonatite Peralkaline HREO 14.56% 0.60% 3.28% 5.37% 15.46%Rare for carbonatite orebody;Definition priority for future drilling Source: TMR Advanced Rare-Earth Project Dataset - April 2011 and Company Reports Page: 15
  • 16. TSXv: CCE / FSE: D7H / OTCQX: CMRZF EC08_005 536200 536400 536600 536800 ! 0 30 EC08_003 ! !Current Program 290 6312600 6312600 EC11-054 ! 280Winter drilling in progress: 28 0 6312400 6312400 EC11-051 EC11-049 !• Minimum of 3,000 metres !• Drill rig capable of attaining depths of Centre Pond EC10-046 EC11-048 EC11-050 ! ! 600 metres ! 6312200 6312200 ! EC11-053 EC08_012 EC10-047 EC10-030 ! ! EC10-045 EC10-031 EC10-044 EC11-052 EC10-039Objectives: ! EC10-028 ! ! ! EC10-027 29 ! 30 0 6312000 6312000 0 280 EC10-029 ! ! EC10-043 ! EC10-042• Test the northeastern half of the target• Extend the depth extent of the deposit• Continue to define areas of enrichment 6311800 6311800 300 in the heavy rare earths 536200 536400 536600 536800 ¯ Legend ! Drill Collar, 2011 Total Magnetic Intensity ! Drill Collar, 2010 Red: Band_1 COMMERCE RESOURCES CORP. DDH Sub-surface Trace (2010) Green: Band_2 Ashram Deposit (Plan View) Blue: Band_3 UTM NAD83, Zone19 Eldor Property, Quebec Contours (1 m) 0 50 100 150 200 250 Winter Drill Plan Metre (2011) 1:5,000 April, 2011 Page: 16
  • 17. TSXv: CCE / FSE: D7H / OTCQX: CMRZFUpcoming MilestonesResults of winter drilling programMineralogical studies and metallurgySpring and summer explorationUpdate NI 43-101 resourcePreliminary economic assessmentEldor is a large property; Many explorationtargets remain to be tested Page: 17
  • 18. TSXv: CCE / FSE: D7H / OTCQX: CMRZFBlue River Property, BCFocus: Moving the Upper Fir Tantalum / NiobiumDeposit through development1,000 km2 property located 250 km north of thecity of Kamloops, BC100% Owned; No royaltiesExcellent infrastructure:• Road accessible• Railway, airport, major paved highway• Power grid• Water supply Page: 18
  • 19. TSXv: CCE / FSE: D7H / OTCQX: CMRZFTantalum and NiobiumTantalum and niobium are both rare metals strategicto the electronics and steel industries respectivelyTantalum is primarily used to manufacture electroniccapacitors. Used in everyday items like:• Cell phones• Computers• Digital audio/video players and cameras• LCD/plasma televisions• Gaming devicesNiobium is primarily used as an alloy for theproduction of harder and greater load-bearing steel(used in: bridges, buildings, and oil and gas pipelines). Page: 19
  • 20. TSXv: CCE / FSE: D7H / OTCQX: CMRZFRecent Developments in the Tantalum MarketIn 2010, tantalum prices have risen dramatically Demand Ta2O5 in Concentrate(from US$45-60 to $100+/lb in a concentrate) inresponse to:Supply Constraints• Increasing global pressure on the procurement of tantalum from conflict regions in Central Africa, principally the DRC• US legislation on conflict minerals• Diminishing inventories and stockpiles• Suspended/reduced production Demand Growth Growth in the global demand forLong term: market requires additional production tantalum is expected tofrom projects situated in politically stable countries continue at rates of betweenthat can demonstrate legitimate, long-term supply 8-12% per annum (CAGR) Page: 20
  • 21. TSXv: CCE / FSE: D7H / OTCQX: CMRZFDevelopment Focus:Upper Fir DepositCurrent defined resources: Contained Ta2O5 Contained Nb2O5 Resource Category Tonnes (Mt) Ta2O5 Grade (g/t) Nb2O5 Grade (g/t) (1000s of Kg) (1000s of Kg) Indicated 36.35 195 1,700 7,090 61,650 Inferred 6.40 199 1,890 1,300 12,100Notes:1. Effective date June 30, 2010 / 2. Mineral resources are not mineral reserves and donot have demonstrated economic viability / 3. Complete details available in the newsrelease dated February 2, 2011 and NI 43-101 report filed on SEDARBased on 183 drill holes totaling37,400 metres Page: 21
  • 22. TSXv: CCE / FSE: D7H / OTCQX: CMRZFUpcoming MilestonesPreliminary economic assessment by AMECUpdated NI 43-101 mineral resource estimate - Incorporating 54 holes (12,900 metres) drilled in 20102011 work program: Drilling, advancedmetallurgical testing and development work Page: 22
  • 23. TSXv: CCE / FSE: D7H / OTCQX: CMRZFManagement: Our Industry AdvantageLatest Additions To Team Adding Dr. Axel Hoppe as Adding Mr. Ian Graham to the Chairman of the board the board has added further has sent a clear signal to the depth to our development market and industry: team: • Internationally acknowledged • Formerly Chief Geologist with leader in the global tantalum the Project Generation Group at and rare metal markets Rio Tinto • Formerly Head of Technical • Track-record of successfully DR. AXEL HOPPE Services and Engineering Group MR. IAN GRAHAM moving projects through the for H.C. Starck; the world’s exploration process into largest consumer of tantalum production • President of the Tantalum and • Involved with development work Niobium International Study for Diavik Diamond Mine Center for the years 2002 (Canada), Resolution Copper and 2007 (USA), Eagle Nickel (USA), Lakeview Nickel (USA) and Bunder Diamonds (Africa) Page: 23
  • 24. TSXv: CCE / FSE: D7H / OTCQX: CMRZFClosing ThoughtsEldor Rare Earth Element Project, Quebec:• Major new large tonnage rare earth deposit Strong market• Potential for heavy rare earth enrichment• Winter drilling underway fundamentalsBlue River Tantalum / Niobium Project, BC: for rare metals• Strategic resource of tantalum and niobium• Advancing through development and rare• Preliminary economic assessment earth elementsAdvanced assets; Near term milestones and catalysts Page: 24
  • 25. ContactDave HodgePresident and Director1450 - 789 West Pender StreetVancouver, BC, V6C 1H2Canada1.866.484.2700info@commerceresources.comwww.commerceresources.com Page: 25

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