TSXv: CCE / FSE: D7H / OTCQX: CMRZF / www.commerceresources.com Metals for the Future Rare Metals and Rare Earth Elements MAY 2011
May 08, 2015
TSXv: CCE / FSE: D7H / OTCQX: CMRZF / www.commerceresources.com
Metals for the Future Rare Metals and Rare Earth Elements
MAY 2011
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Forward Looking Statements
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Except for historical information contained herein, this presentation may contain forward looking
statements including but not limited to comments regarding predictions and projections.
Forward looking statements address future events and conditions and therefore involve inherent
risks and uncertainties. Although Commerce Resources Corp. believes that such expectations
are reasonable, there can be no assurance that such expectations will prove to be correct, and
therefore 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, whether
made in this presentation or in any question and answer period related to this presentation.
Suite 1450 – 789 West Pender Street
Vancouver, BC V6C 1H2 Canada
Toll Free: 1.866.484.2700
Phone: 604.484.2700
www.commerceresources.com
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Significant Achievements: Past 12 MonthsP Rare earth element discovery at Eldor Property in Quebec P New NI 43-101 resource estimate for Blue River Property expanding tantalum-niobium resource P Initial NI 43-101 resource estimate for rare earth element discovery at Eldor (Ashram Deposit) P Coverage by independent newsletter analyst John Kaiser P Increased market capitalization with 156% increase in share price P Listing on OTCQX Market in the United States
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Commerce Resources Corp. is a Canadianjunior exploration and development company,focused on rare metals and rare earth elements.
Two advanced projects:
• EldorRareEarthElementProject,Quebec: - Major new large tonnage rare earth deposit - Potential for heavy rare earth enrichment
• BlueRiverTantalum/NiobiumProject,BC: - Moving through development
ELDORRare Earth ElementsQuebec
BLUE RIVER Tantalum and NiobiumBritish Columbia
• Experienced and dedicated management • Founded in 1999
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Commerce Resources Corp.
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Structure and Market InformationSymbols: TSX-V (Canada): CCE FSE (Germany): D7H OTCQX (USA): CMRZF
Shares Outstanding: 134 MOptions: 9.6 MWarrants: 34.1 MBroker Warrants: 0.3 M
Fully Diluted: 178 M
Recent Price: $0.7552-Week Range: $0.20 - $1.08Market Cap: $100 MillionAvg. Volume (3M): 445,000
$10 million in cash and investments *Data as at May 2011
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Rare Earth Elements
Rare earth elements are a group of 17 chemical elementsthat are critical to two of the fastest-growing sectors:energy and high technology
Energy: High technology:
- Hybrid/Electric cars - Flat panel displays- Wind turbines - Refrigeration - Rechargeable batteries - Water filtration- Catalysts - Defense applications
New applications are constantly being developed forrare earths given their unique attributes
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Rare Earth Elements: Performance of Equities
Source: Capital IQ. Peer group includes: Molycorp, Lynas, Arafura, Alkane, Great Western, Avalon, Greenland Minerals, Quest, Matamec, Rare Element Resources, Frontier, Hudson, Commerce, Wealth Minerals, Tasman
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Rare Earth Elements: Prices
China’s export quota has triggered recent increase in oxide prices
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Source: Ernst & Young “Technology Minerals: The rare earth race is on!” April 2011
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Chinese Perspective: Rare Earth SupplyTargets 2013 & 2015 and Beyond
China is anticipating new supply from the rest of the world (ROW)
Opportunity for new suppliers
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Source: Dr. Chen Zhanheng, PhD, The Chinese Society of Rare Earths, Critical Metals Investment Summit January 2011
FORECAST ON SUPPLYIN 2013 (TONNES)
China ROW
FORECAST ON TARGET SUPPLY AFTER 2015 (TONNES)
China ROW
China8700065%ROW
4740035%
China10000036%
ROW17800064%
Eldor Rare Earth Property,Quebec
Situated in northern Quebec; 130 km south of the community of Kuujjuaq
100% owned; One claim block covering 200 km2
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Exploration Focus: Ashram Zone
Located in the centre of the Eldor Property
Defined by an aeromagnetic low measuring 1,000 by 800 metres
Tested in 2010 over an area measuring 650 by 350 metres to depths of up to 365 metres (12 holes – 3,300 metres)
All holes intersected significant rare earth mineralization; Majority bottomed in mineralization
Zone is open to the north, south, east, at depth, and is not fully constrained to the west
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Ashram Zone:Cross Section
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Large, consistently mineralized
ore body with mineralized
intervals from surface – potentially
amenable to open pit mining
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Initial NI 43-101 Resource: Ashram DepositDefined resources to end of 2010:
Notes: 1. Effective date March 1, 2011 / 2. Mineral resources are not mineral reserves and do not have demonstrated economic viability / 3. Full details as well as relative distribution of individual TREOs for the Ashram Deposit available in news release dated March 3, 2011
Based on drilling from 2010(12 holes – 3,300 metres)
Cut-off Grade (% TREO) Tonnes (Mt) Average Grade (% TREO) Contained TREO (t)
Inferred Resource 1.25% 117.34 1.74% 2,040,543
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Rare Earth Peer Group: ValuationsCompany - Flagship Project Potential
ProductionTREOContained
Market Cap($M)
Enterprise Value (EV)
EV / TREOTonne
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 402
Notes: Potential Production (Source: Deloitte & Touche LLP) / TREO Contained (Source: TMR Advanced Rare-Earth Project Dataset - April 2011) / Market Cap and EV in $CAD (Source: Company Reports) / EV equals Market Capitalization minus Current Assets
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Ashram: Heavy Rare Earth EnrichmentPotential for near surface heavy rare earth enrichment within the Ashram Deposit
• HoleEC10-047encountereda
61 metre interval starting at a
depth of only 6 metres that
averaged 1.41% TREO of which
14.56% is represented by heavies
• Heavyenrichmentencountered
again in holes EC10-044 and
EC10-045 100 metres to the east
Rare for carbonatite orebody;Definition priority for future drilling
RE Oxide CommerceHREO Zone
MolycorpMtn Pass
Rare ElementBear Lodge
LynasMt Weld
AvalonNechalacho
LRE
O
Lanthanum 13.98% 33.20% 31.27% 25.14% 17.13%
Cerium 37.85% 49.10% 47.19% 44.97% 39.50%
Praseodymium 5.11% 4.30% 4.05% 4.90% 4.92%
Neodymium 23.99% 12.00% 11.87% 17.18% 19.20%
Samarium 4.52% 0.80% 2.35% 2.44% 3.77%
HR
EO
Europium 1.24% 0.10% 0.55% 0.56% 0.46%
Gadolinium 3.26% 0.20% 1.22% 1.54% 3.11%
Terbium 0.41% 0.10% 0.17% 0.17% 0.41%
Dysprosium 1.72% 0.10% 0.41% 0.58% 1.81%
Holmium 0.24% 0.00% 0.03% 0.08% 0.31%
Erbium 0.46% 0.00% 0.06% 0.22% 0.76%
Thulium 0.05% 0.00% 0.00% 0.02% 0.09%
Ytterbium 0.21% 0.00% 0.03% 0.09% 0.59%
Lutetium 0.02% 0.00% 0.00% 0.02% 0.09%
Yttrium 6.95% 0.10% 0.81% 2.09% 7.83%
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%
Source: TMR Advanced Rare-Earth Project Dataset - April 2011 and Company Reports
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Current ProgramWinter drilling in progress:
• Minimumof3,000metres• Drillrigcapableofattainingdepthsof 600 metres
Objectives:
• Testthenortheasternhalfofthetarget• Extendthedepthextentofthedeposit• Continuetodefineareasofenrichment in the heavy rare earths
!!
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EC11-048
EC11-052
EC11-051
EC11-050
EC11-049
EC11-053
EC11-054
EC10-047
EC10-046
EC10-045EC10-044
EC10-043EC10-042
EC10-039EC10-031EC10-030
EC10-029
EC10-028EC10-027
EC08_012
EC08_005
EC08_003
280
290300
300
280
290
280
300
536200
536200
536400
536400
536600
536600
536800
536800
6311
800
6311
800
6312
000
6312
000
6312
200
6312
200
6312
400
6312
400
6312
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6312
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¯ COMMERCE RESOURCES CORP.
Eldor Property, Quebec
Winter Drill Plan(2011)
0 50 100 150 200 250Metre
1:5,000
Legend! Drill Collar, 2011
! Drill Collar, 2010
DDH Sub-surface Trace (2010)
Ashram Deposit (Plan View)
Contours (1 m)
Total Magnetic IntensityRed: Band_1
Green: Band_2
Blue: Band_3
April, 2011
UTM NAD83, Zone19
Centre Pond
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Upcoming MilestonesResults of winter drilling program
Mineralogical studies and metallurgy
Spring and summer exploration
Update NI 43-101 resource
Preliminary economic assessment
Eldor is a large property; Many explorationtargets remain to be tested
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Blue River Property, BCFocus: Moving the Upper Fir Tantalum / NiobiumDeposit through development
1,000 km2 property located 250 km north of thecity of Kamloops, BC
100% Owned; No royalties
Excellent infrastructure:• Roadaccessible• Railway,airport,majorpavedhighway• Powergrid• Watersupply
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Tantalum and niobium are both rare metals strategicto the electronics and steel industries respectively
Tantalum is primarily used to manufacture electroniccapacitors. Used in everyday items like:
• Cellphones• Computers• Digitalaudio/videoplayersandcameras• LCD/plasmatelevisions• Gamingdevices
Niobium is primarily used as an alloy for theproduction of harder and greater load-bearing steel(used in: bridges, buildings, and oil and gas pipelines).
Tantalum and Niobium
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In 2010, tantalum prices have risen dramatically(from US$45-60 to $100+/lb in a concentrate) inresponse to:
Supply Constraints• Increasingglobalpressureontheprocurement of tantalum from conflict regions in Central Africa, principally the DRC• USlegislationonconflictminerals• Diminishinginventoriesandstockpiles• Suspended/reducedproduction Long term: market requires additional productionfrom projects situated in politically stable countriesthat can demonstrate legitimate, long-term supply
Recent Developments in the Tantalum Market
Demand GrowthGrowth in the global demand for tantalum is expected tocontinue at rates of between 8-12% per annum (CAGR)
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Demand Ta2O5 in Concentrate
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Development Focus:Upper Fir Deposit
Current defined resources:
Notes: 1. Effective date June 30, 2010 / 2. Mineral resources are not mineral reserves and do not have demonstrated economic viability / 3. Complete details available in the news release dated February 2, 2011 and NI 43-101 report filed on SEDAR
Based on 183 drill holes totaling37,400 metres
Resource Category Tonnes (Mt) Ta2O5 Grade (g/t) Nb2O5 Grade (g/t) Contained Ta2O5 (1000s of Kg)
Contained Nb2O5 (1000s of Kg)
Indicated 36.35 195 1,700 7,090 61,650
Inferred 6.40 199 1,890 1,300 12,100
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Preliminary economic assessment by AMEC
Updated NI 43-101 mineral resource estimate - Incorporating 54 holes (12,900 metres) drilled in 2010
2011 work program: Drilling, advancedmetallurgical testing and development work
Upcoming Milestones
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Management: Our Industry Advantage
Adding Dr. Axel Hoppe as
the Chairman of the board
has sent a clear signal to the
market and industry:
• Internationallyacknowledged
leader in the global tantalum
and rare metal markets
• FormerlyHeadofTechnical
Services and Engineering Group
for H.C. Starck; the world’s
largest consumer of tantalum
• PresidentoftheTantalumand
Niobium International Study
Center for the years 2002
and 2007
Adding Mr. Ian Graham to
the board has added further
depth to our development
team:
• Formerly Chief Geologist with
the Project Generation Group at
Rio Tinto
• Track-recordofsuccessfully
moving projects through the
exploration process into
production
• Involvedwithdevelopmentwork
for Diavik Diamond Mine
(Canada), Resolution Copper
(USA), Eagle Nickel (USA),
Lakeview Nickel (USA) and
Bunder Diamonds (Africa)
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Latest Additions To Team
DR. AXEL HOPPE MR. IAN GRAHAM
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Eldor Rare Earth Element Project, Quebec: • Majornewlargetonnagerareearthdeposit• Potentialforheavyrareearthenrichment• Winterdrillingunderway
Blue River Tantalum / Niobium Project, BC: • Strategicresourceoftantalumandniobium• Advancingthroughdevelopment• Preliminaryeconomicassessment
Advanced assets; Near term milestones and catalysts
Closing Thoughts
Strong market fundamentals for rare metals and rareearth elements
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Dave HodgePresident and Director
1450 - 789 West Pender StreetVancouver, BC, V6C 1H2Canada
1.866.484.2700
[email protected] www.commerceresources.com
Contact
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