Presentation: Commerce Resources (May 2011)

TSXv: CCE / FSE: D7H / OTCQX: CMRZF / www.commerceresources.com

Metals for the Future Rare Metals and Rare Earth Elements

MAY 2011

Page: 02

Forward Looking Statements

TSXv: CCE / FSE: D7H / OTCQX: CMRZF

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

[email protected]

www.commerceresources.com


Page: 03

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


Commerce Resources Corp.

Page: 05

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


Page: 07

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


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


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


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


Page: 14

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


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


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


Page: 16

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

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536200

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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


Page: 18

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


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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Page: 20

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)


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


Page: 23

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)


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


Dave HodgePresident and Director

1450 - 789 West Pender StreetVancouver, BC, V6C 1H2Canada

1.866.484.2700

[email protected] www.commerceresources.com

Contact

Page: 25

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Presentation: Commerce Resources (May 2011)

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