Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) announces that it has reached an agreement with Universal Copper Ltd. (formerly Tasca Resources Ltd.) and Sydney Wilson to modify the terms of its previously-announced option agreement dated December 20, 2018 to acquire an 80% interest in the 14,650 hectare Princeton Gold property located in southern British Columbia, Canada.

Scott Eldridge, Canarc’s CEO, stated: “The amendments reduce Canarc’s exploration commitment from $900,000 to $490,000 and give Canarc more time to conduct early stage exploration and better define targets for drilling. We plan to commence a Phase 2 exploration program this month, including prospecting, mapping, sampling and trenching of the existing gold vein prospects, as well as evaluating geochemical and geophysical methods to detect buried gold veins.”

Revised Option Agreement Terms

To earn 75% interest in the Princeton Gold property from Universal, Canarc will spend $490,000 on exploration over a 2-year period, issue 375,000 common shares and pay $25,000 to Universal as follows:

•      Phase 1 – CAD$100,000 on an airborne geophysical survey (completed);
•      Phase 2 – CAD$90,000 on exploration activity in 2019;
•      Issue 375,000 common shares on or before December 1, 2019;
•      Phase 3 – CAD$300,000 on exploration activity in 2020;
•      Pay CAD$25,000 on or before December 31, 2020;

Once Canarc exercises its option and earns its 75% interest, Canarc and Universal will form a 75/25 joint venture to further explore and develop the property.  Universal will retain a 1% NSR royalty on the property and Sydney Wilson has a 2% NSR royalty on the “Sydney Wilson claims” portion of the property which totals 4,012 hectares. The Universal NSR and 50% of the Wilson NSR can be acquired for $1.0 million each.

Property Location

The road accessible Princeton Gold property consists of 14,650 hectares located 35 kilometers south of Princeton, British Columbia, 95 kilometers south the Shovelnose property (Westhaven Ventures Inc, TSX-V: WHN), and 11 kilometers south of the producing Copper Mountain Copper Mine (Copper Mountain Mining Corporation, TSX: CMMC).

Geology and Mineralization

The property is underlain by both Eocene Princeton Group volcanics and Triassic Nicola Group volcanics.  Gold bearing quartz veins occur in Nicola volcanics proximal to Princeton volcanics.  Mineralization is confined to the quartz veins or within the first meter of the andesitic host rock. The quartz veins range from 0.3 to 1.8 meters in width and consist of white quartz with limonite fractures, irregular limonitic patches and a rare vuggy texture.

Next Steps

Canarc plans to commence a Phase 2 exploration program this month, including prospecting, mapping, sampling and trenching of the existing gold vein prospects, as well as evaluating geochemical and geophysical methods to detect buried gold veins. The property is already permitted for ten drilling sites and fifty trenching sites.

Qualified Person

Garry Biles, P.Eng, President & COO for Canarc Resource Corp, is the Qualified Person who reviewed and approved the contents of this news release.

“Scott Eldridge”