Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canarc”) announces that it has closed the first tranche of its private placement, previously announced by Canarc in press releases dated August 19, 2020 and September 3, 2020.  The first tranche of the private placement consisted of the issuance of 40 million units priced at CAD$0.08 per unit for total proceeds of CAD$3.2 million.  Each unit consists of one common share in the capital of Canarc and one-half of one common share purchase warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder to acquire one additional common share of the Company at an exercise price of CAD$0.13 for a period of 24 months from the closing date.  If the daily volume-weighted average price of Canarc’s common shares is equal to or greater than CAD$0.20 for a period of 10 consecutive trading days, Canarc will have the right to accelerate the expiry date of the Warrants by giving written notice to the Warrant holders that the Warrants will expire on the date that is 30 days from the date notice is provided by Canarc to the Warrant holders.  Finders’ fees of 6% were payable in cash on certain portions of the first tranche of the private placement.

The securities issued in the private placement are subject to a four-month plus one day hold period ending on February 8, 2021 in accordance with applicable securities laws and the policies of the Toronto Stock Exchange (the “Exchange”).  The private placement is subject to the final acceptance of the Exchange.

Use of proceeds will be for exploration of Canarc’s gold projects and to strengthen its working capital.

“Scott Eldridge”