Canarc Resource Corp. (TSX: CCM, OTCQX: CRCUF, Frankfurt: CAN) (“Canarc” or the “Company”) has commenced a CAD$400,000 exploration program on its 100% owned Windfall Hills gold project located 65 kilometres (km) south of Burns Lake and 90 km northwest of NewGold’s large Blackwater-Davidson gold-silver discovery in central BC.

Canarc previously conducted three phases of exploration in 2012, 2014 and 2016 at Windfall Hills to discover encouraging gold mineralization in the 94-4 Zone.  Three drill holes in 2014 each intersected gold mineralization. The best intercept was 0.89 grams per tonne (gpt) gold and 39 gpt silver for 1.41 gpt gold equivalent (75:1 silver:gold ratio) over a 28 m core length (0.041 oz per ton over 91.9 feet) in hole WH-14-03 (true width not yet determined). For more information on the foregoing drill results, see the Canarc’s news release dated October 9, 2014. 

In 2016, Canarc conducted a 3D Induced Polarization (3DIP) ground geophysical survey covering 4 square km, or about 10% of the Windfall Hills property.  The survey identified four anomalies of coincident resistivity and chargeability highs, one of which covers the 94-4 zone where geochemical sampling and shallow diamond drilling previously encountered significant gold and silver mineralization.

The current exploration program consists of property-wide stream sediment sampling; reconnaissance soil sampling, mapping, and prospecting; airborne geophysical surveying (magnetics and radiometrics) of the entire property; and 2000 meters of machine trenching; to detect new gold-silver anomalies and better delineate the known epithermal stock-work gold-silver mineralization.

The CAD$400,000 budget is covered by flow-through funding raised at CAD$0.13 per share in 2016.  Results are expected in November. The Windfall Hills project displays many of the geological features of and has excellent potential for the discovery of a Blackwater-Davidson type gold-silver mineralization.

Garry Biles, P.Eng, President & COO, is the qualified person, as defined by National Instrument 43-101, who has reviewed and approved the technical information in this news release.