Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) highlights the results of its 2019 activities and outlines its 2020 plans to create shareholder value by advancing its gold exploration projects in the USA and Canada.

2019 Highlights:

New Polaris, British Columbia:

• Completed an updated Preliminary Economic Assessment (“PEA”) using the BIOX treatment process with very positive economic results. The study showed that for a 750 tpd operation producing 80,000 ounces of gold per year at a gold price of US$1300 per oz, $CA/$US exchange rate of 0.77, cash costs of US$433 per oz and AISC of US$510 per oz , an after-tax NPV (5%) of CA$280 million with an after-tax Internal Rate of Return (“IRR”) of 38% and a 2.7 year pay-back period. Initiated discussions with interested parties to partner with Canarc and advance the New Polaris project through the completion of a feasibility study.

Hard Cash, Nunavut:

• Completed analysis of the 2018 airborne geophysics survey and conducted a field program that delineated four high priority targets. Exploration work included geological mapping, soil sampling (523 samples covering an area 5 km long by up to 2.5 km wide) and rock-chip sampling (91 samples, of which 29 exceeded 1 ppm Au, 16 exceeded 3 ppm Au with a maximum value of 20 ppm Au). This program discovered a new high-grade vein trend (the Dryland zone) along a conspicuous linear magnetic break. Dryland is at least 400 m long, contains rock-chip samples reaching 18.7 g/t and is parallel to the 1.5-km long high-grade Swamp vein trend 1 km to the north. The geophysics, geology and geochemistry were integrated to create the foundation for a first-phase drilling program.

Princeton, British Columbia:

• Completed analysis of the 2018 airborne geophysics survey and conducted a trenching program to extend the high priority vein target. Renegotiated the Option Agreement with the vendors on more viable terms to earn a 75% interest. Completed district-scale reconnaissance and 710 meters of trenching in eight trenches to determine the extent of the previously discovered high-grade gold mineralization and better define priority targets for drilling. The trenching extended the known length of the vein system from 85 m to over 235 m in the northeast direction. Veining is open and concealed below thick overburden to the southwest and projects under post-mineralization volcanic rocks to the northeast. The mesothermal quartz vein system changes northeasterly along strike from being hosted in siltstone to being hosted in granitic dikes, which are thickening to the northeast. Trenches in the northeast extension exposed a granite-hosted quartz-vein stockwork that is at least 35 m wide. Trench sampling results include 3.59 g/t Au over 3.0 m, 3.33 g/t Au over 2.5 m and 5.06 g/t Au over 1.7 m. Quartz-vein samples include 29.10 g/t over 20 cm. Along the southwestern part of the vein zone, trench results included 44.2 g/t Au over 1.6 m true width in the siltstone-hosted vein.

Corral Canyon, Nevada:

• Completed compilation of historical data, relogged historical drill core, completed geological mapping and a 575 soil and rock chip sampling program, and conducted a 5-hole, 1615 meter core drilling program to test two of the four top priority targets. Three holes in the “SW Target” intersected significant thicknesses (to 170 m) of argillic, silicic and sulfidic alteration with abundant adularia in volcaniclastic rocks in the hanging wall of a moderately east-dipping fault. Hole CC19-4 intersected 0.151 g/t Au over 43 m in the hanging wall, with low-grade gold in finely-banded quartz veins in basalt along the footwall of the fault (e.g., 0.6 g/t Au in 30 cm vein). This mineralization appears to be located high in the epithermal gold mineralized system. Mineralization remains open along strike and at depth and there is potential for high-grade gold within the fault zone. In addition to the SW Target area, fault-controlled high-grade gold in the NW Target and other mineralized areas on the project remain attractive exploration targets.

Fondaway Canyon and Dixie Comstock, Nevada:

• Signed a 4-year option to purchase agreement with Getchell Gold for the two properties for US $2.0 million in cash, US $2.0 million in Getchell shares and a 2% NSR. The agreement will provide Canarc with annual cash income of US $100,000 and Getchell will cover the annual claim maintenance fees and advanced Royalty payments totaling approximately US$100,000.

Financing:

• Arranged and closed a non-brokered private placement of flow-through common shares for aggregate gross proceeds to the Company of CAD $1.44 million.

2020 Plans

Canarc will continue to pursue three main strategies to create shareholder value in 2020:

Strategies:

• Explore high impact projects including drilling of the Hard Cash and Windfall Hills exploration projects, a high risk-high reward strategy focused on making new discoveries by spending a “little” money to find a “lot” of gold.

• Acquire strategic new projects in top mining jurisdictions where we can add significant value, including more advanced gold projects that are accretive on a per share basis and early stage projects with opportunities for high-grade discoveries.
• Seek partners to advance the Princeton, Corral Canyon and other Nevada properties and continue discussions with interested parties to advance the New Polaris project through the feasibility study stage.

Canada:

• Hard Cash: Drill 1500 meters in 8-10 reverse circulation holes on the top priority targets
• Windfall Hills: Drill 1000 meters in 3-5 diamond core holes on the main target
• Princeton: Seek a partner to drill the high-grade vein
• New Polaris: Seek a partner to advance the New Polaris project through feasibility, permitting and mine construction

USA:

• Corral Canyon: Seek a partner to drill along strike and to depth
• Other Nevada Projects: Seek partners or buyers

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”