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Canarc Announces Normal Course Issuer Bid

Corporate Actions

CANARC ANNOUNCES NORMAL COURSE ISSUER BID

Vancouver, Canada – February 6, 2017 – Canarc Resource Corp. (the “Company”) (TSX: CCM,

OTC-BB: CRCUF, Frankfurt: CAN) announces that it has received the approval of the Toronto Stock

Exchange (the “TSX”) to make a normal course issuer bid (the “Bid”) to acquire up to 10,859,479

common shares (the “Common Shares”) of the Company, or approximately 5% of the 217,189,597

Common Shares issued and outstanding, through the facilities of the TSX.

The Company’s board of directors and management team believe that the Bid is an appropriate use o f the

Company’s available funds to return capital to shareholders when the market price of the Common Shares

does not fully reflect their underlying value. Any Common Shares purchased under the Bid will increase

the proportionate equity interest of, and is intended to be advantageous to, all remaining shareholders.

Purchases under the Bid may commence on February 8, 2017 and will terminate on February 7, 2018, or

on such earlier date as the Bid is complete. The actual number of Common Shares purchased unde r the

Bid and the timing of any such purchases will be at the Company’s discretion. Purchases of Common

Shares will be made through the facilities of the TSX and on alternative Canadian markets, in accordance

with the TSX rules. Subject to the TSX’s block purchase exception, on any trading day, purchases under

the Bid will not exceed 86,128 Common Shares, such amount representing 25% of the average daily

trading volume of the Common Shares of 344,515 for the six calendar months prior to the start of the Bid .

The Company will pay the prevailing market price at the time of purchase for all Common Shares

purchased under the bid, and all Common Shares purchased by the Company will be cancelled. The

Company has not purchased any of its Common Shares in the 12 cal endar months prior to the start of the

Bid.

“Catalin Chiloflischi”

Catalin Chiloflischi, CEO

CANARC RESOURCE CORP.

About Canarc Resource Corp . - Canarc is a growth -oriented, gold exploration and mining Company

listed on the TSX (CCM) and the OTC -BB (CRCUF). The Company is currently focused on acquiring

operating or pre -production stage gold -silver-copper mines or properties in the Americas and further

advancing its gold properties in north and central BC.

For More Information - Please contact:

Catalin Chiloflischi, CEO

Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Fax: (604) 685-9744

Email: [email protected] Website: www.canarc.net

CANARC RESOURCE CORP .

301-700 West Pender Street

Vancouver, BC V6C 1G8

T: 604.685.9700

F: 604.68 5-9744

TF: 1.877.684.9700

www.canarc.net

CCM: TSX

CRCUF: OTCQX

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward -looking statements” within the meaning of the United States private securities

litigation reform act of 1995 and “forward -looking information” within the meaning of applicable Canad ian

securities legislation. Statements contained in this news release that are not historical facts are forward -looking

information that involves known and unknown risks and uncertainties. Forward -looking statements in this news

release include, but are no t limited to, statements with respect to planned purchases of Common Shares under the

Bid. In certain cases, forward -looking statements can be identified by the use of words such as "plans", "has

proven", "expects" or "does not expect", "is expected", "pot ential", "appears", "budget", "scheduled", "estimates",

"forecasts", "at least", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and

phrases or state that certain actions, events or results "may", "could", "wou ld", "should", "might" or "will be taken",

"occur" or "be achieved".

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the

actual results, performance or achievements of the Company to be materiall y different from any future results,

performance or achievements expressed or implied by the forward -looking statements. Such risks and other factors

include, among others, risks related to changes in the market price of the Company’s securities; the Compa ny’s

available working capital; the uncertainties inherent in the estimation of mineral resources; commodity prices;

changes in general economic conditions; market sentiment; currency exchange rates; the Company's ability to

continue as a going concern; th e Company's ability to raise funds through equity financings; risks inherent in

mineral exploration; risks related to operations in foreign countries; future prices of metals; failure of equipment or

processes to operate as anticipated; accidents, labor di sputes and other risks of the mining industry; delays in

obtaining governmental approvals; government regulation of mining operations; environmental risks; title disputes

or claims; limitations on insurance coverage and the timing and possible outcome of l itigation. Although the

Company has attempted to identify important factors that could affect the Company and may cause actual actions,

events or results to differ materially from those described in forward -looking statements, there may be other factors

that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that

forward looking statements will prove to be accurate, as actual results and future events could differ materially from

those anticipated in such statements. Accordingly, do not place undue reliance on forward -looking statements. All

statements are made as of the date of this news release and the Company is under no obligation to update or alter

any forward-looking statements except as required under applicable securities laws.