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Canarc Announces Phase 1 Drill Program at Corral Canyon Gold Project, Nevada ______________________________________________________________________________________

Exploration Programs

Canarc Announces Phase 1 Drill Program at Corral Canyon Gold Project,

Nevada

______________________________________________________________________________________

Vancouver, Canada – October 1 5, 2019 – Canarc Resource Corp. (TSX: CCM, OTC -QB:

CRCUF, Frankfurt: CAN) announces that a Phase 1, four hole, 1,37 5 meter core drilling

program has commenced at its Corral Canyon project, Nevada. Corral Canyon is located 115

km north of Winnemucca and 70 km north of the past-producing, high-grade Sleeper gold mine

(1.7 million ounces (oz) past production, 3.1 million oz resource) in northwestern Nevada.

Scott Eldridge, Canarc's CEO, stated: “We are excited to commence our maiden drill program at

Corral Canyon, reflecting our refined corporate strategy to focus on exploring for new discoveries.

The project's low sulfidation epithermal type of gold mineralization, its geological characteristics

and location are considered very prospective.”

“The drill program will test two of four targets identified to date for both broad, shallow, lower

grade disseminated gold mineralization as well as narrower, deeper, high -grade “bonanza” type

veins. Prior exploration focused largely on one area of shallow, low grade disseminated gold

mineralization whereas Canarc’s main focus is to test the potential for high grade feeder veins.”

As outlined in the Company's news release on September 30th, 2019, four priority drill targets

have been identified on the property. For this first phase of drilling, two of these targets, the

NW and SW Targets, will be tested with two core holes each at lengths ranging from about 225

to 450 m for an expected total of about 1,375 m (view target map).

The SW Target comprises a new area of gold -silver mineralization discovered by Canarc this

summer that extends the gold system to the south by at least 500 m. Surface sample results

include 0 .735 g/t Au over 2 m in rock chips and 114 ppb Au in soils along the basalt/rhyolite

contact similar to the NW Target 2 km to the north. Canarc plans to drill below the surface

geochemical anomalies coincident with a prominent high -chargeability zone defined by a

historical gradient-array IP survey . The two holes will test the basalt/rhyolite contact down

dip and also test for steeply dipping faults that could host high-grade mineralization.

At the NW Target, Canarc plans to test the continuation of known stratiform m ineralization to

depth and along strike as well as test for high-grade gold at deeper levels within two faults that

could host high-grade mineralization. The NW Target was t he focus of historic exploration

drilling which identified extensive, low-grade, disseminated gold within a sulfidic silicified zone

CANARC RESOURCE CORP.

810-625 Howe Street

Vancouver, BC V6C 2T6

T: 604.685.9700

F: 604.6685 -9744

www. canarc.net

CCM: TSX

CRCUF: OTCQ B

and quartz-vein stockwork following a basalt/rhyolite contact. Local high -grade quartz veins

were also intersected. This stratiform style of mineralization is up to 40 m thick and includes

intersections of 0.36 gpt Au over 42.7 m including 0.54 gpt o ver 16.8 m. The high -grade

mineralization includes 14.9 gpt Au over 1.5 m within 2.64 gpt Au over 10.7 m.

About Corral Canyon

The Company owns 92 mining claims covering 730 hectares that were acquired by staking in

late 2018 and have no underlying royalties. The project covers a significant, volcanic-hosted,

low sulfidation epithermal gold system of Middle Miocene age that is at least 2.8 km long. Corral

Canyon is geologically similar to other high -grade deposits of this type in the northwestern

Great Basin of Nevada, including Sleeper, Midas, Fire Creek, Hollister, Rawhide, Mule Canyon

and Buckhorn. The project lies along the north -northwest trending Western Nevada rift that,

to the south, includes the geologically-similar Sleeper, Sandman and Goldbanks deposits.

Qualified Person

Dr. Jacob Margolis is a qualified person, as defined by National Instrument 43 -101, and has

approved the technical information in this news release. Dr. Margolis is engaged as a consultant

to Canarc Resource Corp as Vice President of Exploration.

"Scott Eldridge”

____________________

Scott Eldridge, Chief Executive Officer

CANARC RESOURCE CORP.

About Canarc - Canarc Resource Corp. is a growth-oriented gold exploration company focused

on generating superior shareholder returns by discovering, exploring and developing strategic

gold deposits in North America. The Company is currently advancing two core assets, each with

substantial gold resources, and has initiated a high impact exploration strategy to acquire and

explore new properties that have district -scale gold discovery potential. Canarc shares trade

on the TSX: CCM and the OTCQB: CRCUF.

For More Information - Please contact: 


Scott Eldridge, CEO

Toll Free: 1-877-684-9700
Tel: (604) 685-9700
Cell: (604) 722-5381


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

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 ap plicable Canadian securities legislation.

Statements contained in this news release that are not historic facts are forward -looking information that involves known and

unknown risks and uncertainties. Forward-looking statements in this news release include, but are not limited to, statements with

respect to the future performance of Canarc, and the Company's plans and exploration programs for its mineral properties,

including the timing of such plans and programs. 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", "potential", "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", "would", "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 materially different from any future results, performance or achievements

expressed or implied by the forward -looking statements. Such risks an d other factors include, among others, the Company’s

ongoing due diligence review in relation to the Acquisition, risks related to 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; the Company's ability to raise funds through equity financings; risks inherent in min eral

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

as anticipated; accidents, labor disputes 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 litigation. 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.