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Canarc Engages Hatch to Evaluate the Feasibility of Installing a Small Concentrate Autoclave to Produce Gold Dore Bars at the New Polaris Mine Site

Corporate Updates

News Release

Canarc Engages Hatch to Evaluate the Feasibility of Installing a Small Concentrate

Autoclave to Produce Gold Dore Bars at the New Polaris Mine Site

Vancouver, Canada May 1 5, 2018 – Canarc Resource Corp. (TSX: CCM, OTC -BB: CRCUF,

Frankfurt: CAN) announces that it has engaged Hatch Ltd., a global engineering company, to

evaluate the feasibility of installing and operating a small concentrate autoclave at Canarc’s New

Polaris mine site in northern BC as part of a process plant to produce gold dore bars onsite.

New Polaris, Canarc’s most advanced gold mine project, has no road access so if building and

operating an autoclave is economic to produce gold dore bars onsite, the project can be

remodeled as a fly in -fly out operation with seas onal barging, a possible major breakthrough for

advancing the project towards production.

New Polaris Project:

Over the past 28 years, the Company has invested over $30 million on surface and underground

exploration, mine access and development, resource estimation and economic studies of the

project. A major hurdle to economic development has been the cost and challenge of shipping

refractory gold concentrates to Juneau Alaska 60 kilometers to the southwest and then either

south to the USA for sale to existing autoclave facilities or overseas for sale to smelters.

The installation of a small autoclave at New Polaris site for processing the concentrates into gold

dore bars would eliminate this obstacle to developing the project. Hatch is a world leader in the

design and installation of autoclaves , which are successfully used at various mines around the

world for producing gold dore bars from refractory sulfide mineralization such as New Polaris.

Hatch was selected for their extensive experience in the desi gn, engineering, construction and

operation of mineral processing facilities utilizing autoclaves and pressure oxidation technology.

Their site evaluation and cost analysis are expected to be complete in August 2018.

If results are positive , the Company plans to incorporate a concentrate autoclave in an updated

Preliminary Economic Assessment (“PEA”) to be completed by the end of 2018. Canarc can then

turn its attention to financing or partnering the New Polaris gold mine project to feasibility.

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: OTCQX

Update on Canarc Exploration Projects

Nevada Properties, USA

The Company has invested over $1 million on exploration drilling and geological work at the

Fondaway Canyon Project in Nevada since acquiring the AIM property portfolio one year ago and

is very encouraged with the results to date. Geological mapping and sampling at Fondaway

Canyon continues to uncover new areas of gold mineralization along the main mineralized trend.

Canarc has engaged SRK Geological Engineers in Reno, Nevada to develop a comprehensive 3D

resource model for Fondaway Canyon that will include all the historic data as well as the result s

of the 2017 exploration program. The new model will help identify the most prospective areas in

and around the current resources as well as evaluate the current mining potential.

The new model will also allow the Company to properly plan a second Fall 2018 drilling campaign

focused on expanding the current resources and further advancing the project.

The evaluation of Canarc’s nine other Nevada projects has been completed and the Company is

now seeking interested parties for possible sales or joint venture opportunities on these projects.

Windfall Hills, Canada:

The Company is planning to complete a dditional exploration at Windfall Hills in the summer/fall

of 2018 with a budget of $400,000 , funded from the proceeds of the flow through equity

financing the Company closed in March 2017 at a price of $0.13 per share. An exploration permit

from the BC Ministry of Mines is expected in May 2018.

Canarc plans to expand the current geological mapping, geochemical sampling and geophysical IP

grid onto adjacent prospective areas identified by a recent geological compilation , extend

previous trenching to better define areas of known gold mineralization, and identify new drill

targets throughout the property.

Qualified Person:

Garry Biles,P.Eng, President & COO is a qualified person, as defined by National Instrument 43 -

101, and has approved the technical information in this news release.

"Catalin Kilofliski”

____________________

Catalin Kilofliski, Chief Executive Officer

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 creates shareho lder

value by acquiring, exploring and developing pre -production stage gold mines or properties in

the Americas.

For More Information - Please contact: 


Catalin Kilofliski, CEO

Tel: (604) 685-9700
Fax: (604) 685-9744


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 secu rities litigation

reform act of 1995 and “forward -looking information” within the meaning of applicable Canadian securities legislation.

Statements contained in this news release that are not historic facts are forward -looking information that involves kno wn 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 propertie s,

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", "schedu led",

"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 take n", "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, pe rformance or

achievements expressed or implied by the forward -looking statements. Such risks and 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; th e

Company's ability to continue as a going concern; the 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 proce sses to

operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in obtai ning governmental

approvals; government regulation of mining operations; environmental risks; title disputes or claims; limitations on insuranc e

coverage and the timing and possible outcome of litigation. Although the Company has attempted to identify impo rtant 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 f orward-

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.