Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada

News Release

Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon,

Nevada

Vancouver, Canada – July 31, 2017 – Canarc Resource Corp. (TSX: CCM, OTC -BB: CRCUF,

Frankfurt: CAN) is pleased to report that a recently completed surface rock -chip sampling and

mapping program at its Fondaway Canyon property in Churchill County, Nevada ha s returned

several high-grade gold values of over 5 gpt Au in multiple zones at surface.

Of the 42 surface rock-chip samples collected in June and July 2017, five samples as sayed gold

values of 10-24 gpt Au, eleven samples returned over 5 gpt Au and twenty-five samples essayed

over 1 gpt Au.

Table 1 highlights the Fondaway Canyon 2017 rock-chip samples over 5 gpt Au

Sample Type Zone gpt Au* Width (m)

JM-FC9 Outcrop Colorado 24.00 2.0

JM-FC37 Stockpile

(UG) Halfmoon 21.40 Composite

JM-FC42 Outcrop Stibnite-

Paperweight 19.80 2.0

JM-FC33 Outcrop South Pit 15.75 0.5

JM-FC36 Stockpile

(UG) Halfmoon 11.45 Composite

JM-FC38 Stockpile

(UG) Halfmoon 9.62 Composite

JM-FC41 Outcrop Stibnite-

Paperweight 8.59 0.3

JM-FC40 Outcrop Stibnite-

Paperweight 7.91 2.0

JM-FC24 Outcrop Halfmoon 5.87 3.0

JM-FC2 Outcrop South Mouth 5.71 2.0

JM-FC13 Outcrop Colorado 5.05 2.0

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

* All values in gpt ; analysis by ALS Minerals; gold analyzed by 1 assay -ton fire assay and atomic

absorption spectometry; gravimetric analysis for values exceeding 10 gpt Au; other elements by

aqua-regia digestion and ICP-AES and ICP-MS techniques. Samples sorted by Au values.

Figure 1 illustrates the location and relative relationship of the numerous gold mineralized

structures and zones at Fondaway Canyon.

In the Colorado zone , located at the northwest corner of the dilation zone where northeast -

striking and east-west mineralized zones intersect, sample JM-FC9 returned very high-grade gold

mineralization of 24.0 gpt Au over 2 meters. A sample from a steeply dipping shear vein in this

area contained 5.0 gpt Au across 2 m (JM -FC13) while a sample from a nearby dike assayed 4.1

gpt Au (JM -FC8). Low -grade gold also occurs across broad areas of iron -stained, altered shale

and siltstone, e.g., 0.95 gpt Au across 7 m (JM -FC10). Historic shallow drilling intersected

significant gold mineralization within 125 meters of surface. Drill hole TF -114, intersected 7.4

gpt Au over 49 m including 17.6 gpt Au over 15 m. Dri ll hole TF-50 intersected 4.9 gpt over 50 m

including 18.9 gpt over 7.6 m.

In the Stibnite-Paperweight zone, located at the northeast corner of the dilation zone, recent

sampling has confirmed high -grade mineralization within steeply dipping and shallowly dipping

shear veins. A chip sample across an east -west striking and steeply dipping shear vein returned

19.8 gpt over 2 meters (JM -FC42). The northeast -striking mineralization is a stock -work zone

measuring at least 20 m wide at the surface exposure. Th e most recent sampling in this area

returned 5.9 gpt over 3 m (JM -FC24) and 7.9 gpt over 2 m (JM -FC40) in steeply dipping

structures and 8.6 gpt over 0.3 m (JM -FC41) in a shallowly -dipping structure. Historic drilling in

this area has intersected minerali zation exceeding 3 gpt Au down dip for about 350 m. Historic

underground channel sampling of this zone by Tenneco in 1989 included 21.8 gpt over 1.5 m,

16.1 gpt over 3 m and 12.7 gpt over 3 m. Recently collected samples from surface stockpiles of

this material returned 21.4 gpt Au (JM-FC37) and 11.4 gpt Au (JM-FC38). Historic drill hole 02FC-

4 contained the deepest historic mineralization intersection with 4.2 gpt over 17 m.

In the South Pit zone , high-grade gold was also sampled at the structural intersection marking

the southeast corner of the dilation zone. A 20 -m wide northeast -trending mineralized

structure intersects a 7 -m wide east -west mineralized structure. 2017 chip sampling yielded

15.7 gpt Au over 0.5 m (JM -FC33). There has been limited historic drilling in this area, but

historic drill hole (TF-219) in this vicinity contained 2.1 gpt Au over 15 m.

Parts of the South Mouth pit zone were mined by Tenneco Minerals in 1990 to depths of less

than 30 meters. This area contains multiple veins across a width of at least 300 m and along an

east-west strike for at least 700 m. No drilling has been done below 125 meters in this area.

Recent sampling has confirmed strong gold mineralization a long the east -west shear veins (3.3

gpt Au over 0.3 m; JM -FC3) as well as low -grade gold in altered shale (0.43 gpt over 1 m; JM -

FC7).

Historic drilling in the vicinity of intersecting northeast and east -west trending structures at the

Pack Rat area intersected 3.1 gpt Au over 18.3 m in hole TF-296 and 2.0 gpt Au over 38 m in hole

P-25. Recent surface chip sampling yielded 3.1 gpt Au across a 0.5 -m wide east -west striking

shear vein (JM-FC19).

Canarc is encouraged by the positive results from the surface sampling and mapping program

which confirm the presence of numerous high -grade mineralized zones at Fondaway Canyon

and the potential for expansion of resources in these areas by drilling.

The positive results along with historic drilling and exploration information are being analyzed to

help define high priority targets for a 2700-meter drilling campaign that will be undertaken in

the fall of 2017.

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.

Catalin Kilofliski”

____________________

Catalin Kilofliski, 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 creates shareholder

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 securities

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 known and unknown risks and uncert ainties. 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

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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 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 resou rces; 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 mineral explo ration; 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 ca n 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.