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Canarc Summarizes 2018 Results and Outlines Plans for 2019

Corporate Updates

Canarc Summarizes 2018 Results and Outlines Plans for 2019

Vancouver, Canada - February 25, 2019 – Canarc Resource Corp. (TSX: CCM, OTC QB: CRCUF,

Frankfurt: CAN) highlights the results of its 2018 activities and outlines its 2019 plans for continued growth

by advancing its gold exploration projects in the USA and Canada.

2018 Highlights

• Developed a new vision, mission and strategy to create shareholder value by returning to our roots as

an exploration company focused on discovering new gold deposits. Canarc has optioned or acquired three new

gold projects with high impact district -scale gold discovery potential, with more possible acquisitions and

initial drilling planned for this year.

• Added two new directors to the board to improve board oversight, including a more complete skill set

to oversee geology/exploration/acquisitions, metallurgy/mining/mineral economics, financial management

and capital markets.

• Appointed a new CEO, Scott Eldridge, with over 10 years of experience in the mining sector, spanning

various executive roles with both private and public companies. He has a proven track record of raising capital

for mining projects from exploration stage to construction financing.

• Signed an option agreement with Silver Range Resources Ltd. to acquire a 100% interest in their 2,090

hectare Hard Cash and 375 hectare Nigel properties located in southwestern Nunavut, Canada. Completed a

970 line-kilometer magnetic and radiometric geophysical survey on the property to identify drill targets for an

initial drilling campaign during 2019.

• Signed an option agreement with Tasca Resources and Sidney Wilson to earn an 80% interest in the

Princeton Gold property in southern British Columbia. Completed a 2,350 line-kilometer magnetic survey on

the property to identify drill targets for a drill program in 2019.

• Acquired the Corral Canyon gold project in northwestern Nevada through the staking of 92 mining

claims. The property contains significant, volcanic-hosted gold mineralization evidenced by previous drilling,

along a regionally-productive gold trend. Low-sulfidation, volcanic-hosted epithermal gold mineralization has

been defined for a strike length of 2.5 km by surface sampling and drilling.

• Completed successful bench-scale testing of New Polaris gold concentrate using the BIOX treatment

process and achieved gold extractions of up to 96% following bio-oxidation. The results are being incorporated

in an updated Preliminary Economic Assessment ( “PEA”) to be completed shortly. May seek a partner for

this project in 2019 in order to advance the project to a feasibility study.

• Completed 3D modelling of the Fondaway Canyon deposit and identified drill targets for the next

stage of diamond drilling t o expand the resource. Continued surface mapping and sampling program on the

property and trenching in the Reed Pit to better define possible high -grade gold mineralization. May seek a

partner for this project in 2019 in order to expand the resource.

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

• Completed a Phase 3 exploration program at the Windfall Hills property including stream sediment

sampling, soil sampling, machine trenching and airborne geophysics to detect new gold -silver anomalies ,

better delineate the known epithermal stock -work gold-silver mineralization and identify targets for the next

drilling campaign on the property.

• Leased the Silver King property in Nevada to Brownstone Ventures.

2019 Plans

New for 2019, Canarc will pursue three main strategies to create shareholder value:

• Engineering optimization of the existing +1 million oz gold resources at each of the New Polaris and

Fondaway Canyon advanced exploration projects, to enhance their economic potential.

• High impact exploration of the Hard Cash, Princeton Gold and Corral Canyon early stage exploration

projects, a high risk-high reward strategy focused on spending a “little” money to find a “lot” of gold.

• Opportunistic acquisition of strategic new projects where we can add significant value, including more

advanced gold projects that are accretive on a per share basis.

Canada

• New Polaris: Undertake a new Preliminary Economic Assessment of the New Polaris project during

the first quarter of 2019 incorporating the economi c benefits of making a flotation concentrate, oxidizing it

using the BIOX process and then conventional leaching to produce dore bars at site. This would remove the

historical need for either a new road or seasonal barging of concentrate and should significantly improve the

economic potential of the project. Canarc can then seek a partner to advance the New Polaris property through

feasibility, permitting and if positive, mine construction.

• Hard Cash: Complete data compilation and assessment and analysis of the 2018 geophysics survey

to identify initial drill targets. Conduct a field program consisting of geological mapping, soil and rock chip

sampling and diamond drilling on the most prospective targets.

• Princeton Gold: Complete data compilation and assessment and analysis of the 2018 geophysics

survey to identify initial drill targets. Conduct a field exploration program consisting of geological mapping,

soil and rock chip sampling and diamond drilling on the most prospective targets.

• Windfall Hills: Complete analysis of the results from the 2018 trenching, soil and rock sampling and

geophysics survey to identify drilling targets for the next stage of drilling.

USA

• Fondaway Canyon: Continue surface sampling and geological mapping to refine targets for the next

phase of exploration drilling.

• Corral Canyon: Complete data compilations, geological mapping and soil and rock chip sampling

to identify drill targets and conduct an exploration drilling program.

• Nevada Projects: Seek partners or buyers for the rest of the Company’s projects in Nevada

Canarc has retained Nicosia Capital to assist in restarting and managing its investor relations program . The

Company has also appointed Alan Wainwright, Ph.D., P.Geo. as a technical advisor to complement Canarc’s

technical team and assist in evaluating new acquisitions, designing exploration programs and interpreting

exploration results.

Canarc has granted stock options to acquire up to 700,000 common shares. The options have an exercise price

of $0.07 per common share and expire on February 22, 2024 and are subject to certain vesting provisions.

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”

____________________

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 applicable

Canadian securities legislation. Statements contained in this news release that are not historic al 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 variatio ns 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 fact ors 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 resources; commodity

prices; changes in general economic conditions; market sentiment; curren cy 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 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 r esults 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 obli gation to update or alter any forward -looking

statements except as required under applicable securities laws.