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Canarc to Commence 1,500 Meter Drill Program at Windfall Hills Project, BC; Director Resignation

Management Changes Exploration Programs

Canarc to Commence 1,500 Meter Drill Program at Windfall Hills

Project, BC;

Director Resignation

Vancouver, Canada –July 14, 2020 - Canarc Resource Corp. (TSX: CCM, OTC -QB:

CRCUF, Frankfurt: CAN), announces that a Phase-2 core drilling program of 1,500 meters

in six holes will commence on or about July 20th at its 100%-owned Windfall Hills gold

property located in north-central British Columbia.

Highlights from the Phase 1, 3 -hole drill program conducted in 2014 included a drill

intercept of 1.38 grams per tonne (gpt) gold equivalent (AuEq ) over 28.0 meters (m).

Exploration work since 2014 focused on detailed geological mapping, geochemical

sampling and geophysical surveying to better define the main target over a 1.5 kilometer

(km) by 1.5 km area. The principal target and planned drill holes are shown on Figure 1.

Scott Eldridge, Canarc’s CEO, stated: “We are pleased to announce the commencement of a

Phase-2 drill program at Windfall Hills to follow up on the encouraging Phase 1 drill results.

Subsequent exploration work helped to delineate a much larger primary target. Our Phase

2 drill program will test for bulk tonnage, epithermal gold-silver mineralization, similar to

the Blackwater Davidson deposit located in the same geological belt as Windfall Hills.”

“We put a coronavirus prevention and response plan in place for this Phase 2 drill program

in order to ensure a safe working environment as our top priority, including but not limited

to social distancing and extra sanitation to protect our employees, contractors, residents in

nearby communities and other stakeholders.”

Location

The Windfall Hills property is located 60 kilometers south of Burns Lake within a belt of

Late Cretaceous to Early Tertiary volcanic rocks hosting epithermal Au-Ag deposits that

includes the 9.6 million-ounce Blackwater -Davidson gold-silver project located 90 km

southeast of Windfall Hills. Artemis Gold recently announced a $190 million purchase of

Blackwater Davidson from Newgold.

Phase 1 Drill Results

A Phase 1, 3-hole, 1,149-meter diamond drill program was conducted at Windfall Hills by

Canarc in 2014 and returned gold mineralization in all 3 holes (Table 1). Gold

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

mineralization is disseminated within strongly clay altered and silicified volcanic rocks of

the Eocene Ootsa Lake Group. Hole WH-14-03 intersected 28 meters grading 0.89 gpt

gold and 39 gpt silver or 1.38 gpt AuEq, using an 80:1 silver:gold ratio, from 11 to 39

meters and terminated below a 1994 trench that yielded 0.41 gpt gold over 41 m.

Table 1. Summary of 2014 Drilling*

Hole From m To m Length m Ag gpt Au gpt AuEq gpt

WH-14-01 1 7 6 1.9 0.96 0.98

Incl 3 5 2 2.5 1.19 1.22

WH-14-02 217 221 4 58 0.27 1.00

Incl 217 219 2 88 0.34 1.44

WH-14-03 11 39 28 39 0.89 1.38

Incl 11 13 2 63 2.19 2.98

and 17 19 2 92 2.45 3.60

WH-14-03 137 143 6 19 0.66 0.90

Incl 137 139 2 22 1.28 1.56

* Ag:Au ratio is 80:1

Primary Target

Extensive thin glacial till covers the property which has limited geological mapping and

rock-chip sampling. However, a property-wide aeromagnetic survey completed in 2018

revealed a strong northwest -trending, linear magnetic low passing through the main

mineralized zone.

The linear magnetic low could be related to hydrothermal destruction of magnetic

minerals along the fault zone, which itself could be related to a major northwest trending

lineament that can be traced on satellite imagery southeast all the way to the vicinity of

Blackwater-Davidson.

3-D modeling of the mineralization intersected in the 2014 drill holes suggests a

northwest-striking, east-dipping body broadly parallel to the magnetic low. An induced-

polarization (IP) survey completed in 2016 in the area of the 2014 drill holes revealed

high resistivity and chargeability anomalies in the main mineralized area.

Phase 2 Drill Program

The 2020 Phase -2 drilling program is designed to expand the area of gold -silver

mineralization intersected in the 2014 drill holes, constrain the g eologic controls on

mineralization and test the geophysical targets within the broader geochemical anomaly.

Holes will be approximately 250 to 300-m in length at inclinations of 50-60 degrees.

Director Resignation

The company also announces that Mr. Kai Hoffmann has resigned as a director of the

Company, effective immediately, given growing commitments outside of Canarc. On

behalf of the management team and board of directors, Bradford Cooke , Chairman of

Canarc, thanks Kai for his contributions to the Company.

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 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 fr om 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 u ncertainties 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 th rough 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 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.

Figure 1. Phase-2 drill plan