Vancouver, Canada – October 21, 2020 – Canarc Resource Corp (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canarc” or the “Company”) is pleased to announce the voting results from its Special General Meeting held on October 19, 2020 which resulted in shareholder approval of the upsized financing from CAD$3.2 million to CAD$8.4 million. The first tranche closed on October 8, 2020 and Canarc anticipates closing the second tranche shortly.

Special General Meeting

On September 3, 2020, Canarc announced an increase in the size of its non-brokered private placement by issuing an additional 65 million units at CAD$0.08 per unit for additional gross proceeds of CAD$5.2 million (the “Upsize”) which was subject to shareholder approval.

At its Special General Meeting held on October 19, 2020: (i) shareholders approved the Upsize ; and (ii) disinterested shareholders also approved the issuance of 5.4 million units at CAD$0.08 per unit for gross proceeds of CAD$432,000 by certain insiders of the Company who will participate in the Upsize, all as further described in the Company’s information circular dated September 14, 2020.

Voting results for were as follows:

Resolution Votes For Votes Against
Private placement 78,854,410 (96.48%) 2,879,300 (3.52%)
Insider issuance 68,977,455 (95.79%)* 3,029,175 (4.21%)
•Excluding 9,727,080 shares held by insiders.

Assignment of Option on the Princeton Property

Canarc also announces that it has entered into an agreement with Damara Gold Corp. (“Damara”), a company listed on the TSX Venture Exchange, to assign (the “Assignment”) to Damara all of the Company’s rights and obligations with respect to a property option agreement among the Company, Universal Copper Ltd. and Sydney Wilson (the “Option Agreement”). Pursuant to the Option Agreement, the Company had the option to acquire a 75% interest in certain mineral claims located south of Princeton, British Columbia, known as the Princeton Property.

In consideration for the Assignment, Damara will issue Canarc 9.9% of the outstanding common shares of Damara (the “Damara Shares”) on the closing of the Assignment, take all necessary steps to exercise the option to acquire the Princeton Property, and, subject to Damara continuing to hold its interest in the Princeton Property until December 31, 2021, Damara will issue additional Damara Shares to increase the Company’s ownership in Damara to 19.9% of the outstanding Damara Shares following such issuance. The Princeton Property was a non-material asset of the Company. The completion of the Assignment is to subject to certain conditions, including Damara receiving the approval of the TSX Venture Exchange.

Windfall Hills Phase 2 Drill Program Results

The Company has received assay results from the recently completed Phase 2 diamond drill program at Windfall Hills property located 60 kilometers south of Burns Lake and 90 kilometers northwest of the 9.6 million-ounce Blackwater-Davidson gold-silver project, BC. Six drill holes were completed for a total of 1,500 meters of core over an area of 30 hectares designed to follow up from gold-silver mineralization intersected in the 2014 Phase 1 drill holes, including 0.89 grams per tonne (“gpt”) gold and 39 gpt silver over 28 meters in hole WH-14-03.

Drill core samples were collected at nominal two metre intervals continuously within target sections of each drill hole for a total of 621 samples. The samples were submitted to ALS Terrace, BC lab for analysis. Sixty-three samples returned gold values greater than 0.1 gpt. Gold grades of up to 0.84 gpt and silver up to 252 gpt were returned from individual samples within a broadly phyllic to argillic altered rhyolite tuff cut by a breccia body and displaced by faults. The two best intercepts were 33 meters of 0.26 gpt gold and 39 gpt silver (0.75 gpt gold equivalent using an 80:1 silver:gold ratio) from 257 meters in hole WH-20-02 and 0.15 gpt gold and 7.9 gpt silver over 78 meters from 3 meters down hole WH-20-05, associated with more intense quartz-pyrite veins within the tuff and increased disseminated pyrite within the breccia.

Further analysis of the structural and lithological controls on mineralization are needed to determine the next steps for the Windfall Hills property. Canarc may seek a partner to advance the project.
About the Drill Core Sampling

A rigorous Quality Assurance and Quality Control (“QA/QC”) program was implemented as part of the sampling procedures throughout the drill program to monitor the integrity of the assay results. Standard samples of Certified Reference Material (“CRM”), duplicate and blank samples were inserted into the sample stream prior to being sent to the laboratory and the adherence of results to strict parameters was monitored. The NQ2 sized drill core was split in the field and samples shipped to ALS Canada Ltd. lab in Terrace, BC. The samples were subsequently shipped to the Yellowknife, NT lab for processing where they were dried, crushed, split and pulverized producing a 250g pulp for analysis. The pulps were analyzed at the Vancouver, BC by 0.5g Aqua Regia Digestion ICP-MS method for 51 elements including gold. Where the ICP gold analysis exceeded 100 ppb the samples were analyzed for gold by 30g Fire Assaying with an ICP-AES finish. ALS Canada Ltd. is accredited by the Standards Council of Canada and is an ISO/IEC 9001:2015 and 17025:2017 certified analytical laboratory in North America.

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”

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Scott Eldridge, Chief Executive Officer