Canarc Closes CAD$5.2 Million Second Tranche of CAD$8.4 Million Private Placement Financing Including Lead Investment by Eric Sprott

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Vancouver, Canada – November 16, 2020 – Canarc Resource Corp. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CAN) (“Canarc” or the “Company”) announces that it has closed the second and final CAD$5.2 million tranche of its CAD$8.4 million private placement, previously announced by Canarc in press releases dated August 19, 2020, September 3, 2020 and October 21, 2020.

The second tranche of the private placement consisted of the issuance of 65 million units (each, a “Unit”) priced at CAD$0.08 per unit for total proceeds of CAD$5.2 million (the “Offering”).  The  second tranche included the issuance of 5.4 million Units to certain of the Company’s insiders (the “Issuance”) including participation from Canarc’s Chairman, Bradford Cooke for 2.0 million Units, in addition to the 3.0 million units he purchased in the first tranche, to maintain his approximate 4% interest in the Company. Shareholders of the Company approved the Offering on October 19, 2020.

Pursuant to the Offering, each Unit consists of one common share of Canarc (“Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder to acquire one additional Common Share of the Company at an exercise price of CAD$0.13 for a period of 24 months from the closing date of the Offering.  If the daily volume-weighted average price of Canarc’s Common Shares is equal to or greater than CAD$0.20 for a period of 10 consecutive trading days, Canarc will have the right to accelerate the expiry date of the Warrants by giving written notice to the Warrant holders that the Warrants will expire on the date that is 30 days from the date notice is provided by Canarc to the Warrant holders.  Finders’ fees of 6% were payable in cash and in Warrants on certain portions of the Offering, with the finders’ fee Warrants having the same terms as the underlying Warrants in the Offering.

Investment by Eric Sprott

Pursuant to the Offering, Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 12,500,000 Units for a total consideration of $1,000,000.  Following the completion of the Offering, Mr. Sprott’s beneficially owns or controls 35,701,856 Common Shares and 6,250,000 warrants representing 10.2% of the Canarc’s issued and outstanding Common Shares, on a non-diluted basis, and 11.8% on a partially diluted basis, assuming the exercise of the Warrants acquired hereunder and forming part of the Units. Prior to the Offering, Mr. Sprott beneficially owned and controlled 23,201,856 Common Shares and no Warrants.

The Units were acquired by Mr. Sprott for investment purposes and with a long-term view of the investment.  Mr. Sprott may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.  A copy of 2176423 Ontario Ltd.’s early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling (416) 945-3294(200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Scott Eldridge, Canarc’s CEO stated, “I am delighted to have the support of both our Chairman Bradford Cooke and renowned strategic investor Eric Sprott. We are looking forward to working with Mr. Sprott, as a significant shareholder, to advance our flagship New Polaris gold property as well as our other properties.”

The securities issued in the Offering are subject to a four-month plus one day hold period ending on March 13, 2021 in accordance with applicable securities laws and the policies of the Toronto Stock Exchange (the “Exchange”).  The private placement is subject to the final acceptance of the Exchange.

Use of proceeds will be for exploration of Canarc’s gold projects and to strengthen its working capital.

“Scott Eldridge” 

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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: scott@canarc.net Website: www.canarc.net

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