Canarc Resource Corp. announced it has received excellent metallurgical test results, with gold recoveries up to 96%, using bio-oxidation ("BIOX") treatment on flotation concentrate from its New Polaris gold mine property located in British Columbia, Canada. These excellent test results confirm that New Polaris concentrate is amenable to the BIOX process. Bio-oxidation testing of New Polaris concentrates dramatically increased the cyanide-recoverable gold from 8% for un-oxidized concentrate up to 96% on bio-oxidized material. The BIOX bacterial oxidation process is currently used commercially to treat refractory gold deposits at ten gold mines on four continents, including the Fosterville mine of Kirkland Gold located in Victoria province of Australia. It has facilitated the production of more than 24 million ounces of gold over the last 25 years. Canarc's metallurgical test program was conducted at the SGS Africa lab, located in Johannesburg, South Africa, under the supervision of Outotec RSA, owners of the BIOX technology. The BIOX process has many advantages over other processes such as pressure oxidation and roasting for treating refractory gold ores. These include improved gold recoveries, significantly lower capital and operating costs, and being more environmentally friendly. BIOX is a robust commercial technology that is better suited for remote locations, it is simple to operate and is backed by 25 years of operating experience. The current NI 43-101 indicated resources on the New Polaris project total 519,000 ounces contained in 1,288,000 tonnes grading 12.54 g/t gold and inferred resources of 636,000 ounces contained in 1,794,564 tonnes grading 12.2 g/t gold. Canarc plans to undertake a new Preliminary Economic Assessment of the New Polaris project during the first quarter of 2019 incorporating the economic benefits of the BIOX process.