Canarc Resource Corp. announced that it has signed a non-binding letter of intent (the “LOI”) dated July 6, 2020 with Minkap Resources Inc. whereby MinKap can acquire a 100% undivided interest in the Lightning Tree property located in Lemhi County, Idaho, USA under a definitive option agreement from Canarc. Lightning Tree is one of 11 mineral properties in the American Innovative Minerals USA gold package acquired by Canarc in 2017. It is also the fourth AIM property optioned out to third parties wanting to explore and earn interests in Canarc’s Nevada/Idaho portfolio. Canarc continues to receive expressions of interest in the remaining 7 AIM USA properties as well as the Corral Canyon project in Nevada. Under the terms of the LOI, MinKap may enter into the Agreement with the Canarc to acquire a 100% undivided interest in the Lightning Tree Property by completing, among other things, the following: Issuing Canarc an aggregate 2,500,000 common shares and 2,500,000 common share purchase warrants over 2 years; Paying Canarc CAD 137,500 in total, including CAD 12,500 upon receipt of final approval from the TSX Venture Exchange of the Agreement; CAD 25,000 due on the first anniversary from the Approval Date; CAD 50,000 due on the second anniversary from the Approval Date; CAD 50,000 due on the third anniversary from the Approval Date; Spending an aggregate CAD 2,000,000 in exploration over 3 years, commencing on the date MinKap receives an exploration drill permit for the Property; Issuing to Canarc a 2.5% net smelter return royalty in respect of the Property, subject to MinKap retaining an option to acquire 1% of the Canarc NSR for a cash payment of CAD 1,000,000; Publicly file a mineral resource estimate in compliance with National Instrument 43-101 (NI 43-101) on the Property within 3 years of the Permit Date; and Pay a one-time bonus payment of CAD 1.00 per ounce of gold or gold equivalent, up to a maximum of CAD 1,000,000, upon the filing on SEDAR of a NI 43-101 compliant resource of 1,000,000 ounces of gold or gold equivalent on a pro-rate basis between Canarc and an additional vendor.