CANARC RESOURCE CORP. T: 604.685.9700 www.canarc.net Suite 810 – 625 Howe Street F: 604.685.9744 CCM: TSX Vancouver, BC V6C 2T6 TF: 1.877.684.9700 CRCUF: OTCQX CANARC RESOURCE CORP. ABANDONMENT AND RESTORATION PLAN HARD CASH PROJECT, NUNAVUT NPC 149100 NWB – 2BE-HCP1924 Prepared by: Denise Lockett, for March 2020 Canarc Resource Corp. Suite 810 – 625 Howe Street Vancouver, BC V6C 2T6 1 Table of Contents Page 1. Preamble 3 2. Introduction 4 3. Background Information 4 4. Schedule 4 5. Waste 4 6. Final Abandonment Plan 5 7. Contact Numbers for Relevant Organizations 5 8. Appendix A (fuel caches) 6 2 3 Canarc Resource Corp (Canarc) Hard Cash Project, Nunavut Abandonment and Restoration Plan 1. Preamble The Hard Cash property, consisting of Claims RLN 3-4 (K14328-30) covering 2090 hectares on Crown Land, is a located in the Ennadai Greenstone Belt in SW Nunavut on the shores of Ennadai Lake. The property is 405 km from Arviat, Nunavut, 310 km NE of Stony Rapids, Saskatchewan and is accessible by float plane or helicopter. There is an all-weather gravel airstrip at Ennadai Lake Lodge which is owned by Weber Arctic, 35 kms west of the property This Abandonment and Restoration Plan (A&R Plan) is in effect until the expiry of Canarc’s Water Licence and Land Use Permit, and applies to the work areas planned for the Hard Cash project. These mineral claims are on Crown Land in the Kivalliq Region of Nunavut. The project received a conformity determination in 2019 from the Nunavut Planning Commission stating that the project is exempt from Nunavut Impact Review Board screening. Canarc has applied for a Land Use Permit from Crown- Indigenous Relations and Northern Affairs Canada (CIRNAC). The 2020 program is expected to include geological mapping, rock and soil sampling and prospecting by a small person crew. In addition, the program will involve reverse circulation drilling in two locations (7 holes in one location and 3 holes in another location). It will be about three weeks in duration, involving a crew of up to 10 employees and contractors. All activities will be based out of the Ennadai Lake Lodge owned by Weber Arctic Haven and will be helicopter supported. Questions or concerns regarding this Plan can be directed to Denise Lockett, for Canarc Resource Corp Suite 810 – 625 Howe Street Vancouver, BC V6C 2T6 Telephone; 604 340 4756 [email protected] 3 4 2. Introduction This Plan has been prepared for several fuel caches located at Canarc’s Hard Cash Project located in the Kivalliq Region of Nunavut. (see Map Attachment A) Canarc is proposing to conduct early stage exploration and reverse circulation drilling which does not require the use of water. Drilling will take place in two locations (7 holes in one location and 3 holes in another location). It will be about 3 weeks in duration, involving a crew of up to 10 employees and contractors. All activities will be based out of the Weber Arctic’s Lodge at Ennadai Lake and will be helicopter supported. 3. Background Information on the Fuel Caches Three fuel caches will support the proposed exploration activities and are located at: Cache #1: 60° 57’ 8” N 101° 30’ 10” W Cache #2: 60° 56’ 51” N 101° 30’ 25” W Cache #3: 60° 56’ 19” N 101° 30’ 25” W Chip Shack: 60° 57’ 7” N 101° 30’ 03” W Heli-fuel cache: 60° 57’ 3” N 101° 30’ 08” W 4. Schedule The effective date of the plan is expected to be May 1, 2020. The final restoration of the fuel caches will occur when the program has been completed, around August 30, 2021. 5. Waste Combustible Waste Lunches packed by the exploration and drill crews will be brought back to the Lodge for disposal. Non-Combustible Waste All non-combustible waste will be transported to the Lodge for disposal. This waste will only consist of metallic materials such as cans and steel strapping and wire. Used Motor Oil Used motor oil will be brought back to the Lodge for disposal. Fuel drums Used empty fuel drums will be transported back to the Lodge for disposal. 4 5 Contamination Clean Up Any soil at the fuel caches that has been contaminated will be treated according to procedures outlined in the Fuel Spill Contingency Plan. The soil will be transferred to the Arviat landfill or Yellowknife for incineration. Inspection and Documentation A complete inspection of all disturbed areas at the fuel caches will be conducted prior to closure at the end of the program. 6. Final Abandonment and Restoration Equipment All equipment will be removed from the drill sites by helicopter. Fuel Cache All fuel drums will be removed from the site to Weber Arctic’s Lodge at Ennadai Lake. All sites that contained fuel will be inspected and any contamination will be dealt with according to the Spill Contingency Plan. Final photos of the fuel cache sites will be taken and forwarded to the NWB, NIRB, the Arviat Hunters and Trappers Organization and CIRNAC. Inspection and Documentation A complete inspection of all areas will be conducted prior to closure. Photographs will be taken for use in the final report. All appropriate agencies will be contacted upon final clean up. 7.0 Contact Numbers for Relevant Organizations CONTACT CONTACT NUMBER (Tel / Cell) Project Supervisor To be determined Canarc Resource Corp (604) 685-9700 24 Hour Emergency Spill Line phone / fax (867) 920-8130, (867) 873- 6924 CIRNAC Land Use Resource Management Officer (Rankin (867) 645-2830 Inlet) CIRNAC Water Resources Inspector (867) 645-2830 Arviat Nursing Station (867) 857-3100 Arviat RCMP; Office Hours / Emergency (867) 867-0123 Crown-Indigenous Relations and Northern Affairs Canada (867) 982-4306 (CIRNAC) Land Use Resource Management Officer 5 6 Attachment A 6 .