Dr. Diane Nicolson reports

AMARC ACQUIRES 100% OF JOY COPPER-GOLD PROJECT, BC

Amarc Resources Ltd. has amended its option agreement with Gold Fields Toodoggone Exploration Corp. (GFTEC) to purchase its 51-per-cent interest in the Pine property (see Amarc news release Aug. 29, 2017). Amarc will now hold a 100-per-cent interest in the Pine mineral claims, having completed the purchase of Cascadero Copper Corp.'s 49-per-cent interest in the property last year (see Amarc's management discussion and analysis (MD&A) dated Dec. 31, 2018). The Pine tenure forms an important part of the overall Joy project and has been a primary focus of exploration activities. It hosts both the Pine and Mex copper-gold deposits as outlined by historical estimates based on 58 and 19 drill holes, respectively.

Under the terms of the amendment Amarc will purchase outright GFTEC's 51-per-cent interest in the 323-square-kilometre property by issuing to GFTEC five million common shares of the company. The issuance of a further two million common shares of the company to GFTEC is only contingent on certain expenditures levels being attained in the future, however, there is no obligation to complete any additional work.

GFTEC will retain a 2.5-per-cent net profits interest (NPI) royalty on mineral claims comprising about 96 per cent of the property and a 1-per-cent net smelter returns (NSR) royalty on the balance of the claims. The NPI can be reduced to 1.25 per cent at any time through the payment to GFTEC of $2.5-million in cash or shares. The NSR can be reduced to 0.50 per cent through the payment to GFTEC of $2.5-million in cash or shares.

The Joy project covers the northern extension of the prolific Kemess porphyry gold-copper district. Members of the Amarc team are credited with being the first to recognize the true potential of the Kemess district, having discovered and developed the Kemess South deposit to feasibility when the company that held the Kemess project at that time was taken over for $170-million. Extensive airborne and ground exploration surveys completed by Amarc over the Joy project, along with the compilation of thousands of geochemical and geophysical survey data points from previous operators, have delineated multiple, high-potential, porphyry gold-copper deposit targets. Multiple drill holes are required for the initial testing of each target area. Amarc is considering partnering the Joy project.

The amendment to the GFTEC option agreement is subject to TSX Venture Exchange approval.

In addition, in November, 2019, the company entered into a purchase agreement with two prospectors to acquire 100 per cent of a single mineral claim, located internal to the Joy tenure, for a direct acquisition cost of $5,000. The claim is subject to a 1-per-cent NSR royalty that is capped at $500,000 payable from commercial production.

In other news, the company announces that it has now resolved a repayment default under an existing $1-million loan made in 2014 by entering into a loan agreement, dated Dec. 4, 2019, with the lender who is a director and significant shareholder of the company. The loan is unsecured, will bear interest at a rate of 10 per cent per annum, and is repayable after five years or earlier on the occurrence of a default or on achievement of financing milestones. In connection with the loan, Amarc will issue to the lender a loan bonus in the form of 16 million warrants, each entitling the holder to acquire one common share of Amarc for five years at a price of five cents per share. The bonus warrants will be subject to a four-month hold period commencing from the date of issuance thereof. The loan and bonus warrants are subject to acceptance by the TSX Venture Exchange.

About Amarc Resources Ltd.

Amarc is a mineral exploration and development company with an experienced and successful management team focused on developing a new generation of British Columbia porphyry copper mines. By combining strong projects and financing with successful management, Amarc has created a solid platform to create value from its exploration-stage and development-stage projects.

Qualified person as defined under National Instrument 43-101

Mark Rebagliati, PEng, a qualified person as defined under NI 43-101, has reviewed and approved the technical content in this news release.

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