Canarc Agrees to $312,000 Private Placement Financing.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 9, 1998-- Canarc Resource(TSE:CCM.) Canarc Resource Corp. is pleased to announce that the Company has agreed to a $312,000 private placement financing with a major shareholder.

The private placement consists of 780,000 shares at $0.40 per share, and 390,000 warrants, exercisable at $0.60 per share within a 2 year period.

The proceeds will be added to general working capital. There are no commissions owing on this transaction. The private placement is subject to regulatory approval.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased over 300 percent last year to 7000 oz. at the Company's Sara Kreek (80 percent) mine . Reserves and resources now total 2 million oz. at the New Polaris (100 percent) and Bellavista (18 percent) projects. Our large exploration portfolio includes a joint venture with Homestake/Prime. Major shareholders include Barrick Gold and Echo Bay Mines. The Company's common shares trade under the symbol "CCM" on the Toronto Stock Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS Bradford J. Cooke, President

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