Canarc Options Third Property in Mexico to Noranda.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Nov. 19, 1998--Canarc Resource(TSE:CCM.) Canarc Resource Corp. is pleased to announce that the Company has optioned a third property in Mexico to Noranda Minerals Inc.

Minera Aztec S.A. de C.V., a subsidiary of Canarc, has entered into an agreement on the 1018 hectares Lobo 7 property in Zacatecas State, Mexico with Minerales Noranda S.A. de C.V., a subsidiary of Noranda, whereby Noranda can earn up to a 100 percent interest by working on the property over the next 2 years.

Upon exercising the option, Minera Aztec S.A. de C.V. will retain a 3 percent net smelter royalty which Noranda can buy down to 1 1/2 percent by paying an additional $1,000,000 per 1/2 percent. In a separate agreement, Noranda has also agreed to pay Canarc $1,575,000 in a series of cash payments over 2 years.

The Lobo 7 concession is located in Zacatecas State, Mexico, approximately 40 km southeast of the rich Fresnillo silver mine, 30 km north of the prolific Zacatecas silver producers and 70 km northwest of the huge new San Nicolas massive sulfide discovery of Western Copper/Teck.

The favorable Cretaceous marine sediments and island arc volcanic rocks that host the Fresnillo, Zacatecas and San Nicolas deposits are believed to also extend underneath the Lobo 7 property. Lobo 7 is surrounded by other Noranda properties and covers a portion of a strong aeromagnetic anomaly that flanks a pronounced east-west aeromagnetic lineament.

In this region, such aeromagnetic highs and related structural lineaments are often associated with buried Tertiary granitic intrusions and silver-rich mineral deposits. Little exploration has been carried out previously in the area due to recent pediment covering the bedrock but modern geophysical and geochemical surveys carried out by Noranda have identified several targets and drilling will commence before year end.

Stated Godfrey Walton, Vice President Exploration for Canarc, "This third property agreement in Mexico with Noranda reflects favorably on the technical merits of Minera Aztec's projects. We anticipate further joint ventures with major companies on strategic prospects such as our San Martin and Charcas properties, both of which adjoin large operating mines."

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. combined at the New Polaris (100 percent) and Bellavista (18 percent) projects. Our large exploration portfolio includes joint ventures with Homestake/Prime and Noranda. 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 CANARC RESOURCE CORP.

Bradford J. Cooke, President

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