Canarc Resource Corp.: Bellavista Gold Mine Reaches Commercial Production.

VANCOUVER, British Columbia -- Canarc Resource Corp. (TSX:CCM)(OTCBB:CRCUF) announces that the new Bellavista gold mine in Costa Rica has reached commercial production.

The mine produced 4,257 oz gold in December, 2005, or 85% of the 5,000 oz per month rated capacity. Bellavista is expected to produce 60,000 oz gold per year, at a cash operating cost of US$257 per oz, for a minimum 7 year mine-life.

Glencairn Gold Corporation is the owner/operator of the mine. Canarc holds a royalty interest amounting to 5.6% of net profits during the 1st payback period, rising to 10.4% during the 2nd payback period and 20.2% of net profits thereafter.

The production royalty at Bellavista compliments Canarc's other principal gold assets, the New Polaris development-stage project in northwestern British Columbia and the Benzdorp exploration property in Suriname. In 2005, an independent study placed a US$3.3 million net present value on Canarc's royalty interest in the Bellavista gold mine using a US$425 gold price and 5% discount rate.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company's principal assets are its 100% interest in the New Polaris gold deposit, British Columbia and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

On Behalf of the Board of Directors

CANARC RESOURCE CORP.

Bradford J. Cooke, Chairman and C.E.O.

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.

The TSX Exchange has neither approved nor disapproved the contents of this news release.

Canarc Resource Corp. (TSX:CCM) (OTC Bulletin Board:CRCUF)