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Canarc To Raise Up To CA$4.1 Million in Two Private Placements


September 28, 2006

September 28, 2006, - Vancouver, Canada - Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) announces that it has agreed to raise up to CA$4.1 million in two non-brokered private placements for units.

The non-flow through private placement is for up to 700,000 non-flow through units at CA$0.75 for total proceeds of up to CA$525,000.  Each unit comprises of one common share and one-half of one share purchase warrant, with each whole share purchase warrant exercisable to acquire one common share at an exercise price of CA$0.95 for one year.

The flow-through private placement is for up to 4.3 million flow-through units at CA$0.82 for total proceeds of up to CA$3.5 million.  Each unit comprises of one flow-through common share and one-half of one share purchase warrant, with each whole share purchase warrant exercisable to acquire one non-flow through common share at an exercise price of CA$1.25 for one year.

Total proceeds from the two financings amount up to CA$4,051,000.  Canarc will pay a cash finders fee of  6% on a portion of the gross proceeds from both private placements, and 6% in share purchase warrants on a portion of the flow through private placement, having the same terms and conditions as the warrants in the financing.

The proceeds from the private placements will be used by Canarc to commence a Phase 4 work program as follows:

  1. Drill program for 14 holes totaling 7,000 m of drilling,
  2. Accelerate engineering, metallurgical and environmental studies,  and
  3. Mobilize 200 tonnes of fuel, mining equipment and supplies for a major underground dewatering and exploration program to commence Q4, 2006.

 

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF).  The Company‚Äôs principal asset is its 100% interest in the New Polaris gold property, British Columbia.

On Behalf of the Board of Directors
CANARC RESOURCE CORP.

/s/ Bradford J. Cooke

Bradford J. Cooke
Chairman and C.E.O.

For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700,  tel: (604) 685-9700, fax: (604) 685-9744, email: invest@canarc.net or visit our website, www.canarc.net.  The TSX Exchange has neither approved nor disapproved the contents of this news release.

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