Shareholder Update - First Quarter Review

Vancouver, British Columbia, Canada,
April 28, 1999

Bradford Cooke, President and CEO of Canarc Resource Corp. is pleased to provide this review of the 1st Quarter and plans for the 2nd Quarter. Our new corporate strategies continued to pay dividends in the first quarter of 1999. Gold production is up and remains profitable in spite of low gold prices. We received our annual pre-production cash payment for the Bellavista project which helps maintain our working capital. A new joint venture was formed in Mexico by Canarc subsidiary Aztec Silver. The only disappointment was the filing for arbitration of a dispute on the Benzdorp project.

HIGHLIGHTS 1st QUARTER

January � Added US $117,750 to working capital by receiving annual pre-production cash payment from partner, Wheaton Minerals for the Bellavista project - Mineable reserves up 8% to 555,000 oz. - Final feasibility study expected shortly.

February � Subsidiary company Aztec Silver optioned 50% interest in 9 silver properties in Zacatecas, Mexico to Far West Mining for US $5.5 million in work expenditures, US $0.5 million in cash payments and 1 million shares over 3 years - Aztec to be initial operator - Work now underway - Drilling scheduled to begin in September.

March � Filed for arbitration of a dispute with Grassalco, the Surinamese partner on the Benzdorp project - Discussions continue in order to seek a resolution outside of arbitration.� Production at the Sara Kreek mine is on track to produce 10,000 oz. in 1999, and remained profitable in spite of low gold prices.

OUTLOOK FOR 2nd QUARTER

� Continue discussions towards a Resolution of the dispute with Grassalco - Seek a new senior partner to drill Benzdorp.� Continue exploration work in Mexico - Seek a new silver property to qualify Aztec for public listing.� Acquire new gold project - Seek a senior partner for drilling program.

For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.

ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.

Bradford J. Cooke
President

NOTE: If you have an E-Mail address and would prefer to receive Canarc's
News through this format, please E-Mail us at [email protected].