2002 First Quarter Financial Statements
Consolidated Financial Statements of
CANARC RESOURCE CORP.
(expressed in United States dollars)
(Unaudited-See Notice to Reader)

NOTICE TO READER

I have compiled the consolidated balance sheet of Canarc Resources Corp. as at March 31, 2002 and consolidated statements of operations and deficit and cash flows for the period then ended from information provided by the Company. I have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Readers are cautioned that these statements may not be appropriate for their purposes.

“G. Ross McDonald” (signed)

G. Ross McDonald
Chartered Accountant

Vancouver, British Columbia
May 27, 2002

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• President's Letter to Shareholders
• Notice to Reader
• Consolidated Balance Sheets
• Consolidated Statements of Operations and Deficit
• Consolidated Statements of Changes in Cash Flow
• Notes to Financial Statements
• Management Discussion and Analysis