SHAREHOLDER UPDATE

 

        Glencairn Gold Acquires Bellavista Project From Wheaton River

 

On November 1, Glencairn Gold Corp. announced that it had acquired the Bellavista gold project in Costa Rica from Wheaton River Minerals.  This is good news for Canarc as Wheaton River had no plans to develop the proposed mine whereas Glencairn intends to move ahead with the project.

 

Key to the transaction was a letter from the Costa Rican Minister of Environment confirming that the government will respect all mining rights issued prior to the recent decree putting a moratorium on open pit mining.  In addition, the Supreme Court at Costa Rica confirmed that Bellavista is exempt from that decree.

 

In 1999, Wheaton River completed a feasibility study showing that an open pit, heap leach gold mine could produce 60,000 oz. gold per year for 7.3 years with total cash operating costs of only US $179 per oz.  At US $325 gold, Bellavista has a 19% internal pretax rate of return and a US $20 million net present value.

 

Glencairn has also identified two other large exploration targets along strike from the current reserves that offer excellent potential to add to the mine life and enhance the economies of the project.  Canarc owns an 18.3% net profit interest (after the payback periods) in Bellavista and receives annual pre-production royalty payments each January (2003 payment already received in Wheaton River shares at about $0.50 per share).

 

On another note, it has become obvious over the past two weeks that a certain brokerage firm has been executing a market sell order that has depressed the stock price from CA $0.40 - $0.45 all the way down to CA $0.25 - $0.30.  Since there is no fundamental reason for the drop in the share price and no apparent rhyme or reason behind the sell order, we can only suggest that shareholders take advantage of the depressed share price to pick up some more shares while they can.

 

Bulldozer trenching is now underway at the Benzdorp project in Suriname and assays are expected in December and January.  The minimum target size here is estimated to be around 2 million oz. if the surface mineralization in the JQA prospect continues to 250 m depth.  If the JQA mineralization actually extends beyond the current limits of deep auger and trench samples, then the target size could be a multiple of the minimum.

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

CANARC RESOURCE CORP.

 

Bradford J. Cooke

President and CEO

 

P.S.  For the latest media articles on Canarc, go to www.smallcapmedia.com and click on "Gold" and "Featured Company".  Author and Publisher Marc Davis gives a good recommendation and overview on the company.

For further information please contact Bradford Cooke at (604) 685-9700.  If you prefer to receive Canarc's News by E-Mail, please E-Mail us at [email protected].

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