Shareholder Update - Review of 1999 and Outlook for 2000

Vancouver, British Columbia, Canada,
February 1, 1999

Bradford Cooke, President and CEO of Canarc Resource Corp. is pleased to release a review of the Company's gold and silver projects, our achievements in 1999 and plans for 2000.

In summary, 1999 was another difficult year for metal prices and the mining industry in general, and junior gold resource companies in particular. The gold price hit a 20 year low of US$253 and remained below US$300 for most of the year.

Notwithstanding the many hurdles we faced, Canarc had a reasonably good year because of our new corporate strategies. Management slashed G & A costs, spun off the Mexican silver assets into a subsidiary company and successfully negotiated a large new joint venture.

The Company now has sufficient incoming cash payments to pay its ongoing operating costs. As a result, we are once again aggressively pursuing opportunities for growth through the acquisitions of new mineral properties and discovery of new mineral deposits.

Our exciting strategic plan for 2000 includes the finance and construction of the first small lode gold mine in Suriname that is expected to be one of the lowest cost gold mines in the world. In addition, Canarc anticipates at least three major drilling programs on our exploration properties, all funded by joint venture partners.

With hard work and good luck, this should be a "breakout year" for Canarc and its shareholders.

Highlights from 1999

January:

• Gold production from the Sara Kreek placer mine in Suriname rose 36% to 9500 oz. in 1998.

February:

• Subsidiary company, Minera Aztec Silver, optioned a 50% interest to 9 separate silver properties in Mexico to Far West Mining for US$5.5 million in exploration expenditures, US$0.5 million in cash payments and 1 million shares over a 3 year period.

March:

• Filed for Arbitration of our dispute with Grassalco, the local partner on the Benzdorp project in Suriname.

April:

• Wheaton River Minerals completed a positive feasibility study on the Bellavista project in Costa Rica projecting 60,000 oz. per year production over a 7 year period at a US$156 per oz. cash operating cost.

May:

• Bulldozer trenching, which returned high grades (12 gpt gold) over mineable widths (5.7 metres) at the DP lode gold prospect, Sara Kreek, prompted Canarc to commence a feasibility study.

June:

• An out of court settlement reached with Grassalco regarding the dispute over Benzdorp property prompted Canarc to drop the Arbitration action.

July:

• Sara Kreek placer mine gold production continued to expand with a 20% increase over 1998.

August:

• Completed positive feasibility study on the DP Lode Mine at Sara Kreek projecting 13,000 oz. production over a 12 month period at US$65 per oz. cash operating cost.

September:

• Wheaton River Minerals received government permits to build and operate the Bellavista Mine in Costa Rica.

October:

• Minera Aztec Silver acquired the Nopalera gold-silver property in Mexico and commenced work on a Prospectus to seek an IPO on the new CDNX Exchange.

November:

• Far West Mining completed Phase 1 exploration program on 9 silver properties in Mexico, identified 54 separate exploration targets and commenced a 2000m, 3 hole drilling program on the Lobo 10 property.

December:

• Homestake Mining drilled 3 holes on the GNC property, British Columbia and intersected the same prospective rock formations that host the adjacent high grade Eskay Creek gold-silver mine.

Outlook for 2000

• Sara Kreek Property,Suriname Gold production from the Placer Mine should once again exceed 10,000 oz. in 2000.Seek financing to construct the new DP Lode Mine and commence operations to produce 13,000 oz. through Q2-2001.

• Benzdorp Property,Suriname Seek financing or a partner to drill the JQ mineral prospects, a very large, low grade, bulk tonnage porphyry gold target.

• Lobo Properties,Mexico Carry out Phase 2 exploration program with Far West, including a drill program on Lobo 14 and other prospects.Noranda has proposed a drill program on the Lobo 6 property to test attractive geophysical targets.

• Bellavista Project,Costa Rica Wheaton River needs a US$325 gold price in order to finance and build the Bellavista Mine.

• GNC Project,British Columbia Homestake plans to drill another 3 holes near the area drilled in 1999 to test the prospective Eskay Creek rock formations.

• New Polaris Project,British Columbia No work planned due to low gold price. Minera Aztec Silver Corporation Complete Prospectus and file an IPO on the CDNX Exchange.

Sincerely,
CANARC RESOURCE CORP.

Bradford J. Cooke
President and CEO
www.canarc.net

For further information contact:
Robert Carriere
Investor Relations
Tel: (604) 685-9700

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].