Shareholder Update - Canarc Holds 4% Shareholding in Consolidated Magna Ventures

Vancouver, British Columbia, Canada,
July 7, 1999

Given that Canarc owns a small but significant stake in the shares of Consolidated Magna Ventures (symbol CMV-VSE), I thought you would be interested in the enclosed magna news releases.

Magna is merging with an internet access company, CoyoteNet, the leading operator of public access internet terminals in Canada. Canarc strongly supports Magna's efforts to create shareholder value outside of the mining sector even though Magna's mining projects remain attractive.

Magna's shares were halted at $0.15 and return to trading tomorrow morning. CoyoteNet's nearest competitor trades at $3.00 with a $20 million market capitalization.

You are welcome to call me tomorrow should you wish to have more details on this interesting investment, or an update on Canarc.

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 and CEO

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