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Canarc Agrees to CA $3 Million Private Placement

October 1, 2003

Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces it has agreed to a non-brokered CA $3 million financing. The private placement is for 3.3 million units at CA $0.90 per unit, each unit consisting of one common share and one-half common share purchase warrant.

Each full warrant can be exercised to purchase an additional common share at CA $1.10 within a two year period. The shares and warrants are subject to the standard four month hold period, and a finders fee may be paid on a part of the offering.

The proceeds will be added to working capital for use in part to fund a Phase 2 drilling program on the Benzdorp property in Suriname.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company’s principle assets are its 100% interest in the 1.3 million oz New Polaris gold deposit located in northwestern British Columbia and its option on the large Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

For more information, please contact Gregg Wilson at tel: (604) 685-9700, fax: (604) 685-9744, email [email protected] or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.