Canarc Closes $500,000 Private Placement Financing

Canarc Resource Corp. CCM:TSX and CRCUF:OTC-BB) has closed it's recently announced $500,000 private placement financing. The net proceeds were added to working capital to expand the trenching program on the Benzdorp gold project.

NEWS ANNOUNCEMENT                             FOR IMMEDIATE RELEASE
Canarc Closes $500,000 Private Placement Financing

Vancouver, British Columbia, Canada
September 30, 2002

Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) has closed its recently announced $500,000 private placement financing. The net proceeds were added to working capital, which now stands at approximately CA $1.25 million.

An aggressive machine trenching program is now set to get underway on the Benzdorp gold project in Suriname. The Company has expanded the program budget to CA $250,000 in order to more fully evaluate the size and grade of the JQA, JQW, JQS and other prospect targets with at least 24 trenches up to 10 metres deep.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Our property portfolio includes projects in Canada, Mexico, Costa Rica and Suriname. Major shareholders include Barrick Gold and Echo Bay Mines. The Companys common shares trade under the symbol CCM" on the Toronto Stock Exchange and CRCUF" on the OTC Bulletin Board.

ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.

Bradford J. Cooke
President             

NOTE: For further information please contact Bradford Cooke at (604) 685-9700. If you prefer to receive Canarcs News by E-Mail, please E-Mail us at bcooke@canarc.net.