News Releases

Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) announces that the new Bellavista gold mine in Costa Rica has reached commercial production.

The mine produced 4,257 oz gold in December, 2005, or 85% of the 5,000 oz per month rated capacity. Bellavista is expected to produce 60,000 oz gold per year, at a cash operating cost of US$257 per oz, for a minimum 7 year mine-life.

Glencairn Gold Corporation is the owner/operator of the mine. Canarc holds a royalty interest amounting to 5.6% of net profits during the 1st payback period, rising to 10.4% during the 2nd payback period and 20.2% of net profits thereafter.

The production royalty at Bellavista compliments Canarc’s other principal gold assets, the New Polaris development-stage project in northwestern British Columbia and the Benzdorp exploration property in Suriname. In 2005, an independent study placed a US$3.3 million net present value on Canarc’s royalty interest in the Bellavista gold mine using a US$425 gold price and 5% discount rate.

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 principal assets are its 100% interest in the New Polaris gold deposit, British Columbia and its 80% option on the Benzdorp gold property in Suriname.  Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

On Behalf of the Board of Directors
CANARC RESOURCE CORP.

/s/ Bradford J. Cooke

Bradford J. Cooke
Chairman and C.E.O.

For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700,  tel: (604) 685-9700, fax: (604) 685-9744, email: invest@canarc.net or visit our website, www.canarc.net.  The TSX Exchange has neither approved nor disapproved the contents of this news release.