2009

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Canarc Resource Corp Shareholder Update Third Quarter Review 2009

Vancouver, Canada � October 15, 2009, - Bradford Cooke, Chairman and CEO of Canarc Resource Corp. (CCM: TSX, CRCUF: OTC-BB, CAN: DB-F), provides the following review of the Third Quarter and the Outlook for the Fourth Quarter of 2009.

Q3 Highlights and Q4 Outlook

• Acquired an option to purchase the Tay-LP gold property located within the Tintina Gold Belt of the Yukon Territory over a three year period for CA$1 million in cash and/or shares and CA$1.5 million in exploration expenditures.

• Oversubscribed two private placement financings, subject to TSX approval, and commenced a 2000 meter drilling program at Tay-LP to step out from three historic drill intercepts to better define the structural, stratigraphic and intrusive controls on gold mineralization.

• Gold price continued its climb this week to a new all time high of US$1068 per oz, gold mining stocks have risen sharply, and Canarc shares doubled in price to CA$0.18 during Q3, 2009

• Anticipate Tay-LP drill results by the end of October

• Continue to market the New Polaris gold mine project for a joint venture partner willing to advance the property to feasibility and production

For some time now, management has been seeking to acquire a second gold property in North America to complement our New Polaris gold mine project in northwestern British Columbia. Tay-LP is an attractive gold exploration project and when we learned the project was available, we jumped at the opportunity to acquire it.

Several million dollars have been spent on exploration at Tay-LP since 1984 by Cominco (1984-87), Pacific Comox (1988-99), Newmont (2000-01) and Ross River (2002-04).� Multiple gold prospects were identified over the full 20 km length of the property.� Some of the historic drilling highlights include 3.6 gpt gold over 24.3 m, 1.3 gpt gold over 31.8 m and 4.0 gpt gold over 10.5 m.

Since gold mineralization at Tay-LP shares some geological similarities with other recent gold discoveries within the Tintina Gold Belt, such as the Rau property of Atac Resources, management is of the opinion that Tay-LP has substantial exploration potential.�

James Moors, B.Sc., P.Geo, Vice President, Exploration for Canarc, is the Qualified Person who reviewed the historic data, supervised Canarc�s site visit and approved this news release.

Management will continue to evaluate new gold project submittals in North America during the 4th Quarter. However, with the new focus on Tay-LP, our main priorities will be to evaluate how best to advance this exciting new property as well as to find a partner to advance the New Polaris project.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (CCM) and the OTC-BB (CRCUF).� Canarc is currently focused on exploring the exciting new Tay-LP property in the Yukon Territory, seeking a partner to advance its New Polaris gold mine project in north-western British Columbia, and acquiring attractive gold exploration and mining projects in North America.� Barrick Gold Corp. is a shareholder.

CANARC RESOURCE CORP.

Per:

/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: [email protected] or visit our website, www.canarc.net.

CAUTIONARY DISCLAIMER � FORWARD LOOKING STATEMENTS
Certain statements contained herein constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995.� All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward-looking statements" involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian and United States securities�agencies.� The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable law. We seek safe harbour.