2009

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Canarc Closes CA$960,000 in Two Private Placement Financings

Vancouver, Canada � October 26, 2009 - Canarc Resource Corp. (CCM: TSX, CRCUF: OTC-BB, CAN: DB-F) announces that it has closed the two non-brokered private placement equity financings totaling CA$960,000 that were announced on September 9, 2009.

The first private placement consisted of 4,000,000 flow-through shares priced at CA$0.12 each for gross proceeds of CA$480,000. The flow-through shares will entitle the holders to a 100% CEE deduction, as well as the 15% federal tax credit in Canada.�

The second private placement consisted of 4,800,000 units priced at CA$0.10 each for gross proceeds of CA$480,000. Each unit consisted of one common share and one half share purchase warrant. Each full warrant can be exercised to purchase an additional common share at CA$0.15 within an 18 month period.

Three flow-through funds of MineralFields Group participated in the flow through placement for 2,888,000 shares or CA $346,560 in total.� MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada.

Both private placements were over-subscribed by a small margin (13-17%) but the TSX did not approve the oversubscribed amounts.� The Company is considering an appeal of the TSX decision not to approve the oversubscribed amounts.

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 its recently acquired Tay LP gold property in south-central Yukon and seeking a partner to advance its New Polaris gold mine project in north-western British Columbia to the feasibility stage.� 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.