Vancouver, British Columbia, Canada,                             Februaury 20 , 2003

Canarc Resource Corp                                            CCM

Shares issued 45,613,321                                       Feb 18 2003 close $ 0.48

Tuesday February 18 2003                                      News Release

Mr. David Tice of Prudent Bear reports Prudent Bear Funds, Inc. has acquired control and direction, through Prudent Bear Fund, over 8,662,000 common shares and warrants to purchase an additional 250,000 common shares of Canarc Resource. The offeror would have control and direction over 18.77 per cent of the outstanding shares of the company assuming exercise of such warrants.

The offeror acquired the shares and warrants for investment purposes and has filed an early warning report with the British Columbia, Alberta, Saskatchewan, Ontario and Nova Scotia securities commissions in respect of the shares and warrants acquired.

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 asset is its 100% interest in the 1.3 million oz New Polaris gold deposit located in northwestern British Columbia.  Major shareholders include Barrick Gold Corp. and Echo Bay Mines Ltd.

ON BEHALF OF THE BOARD OF DIRECTORS

CANARC RESOURCE CORP.

Bradford J. Cooke

President and CEO

NOTE: If you have an E-Mail address and would prefer to receive Canarc's
News through this format, please E-Mail us at [email protected].