Shareholder Update - First Quarter Review
Vancouver, British Columbia, Canada,
April 28, 1999
Bradford Cooke, President and CEO of Canarc Resource Corp. is pleased to
provide this review of the 1st Quarter and plans for the 2nd Quarter.
Our new corporate strategies continued to pay dividends in the first
quarter of 1999. Gold production is up and remains profitable in spite of
low gold prices. We received our annual pre-production cash payment for
the Bellavista project which helps maintain our working capital. A new
joint venture was formed in Mexico by Canarc subsidiary Aztec Silver. The
only disappointment was the filing for arbitration of a dispute on the
HIGHLIGHTS 1st QUARTER
January � Added US $117,750 to working capital by receiving annual
pre-production cash payment from partner, Wheaton Minerals for the
Bellavista project - Mineable reserves up 8% to 555,000 oz. - Final
feasibility study expected shortly.
February � Subsidiary company Aztec Silver optioned 50% interest in
9 silver properties in Zacatecas, Mexico to Far West Mining for US $5.5
million in work expenditures, US $0.5 million in cash payments and 1
million shares over 3 years - Aztec to be initial operator - Work now
underway - Drilling scheduled to begin in September.
March � Filed for arbitration of a dispute with Grassalco, the Surinamese
partner on the Benzdorp project - Discussions continue in order to seek a
resolution outside of arbitration.� Production at the Sara Kreek mine is on
track to produce 10,000 oz. in 1999, and remained profitable in spite of
low gold prices.
OUTLOOK FOR 2nd QUARTER
� Continue discussions towards a Resolution of the dispute with
Grassalco - Seek a new senior partner to drill Benzdorp.� Continue
exploration work in Mexico - Seek a new silver property to qualify Aztec
for public listing.� Acquire new gold project - Seek a senior partner for
For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website: www.canarc.net.
ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.
Bradford J. Cooke
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