Vancouver, Canada – March 18, 2014 –
Canarc Resource Corp. (TSX: CCM, OTC-BB: CRCUF, Frankfurt: CAN) announces
that it has closed the first tranche of its previously announced non-brokered
private placement equity financing.

The first tranche of the private placement
consisted of 10.6 million units priced at CAD$0.10 each for total proceeds of
CAD$1,060,000. Each unit is comprised of one common share and one-half of a
whole share purchase warrant. Each full warrant entitles the holder to purchase
one additional share at CAD$0.15 for a three year period. A total of CAD$66,200
and 661,720 broker warrants as finders’ fees will be paid to arms-length parties
for placing a portion of the financing. The shares and units are subject to a
four month plus one day hold period from the closing date of the private
placement. This Private Placement and the subscription of the purchasers are
independent and separate of the proposed transaction announced on February 24,
2014. The net proceeds of the unit private placement will be used for working
capital purposes.

The Company also announces that its due diligence
efforts with respect to complete a business combination whereby Canarc may
acquire all of the outstanding common shares of Pan American Goldfields Ltd.
(“Pan American”) are progressing and the Company expects to enter
into a definitive agreement with Pan American before June 30, 2014.

“Catalin Chiloflischi”
____________________
Catalin Chiloflischi, CEO
CANARC RESOURCE CORP.

About Canarc Resource Corp. – Canarc is a
growth-oriented, gold exploration and mining company listed on the TSX (CCM)
and the OTC-BB (CRCUF). The Company is currently seeking a partner to advance
its core asset, the 1.1 million oz, high grade, underground, New Polaris gold
mine project in British Columbia, to feasibility. Canarc is also seeking to
acquire an operating or pre-production gold mine in the Americas.

For More Information – Please contact:
Catalin Chiloflischi, CEO
Gregg Wilson, Vice-President (Investor Relations)
Toll Free: 1-877-684-9700 Tel: (604) 685-9700 Fax: (604) 685-9744
Email: [email protected] Website: www.canarc.net

Cautionary Note Regarding Forward-Looking
Statements

This news release contains “forward-looking
statements” within the meaning of the United States private securities
litigation reform act of 1995 and “forward-looking information”
within the meaning of applicable Canadian securities legislation. Such forward‑looking
statements and information herein include, but are not limited to, statements
regarding Canarc’s future performance, including anticipated acquisitions,
exploration, development, production, revenues, cash costs, capital costs,
timing and expenditures to develop new mines and mineralized zones, gold grades
and recoveries, and the use of the Company’s working capital. The Company does
not intend to, and does not assume any obligation to update such
forward-looking statements or information, other than as required by applicable
law.