---



CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDEDMARCH 31, 2007, 2006, and 2005



(Expressed in Canadian Dollars, unless otherwise stated)

---

D E  V I S S E R  G R A Y  L L
  PCHARTERED ACCOUNTANTS

401 - 905 West Pender Street Vancouver, BC Canada V6C 1L6

Tel: (604) 687-5447 Fax: (604) 687-6737

AUDITORS REPORT

To the Shareholders of Amarc Resources Ltd.

We have audited the consolidated balance sheets of Amarc
Resources Ltd. as at March 31, 2007 and 2006, and the consolidated statements of
operations and deficit and cash flows for each of the years in the three year
period ended March 31, 2007. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards in Canada and the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.

In our opinion, these consolidated financial statements present
fairly, in all material respects, the financial position of the Company as at
March 31, 2007 and 2006 and the results of its operations and cash flows for
each of the years in the three year period ended March 31, 2007 in accordance
with generally accepted accounting principles in Canada.

*De Visser Gray LLP*

CHARTERED ACCOUNTANTS

Vancouver, British Columbia July 19, 2007

---

AMARC RESOURCES
LTD.Consolidated Balance Sheets(Expressed in Canadian
Dollars)

|                                                    |   | March
      31 |   |   | March
      31 |  
|--------------------------------------------------- | - | -------------- | - | - | -------------- | -
|                                                    |   | 2007           |   |   | 2006           |  
|                                                    |   |                |   |   |                |  
|ASSETS                                              |   |                |   |   |                |  
|                                                    |   |                |   |   |                |  
|Current assets                                      |   |                |   |   |                |  
|Cash and cash equivalents                           | $ | 2,916,194      |   | $ | 4,537,933      |  
|Amounts receivable and
      prepaids               |   | 112,441        |   |   | 100,917        |  
|Balances receivable from related parties (note 8)   |   | 5,714,191      |   |   | 233,308        |  
|                                                    |   | 8,742,826      |   |   | 4,872,158      |  
|                                                    |   |                |   |   |                |  
|Equipment (note 5)                                  |   | 25,462         |   |   | 36,951         |  
|Mineral property
      interests (note 6)           |   |               |   |   | 98,429         |  
|                                                    |   |                |   |   |                |  
|                                                    | $ | 8,768,288      |   | $ | 5,007,538      |  
|                                                    |   |                |   |   |                |  
|                                                    |   |                |   |   |                |  
|LIABILITIES AND SHAREHOLDERS' EQUITY                |   |                |   |   |                |  
|                                                    |   |                |   |   |                |  
|Current liabilities                                 |   |                |   |   |                |  
|Accounts payable and accrued liabilities            | $ | 78,012         |   | $ | 38,431         |  
|                                                    |   |                |   |   |                |  
|Shareholders' equity                                |   |                |   |   |                |  
|Share capital (note 7(b))                           |   | 27,287,248     |   |   | 23,997,068     |  
|Contributed surplus (note 7(e))                     |   | 2,295,248      |   |   | 487,821        |  
|Deficit                                             |   | (20,892,220    | ) |   | (19,515,782    | )
|                                                    |   | 8,690,276      |   |   | 4,969,107      |  
|Nature and continuance of operations (note
      1) |   |                |   |   |                |  
|Commitments (note 7(b))                             |   |                |   |   |                |  
|Subsequent events (notes 8(c) and 10)               |   |                |   |   |                |  
|                                                    |   |                |   |   |                |  
|                                                    |   |                |   |   |                |  
|                                                    | $ | 8,768,288      |   | $ | 5,007,538      |  

The accompanying notes are an integral part of these
consolidated financial statements.

Approved by the Board of Directors

|/s/ Ronald W. Thiessen | /s/ Jeffrey R. Mason
|---------------------- | --------------------
|                       |                     
|Ronald W. Thiessen     | Jeffrey R. Mason    
|Director               | Director            

---

AMARC RESOURCES
LTD.Consolidated Statements of Operations and
Deficit(Expressed in Canadian Dollars)

|                                                               |   | Years
      ended March 31 |  
|-------------------------------------------------------------- | - | -------------------------- | -
|                                                               |   | 2007                       |  
|                                                               |   |                            |  
|Expenses                                                       |   |                            |  
|Amortization                                                   | $ | 6,366                      |  
|Conference and travel                                          |   | 60,402                     |  
|Exploration (schedule)                                         |   | 1,033,060                  |  
|Legal, accounting, and
      audit                             |   | 33,465                     |  
|Management and consulting                                      |   | 54,714                     |  
|Office and administration                                      |   | 150,163                    |  
|Property investigation                                         |   | 10,396                     |  
|Salaries and benefits                                          |   | 229,024                    |  
|Shareholder communication                                      |   | 51,857                     |  
|Stock-based compensation
      - administration (note 7(c))    |   |                           |  
|Stock-based compensation - exploration
      (note 7(c))       |   |                           |  
|Trust and filing                                               |   | 18,719                     |  
|                                                               |   | 1,648,166                  |  
|                                                               |   |                            |  
|Other items                                                    |   |                            |  
|Foreign exchange gain (loss)                                   |   | 38,098                     |  
|Gain on sale of marketable securities (notes
      4 and 6(a)) |   |                           |  
|Loss on sale of equipment                                      |   | (1,678                     | )
|Write down of accounts receivable                              |   |                           |  
|Write down of mineral property
      interest (note 6(a))      |   | (98,429                    | )
|Write down of marketable securities (notes
      4 and 6(a))   |   |                           |  
|Interest on flow-through
      shares                          |   |                           |  
|Interest
      and other                                       |   | 333,737                    |  
|                                                               |   | 271,728                    |  
|                                                               |   |                            |  
|Net loss for the year                                          | $ | (1,376,438                 | )
|                                                               |   |                            |  
|Deficit, beginning of year                                     | $ | (19,515,782                | )
|                                                               |   |                            |  
|Deficit, end of year                                           | $ | (20,892,220                | )
|                                                               |   |                            |  
|Basic and diluted net loss per share                           | $ | (0.03                      | )
|                                                               |   |                            |  
|Weighted average number                                        |   |                            |  
|of
      common shares outstanding                             |   | 54,557,473                 |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

AMARC RESOURCES
LTD.Consolidated Statements of Cash Flows(Expressed in
Canadian Dollars)

|                                                                                              |   | Years
      ended March 31 |  
|--------------------------------------------------------------------------------------------- | - | -------------------------- | -
|Cash provided
      by (used in)                                                              |   | 2007                       |  
|                                                                                              |   |                            |  
|Operating activities                                                                          |   |                            |  
|Loss for the year                                                                             | $ | (1,376,438                 | )
|Items not involving cash                                                                      |   |                            |  
|Amortization                                                                                  |   | 6,366                      |  
|Common shares
      issued for property fees                                                  |   |                           |  
|Loss on sale of equipment                                                                     |   | 1,678                      |  
|Gain on sale
      of marketable securities                                                   |   |                           |  
|Stock-based compensation
      (note 7(c))                                                    |   |                           |  
|Warrants
      received for option earn-in rights (note 6(b))                                 |   |                           |  
|Write down of accounts receivable                                                             |   |                           |  
|Write down
      of mineral property interest                                                 |   | 98,429                     |  
|Write down of marketable
      securities                                                     |   |                           |  
|Changes in non-cash working
      capital items                                               |   |                            |  
|Amounts receivable and prepaids                                                               |   | (11,524                    | )
|Balances
      receivable from and payable to related parties                                 |   | 19,117                     |  
|Accounts payable and accrued liabilities                                                      |   | 39,581                     |  
|                                                                                              |   | (1,222,791                 | )
|                                                                                              |   |                            |  
|Investing activities                                                                          |   |                            |  
|Proceeds from sale of equipment                                                               |   | 3,445                      |  
|Proceeds from sale of marketable
      securities                                             |   |                           |  
|Acquisition of mineral property interests                                                     |   |                           |  
|Purchase of marketable
      securities                                                       |   |                           |  
|Loan
      to a related party                                                                 |   | (5,500,000                 | )
|                                                                                              |   | (5,496,555                 | )
|                                                                                              |   |                            |  
|Financing activities                                                                          |   |                            |  
|Issuance
      of share capital, net of costs                                                 |   | 5,097,607                  |  
|                                                                                              |   | 5,097,607                  |  
|                                                                                              |   |                            |  
|Decrease in cash and cash equivalents                                                         |   | (1,621,739                 | )
|                                                                                              |   |                            |  
|Cash and cash equivalents, beginning of year                                                  |   | 4,537,933                  |  
|                                                                                              |   |                            |  
|Cash and cash equivalents, end of year                                                        | $ | 2,916,194                  |  
|                                                                                              |   |                            |  
|The accompanying notes are an integral part
      of these consolidated financial statements. |   |                            |  
|                                                                                              |   |                            |  
|                                                                                              |   |                            |  
|Supplementary cash flow information:                                                          |   |                            |  
|                                                                                              |   |                            |  
|Interest paid                                                                                 | $ |                           |  
|Taxes paid                                                                                    |   |                           |  
|                                                                                              |   |                            |  
|Non cash financing and investing activities:                                                  |   |                            |  
|Issuance of common shares for property option
      fees                                      |   |                           |  
|Common shares received from Endurance
      Gold Corporation (note 6(a)(iv))                  |   |                           |  
|Fair value of warrants issued on private placement
      charged                              |   |                            |  
|to share capital
      (note 7(b))                                                            |   | 1,807,427                  |  
|Fair value of stock options transferred to share
      capital on options                     |   |                            |  
|exercised from contributed surplus
      (notes 7(b) & (e))                                   |   |                           |  

---

AMARC RESOURCES
LTD.Consolidated Schedules of Exploration Expenses Years
ended March 31, 2007, 2006, and 2005(Expressed in Canadian Dollars)

|                                                             |   | Mexico    |   |   | British    |  |   | All        |  
|------------------------------------------------------------ | - | --------- | - | - | ---------- |  | - | ---------- | -
|                                                             |   | Inde      |   |   | Columbia   |  |   | Properties |  
|                                                             |   | Property  |   |   | Properties |  |   | Total      |  
|                                                             |   |           |   |   |            |  |   |            |  
|Exploration expenses for the year
      ended March 31, 2007 |   |           |   |   |            |  |   |            |  
|Assays and analysis                                          | $ |          |   | $ | 162,429    |  | $ | 162,429    |  
|Drilling                                                     |   |          |   |   |           |  |   |           |  
|Equipment rental                                             |   |          |   |   | 25,695     |  |   | 25,695     |  
|Freight                                                      |   |          |   |   | 2,122      |  |   | 2,122      |  
|Geological                                                   |   |          |   |   | 635,870    |  |   | 635,870    |  
|Graphics                                                     |   |          |   |   | 9,762      |  |   | 9,762      |  
|Helicopter                                                   |   |          |   |   | 42,358     |  |   | 42,358     |  
|Property fees and assessments                                |   |          |   |   | 18,831     |  |   | 18,831     |  
|Property option payments                                     |   |          |   |   | 25,000     |  |   | 25,000     |  
|Site activities                                              |   |          |   |   | 64,297     |  |   | 64,297     |  
|Travel
      and accommodation                               |   |          |   |   | 46,696     |  |   | 46,696     |  
|Incurred during fiscal 2007                                  |   |          |   |   | 1,033,060  |  |   | 1,033,060  |  
|Cumulative
      expenditures, March 31, 2006                |   | 2,246,761 |   |   | 11,102,814 |  |   | 13,349,575 |  
|Cumulative expenditures, March 31, 2007                      | $ | 2,246,761 |   | $ | 12,135,874 |  | $ | 14,382,635 |  
|                                                             |   |           |   |   |            |  |   |            |  
|Exploration expenses for the year
      ended March 31, 2006 |   |           |   |   |            |  |   |            |  
|Assays and analysis                                          | $ |          |   | $ | 205,889    |  | $ | 205,889    |  
|Drilling                                                     |   |          |   |   | 260,900    |  |   | 260,900    |  
|Equipment rental                                             |   |          |   |   | 186,127    |  |   | 186,127    |  
|Freight                                                      |   |          |   |   | 40,214     |  |   | 40,214     |  
|Geological                                                   |   |          |   |   | 1,117,544  |  |   | 1,117,544  |  
|Graphics                                                     |   |          |   |   | 19,094     |  |   | 19,094     |  
|Helicopter                                                   |   |          |   |   | 260,720    |  |   | 260,720    |  
|Property fees and assessments                                |   |          |   |   | 23,310     |  |   | 23,310     |  
|Property option payments                                     |   |          |   |   | 78,750     |  |   | 78,750     |  
|Site activities                                              |   |          |   |   | 727,397    |  |   | 727,397    |  
|Travel
      and accommodation                               |   |          |   |   | 92,880     |  |   | 92,880     |  
|Incurred during fiscal 2006                                  |   |          |   |   | 3,012,825  |  |   | 3,012,825  |  
|Cumulative
      expenditures, March 31, 2005                |   | 2,246,761 |   |   | 8,089,989  |  |   | 10,336,750 |  
|Cumulative expenditures, March 31, 2006                      | $ | 2,246,761 |   | $ | 11,102,814 |  | $ | 13,349,575 |  
|                                                             |   |           |   |   |            |  |   |            |  
|Exploration expenses for the year
      ended March 31, 2005 |   |           |   |   |            |  |   |            |  
|Assays and analysis                                          | $ |          |   | $ | 455,737    |  | $ | 455,737    |  
|Drilling                                                     |   |          |   |   | 708,953    |  |   | 708,953    |  
|Engineering                                                  |   |          |   |   | 36,809     |  |   | 36,809     |  
|Environmental                                                |   |          |   |   | 7,246      |  |   | 7,246      |  
|Equipment rental                                             |   | 603       |   |   | 149,258    |  |   | 149,861    |  
|Freight                                                      |   |          |   |   | 46,775     |  |   | 46,775     |  
|Geological                                                   |   |          |   |   | 3,082,953  |  |   | 3,082,953  |  
|Graphics                                                     |   |          |   |   | 73,072     |  |   | 73,072     |  
|Helicopter                                                   |   |          |   |   | 674,075    |  |   | 674,075    |  
|Option earn-in rights (note
      6(b))                      |   | (102,000  | ) |   |           |  |   | (102,000   | )
|Property fees and assessments                                |   |          |   |   | 47,486     |  |   | 47,486     |  
|Property option payments                                     |   |          |   |   | 99,400     |  |   | 99,400     |  
|Site activities                                              |   | 742       |   |   | 2,105,905  |  |   | 2,106,647  |  
|Socioeconomic                                                |   |          |   |   | 2,210      |  |   | 2,210      |  
|Travel
      and accommodation                               |   |          |   |   | 164,726    |  |   | 164,726    |  
|Incurred during fiscal 2005                                  |   | (100,655  | ) |   | 7,654,605  |  |   | 7,553,950  |  
|Cumulative
      expenditures, March 31, 2004                |   | 2,347,416 |   |   | 435,384    |  |   | 2,782,800  |  
|Cumulative expenditures, March 31, 2005                      | $ | 2,246,761 |   | $ | 8,089,989  |  | $ | 10,336,750 |  

The accompanying notes are an integral part of these
consolidated financial statements.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in
      Canadian Dollars)         

|1. | NATURE AND CONTINUANCE OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | Amarc Resources Ltd. (the "Company") is incorporated
      under the laws of the Province of British Columbia, and its principal
      business activity is the acquisition and exploration of mineral
      properties. Its principal mineral property interests are located in
      British Columbia.                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | These consolidated financial statements have been
      prepared using Canadian generally accepted accounting principles assuming
      a going concern. The Company has incurred losses since inception and its
      ability to continue as a going concern depends upon its capacity to
      develop profitable operations and to continue to raise adequate financing.
      These consolidated financial statements do not reflect adjustments, which
      could be material, to the carrying values of assets and liabilities which
      may be required should the Company be unable to continue as a going
      concern.                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|2. | BASIS OF PRESENTATION AND PRINCIPLES OF
      CONSOLIDATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | These consolidated financial statements have been
      prepared in accordance with Canadian generally accepted accounting
      principles, and have been reconciled to United States generally accepted
      accounting principles in note 11. These consolidated financial statements
      include the accounts of the Company and its wholly owned subsidiaries,
      Compania Minera Amarc SA de CV and Amarc Exploraciones Mineras SA de CV,
      both of which are incorporated in Mexico. Also included are the accounts
      of the Precious Exploration Limited Partnership, which is subject to the
      Company's control and primary beneficial ownership.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3. | SIGNIFICANT ACCOUNTING
POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|(a) | Cash and cash equivalents                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                   
|    | Cash and equivalents consist of cash and highly liquid
      investments, having maturity dates of three months or less from the date
      of purchase, which are readily convertible to known amounts of
  cash.
|    |                                                                                                                                                                                                                   
|(b) | Marketable securities                                                                                                                                                                                             
|    |                                                                                                                                                                                                                   
|    | Marketable securities are recorded at the lower of cost
      and estimated fair value.                                                                                                                           
|    |                                                                                                                                                                                                                   
|(c) | Equipment                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                   
|    | Equipment is recorded at cost and is amortized over its
      estimated useful life using the declining balance method at various rates
      ranging from 20% to 30% per annum.                                  

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(d) | Reclamation deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Reclamation deposits are recorded at cost and are included in amounts receivable and prepaids.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(e) | Mineral property interests and related retirement obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | The acquisition costs of mineral properties are deferred until the properties are placed into production, sold or abandoned. These costs are amortized on a unit-of-production basis over the estimated useful life of the related
properties following the commencement of production or written off if the properties are sold, allowed to lapse or abandoned, or when impairment has been determined to have occurred. If the deferred mineral property costs are determined not to be
recoverable over the estimated useful life or are greater than the estimated fair market value, the unrecoverable portion is charged to operations in that period.                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Mineral property acquisition costs include the cash consideration and the fair market value of common shares, based on the trading price of the shares, on the date of issue or as otherwise provided under the agreement terms for
the mineral property interest. Costs for properties for which the Company does not possess unrestricted ownership and exploration rights, such as option agreements, are expensed in the period incurred or until a feasibility study has determined that
the property is capable of commercial production.                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Exploration costs and option payments are expensed in the period incurred. Option payments which are solely at the Company's discretion are recorded as they are made.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | Administrative expenditures are expensed in the period incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition,
construction, development and/or normal use of the assets. The Company also records a corresponding asset value which is amortized over the remaining service life of the asset being retired. Subsequent to the initial measurement of the asset
retirement obligation, the obligation will be adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost).
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    | The Company also reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is
measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount
by which the carrying amount of the asset exceeds the fair value of the asset.                                                                                                                                                        

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|    | The Company has no material asset obligations as the disturbance at the exploration sites to date has been minimal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(f) | Government assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Due to the uncertainty of approval associated with mineral exploration tax credits and other government grants for which the Company applies, government grants are recorded when the proceeds of these grants are actually
received.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(g) | Share capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Common shares issued for mineral property interests are recorded at their fair market value based upon the trading price of the shares on the TSX Venture Exchange on the date of issue or as otherwise provided under the agreement
terms to issue the shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The proceeds from common shares issued pursuant to flow-through share financing agreements are credited to share capital and the tax benefits of the exploration expenditures incurred pursuant to these agreements are transferred to
the purchaser of the flow-through shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Share issue costs are deducted from share capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(h) | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company accounts for all non-cash stock-based payments to non-employees, and employee awards that are direct awards of shares that call for settlement in cash or other assets, or that are share appreciation rights which call
for settlement by the issuance of equity instruments, using the fair value method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Under the fair value method, stock-based payments are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable.
The fair value of non-cash stock-based payments is periodically re-measured until counterparty performance is complete, and any change therein is recognized in the same manner as if the Company had paid cash instead of paying with or using equity
instruments. The cost of non-cash stock-based payments to service providers that are fully vested and non-forfeitable at the grant date is measured and recognized at that date. For awards that vest at the end of a vesting period, compensation cost
is recognized on a straight-line basis; for awards that vest on a graded basis, compensation cost is recognized on a pro-rata basis over the vesting period.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Consideration received by the Company upon the exercise of share purchase options and warrants, and the stock-based compensation previously credited to contributed surplus related to such options and warrants, is credited to share
capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(i) | Use of estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities as at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates include the determination of
potential impairments of asset values, and rates for amortization of equipment, as well as the assumptions used in determining the fair value of non-cash stock-based compensation. Actual results could differ from those estimates.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(j) | Foreign currency translation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | All of the Company's foreign subsidiaries are considered integrated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | Monetary assets and liabilities of the Company and its integrated foreign operations are translated into Canadian dollars at exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are translated at
historical exchange rates unless such items are carried at market, in which case they are translated at the exchange rates in effect on the balance sheet date. Revenues and expenses, except amortization, are translated at average exchange rates for
the period. Amortization is translated at the same exchange rates as the assets to which it relates. Foreign exchange gains or losses are recognized in the statement of operations.                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(k) | Segment disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Company is currently operating in a single segment  the acquisition, exploration and development of mineral properties in British Columbia, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(l) | Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | The Company uses the asset and liability method of accounting for income taxes. Under this method, future income tax assets and liabilities are computed based on differences between the carrying amount of assets and liabilities on
the balance sheet and their corresponding tax values, generally using the enacted or substantively enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled.                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | Future income tax assets also result from unused loss carry-forwards and other deductions. Future tax assets are recognized to the extent that they are considered more likely than not to be realized. The valuation of future income
tax assets is adjusted, if necessary, by the use of a valuation allowance to reflect the estimated realizable amount.                                                                                                                                                                                                                                                                                                                                                                     

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(m) | Loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Basic loss per share is calculated by dividing the loss for the period by the weighted average number of common shares outstanding during the period.                                                                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Diluted loss per share is calculated using the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding used for the calculation of diluted loss per share assumes that the
proceeds to be received on the exercise of dilutive stock options and warrants are used to repurchase common shares at the average market price during the period.                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(n) | Fair value of financial instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | The carrying values of cash and cash equivalents, amounts receivable, and accounts payable and accrued liabilities approximate their fair value due to their short term nature. The fair value of balances receivable from related
parties is not readily determinable due to the related party nature of these amounts and the absence of a secondary market for such instruments. Management believes that the Company is not exposed to significant credit risk or interest rate
risk.                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Warrants received by the Company pursuant to certain private placement and option agreements described in note 4 and note 6 are classified as derivative financial instruments and are recorded on the consolidated balance sheet as
marketable securities at estimated fair value. Changes in the fair value of these warrants are charged to operations.                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(o) | Impairment of long-lived assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | The Company reviews and evaluates its long-lived assets, including mineral properties, plant and equipment, for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.
Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to its estimated undiscounted future cash flows expected to be generated by the asset. Measurement of an impairment loss is based on the
excess of the estimated fair value of the asset over its carrying value.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | At each reporting period and whenever events or circumstances indicate that an asset's fair value may not be at least equal to its carrying value, management of the Company reviews the net carrying value. These reviews involve
consideration of the fair value of each property to determine whether a permanent impairment in value has occurred and whether any asset write down is necessary.                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(p) | Variable interest entities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Effective April 1, 2005, the Company adopted the Canadian Institute of Chartered Accountants Handbook Accounting Guideline 15, "Consolidation of Variable Interest Entities" ("AcG15").                                                                                                                                                                                                                                                                                                                                                                            

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|    | AcG15 prescribes the application of consolidation principles for entities that meet the definition of a variable interest entity ("VIE"). An enterprise holding other than a voting interest in a VIE could, subject to certain
conditions, be required to consolidate the VIE if it is considered its primary beneficiary whereby it would absorb the majority of the VIE's expected losses, receive the majority of its expected residual returns, or both. The adoption of this new
standard had no effect on the consolidated financial statements as the Company does not have any VIE's.                          
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(q) | Flow-through financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Under the Canadian Income Tax Act, a company may issue securities referred to as flow-through shares whereby the investor may claim the tax deductions arising from the qualifying expenditure of the proceeds by the company. When
resource expenditures are renounced to the investors and the Company has reasonable assurance that the expenditures will be completed, future income tax liabilities are recognized (renounced expenditures multiplied by the effective corporate tax
rate), thereby reducing share capital. Previously unrecognized tax assets may then offset or eliminate the liability recorded.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(r) | Comparative figures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | Certain of the prior years' comparative figures have been reclassified to conform to the financial statement presentation adopted for the current year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|4. | MARKETABLE SECURITIES
|-- | ---------------------

| |                                                           |  |         |  |   |                  |  |   | Market  | 
| | --------------------------------------------------------- |  | ------- |  | - | ---------------- |  | - | ------- | 
| |                                                           |  | Number  |  |   | Book
      value |  |   | value   | 
| |                                                           |  |         |  |   |                  |  |   |         | 
| | March 31, 2007                                            |  | nil     |  | $ |                 |  | $ |        | 
| |                                                           |  |         |  |   |                  |  |   |         | 
| | March 31, 2006                                            |  |         |  |   |                  |  |   |         | 
| | ComWest
      Enterprise Corp. warrants (2)               |  | 12,426  |  |   |                 |  |   |        | 
| | Total                                                     |  |         |  | $ |                 |  | $ |        | 
| |                                                           |  |         |  |   |                  |  |   |         | 
| | March 31, 2005                                            |  |         |  |   |                  |  |   |         | 
| | Yukon Zinc Corporation (formerly Expatriate               |  |         |  |   |                  |  |   |         | 
| | Resources
      Ltd.) common shares (1)                   |  | 537,000 |  | $ | 163,964          |  | $ | 171,840 | 
| | Chatworth Resources Inc. (formerly GMD                    |  |         |  |   |                  |  |   |         | 
| | Resources
      Corp.) common shares (note 6(a)(i))       |  | 16,667  |  |   | 3,333            |  |   | 3,583   | 
| | Chatworth Resources Inc. warrants (note
      6(a)(i))    |  | 16,667  |  |   | 22,000           |  |   | 22,000  | 
| | Yukon Zinc Corporation
      warrants (1)                 |  | 250,000 |  |   | 12,000           |  |   | 12,000  | 
| | Sydney
      Resource Corporation warrants (3)(note 6(b)) |  | 300,000 |  |   | 89,000           |  |   | 89,000  | 
| | Total                                                     |  |         |  | $ | 290,297          |  | $ | 298,423 | 

| | (1) | On July 21, 2004, the Company subscribed to a private
      placement in Yukon Zinc Corporation (formerly Expatriate Resources Ltd.)
      ("Yukon Zinc") consisting of 500,000 units for a total cost of $125,000.
      Each unit consisted of one common share and one-half of one warrant. Each
      whole warrant was convertible into one common share of Yukon Zinc. The
      costs totaling $125,000 were allocated between the common shares and
      warrants of Yukon Zinc based on their relative fair values at the date of
      issuance. The Company did not exercise the warrants, and consequently
      $12,000 originally allocated to the warrants on acquisition was written
      off when they expired unexercised on July 21, 2005. In January 2006, the
      Company disposed all the common shares of Yukon Zinc with proceeds of
      $202,009, and a gain of $94,609 was recorded after a write down to current
      market value of $56,564 in the quarter ended June 30, 2006.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (2) | In November 2005, Chatworth Resources Inc. ("Chatworth")
      (formerly, GMD Resources Corp.) amalgamated with ComWest Capital Corp. to
      form ComWest Enterprise Corp. ("ComWest"). Under the amalgamation
      agreement, the Company's 16,667 post-consolidated Chatworth warrants
      (100,000 pre-consolidation) were exchanged for 12,426 ComWest warrants.
      Each ComWest warrant entitled the Company to acquire one additional
      ComWest Class "B" voting common share at $1.207 per share until July 16,
      2006, which subsequently expired unexercised. During the year ended March
      31, 2006, the Company wrote off the $22,000 carrying costs originally
      associated with these warrants.                                                                                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (3) | The Company did not exercise the warrants of Sydney
      Resources Corporation and the related carrying cost of $89,000 was written
      off during fiscal 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|5. | EQUIPMENT
|-- | ---------

| |                |   |         |  |   | Accumulated  |  |   | Net Book | 
| | -------------- | - | ------- |  | - | ------------ |  | - | -------- | 
| |                |   | Cost    |  |   | Amortization |  |   | Value    | 
| |                |   |         |  |   |              |  |   |          | 
| | March 31, 2007 |   |         |  |   |              |  |   |          | 
| | Automotive     | $ |        |  | $ |             |  | $ |         | 
| | Site equipment |   | 77,551  |  |   | 52,089       |  |   | 25,462   | 
| | Total          | $ | 77,551  |  | $ | 52,089       |  | $ | 25,462   | 
| |                |   |         |  |   |              |  |   |          | 
| | March 31, 2006 |   |         |  |   |              |  |   |          | 
| | Automotive     | $ | 24,514  |  | $ | 19,391       |  | $ | 5,123    | 
| | Site equipment |   | 77,551  |  |   | 45,723       |  |   | 31,828   | 
| | Total          | $ | 102,065 |  | $ | 65,114       |  | $ | 36,951   | 

|6. | MINERAL PROPERTY
INTERESTS
|-- | --------------------------

Balance at
      
      
      Acquired
      
      
      Credited
      
      
      Written
      
      
      Balance atMarch 31,
      
      
      during the
      
      
      during the
      
      
      down during
      
      
      March 31,Property
        Acquisition Costs
      
      
      2006
      
      
      year
      
      
      year
      
      
      year
      
      
      2007British Columbia, CanadaBuck
      
      $
      55,929
      
      $
      
      
      $
      
      
      $
      (55,929
      )
      $
      Nechako
      
      
      42,500
      
      
      
      
      
      
      
      
      (42,500
      )
      
      Total
      
      $
      98,429
      
      $
      
      
      $
      
      
      $
      (98,429
      )
      $
      


Balance at
    
    
    Acquired
    
    
    Credited
    
    
    Written
    
    
    Balance atMarch 31,
    
    
    during the
    
    
    during the
    
    
    down during
    
    
    March 31,Property Acquisition Costs
    
    2005
    
    
    year
    
    
    year
    
    
    year
    
    
    2006British Columbia, CanadaBuck
    $
    55,929
    
    $
    
    
    $
    
    
    $
    
    
    $
    55,929Nechako
    
    90,000
    
    
    
    
    
    (47,500
    )
    
    
    
    
    42,500Witch
    
    10,000
    
    
    
    
    
    
    
    
    (10,000
    )
    
    Total
    $
    155,929
    
    $
    
    
    $
    (47,500
    )
    $
    (10,000
    )
    $
    98,429


---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(a) | British Columbia, Canada
|--- | ------------------------

(i)     
Buck Property

In January 2004, the Company entered
into an agreement to acquire a 100% interest in the Buck mineral
property. The 4,750 hectare Buckproperty, located 20 kilometers south of
Houston, was acquired from United Mineral Services Ltd., a private company owned
by a director of the Company, by reimbursing the cost of: staking the property,
line-cutting to establish a survey grid over it and performing an induced
polarization geophysical survey on the property.

During the year ended March 31, 2007,
the Company allowed the property to lapse and a write down of $55,929 to the
Buck property interest was recorded.

(ii)     Bodine
Property, British Columbia

On November 14, 2006, the Company
reached an option agreement with an arm's length party to acquire a 100%
undivided interest in the Bodine property ("Bodine"), located approximately 110
kilometers northeast of Smithers, in the Omineca Mining Division in central
British Columbia.

The Company can acquire its interest in
Bodine by making staged cash payments totaling $225,000 and expending $2,000,000
on the property over the next four years. Bodine is subject to a 3% net smelter
royalty ("NSR"), 2% of which may be purchased at the Company's sole discretion
for $2,000,000 with the remaining 1% subject to a right of first refusal in
favor of the Company. Annual advance royalty payment of $50,000 will be payable
beginning from the fifth year of the agreement to the fifteenth year of the
agreement.

On December 4, 2006, the Company paid
the initial payment of $25,000 to purchase Bodine. The Company recorded the
payment as a property option expense during the year ended March 31, 2007.

(iii)    Nechako Gold
Property (formerly "Bob" and "JMD" Properties)

In 2004, the Company acquired a 100%
interest in the Nechako mineral property, located 80 kilometers west of Quesnel,
by issuing a total of 200,000 shares of the Company to two arm's length parties.
Of these 200,000 shares, 50,000 were not due to be issued until the Company
reached a third party joint venture agreement or completed a total of $250,000
in exploration expenditures on the property.

In November 2004, the Company signed an
option agreement with Endurance Gold Corporation ("Endurance Gold"), an arm's
length private company, whereby Endurance Gold could acquire a 60% interest in
the properties by issuing to the Company 250,000 common shares in stages
(issued), and by incurring $250,000 in exploration work on the property over a
three year period (completed). The agreement was conditional upon Endurance Gold
becoming a publicly-listed

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

company, a condition that Endurance
fulfilled in July 2005 by becoming a publicly-listed company on the TSX Venture
Exchange. The Company received its payments of 250,000 common shares of
Endurance Gold during the year ended March 31, 2006, and $47,500 was credited to
the acquisition cost of the property. Consequently, Endurance Gold earned its
60% interest in the property. The two arm's length parties from whom the
property was acquired waived their right to the 50,000 common shares of the
Company referred to above. After a write down of $10,000 to the common shares of
Endurance Gold held by the Company, the Company disposed of all shares it held
for proceeds of $36,165 and a loss of $1,203 was recorded.

At the end of the option period, the
Company and Endurance Gold entered into a joint venture to develop the property
with the Company owning 40% and Endurance Gold owning 60%.

From January 2005 to March 31, 2007,
Endurance Gold registered an additional 3,275 hectares of mineral claims within
the area of common interest surrounding the property. These form part of the
property and are subject to the terms of the agreement with Endurance Gold.

During the year ended March 31, 2006,
the Company reviewed the exploration results and elected not to participate in
the additional expenditures required to complete the drilling in December 2005.
As a result, Amarc's interest in the property was reduced to 32.61% . During the
year ended March 31, 2007, the Company wrote off the remaining costs of $42,500
related to the Nechacko property.

(iv)    Witch
Properties

In September 2004, the Company acquired
a 100% interest in the Witch porphyry gold-copper property for a cash payment of
$10,000. The property comprises approximately 4,600 hectares and is located in
the Witch Lake/Chuchi Lake region, approximately 80 kilometers north-northwest
of Fort St. James. Amarc added to the property by staking an additional 1,750
hectares in four claims. The Company conducted exploration work during the
fiscal year and the results did not warrant further work by the Company.
Consequently, acquisition costs of $10,000 were written off during the year
ended March 31, 2006.

The Company then staked an additional
36,350 hectares in the Witch Lake region, comprising the Chona, Kal, M2, M3, M4,
M5, Tsil and additional Witch claims. During the year ended March 31, 2006, the
M2, M4, M5, Kal and Tsil claims lapsed.

The Company had previously filed
assessment work on 21,025 hectares of certain of these claims. During the year
ended March 31, 2007, the Company sold a 100% interest in three of the Chona
claims for proceeds of $500, subject to a 2.5% NSR. The purchaser may acquire
this royalty from the Company for the sum of $1,000,000 per one-percent royalty.
Therefore, as at March 31, 2007, all of the Companys Witch and Chona claims had
either been sold or had lapsed.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

(v)    
 Cariboo Properties

In May 2005, the Company entered into
  an option agreement with Taseko Mines Limited, a public company with certain
  directors in common with the Company, to earn a 50% interest in the Wasp and
  Anvil properties. The Company will be the operator and can acquire its interest
  by incurring $150,000 of exploration expenditures over a two year period. The
  Wasp and Anvil properties are located approximately 15 kilometers southeast
  of Taseko's Prosperity project, and is situated 130 kilometers southwest of
  Williams Lake.

During the year ended March 31, 2007,
these properties were allowed to lapse and the Company has no further interest
in the agreement.

(vi)     Max
Property

In January 2005, the Company entered
into an agreement whereby it obtained an option to acquire a 100% interest in
the 121 hectare Homestake/Kamad crown-granted mineral claims located 65
kilometers northeast of Kamloops, by making staged cash payments totaling
$135,000 and issuing 200,000 common shares of the Company over a period of 2
years, of which $60,000 had been paid and 50,000 common shares had been issued
to March 31, 2006. The agreement included a 2% net smelter royalty payable from
production on the property, which royalty was purchasable by the Company for $1
million.

In December 2004, the Company entered
into a letter agreement with Eagle Plains Resources Ltd. ("Eagle Plains") for an
option to acquire a 60% joint venture position with Eagle Plains to develop the
5,075 hectare Acacia property that is contiguous with and surrounds the
Homestake/Kamad claims. The Company could have acquired its interest by making
staged payments totaling $125,000 and 350,000 common shares of the Company and
by expending $2,500,000 in exploration and development work over the next four
years. The Company could have increased its interest to 75% by carrying the
project to feasibility. A definitive agreement was signed in April 2005. Initial
cash payments of $25,000 and the issuance of 25,000 common shares of the Company
were made in June 2005.

The Company has given notice of
termination of the option agreements on the Homestake/Kamad property and the
Acacia property.

(vii)    Tulox
Property

The Tulox property, located in the
Cariboo region and comprising 20,726 hectares, was registered for acquisition
(acquired via the BC government's on-line staking system) during the period July
2005 to March 2006. The Company registered additional claims, totaling 34,356
hectares, during the year ended March 31, 2007.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|    | Subsequent to the Company's fiscal 2007 year end, the Company
        completed the sale of the Tulox property for consideration of 10,000,000
        common shares of Sitec Ventures Corp., subject to certain conditions.
        The Company will also receive a 3% net smelter royalty return following
        the commencement of commercial production on the property. In addition,
        the Company receives a "Back In Right" whereby, on completion of $5,000,000
        of exploration expenditures on the property, the Company will have a 90
        day period, during which it can acquire a 60% interest in the property,
        by agreeing to complete a further $10,000,000 of exploration expenditures
        on the property.                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (viii) Iskut Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company registered for acquisition a total of 5,175
      hectares in five properties in the Iskut River area of northwestern
      British Columbia during the period August 2005 to March 2006. These
      properties comprise the AA, MEZ, TRI A, Copper 152 and Copper 246
      properties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company also entered into a Letter Agreement in May
      2006 with an arm's length party, giving the Company the right to explore
      the 2,302 hectare SEDEX property that adjoins the AA property, and the
      right to enter into a formal option agreement on or before December 31,
      2006 to purchase the SEDEX property by paying the arm's length party
      $100,000 and 265,000 shares of the Company in stages to December 31, 2010.
      The purchase was subject to a 1.5% net smelter royalty in favor of the
      arm's length party, 0.5% of which could be purchased by the Company for
      $1,000,000. Advance royalty payments of $20,000 annually were payable to
      the arm's length party commencing on or before December 31,
2011.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | During the current year, the Company concluded that no
      further work was warranted on the properties. On December 6, 2006 the
      Company terminated the Letter Agreement and vended the AA property to the
      arm's length party. The Company retains a 1.5% net smelter royalty on
      production from the property, 0.5% of which can be purchased by the arm's
      length party for $1,000,000.                                                                                                                                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(b) | Other Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Yukon Territory and Saskatchewan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company has a 5% net profits interest ("NPI") in the
      46 mineral claims comprising the Ana Property in the Yukon, and a 2.5% NPI
      in a mineral lease comprising the Mann Lake Property in Saskatchewan. The
      Company has neither active exploration programs nor does it plan to
      undertake any new programs on these properties at the present
  time.                                                                                                                                                                                                                                                                                                                                                                                                

|7. | SHARE CAPITAL
|-- | -------------

|(a) | Authorized share capital                                                                                        
|--- | ----------------------------------------------------------------------------------------------------------------
|    |                                                                                                                 
|    | The Company's authorized share capital consists of an
      unlimited number of common shares without par
value.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(b) | Issued and outstanding common
  shares
|--- | --------------------------------------

| |                                                                               |  | Number of  |  |   |            |  
| | ----------------------------------------------------------------------------- |  | ---------- |  | - | ---------- | -
| |                                                                               |  | Shares     |  |   | Amount     |  
| | Balance at March 31, 2004                                                     |  | 44,173,641 |  | $ | 20,638,830 |  
| | Issued during fiscal 2005                                                     |  |            |  |   |            |  
| | Options exercised                                                             |  | 2,123,500  |  |   | 654,090    |  
| | Nechako property option payment, June 2004
      (note 6(a)(v))               |  | 150,000    |  |   | 90,000     |  
| | GBR property option payment,
      June 2004 (note 6(a)(vi))                  |  | 30,000     |  |   | 18,000     |  
| | Sitka property option payment, June 2004
      (note 6(a)(iv))                |  | 80,000     |  |   | 48,000     |  
| | Spius Creek property option
      payment, July 2004 (note 6(a)(vii))         |  | 10,000     |  |   | 5,900      |  
| | Homestake/Kamad property option payment,
      January 2005 (note 6(a)(xi))   |  | 25,000     |  |   | 13,000     |  
| | Warrants exercised                                                            |  | 1,145,001  |  |   | 518,000    |  
| | Contributed
      surplus transferred on options exercised                    |  |           |  |   | 402,134    |  
| | Balance at March 31, 2005                                                     |  | 47,737,142 |  |   | 22,387,954 |  
| | Issued during fiscal 2006                                                     |  |            |  |   |            |  
| | Options exercised                                                             |  | 7,000      |  |   | 1,190      |  
| | Warrants exercised                                                            |  | 4,665,331  |  |   | 1,586,212  |  
| | Acacia property option
      payment, May 2005 (note 6(a)(x))                 |  | 25,000     |  |   | 9,250      |  
| | Homestake/Kamad property option payment,
      June 2005 (note 6(a)(x))       |  | 25,000     |  |   | 9,500      |  
| | Contributed surplus transferred on options
      exercised                    |  |           |  |   | 2,962      |  
| | Balance at March 31, 2006                                                     |  | 52,459,473 |  |   | 23,997,068 |  
| | Issued during fiscal 2007                                                     |  |            |  |   |            |  
| | Private placement at $0.50 per share, net
      of issue costs (note 7(b)(i)) |  | 10,490,000 |  |   | 5,097,607  |  
| | Fair value of warrants issued (note
      7(b)(i))                            |  |           |  |   | (1,807,427 | )
| | Balance
      at March 31, 2007                                               |  | 62,949,473 |  | $ | 27,287,248 |  

|    | (i) During the year ended March 31, 2007, the Company
      completed a private placement of 10,490,000 units ("Units") at $0.50 per
      Unit, consisting of 4,490,000 flow-through units and 6,000,000
      non-flow-through units.                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Each flow-through unit consisted of one flow-through
      common share and one non-flow-through warrant and each non-flow-through
      unit consisted of one non-flow-through common share and one warrant. Each
      warrant entitles the holder to purchase one non-flow-through common share
      until January 17, 2009, at a price of $0.55 per share.                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | Expenses to be incurred from the proceeds of the
      flow-through-units were renounced to investors on December 31, 2006. In
      accordance with certain provisions of the Canadian Income Tax Act, the
      Company is obligated to spend the proceeds from the flow-through-units by
      December 31, 2007. Using the Black-Scholes option pricing model, based
      upon the assumptions listed below (note 7(c)), the fair value of the
      warrants granted has been estimated at $1,807,427 which amount has been
      reflected in share capital and contributed surplus.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(c) | Share purchase option compensation plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | The Company has a share purchase option compensation plan
      approved by the shareholders that allows the Company to grant up to 10% of
      the issued and outstanding shares of the Company
at                                                                                                                                                                                                                                                                                                                                                                                       

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

any one time, typically vesting over up
to two years, subject to regulatory terms and approval, to its directors,
employees, officers, and consultants. The exercise price of each option may be
set equal to or greater than the closing market price of the common shares on
the TSX Venture Exchange on the day prior to the date of the grant of the
option, less any allowable discounts. Options had a maximum term of five years
and terminate 30 days following the termination of the optionee's employment,
except in the case of retirement or death. As at March 31, 2007, no options were
outstanding.

The continuity of share purchase
options for the year ended March 31, 2007 was:

March
        31
      
      
      
      
      
      
      
      
      Expired/
      
      
      March
        31Expiry date
      
      2006
      
      
      Granted
      
      
      Exercised
      
      
      Cancelled
      
      
      2007Total
      
      
      
      
      
      
      
      
      
      
      
      
      
      


The continuity of share purchase
options for the year ended March 31, 2006 was:

Exercise
      
      
      March 31
      
      
      
      
      
      
      
      
      Expired/
      
      
      March 31Expiry date
    
      price
      
      
      2005
      
      
      Granted
      
      
      Exercised
      
      
      Cancelled
      
      
      2006May 9, 2005
    $
    0.17
    
    
    7,000
    
    
    
    
    
    (7,000
    )
    
    
    
    
    March 21, 2006
    $
    0.60
    
    
    2,021,000
    
    
    
    
    
    
    
    
    (2,021,000
    )
    
    Total
    
    
    
    
    2,028,000
    
    
    
    
    
    (7,000
    )
    
    (2,021,000
    )
    
    Weighted average exercise price
    
    
    
    $
    0.60
    
    $
    
    
    $
    0.17
    
    $
    0.60
    
    $
    


The exercise prices of all share
purchase options granted during the period were equal to the market price at the
grant date. Using an option pricing model, with the assumptions noted below, the
estimated adjustment to fair value of all options outstanding during the year
have been reflected in the statement of operations as follows:

| |                                                         |   | Years ended March 31 | 
| | ------------------------------------------------------- | - | -------------------- | 
| |                                                         |   | 2007                 | 
| | Exploration                                             |   |                      | 
| | Engineering                                             | $ |                     | 
| | Environmental, socioeconomic
      and land             |   |                     | 
| | Geological                                              |   |                     | 
| | Exploration                                             |   |                     | 
| | Administration                                          |   |                     | 
| | Total compensation cost recognized in
      operations, |   |                      | 
| | credited
      (charged) to contributed surplus         | $ |                     | 

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

The assumptions used to estimate the
fair value of options granted during the year are as follows:

| |                                      |  | Year ended March 31 | 
| | ------------------------------------ |  | ------------------- | 
| |                                      |  | 2007                | 
| | Risk free interest rate              |  | 4%                  | 
| | Weighted average expected life       |  | 2.0 years           | 
| | Vesting period                       |  | nil                 | 
| | Weighted average expected volatility |  | 78%                 | 
| | Expected dividends                   |  | nil                 | 

|(d) | Share purchase warrants                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                          
|    | The continuity of share purchase warrants (each warrant
      redeemable for one common share) for the year ended March 31, 2007
    was:

Exercise
      
      
      March
        31
      
      
      
      
      
      
      
      
      Expired/
      
      
      March
        31Expiry date
    
      Price
      
      
      2006
      
      
      Issued
      
      
      Exercised
      
      
      Cancelled
      
      
      2007January 17, 2009
    $
    0.55
    
    
    
    
    
    10,490,000
    
    
    
    
    
    
    
    
    10,490,000Total
    
    
    
    
    
    
    
    10,490,000
    
    
    
    
    
    
    
    
    10,490,000Weighted average
        exercise price
    
    
    
    $
    
    
    $
    0.55
    
    $
    
    
    $
    
    
    $
    0.55


There were no warrants outstanding as
of March 31, 2006. The continuity of share purchase warrants for the year ended
March 31, 2006 was:

Exercise
      
      
      March 31
      
      
      
      
      
      
      
      
      Expired/
      
      
      March 31Expiry date
    
      Price
      
      
      2005
      
      
      Issued
      
      
      Exercised
      
      
      Cancelled
      
      
      2006December 31, 2005
    $
    0.34
    
    
    12,349,999
    
    
    
    
    
    (4,665,331
    )
    
    (7,684,668
    )
    
    Weighted average
        exercise price
    
    
    
    $
    0.34
    
    $
    
    
    $
    0.34
    
    $
    
    
    $
    


|(e) | Contributed surplus
|--- | -------------------

| | Balance at March 31, 2005                                                               | $ | 507,065   |  
| | --------------------------------------------------------------------------------------- | - | --------- | -
| | Changes during fiscal 2006                                                              |   |           |  
| | Non-cash stock-based compensation
      (note 7(c))                                     |   | (16,282   | )
| | Contributed
      surplus transferred to share capital on options exercised (note 7(a)) |   | (2,962    | )
| | Balance at March 31, 2006                                                               |   | 487,821   |  
| | Changes during fiscal 2007                                                              |   |           |  
| | Non-cash stock-based compensation
      (note 7(c))                                     |   |          |  
| | Contributed surplus transferred to share
      capital on options exercised (note 7(a)) |   |          |  
| | Fair value of warrants (note 7(b)(i))                                                   |   | 1,807,427 |  
| | Balance
      at March 31, 2007                                                         | $ | 2,295,248 |  

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

The components of contributed surplus
were:

| |                                                                    |   | March
      31, 2007 |   |   | March
      31, 2006 |  
| | ------------------------------------------------------------------ | - | -------------------- | - | - | -------------------- | -
| | Fair value of warrants                                             | $ | 1,807,427            |   | $ |                     |  
| | Cumulative stock-based compensation                                |   | 892,917              |   |   | 892,917              |  
| | Contributed surplus transferred to share
      capital relating to |   | (405,096             | ) |   | (405,096             | )
| | options exercised                                                  |   |                      |   |   |                      |  
| |                                                                    |   |                      |   |   |                      |  
| | Balance
      at March 31, 2007                                    | $ | 2,295,248            |   | $ | 487,821              |  

|8. | RELATED PARTY BALANCES AND
  TRANSACTIONS
|-- | -----------------------------------------

| |                                     |   | As
      at March 31 | 
| | ----------------------------------- | - | -------------------- | 
| |                                     |   |                      | 
| | Balances
      receivable (payable) |   | 2007                 | 
| | Hunter Dickinson Inc. (a)           | $ | 21,314               | 
| | Rockwell Ventures
      Inc. (c)    |   | 5,692,877            | 
| | Total                               | $ | 5,714,191            | 

| |                                            |   | Year
      ended March 31 | 
| | ------------------------------------------ | - | ------------------------- | 
| | Transactions                               |   | 2007                      | 
| | Services rendered and expenses reimbursed: |   |                           | 
| | Hunter Dickinson Inc. (a)                  | $ | 884,888                   | 
| | Hunter Dickinson Group Inc. (b)            | $ |                          | 
| | Rockwell Ventures Inc. (c)                 | $ | 5,692,877                 | 

| | (a) | Hunter Dickinson Inc. ("HDI") and its wholly-owned
      subsidiaries are private companies owned equally by ten public companies,
      one of which is the Company, and have certain directors in common with the
      Company. HDI provides geological, technical, corporate development,
      administrative and management services to, and incurs third party costs on
      behalf of, the Company on a full cost recovery basis pursuant to an
      agreement dated December 31, 1996. Balances receivable from HDI have
      arisen in the normal course of exploration work on the Company's mineral
      properties and from the provision of ongoing administrative and technical
      services.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (b) | Hunter Dickinson Group Inc. ("HDGI") is a private company
      with certain directors in common with the Company that provides consulting
      services to the Company at market rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (c) | Rockwell Ventures Inc., subsequently renamed Rockwell
      Diamonds Inc. ("Rockwell"), is a public company with certain directors in
      common with the Company. On January 26, 2007, the Company advanced
      $5,500,000 to Rockwell pursuant to a 90-day promissory note. Interest on
      the promissory note is calculated at a rate of 20% per annum, compounded
      quarterly. Interest is payable in common shares of Rockwell, based upon
      the                                                                                                                                                                                                                                              

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

ten day average closing price, less a
10% discount. For the year ended March 31, 2007, interest income of $192,877 was
accrued on the promissory note. The promissory note is secured by the personal
guarantees of four Rockwell directors, all of whom are also directors of Amarc
Resources Ltd. Subsequent to the year end, Rockwell repaid the principal amount
of the loan, together with 497,993 common shares of Rockwell at a deemed price
of $0.495, representing interest on the 90 day promissory note.

|9. | INCOME TAXES                                                                                                                                                                                                                                                                                                                                                 
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                              
|   | Substantially all of the differences between the actual
      income tax expense (recovery) of $nil (2006  $nil; 2005  $nil) and the
      expected income tax recovery based on statutory rates relate to the
      benefit of losses not previously recognized and items not deductible for
      tax purposes, such as stock-based compensation
expense.

March 31
    
    
    March 312007
    
    
    2006Future income tax assets (liabilities)Resource pools
    $
    2,348,000
    
    $
    3,000,000Loss carry forwards
    
    1,096,000
    
    
    1,040,000Share issued cost
    
    59,000
    
    
    50,000Other
    
    
    
    
    Subtotal
    
    3,503,000
    
    
    4,090,000Valuation allowance
    
    (3,503,000
    )
    
    (4,090,000
    )Net future income tax asset
    $
    
    
    $
    


Income tax expense differs from the
amount that would result from applying the Canadian federal and provincial tax
rates to earnings before income taxes. These differences result from the
following items:

March 31
    
    
    March 312007
    
    
    2006Combined Canadian federal and provincialstatutory rate
    
    31.00%
    
    
    34.12%Income tax at statutory rates
    $
    (427,000
    )
    $
    (1,300,000
    )Non-deductible items
    
    2,000
    
    
    40,000Reduction in statutory tax rates
    
    320,000
    
    
    125,000Benefit of share issuance costs
    
    (31,000
    )
    
    (25,000
    )Change in valuation allowance
    
    136,000
    
    
    1,160,000Other
    
    
    
    
    $
    
    
    $
    


At March 31, 2007, the Company had
non-capital losses available for Canadian income tax purposes totaling
approximately $3.1 million (2006  $3.2 million) expiring in various periods to
2027.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|10. | SUBSEQUENT EVENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Subsequent to March 31, 2007, the Company entered into
        an agreement for the sale of the Tulox property (the "Property") for consideration
        of ten million common shares of Sitec Ventures Corp., an inactive NEX-listed
        public company, subject to certain conditions. The Company will receive
        a 3% net smelter royalty, following the commencement of commercial production
        on the Property. In addition, the Company receives a "Back In Right" whereby,
        on completion of $5,000,000 of exploration expenditures on the Property,
        the Company will have a 90 day period during which it can acquire a 60%
        interest in the Property by agreeing to fund a further $10,000,000 of
        exploration expenditures on the Property.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|11. | DIFFERENCES BETWEEN CANADIAN AND UNITED STATES
      GENERALLY ACCEPTED ACCOUNTING PRINCIPLES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | The consolidated financial statements have been prepared
      in accordance with Canadian generally accepted accounting principles
      ("Canadian GAAP"), which differ in certain material respects from those
      principles that the Company would have followed had its consolidated
      financial statements been prepared in accordance with the generally
      accepted accounting principles in United States of America ("US
    GAAP").                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    | Had the Company followed US GAAP, certain items on the
      consolidated statements of operations and deficit, and balance sheets
      would have been reported as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| |                                                    |   | Years ended March 31, |  
| | -------------------------------------------------- | - | --------------------- | -
| | Consolidated statements of operations              |   |                       |  
| |                                                    |   | 2007                  |  
| | Loss for the year under Canadian GAAP
      and US |   |                       |  
| | GAAP                                               | $ | (1,376,438            | )
| | Other comprehensive income                         |   |                       |  
| | Mark-to-market adjustment (note
      11(c))       |   |                      |  
| | Comprehensive loss                                 | $ | (1,376,438            | )
| |                                                    |   |                       |  
| | Comprehensive loss per share US GAAP               | $ | (0.03                 | )

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

| | Consolidated
      Balance Sheets                    |   | March
      31, 2007 |  |   | March
      31, 2006
| | ---------------------------------------------------- | - | -------------------- |  | - | --------------------
| |                                                      |   |                      |  |   |                     
| | Total assets under Canadian US GAAP                  | $ | 8,768,288            |  | $ | 5,007,538           
| | Adjustments
      under US GAAP                      |   |                     |  |   |                    
| | Total assets
      under US GAAP                     | $ | 8,768,288            |  | $ | 5,007,538           
| |                                                      |   |                      |  |   |                     
| | Total liabilities under Canadian GAAP                | $ | 78,012               |  | $ | 38,431              
| | Adjustments
      under US GAAP                      |   |                     |  |   |                    
| | Total
      liabilities under US GAAP                | $ | 78,012               |  | $ | 38,431              
| |                                                      |   |                      |  |   |                     
| | Total shareholders' equity under Canadian
      GAAP | $ | 8,690,276            |  | $ | 4,969,107           
| | Adjustments
      under US GAAP                      |   |                     |  |   |                    
| | Total shareholders'
      equity under US GAAP       | $ | 8,690,276            |  | $ | 4,969,107           

|    | There are no material differences between Canadian GAAP
      and US GAAP in the consolidated statement of cash flows for the years
      ended March 31, 2007, 2006 and 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(a) | Mineral property costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | The Company's policy of expensing all property costs
      except where an outright property interest has been acquired results in an
      accounting treatment for these costs which the Company considers to be
      materially congruent with US GAAP. Accordingly, the Company considers that
      no US/Canadian GAAP difference exists with respect to mineral property
      costs in these consolidated financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|(b) | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | In December 2004, Financial Accounting Standards Board
      ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No.
      123 (Revised 2006), "Share-Based Payment" ("SFAS 123(R)"), which is
      a revision of SFAS 123 "Accounting for Stock-Based Compensation".
      SFAS 123(R) supersedes APB Opinion No. 25, "Accounting for Stock Issued
      to Employees". SFAS 123(R) requires all share-based payments to
      employees, including grants of employee stock options, to be recognized in
      the income statement based on their fair values. In calculating
      compensation to be recognized, SFAS 123(R) requires the Company to
      estimate future forfeitures. Prior to adoption of SFAS 123(R), accounting
      for stock based compensation for US GAAP purposes was consistent with that
      used for Canadian GAAP. For Canadian GAAP purposes, the Company uses the
      fair value method to account for all stock option grants but accounts for
      forfeitures as they occur, as permitted by Canadian GAAP. As the Company
      had no stock options outstanding at March 31, 2007 and 2006, the expense
      that would be recognized for US GAAP purposes is not materially different
      from that recorded for Canadian GAAP purposes. The Company has determined
      that this difference does not have a material impact on stock-based
      compensation expense that would be recognized for US GAAP
  purposes.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(c) | Available for sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | US GAAP requires investments in available-for-sale securities to be recorded at fair value in accordance with SFAS 115, "Accounting for Certain Investments in Debt and Equity Securities". Unrealized gains and losses are
recorded as other comprehensive income which is a separate component of shareholders' equity, except for declines in fair value that are determined to be other than temporary. These declines in value are charged to the statement of operations, which
is consistent with the treatment prescribed under Canadian GAAP for that occurrence.                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | US GAAP requires the Company to present comprehensive income (loss) in accordance with SFAS 130, "Reporting Comprehensive Income", which establishes standards for the reporting and display of comprehensive income (loss),
its components and accumulated balances. Comprehensive income (loss) comprises net income (loss) and all changes to shareholders' equity except those resulting from investments by owners and distributions to owners. For fiscal years beginning before
October 1, 2006, Canadian GAAP does not require the presentation of comprehensive income (loss).                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | For the year ended March 31, 2005, the common shares of Yukon Zinc and Chatworth held by the Company were considered available-for-sale securities and the Company had recorded an upward mark-to-market adjustment of $8,126
related to its investment in common shares of Yukon Zinc and Chatworth in 2005. For the year ended March 31, 2006, the Company disposed of all common shares of Yukon Zinc and Chatworth. Consequently, the gain on the sale of these shares recorded
under Canadian GAAP in fiscal 2006 would be reduced by the mark-to-market adjustment made in fiscal 2005.                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | The warrants held as marketable securities by the Company would be considered derivative financial instruments and would be accounted for under SFAS 133, "Accounting for Derivative Instruments and Hedging Activities", until
they are exercised. Once exercised, the common shares received would be considered available-for-sale securities and would be accounted for under SFAS 115. SFAS 133 requires that all derivative financial instruments be recognized in the financial
statements and measured at fair value. Changes in the fair value of a derivative financial instrument are charged to operations if the instrument does not qualify as a hedge, or to operations or other comprehensive income, a separate component of
shareholders' equity, if it does qualify as a hedge.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(d) | Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    | Under Canadian GAAP, future tax assets and liabilities may be recorded at substantively enacted tax rates. Under US GAAP, deferred tax assets and liabilities are recorded at enacted tax rates. There were no significant differences
between enacted and substantively enacted tax rates for the periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

|(e) | Amounts receivable and prepaids
  comprise:
|--- | -------------------------------------------

| |                    |   | As at March 31 |  |   | As at March 31 | 
| | ------------------ | - | -------------- |  | - | -------------- | 
| |                    |   | 2007           |  |   | 2006           | 
| | GST receivable     | $ | 33,388         |  | $ | 29,382         | 
| | Prepaids           |   | 40,077         |  |   | 37,254         | 
| | Advances and other |   | 38,976         |  |   | 34,281         | 
| |                    | $ | 112,441        |  | $ | 100,917        | 

|(f) | Accounts payable and accrued liabilities
  comprise:
|--- | ----------------------------------------------------

| |                     |   | As at March 31 |  |   | As at March 31 | 
| | ------------------- | - | -------------- |  | - | -------------- | 
| |                     |   | 2007           |  |   | 2006           | 
| | Trade payables      | $ | 63,012         |  | $ | 23,431         | 
| | Accrued liabilities |   | 15,000         |  |   | 15,000         | 
| |                     | $ | 78,012         |  | $ | 38,431         | 

|(g) | Impact of recent United States accounting
      pronouncements:
|--- | ---------------------------------------------------------------

| | i)  | On June 1, 2005, the FASB issued Statement of Financial
      Accounting Standards ("SFAS") No. 154, "Accounting Changes and Error
      Corrections" ("SFAS 154"), a replacement of APB Opinion No. 20,
      "Accounting Changes", and FASB Statement No. 3, "Reporting
      Accounting Changes in Interim Financial Statements". SFAS 154 requires
      retrospective application to prior periods' financial statements of a
      change in accounting principle unless it is impracticable to do so. This
      is a change from the existing practice that requires most accounting
      changes to be accounted for by including in net income, in the period of
      the change, the cumulative effect of changing to the new accounting
      principle. SFAS 154 was effective for accounting changes and corrections
      of errors made in fiscal years beginning after December 15, 2005. The
      adoption of this standard had no significant effect on the Company's
      results of operations or financial position.                                                                  
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ii) | In December 2004, the FASB issued SFAS No. 153,
      "Exchanges of Non-Monetary Assets - An Amendment of APB Opinion No.
      29" ("SFAS 153"). The guidance in APB No. 29 ("ABP No. 29"),
      "Accounting for Non-Monetary Transactions" is based on the
      principle that exchanges of non-monetary assets should be measured based
      on the fair value of the assets exchanged. The guidance in that Opinion,
      however, included certain exceptions to that principle. SFAS 153 amends
      APB No. 29 to eliminate the exception for exchanges of similar productive
      assets and replaces it with a general exception for exchanges of
      non-monetary assets that do not have commercial substance. A non-monetary
      exchange has commercial substance if the future cash flows of the entity
      are expected to change significantly as a result of the exchange. SFAS 153
      was effective for fiscal periods beginning after June 15, 2005. The
      adoption of SFAS 153 had no impact the Company's financial position,
      results of operations or cash flows.

---

|AMARC RESOURCES LTD.                          
|----------------------------------------------
|Notes to the Consolidated Financial Statements
|Years ended March 31, 2007, 2006, and 2005    
|(Expressed in Canadian
      Dollars)         

| | iii) | In June 2006, FASB issued Financial Interpretation No.
      48, "Accounting for Uncertainty in Income Taxes  An Interpretation of
      SFAS Statement No. 109". This interpretation provides guidance on
      recognition and measurement of uncertainties in income taxes and is
      effective for fiscal years commencing after December 15, 2006. The Company
      has not yet determined the extent of the impact the adoption of this
      standard will have on the Company's results of operations or financial
      position.             
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | iv)  | In September 2006, the US Securities and Exchange
      Commission issued Staff Accounting Bulletin No. 108 which provides
      guidance on the consideration of the effects of prior year misstatements
      in quantifying misstatements in current year financial statements. This
      guidance is applicable for interim statements for fiscal years ending
      after November 15, 2006. The adoption of this interpretation did not have
      a material impact on the Company's financial position, results of
      operations or cash flows.
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | v)   | In September 2006, FASB issued SFAS No. 157 "Fair
      Value Measurements". The statement defines fair value, establishes a
      framework for measuring fair value and expands disclosures currently
      required by other accounting standards. This standard is effective for
      fiscal years beginning after November 15, 2007. The Company has not yet
      determined the extent of the impact the adoption of this standard will
      have on the Company's results of operations or financial
  position.                                 

---