ProcessDriven That's the annoying part.
Windows Disk Management can extend a partition, but it can't simply pick up that Recovery partition and move it out of the way.
You have two reasonable options:
Leave C: at 500GB and create a separate volume from the unallocated space.
Use a partition manager that can move the Recovery partition and then extend C:.
I'd go with #2 if your goal is to have one large C: drive.