Overview

Canarc Resource Corp. (TSX: CCM, OTC-BB: CRCUF, DBFrankfurt: CAN) is a growth-oriented gold exploration and mining company focused on the acquisition, discovery and development of strategic gold deposits in North, Central and South America. 

By developing its principal asset, the high-grade New Polaris gold mine project in western Canada, towards feasibility and production and by acquiring and exploring attractive gold mine projects in Mexico, Canarc aims to deliver resource growth and enhance shareholder value.

INVESTOR INFORMATION (September 30 2007)

Developing New Polaris - Canarc’s core asset is the 100% owned, past-producing, high-grade New Polaris gold mine project located in north-western British Columbia. Based on an updated NI 43-101 resource estimate released in February 2007 using a 6 gpt gold cutoff grade, the property currently contains measured and indicated resources of 519,000 oz gold contained in 1,288,000 tonnes grading 12.5 gpt gold and inferred resources totalling 636,000 oz gold contained in 1,628,000 tonnes grading 12.2 gpt gold, still open for expansion in other veins and at depth.  Drill results from the 2006 program included 44.7 gpt over 6.2 m (1.30 opt over 20.3 ft) and 23.1 gpt over 16.5 m (0.67 opt over 54.1 ft). 

The recently completed 2007 work program included dewatering the old mine, mapping and sampling the lowermost mine levels, conducting metallurgical testwork and environmental surveys, and completing a preliminary economic assessment for an 80,000 oz per year gold mine.  At a US$650 per oz gold price, the project generates a pre-tax undiscounted net present value (NPV) of CA$60.4 million and a pre-tax tax internal rate of return (IRR) of 14.9% (after-tax NPV of $40.9 million and after-tax IRR of 11.1%).  At US$750 gold, the pre-tax NPV jumps to CA$130 million and the IRR increases to 29%. Canarc is now in a position to pursue a feasibility study, government permitting and project financing in 2008 subject to financing.

Drilling Los Arrastres – Canarc recently acquired an option to purchase the Los Arrastres gold-silver project located near the town of San Felipe in the state of Guanajuato, Mexico. The 7,638 hectare Los Arrastres properties surround the past producing Providencia and San Felix mine properties and were optioned from Grupo Mexico who previously conducted early stage exploration on the properties. Grupo Mexico discovered a third mineralized gold prospect area, El Payan, by drilling in 1991 but no work has been done on Los Arrastres since that time. 

Exploring Santiago - Canarc has acquired an option to purchase 100% of the Santiago gold exploration project located in the famous Batopilas district of Chihuahua, Mexico. The 173-hectare property cover two prominent iron oxide-silica-clay alteration zones, one of which surrounds eight parallel, high-grade, gold-bearing, quartz-sulphide veins.  The Santiago properties have been owned by the same family for over 100 years and have never been explored by modern methods.  In addition, the Company in a joint venture agreement with EXMIN Resources Inc. can acquire up to a 75% interest in a 791 hectare portion of EXMIN's Huimayvo concession, called the "Santiago Fraction", which surrounds the Santiago Gold Project. 

Exploring Benzdorp - The Company controls a large gold district on its 138,000 hectare Benzdorp property (80% option) in Suriname, South America. Canarc identified multiple surface gold prospects including the large, low-grade JQA zone of gold porphyry mineralization.  Additional soil geochemical and poknokker pit sampling was completed in 2007 in order to define targets for drilling.

Acquiring New Projects – The Company is actively evaluating several attractive gold projects for acquisition in Mexico.  Canarc also has shareholdings in two companies, Endeavour Silver Corp. (EDR: TSX) and Aztec Silver Corp. (private), that are respectively acquiring advanced silver and base metal mine projects in Mexico and South America.

MANAGEMENT AND DIRECTORS

Canarc’s management and directors have extensive mining experience and successful track records for discovering ore deposits and developing them into production. Canarc is strong financially and Barrick Gold is a shareholder. 

Bradford Cooke, M.Sc, P.Geo., Chairman and CEO, is a professional geologist with 32 years experience in project management and financing, including Shell, Chevron, Noranda, Endeavour.

Bruce Bried, P.Eng., President and COO, is a professional engineer with 32 years experience operating high grade, underground gold-silver mines, including Homestake and Dickenson Mines.

James Moors, B.Sc., P.Geo., VP Exploration is a professional geologist with 20 years experience exploring ore deposits for Homestake and others.

Garry Biles, P. Eng., VP Mining, is a professional engineer with 34 years experience, most recently as the General Manager of the Bellavista gold mine for Glencairn Gold.

Philip Yee, MBA, CMA, VP Finance and CFO, is a professional accountant with over 15 years experience as Controller and Officer of public companies.

Len Harris, P.Eng., Director, is a retired metallurgical engineer who was President of Newmont Peru responsible for the development of the huge Yanacocha mine.

Derek Bullock, P.Eng., Director, is a retired mining engineer who was President of IAMGOLD responsible for joint venturing with AngloGold the development of the profitable Sadiola mine.

Bill Price, Director, is the retired Chief Investment Officer for Allianz Global Investors, one of the largest global investment fund companies with over US$500 billion under management.

CONTACT INFORMATION