Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) reports that initial metallurgical tests show excellent gold recoveries from a 4.7 kg trench sample of saprolite mineralization in the JQA prospect area of the Benzdorp property, Suriname.

The purpose of these initial tests was to establish whether the gold content could be readily recovered from saprolite ore using simple gravity and flotation methods and without any crushing or grinding of the sample.  Almost 80% of the gold was recovered in this simple manner, indicating that the processing of saprolite ore should have very low costs on a per oz or per tonne basis.

The following test work was conducted by Process Research Associates Ltd. (�PRI�), metallurgical specialists to the mining industry:

1)         Trench sample #MTS weighed 4.7 kg and returned an initial assayed head grade of 1.20 gpt gold.

2)         It was attrition scrubbed on a Tyler 35 mesh screen, and approximately 4.5 kg (96%) passed through to form

the �35 mesh fines fraction which assayed 1.5 to 2.0 gpt gold.

3)         The �35 mesh fines were run through a Falcon centrifugal concentrator at 200 G, recovering 51.5% of the gold

in a single pass.

4)         The �35 mesh Falcon tails were then processed in a flotation circuit, recovering an additional 28.1% of

the gold in rougher and scavenger concentrates.

5)         The +35 mesh coarse fraction was pulverized to �200 mesh and assayed 3.32 gpt gold.

6)         It was then hand panned, recovering 7.1% of the gold or an additional 0.6% of the total gold.

7)         Total gold recovery from simple gravity and flotation methods before optimization is 80.2%.

Although additional gold recoveries are still possible through optimization of the gravity and flotation circuits, PRI first recommends a test program of grinding the saprolite ore.  Because saprolite is soft and clay-rich, it has a low work index and so should be very amenable to lower cost grinding methods.

Exploration work has now re-commenced on the Benzdorp property.  Reconnaissance prospecting and sampling is underway to try and extend the known belt of gold mineralization north and south of the JQA prospect.  Additional machine trenches are planned in March to fill in the 1.5 km strike length of JQA.  A 3000 m drill contract has been signed and the first drill program should commence in April.