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Trading Symbol  TSE:CCM

Drilling Program Now Underway on Lobo 14 Property in Mexico

Vancouver, British Columbia, Canada,
March 20, 2000

Bradford J. Cooke, President and C.E.O of Canarc Resource Corp. (CCM-TSE) is pleased to announce that Canarc's subsidiary, Minera Aztec Silver Corporation, commenced a reverse circulation drilling program on its Lobo 14 property in the State of San Luis Potosi, Mexico on March 18, 2000. The program is being funded by Far West Mining Ltd. (FWM-CDNX) as part of their option to earn a 50% interest in 9 properties.

The drilling program will focus on the San Vicente, Carmen and San Antonio areas of the Lobo 14 property. The San Vicente area has coincident magnetic and geochemical anomalies, (Cu-Pb-Zn up to 50 times background and Ag up to 100 times above background), in an area where the favorable limestone host rocks overlie a possible buried intrusion (interpreted from the magnetic response), adjacent to a large NNW trending structure. The geochemical anomalies are 800m wide and traceable for 1200m across numerous sample lines, still open both to the north and south.

The Carmen area also has coincident magnetic and geochemical anomalies which are interpreted to be related to buried intrusive bodies. Cu-Au anomalies (up to 20 times background) occur at the center of the magnetic anomaly and Cu, Pb, Zn, Ag anomalies lie peripheral to the magnetic bodies (up to 60 times background). The geochemical anomalies are in the right geological setting for skarn and manto style mineralization associated with intrusions. The Carmen area is on trend and only 300m from the historic high grade silver veins mined at the La Paz mines. The veins at La Paz are 800m wide by 2000m long and have been mined to a depth of 950m. The geochemical anomalies at Carmen are an order of magnitude higher than any other anomalies on all of the other properties. A total of 6 compelling targets require drill testing at Carmen.

The third area, San Antonio, has a coincident magnetic high (interpreted to be a buried intrusion) and geochemical anomaly (Cu-Pb-Zn up to 50 times background) which are adjacent to an ENE structure that has a Pb-Zn-Ag geochemical anomaly (up to 40 times background). The anomalous area is 900m by 500m and open in two directions.

Minera Aztec holds 13 properties in the States of Zacatecas and San Luis Potosi, nine under option to Far West, two optioned to Noranda and one optioned to Mill City International Inc. (MIY-CDNX). The total option commitments of the three joint ventures exceed US$14.5 million in cash payments, share purchases and exploration expenditures over three years. Minera Aztec manages the joint ventures for Far West and Mill City.

This area of Central Mexico hosts the largest underground mine in Mexico (San Martin) adjacent to Lobo 10, the largest silver mine in Mexico (Fresnillo) beside Lobo 8, the largest zinc mine (Charcas) beside Lobo 16 and the largest privately owned mine (La Paz) adjoining Lobo 14. These deposits are very large, silver-rich skarn, chimney, manto and vein systems, which typically contain 50 to 100 million tonne ore bodies including several hundred million oz. silver each. The recent implementation of modern exploration techniques in the pediment filled valleys has led to the discovery of buried (blind) deposits such as the +35 MM tonne Francisco I Madero (manto) and the 99 MM tonne San Nicolas (VMS) polymetallic deposits.

Minera Aztec and Far West carried out an intensive US$1 million exploration program during 1999 to evaluate the potential on 20% of the nine properties. The work consisted of 14,500 line kilometers of airborne magnetics and radiometrics and 400 line kilometers of airborne EM and magnetics. These surveys generated more than 50 targets for follow up ground geophysical and geochemical surveys.

MMI analysis (a partial extraction method) has been used to analyze over 2,000 soil samples collected from over 54 targets, resulting in 27 silver-base metal geochemical anomalies on Lobo 14 and other properties. Ground geophysical surveys consisted of gradient IP, IP resistivity, EM sounding and CSAMT have evaluated 8 of these geochemical targets. Conductive overburden caused numerous problems for the IP surveys but the EM soundings and CSAMT survey have provided good indications of the depth to bedrock and geophysical anomalies which correlate with the geochemical anomalies (base and precious metals).

Late last year 1,200 meters of drilling was completed on two targets at Lobo 10. However, the holes did not reach the potential host rocks to test mineralization because of block faulting. Further drill testing is planned for Lobo 10 at a later date.

The Joint Venture Management Committee has approved a US$1.2 million exploration budget for the period of February 1st to July 31st, 2000. The program is to include 4,800 line kilometers of airborne geophysical magnetometer and scintillometer surveying (portions of two properties), CSAMT and geochemical surveys (covering targets of six properties) up to 10,000 m of reverse circulation drilling. Most, if not all, of the drilling will be conducted on the San Vicente, Carmen and San Antonio targets at Lobo 14.

Aztec Silver has filed a preliminary prospectus which is currently being reviewed by the BC Securities Commission and the CDNX.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 10% last year at the Company's Sara Kreek (80%) mine. Reserves and resources now total 2 million oz. at the New Polaris (100%) and Bellavista (18% after payback) projects. Our large exploration portfolio includes joint ventures with Homestake and Noranda. Major shareholders include Barrick Gold and Echo Bay Mines. The Company's common shares trade under the symbol "CCM" on the Toronto Stock Exchange and "CRCUF" on the OTC Bulletin Board.

For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website:


Bradford J. Cooke

For further information contact:
Robert Carriere
Investor Relations
Tel: (604) 685-9700

NOTE: If you have an E-Mail address and would prefer to receive Canarc's
News through this format, please E-Mail us at [email protected].

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