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Trading Symbol  TSE:CCM
NEWS ANNOUNCEMENT ---------- FOR IMMEDIATE RELEASE


Trenching Program Now Underway at Sara Kreek;
Arbitrators Appointed to Tribunal For Benzdorp Dispute

Vancouver, British Columbia, Canada,
May 13, 1999

Trenching Program

Canarc Resource Corp. is pleased to announce that a machine trenching program is now underway on the Sara Kreek property, Suriname (80% Canarc). The goal of the program is to establish a high grade, mineable gold ore reserve suitable for a feasibility study and, if positive, commercial production.

Substantial exploration work has been completed by Canarc over the past 6 years to locate lode sources for the extensive placer gold deposits found on the Sara Kreek property. This area produced over 500,000 oz. gold historically and is currently the site of the only modern, operating gold placer mine in Suriname.

Canarc previously outlined four main lode gold prospects that have million+ oz. discovery potential of the mesothermal shear-vein and porphyry ore types. Two prospects in particular, DP and EB, have returned attractive gold intercepts from past trenching and drilling, some of which are as follows:

Zone Trench or Hole(no.) Width(m) Grade (gpt)
DP TR-DP01 40.00 2.27
DDH-DP9503 10.67 5.94
DDH-DP9701 16.57 2.89
DDH-DP9702 6.12 3.41
DDH-DP9707 3.67 12.69
EBTR-EB01 10.00 13.60
DDH-EB9504 9.14 4.98
DDH-EB9505 7.34 5.00
DDH-EB9705 13.47 6.96

A new interpretation of this data recently highlighted the potential for moderately wide (10 m+) and high grade (5 gpt+) open pit gold deposits at the DP and EB prospects. Much of the previous trenching and drilling appears to have focused on secondary zones or to have only partially intercepted the main zone of mineralization.

If the new trenching program is successful in systematically exposing a wide, high grade mineralized zone, then a feasibility study will be comple- ted as soon as possible. Because the DP and EB prospects are in oxidized saprolite, they should be simple and inexpensive to mine and process, resu- lting in low capital and operating costs.

Arbitrators Appointed
Canarc also announces that the three person Arbitration Tribunal has been appointed by the London Court of International Arbitration to arbitrate the dispute between Canarc and Grassalco regarding the Benzdorp property in Suriname.

Canarc nominated Mr. Murray Smith of Vancouver, Canada as one arbitrator. Grassalco did not nominate an arbitrator so the LCIA nominated Mr. Johan Smitt of The Hague, Netherlands on their behalf, and Mr. Jos´┐Ż Astigarraga of Miami, USA as the third arbitrator.

The Company has in recent months proposed possible resolutions of the dispute to Grassalco as an alternative to arbitration but they have not responded and no progress has been made. Canarc now has 30 days to present its Statement of Claim and Request for Compensation to the Arbitration Tribunal.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 36% last year to 9500 oz. at the Company's Sara Kreek (80%) mine . Reserves and resources now total 2 million oz. at the New Polaris (100%) and Bellavista (18%) 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: www.canarc.net.


ON BEHALF OF THE BOARD OF DIRECTORS
CANARC RESOURCE CORP.


Bradford J. Cooke
President


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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