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Trading Symbol  TSE:CCM

Third Quarter Report to Shareholders
November 26, 1997

Vancouver, British Columbia, Canada, November 26, 1997....Canarc Resource Corp. is pleased to announce its Quarterly Report for the period ending September 30, 1997. 


  • Canarc intersects best drillhole ever at New Polaris - .42 oz./ton gold over 112.2 ft 
  • Canarc options two Indonesian properties with Rio Tinto (RTZ:NYSE) 
  • Canarc options the Kwitaro property in Guyana with Cyprus Amax (CYM:NYSE) 
  • Additional trenching returned 0.91 gpt/gold over 142 m confirming an extension to the large gold zones on Benzdorp concession
  • A 412% increase in gold production totalling 2,051 oz. for the first half of 1997 at the Sara Kreek property

Canarc continued with its New Strategy, post Bre-X, to conserve its working capital and accelerate discussions with major mining companies to joint venture several of Canarc's properties.  As a result of that focus, Canarc successfully closed two joint ventures; with Cyprus Amax Minerals on the Kwitaro property in Guyana, South America, and with Rio Tinto Mining on our Gatec and Hatec properties in Indonesia.  Should Cyprus Amax and Rio Tinto completely vest their interests in these two agreements the cash payments and work obligations would total in the US$10's of millions to Canarc, including US$9 million within the next 4 years.  Management anticipates further JV announcements in the 4th Quarter of 1997.

In July Canarc reported its best drill intersection to date at New Polaris, returning .42 oz/ton gold over 112.2 ft. core length.  The Company was pleased to report that the B.C. Government's Environmental Assessment Office (EAO) has accepted Redfern Resource's Project Report for their Tulsequah Chief Property.  This is a major step forward in Redfern's mine permitting process and should favorably impact Canarc's permitting process for the New Polaris property which is located adjacent to Redfern's Tulsequah Chief project in northwestern British Columbia. 

A summer break in activities at the mine site has allowed our geologists to compile the data from our recent drill program.  A detailed, computer-based resource model is now being assembled that will identify the key remaining areas for infill drilling to develop mineable reserves in the next drill program.  Environmental, native and engineering studies also continued during the quarter.

The Company was pleased to announce an increase in gold production at the Sara Kreek mine in South America.  For the first six months ending June, 1997, raw gold production totalled 2,051 oz., an increase of 412% over the same period for 1996.  Annual production for 1997 is now projected to exceed 4,500 oz., or double of last year's production of 2,200 oz.

Continued bulldozer trenching has extended the size of the large anomalies on the Benzdorp property.  The JQA bulldozer trench has now been extended a further 66 m east and is now grading .91 gpt over a 142 m width. Additional augering on this 750 m long by 250 m wide gold porphyry target has confirmed that the mineralization is still open in all directions. Additional trenching and augering on the JQS zone has also confirmed strong gold mineralization in saprolite which could very well be a southern extension of the JQA gold zone.  (Also, please refer to our News Release dated November 13, 1997.) 

Management's focus on enhancing Canarc's cash position continues to be a priority.  The sale of some marketable securities, a consulting fee converted to shares, and employee layoffs are some of the steps management has taken to conserve cash.  We anticipate adding significantly to our working capital through additional joint ventures on our key projects. 

On September 30,1997, Canarc had cash and cash equivalents of US$624,000.

The nine month loss of US$3.984 million includes mineral property write-downs of US$3.018 million, including a cumulative US$0.6 million write-down on our Indonesian properties in the first and second quarter and a US$2.418 million write-down on a Guyana property in the third quarter. 

Following savings measures announced at the end of June of this year, savings of 47% over the previous quarter were obtained by reducing administrative and other corporate costs to US$263,000 in the third quarter from US$498,000 in the second quarter.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company with active projects worldwide. Major shareholders include Barrick Gold Corp. and Echo Bay Mines Ltd. The Company's common shares trade under the symbol "CCM" on the Toronto Stock Exchange as well as on the following exchanges: Vancouver: Vista-CCM, Frankfurt: Third Market Segment-CAN, Berlin: Over the Counter-CAN, NASD: Electronic Bulletin Board-CRCUF.  For further information contact Robert Carriere, Investor Relations at (604) 685-9700 or visit our website:

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

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