Favourable Trench and Auger Gold Assays at Sara Kreek Property, Drill Program Commences in Suriname

Vancouver, British Columbia, Canada,
March 20, 1997

Vancouver, British Columbia, Canada, March 20, 1997.....Canarc Resource Corp. announces that favourable trench and auger gold assays have confirmed gold mineralization of economic grades over mineable widths in two gold prospect areas on the Sara Kreek property in Suriname.

As a result, Canarc has commenced a Phase 2, 10 hole diamond drilling program on the Breakfast (EB) and Parbo (DP) prospect areas at Sara Kreek in order to further delineate the two gold mineralized zones.

Canarc recently completed approximately 75 deep auger holes, typically 10 to 15 m deep, in the Parbo and Breakfast prospect areas in order to delineate the trend and geometry of gold mineralization in saprolite below the soil and colluvium. A total of 20 deep auger holes intersected gold mineralization in saprolite exceeding 1 gpt. gold.

At Parbo, 8 deep auger holes returned assays from 1.00 to 38.85 gpt. over separate 2 m intervals. The best auger hole bottomed in 10 meters grading 12.6 gpt, open at depth. Gold mineralization is found with quartz veinlets hosted in a series of sub parallel shear zones. These zones were augered over 100 m length and an aggregate width of 100 m, still open along strike to the east and west.

At Breakfast, 12 deep auger holes gave assays from 2.51 to 12.84 gpt. over separate 2 m intervals. The best auger hole bottomed in 4 meters grading 11.0 gpt., open at depth. Gold mineralization is associated with quartz veinlets in shear zones over 200 m in length and an aggragate width of 100 m, still open along strike to the north and south.

A third gold prospect area at Sara Kreek, the Parrot (WP), is currently being deep augered prior to diamond drilling. Drilling is underway at Breakfast and Parbo. The drill program is expected to expand significantly beyond the initial 10 holes, subject to favourable assay results in the drill and auger programs.

Significant 1995 diamond drill results and previously unreleased trench results can be summarized as follows:

Stated Godfrey Walton, Exploration Manager for Canarc, "The gold prospect areas at Sara Kreek appear to be the source areas for extensive historic and current placer gold mining activities on the property. We believe the Sara Kreek property has excellent potential for high grade gold deposits in mineralized shear zones."

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 on the Toronto Stock Exchange under the symbol "CCM".