Bulldozer Trenching Program Returns High Gold Grades Over Significant Vein Widths at Sara Kreek Property in Suriname.

VANCOUVER, B.C.--(BUSINESS WIRE)--June 23, 1999--

Canarc Resource Corp. is pleased to announce that a bulldozer trenching program has returned high gold grades over significant vein widths from the Sara Kreek property in the Republic of Suriname. A total of six new bulldozer trenches were dug 25 metres apart, 6-8 metres deep and 50 metres long across the DP vein zone over a strike length of 150 metres. The gold mineralization continues along trend beyond the trenches to the northwest and southeast.

One main gold zone and several parallel mineralized veins were intersected. Abundant visible gold was observed in each trench. The average weighted mineralized intercept for the main vein zone grades 12.1 gpt over 5.7 m. The mineralized intercepts were as follows:

Trench        From    To    Width  Grade       Zone
(no.)         (m.)    (m.)    (m.)  (gpt)
---------     -----  -----  -----  ------      -----
DP 99-01       20      30      10    11.1      Main
          incl 20      24       4    24.1
               38      40       2     2.9
DP 99-02        4      12       8    25.3      Main
          incl  6       8       2    46.0
          incl 10      12       2    48.0
               30      32       2     1.9
DP 99-03       16      30       4    18.0      Main
DP 99-04       16      24       8     7.3      Main
               28    29.2     1.2     1.8
DP 99-05        0       4       4     1.6      Main
               20      30      10     3.3
DP 99-06        0       4       4     1.8
               12      14       2     1.2
               18      22       4     2.2      Main
               34      36       2    17.0
                            -----  ------
         Weighted  Average    5.7 m  12.1 gpt  Main Only

In addition, a 90 kg (200 lb) bulk sample was collected from a 15 metre wide zone in trench DP 99-01 for metallurgical testing. Initial test results have returned an average head grade of 25.8 gpt, or 232% higher than the channel sample assays. Channel sampling may underestimate the actual gold grades due to a high nugget effect caused by the abundant visible gold. Additional test work is now ongoing.

In view of these extremely positive results, Canarc has elected to proceed with a feasibility study for putting the DP vein zone into commercial production on a small scale. The study should be completed in the 3rd quarter. Canarc's operating partner in Suriname, Suriname Wylap Development Corp., has considerable expertise in small scale surface mining. Canarc and Wylap are joint owners of the nearby Sara Kreek Resource Corp. gold placer mine which produced 9,500 oz. gold in 1998.

Canarc Resource Corp. is a growth-oriented, international gold exploration and mining company. Production increased 36% 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 [phone] or visit our website: http://www.canarc-ccm.com.

ON BEHALF OF THE BOARD OF DIRECTORS CANARC RESOURCE CORP.

(signed) Bradford J. Cooke President

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