Canarc Resource Corp.: Exploration Work Resumes on Benzdorp Project, Suriname.

VANCOUVER, British Columbia -- Canarc Resource Corp. (TSX:CCM)(OTCBB:CRCUF) announces that exploration work has resumed on the Benzdorp project in Suriname.

A US $250,000, 6 month program of line-cutting, soil sampling, airborne geophysics, core re-logging and geological compilation work is now underway. The goals of this exploration program are three-fold:

1) Complete more detailed sampling of several gold prospect areas to better define them prior to the next drilling program.

2) Carry out geologic and petrographic studies on JQA drill core to clarify the porphyry rock types and alteration assemblages, then re-interpret all geologic information from the JQA porphyry gold discovery area to better define the higher grade mineralization and extensions for drilling.

3) Use airborne magnetic and radiometric survey data to better understand the underlying geological and structural controls to gold mineralization at Benzdorp and generate new target areas.

The first gold prospects for follow-up sampling are in the van Heemstra area several kilometres north of JQA. Two broadly anomalous gold prospect areas were found by reconnaissance soil sampling in 1997, but have not been followed up to date. A 14 km grid is being cut for soil sampling at 25 m spacings on 100 m spaced lines.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining company listed on the TSX (symbol CCM) and the OTC-BB (symbol CRCUF). The Company's principal assets are its 100% interest in the New Polaris gold deposit in British Columbia and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

On Behalf of the Board of Directors

CANARC RESOURCE CORP.

Bradford J. Cooke, President and C.E.O.

CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements.

The TSX has neither approved nor disapproved the contents of this news release.

Canarc Resource Corp. (TSX:CCM) (OTC Bulletin Board:CRCUF)