Canarc Resources Underground Drilling Interesects Additional Gold Mineralization at Polaris Taku.

VANCOUVER, B.C.--(BUSINESS WIRE)--Jan. 15, 1997--Canarc Resource Corp. (TSE:CCM.) has intersected significant new gold mineralization in the first 24 drill holes of their ongoing 200-hole underground drilling and feasibility program at the Polaris Taku property in Northwestern British Columbia.

Some of the drilling highlights include broader ore intercepts such as 0.21 oz./ton over 29.4 feet in DDH 96-13, and 0.49 oz./ton over 17.4 feet in DDH 96-24. Higher grade zones were also intersected, including 1.43 oz./ton over 3.5 feet in DDH 96-9 and 1.29 oz./ton over 4.1 feet in DDH 96-13.

True widths average 80 percent of reported core lengths. Significant drill intersections are as follows: -0-

D.D.H. No.  FROM     TO     CORE LENGTH    GOLD GRADE
                             (feet)        (oz./ton)
96-1       177.40   182.60      5.2           0.37
   2        87.80    97.00      9.2           0.34
                     incl.      4.2           0.51
           239.00   241.70      2.7           1.48
   3       242.70   249.30      6.6           0.23
   4       275.95   283.95      8.0           0.37
                     incl.      3.85          0.52
           300.55   304.00      3.45          0.29
           318.40   325.80       7.4          0.32
   6        93.50    97.00       3.5          0.29
   7        38.35    42.95       4.6          0.34
   9       186.50   189.95       3.45         1.43
  10       199.80   204.80       5.0          0.41
  13       169.85   199.20      29.4          0.21
           274.85   278.95       4.1          1.29
  15       380.10   386.05       5.9          0.37
  16       368.40   373.50       5.1          0.25
  17       183.30   202.95      19.7          0.23
  18       408.60   418.60      10.0          0.36
                     incl.       5.0          0.42
  19       414.90   418.00       3.1          0.60
  22       392.20   397.20       5.0          0.70
           457.00   462.00       5.0          0.21
  24       549.80   567.20      17.4          0.49
                     incl.       4.35         1.05

-0-

Most of the drill holes intersected ore grades over mineable widths in large areas within the underground workings that were overlooked by the previous mine operators. Many holes also intersected several other narrower and/or lower grade veins.

This gold mineralization should boost the existing gold resource, currently estimated at 3.5 million tons grading 0.41 oz./ton, or approximately 1.44 million oz. contained gold.

Many additional prospective areas identified by Canarc within the underground workings are scheduled for drilling in 1997 as part of the ongoing 200 hole, feasibility work program. Underground drilling re-commenced this week on the AJ level at Polaris Taku and will move to deeper levels throughout the year.

Drill holes 96-1 to 11, drilled in two fans east and west, intersected 12 veins in a 550 foot cross-section over a 250 foot vertical interval of the Y vein system. This system is a north-trending swarm of extensional veins.

As the Y vein swarm occupies an area 2,000 ft. long by 2,000 ft. wide, by 1,000 ft. vertical, drilling to date has tested only a small portion of the Y vein system.

Drill holes 12 to 17 were drilled in a fan down to the east within a 125 foot vertical interval below the AJ level to test three en echelon "C" type veins.

These veins are a northeast-trending set of conjugate veins that typically link the Y veins to the AB veins. Approximately 40 percent of the existing gold resource at Polaris Taku is contained within the "C" vein system below the AJ level, open at depth.

Drill holes 18 to 24 were drilled in a fan up and east to test an area extending down from prospective surface gold mineralization that outcrops in Whitewater Creek. A well mineralized vein set was intersected penetrating serpentinite wallrocks in the so-called "Whitewater Creek Schist Zone."

The Whitewater Zone was interpreted by previous workers to be the north boundary of gold veins in the mine wedge at Polaris Taku. High grade drill intercepts on the north side of this zone indicate that the Whitewater Zone is not the north boundary to the gold veins.

This first occurrence of serpentinite within the mine wedge must also be reassessed, given that serpentinite is often associated with high grade gold veins in mining camps worldwide.

A revised resource estimate is now underway and a 1997 project review will be released within the next 30 days. Underground drilling and rehabilitation continues to be the main focus of the ongoing work program, as well as various permitting, environmental, engineering, metallurgical and other studies.

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." -0- ON BEHALF OF THE BOARD OF DIRECTORS CANARC RESOURCE CORP. Bradford J. Cooke, President -0- NOTE: If you have an E-Mail address and would prefer to receive Canarc's News Releases through this format, please inform us of your E-Mail address. -0- Note: Location map is available from the Company at the telephone number listed above.

CONTACT: Canarc Resource Corp.

Robert Carriere, 604/685-9700

http://www.mcomm.com/Canarc