Canarc acquires option on the Benzdorp Property in Southeastern Suriname.

VANCOUVER, British Columbia--(BUSINESS WIRE)--April 10, 1996-- Canarc Resource Corp. (TSE:CCM) has acquired an option to earn an 80 percent interest in the 138,000 hectare (341,005 acre) Benzdorp property, located in southeastern Suriname along the border with French Guyana.

The Benzdorp area was historically the most prolific gold producing region in all of Suriname. Alluvial gold production officially totalled more than 15 tonnes (500,000 oz.) from the late 1800's up until 1969, although unofficial estimates range from 2 to 3 times that amount.

Currently, there are more than 200 porknockers actively mining alluvial gold in Rufin and Pointu Creeks with the use of heavy equipment. The remains of the large bucket-line dredge, "Jungle Queen", can still be seen on Rufin Creek, one of the most profitable creeks on the Benzdorp property.

Investor interest has focused on this general area recently as a result of some exceptional diamond exploration results reported by Guyanor Resources S.A. and BHP Minerals Inc. at their Dachine property, located some 40 kilometres southeast of Benzdorp in French Guyana.

Guyanor is also active with Cambior in gold exploration on their Yaou and Dorlin properties, also in French Guyana, which lie in the same lower Proterozoic greenstone belt as Benzdorp (see map attached).

Exploration work in the early 1970's by the Geological and Mining Division of the Suriname Ministry of Natural Resources at Benzdorp successfully outlined a huge gold soil anomaly in the eastern part of the property measuring 3 kilometres long by 3 kilometres wide exceeding 100 ppb Au, including several high grade areas, the largest of which measures 600 metres x 400 metres, exceeding 500 ppb Au (see map attached).

Recent reconnaissance soil samples taken by Canarc have confirmed the GMD results, with individual soils assaying up to 2.23 gpt. The GMD also located several stream sediment anomalies west of the soil grid that were rich in Cu, Zn, Ni, Mn, Sn and Ti. However, none of these samples were assayed for gold or examined for diamonds.

Of particular note is an elongated basic intrusion and several small circular magnetic highs and lows in the southern part of the property. These bodies appear to be anomalous in base metals, as well as representing an attractive geological environment for gold and diamonds.

Canarc intends to carry out a Phase I exploration program at Benzdorp in 1996, consisting of confirmation soil sampling, deep augering and diamond drilling of the GMD soil anomaly; reconnaissance stream sediment BLEG (bulk cyanide leach extractable gold) and heavy mineral pan concentrates sampling, in order to assess the overall potential of this large property for gold, base metals and diamonds; and a remote sensing study using satellite imagery to identify the main geologic and structural features of the property.

Camp construction is well underway and field crews will be mobilized within three weeks time. The Benzdorp property consists of four exploration licenses, a 1x18,000 hectare and 3 x40,000 hectares.

Canarc can earn an 80 percent interest in the Surinamese Company that holds the Benzdorp property from the government-owned mining company, Grassalco, by spending U.S. $5 million on exploration and making U.S. $750,000 in cash payments over a four year period.

Canarc will be the Operating Partner in this joint venture and Canarc must also complete a feasibility study within 54 months, or make additional cash payments to extend the deadline.

Upon making a production decision, Canarc must arrange all production financing. However, the Company can recoup all of its investment, with interest, from 100 percent of cash flow. Grassalco can elect to receive either a 20 percent net profit interest or a floating 1 1/2 percent to 6 percent net smelter return, based on the prevailing gold price.

Grassalco has also retained the exclusive rights to all alluvial production from the top 5 metres on the property. However, Grassalco's alluvial operations cannot interfere with Canarc's operations once a production decision has been made.

Stated Bradford Cooke, president of Canarc, "It is extremely gratifying for Canarc to have secured its right to explore and develop the Benzdorp property after more than three years of discussions with Grassalco.

"Not only is this project one of the largest and most strategic land-holdings in the Guyana Shield, Guyanor's recent findings on their properties on their Dachine, Dorlin and Yaou properties make this Benzdorp acquisition a very timely one as well."

Canarc Resource Corp. is a growth-oriented international gold exploration and mining company with active projects in North, Central and South America. Major shareholders include Barrick Gold Corp. (4 percent) and Echo Bay Mines Ltd. (10 percent).

ON BEHALF OF THE BOARD OF DIRECTORS CANARC RESOURCE CORP.

Bradford J. Cooke President -0- NOTE: Location map available from the company at the phone number listed below.

CONTACT: Canarc Resource Corp.

Robert Carriere, 604/685-9700