2005

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Metallurgical Testwork Indicates Excellent Gold and Copper Recoveries For JQA Mineralization, Benzdorp Property, Suriname

Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces that excellent gold and copper recoveries are indicated by preliminary metallurgical testwork on drill core from the JQA prospect, Benzdorp property, Suriname.

Resource Development Inc. ("RDI") were retained to conduct flotation and leach tests on low grade, gold-copper, bedrock mineralization in the JQA prospect drill core. Flotation tests on a relatively coarse grind size of 80% passing 65 mesh achieved 80% copper and 57% gold recoveries into the rougher concentrate without optimization. This con was then upgraded to a +20% copper concentrate in a cleaner circuit.

Initial leach tests indicate that up to 100% of the gold and 53.5% of the copper are cyanide soluble. A 48-hour cyanide bottle roll leach test returned 80% gold and 25% copper recoveries with 1.73 kg. per tonne cyanide consumption. A similar 12-hour test on the rougher tailings recovered 100% of the gold, with only 0.25 kg per tonne cyanide consumption.

Gravity testwork by Knelson Concentrators indicates up to 18% gold recoveries are possible using a very fine grind. However, RDI concludes that a coarser grind and a two stage process of rougher flotation followed by cyanide leaching of the tailings appears to be a preferred method to recover up to 100% of the gold in Benzdorp ores.

Because of the high gold solubilities in cyanide, additional metallurgical testing is recommended to assess the potential for both heap leaching and CIL leaching of both saprolite and bedrock mineralization. Optimization testwork is also planned on crush and grind sizes and flotation recoveries.

Heap leaching of low-grade gold ores could be viable for Benzdorp, given the similarity of grade with the Sao Francisco mine in Brazil currently being developed by Yamana. Flotation and leaching of low-grade gold-copper ores could also be viable for Benzdorp, given the success of the Paracutu mine of Kinross in Brazil at processing 0.47 gpt gold ores with 78% gold recovery.

Bradford J. Cooke, M.Sc. P.Geo., is the Qualified Person who commissioned the metallurgical testwork for the Benzdorp property. Gold was determined by fire assay with an atomic absorption (AA) finish. Copper was also measured by AA.

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, British Columbia, and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email: [email protected] or visit our website, www.canarc.net. The TSX Exchange has neither approved nor disapproved the contents of this news release.