2005

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Canarc Commences Phase 2 In-Fill Drilling Program at New Polaris Project, BC

Canarc Resource Corp. (CCM:TSX and CRCUF:OTC-BB) announces that it has commenced the Phase 2 in-fill drilling program at the New Polaris property in northwest British Columbia.  Canarc owns a 100% interest (subject to a 10% net profit royalty) in the New Polaris property, a high grade, underground mine, that produced 238,000 oz gold between 1939 and 1951.

Since 1988, the Company has invested more than CA $16 million and drilled 160,000 feet of core in 209 drill holes to outline a 1.3 million oz inferred resource at New Polaris. (3.6 million tons at 0.36 opt, now considered a historic resource, not compliant with the Canadian policy NI 43-101 and therefore not to be relied upon.)

The Phase 2 in-fill drilling program consists of 9,200 feet of core drilling in 10 drill holes at 100 foot centres in the C veins. Even though it is late in the year, Canarc has a fully winterized 50-man camp and all-weather airstrip at the mine-site. Completing the Phase 2 drilling program now will give management the flexibility to continue with a Phase 3 in-fill drilling program in Q2, 2006 subject to financing.

Previous drilling in the C veins included numerous intercepts of both high grades (e.g. 1.10 opt over 16.6 feet in hole PC 89-18A) and broad widths (e.s. 0.42 opt over 112.2 feet (true width 56 feet) in hole PT 97-44).  Although the in-fill drilling program will focus on blocking out proven and probable reserves in the top 1,200 feet of the C veins, previous drill holes (not included in the previous resource estimate) returned consistently high gold grades over mineable widths down to 2,200 feet, still open at depth.

Canarc Resource Corp. is a growth-oriented, gold exploration 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 property in northwest 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.

/s/ Bradford J. Cooke

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

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