Sara Kreek Mine Sets Production Record in 1997
January 22, 1998

Vancouver, British Columbia, Canada, January 22, 1998....Canarc Resource Corp. is pleased to announce that the Sara Kreek Surface Mine in Suriname set a new gold production record in 1997.  Raw gold production totalled 6,993 oz. (217 kg.), a 307% increase over the 2280 oz. (71 kg.) produced in 1996. 

 Cash costs of gold production are estimated to be in the low US$200's per oz. due to the steadily increasing production.  Most 1997 net revenues were reinvested into purchasing additional heavy equipment to expand operations at the minesite.  At current gold prices, the mine will continue to be profitable so long as production exceeds 20 kg. per month.  Our production target for 1998 is 26 kg. per month , or 10,000 oz. for the year.  Full capacity is anticipated to eventually reach 40 kg. per month or 15,000 oz. per year. 

 Sara Kreek is a small surface placer mine operated by Canarc's partner, Suriname Wylap Development Co., and produces gold nuggets and dust by sluicing of alluvial gravels from several creeks on the property.  Sara Kreek is one of the largest gold districts in Suriname, having produced over 500,000 oz. gold historically.  No formal gold reserves have been estimated for the Sara Kreek Gold Mine.  However, systematic pitting and panning of the gold bearing creeks indicate the possibility of many years of production at current rates. 

 Canarc owns a 50% interest in the Sara Kreek Surface Mine (80% until payback of a project loan) and an 80% interest in the non-surface mineral rights.  Previous exploration work by Canarc has identified four main gold prospects within a 50 sq.km. area. 

 High grade shear zones and bulk tonnage porphyry targets have returned significant trench and drill intersections in saprolite over several kilometres of strike length, including 13.6 gpt over 10m, 2.3 gpt over 40m, 7.0 gpt over 13.5m, 2.9 gpt over 16.6m and 5.9 gpt over 10.7m.  Canarc is now seeking a joint venture partner to continue the exploration and development of the saprolite and bedrock gold potential at Sara Kreek. 

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 under the symbol "CCM" on the Toronto Stock Exchange as well as on the following exchanges: Vancouver: Vista-CCM, Frankfurt: Third Market Segment-CAN, Berlin: Over the Counter-CAN, NASD: Electronic Bulletin Board-CRCUF.