1997 Drilling on GNC Property Intersects Anomalous Metal Values Along Strike From Eskay Creek Mine, Further Drilling Proposed in 1998
February 5, 1998

Vancouver, British Columbia, Canada, February 5, 1998....Canarc Resource Corp. is pleased to announce that drilling by Prime Resources Group Inc. on the GNC property in 1997 has intersected anomalous metal values within the same rock formations that host the Eskay Creek Mine, which is located approximately 3.5 km along strike to the northeast.

The GNC property (930 hectares) is owned by Prime (66 2/3%) and Canarc (33 1/3%) and adjoins Prime�s Eskay Creek Mine in northwestern British Columbia. Canarc�s one third interest is carried whereby Prime must incur all expenditures to production.

Drill hole GNC 97-30X (1,006 m) is a 243 m deep estension of hole GNC 92-30 (763 m), which for technical reasons did not reach the favourable Eskay Creek Mine stratigraphy.

Hole GNC 97-30X returned anomalous metal values within the favourable Eskay Creek ore horizon, hanging wall mudstones and andesites and footwall rhyolites, including individual and separate 1 m intervals assaying up to 0.66% Zn, 0.37% Cu, 6 gpt Ag and 63 ppb Au. These assay values indicate that a hydrothermal system was active in the vicinity of this drill hole.

The Eskay Creek ore horizon, where intersected by hole GNC 97-30X, is 3.3 m thick and contains 30% semi-massive sulfides, principally pyrite, and pervasive carbonate alteration. Underlying this zone, the footwall rhyolite breccias are altered to chlorite and sericite, followed by a thick, sericite-altered autobrecciated rhyolite sequence, further evidence that a strong hydrothermal system was present in these rocks.

The Eskay Creek Mine is one of the highest grade volcanogenic massive sulfide deposits in the world, with ore reserves prior to the commencement of production in 1995 estimated at 1.1 million tonnes grading 65.5 gpt gold, 2,933 gpt silver, 5.6% zinc, 2.9% lead and 0.8% copper. This represented 2.3 million oz. gold and 102 million oz. silver at a gold equivalent grade of 3.3 oz. per ton. Production for 1997 is projected at 400,000 oz. gold equivalent at a cash cost of US$160 per oz.(est.) or 17 million oz. silver equivalent at a cash cost of US$3.70 per oz.(est.).

Prime Resources has proposed a deep drilling program in 1998 in the area of hole GNC 97-30X to test the potential for Eskay Creek-type massive sulfide mineralization on the GNC property. Results should be available by the end of the third quarter.

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.