Drilling Intersects High Grade Gold Mineralization at Sara Kreek, Sampling Extends Anomalous Gold Trend for Seven Kilometres

Vancouver, British Columbia, Canada,
March 20, 1997

Vancouver, British Columbia, Canada, March 20, 1997.....Canarc Resource Corp. announces that a Phase 2 diamond drilling program has intersected high grade gold mineralization in two separate gold prospect areas on the Sara Kreek property in Suriname.

Highlights of the recent drilling include intercepts such as 6.96 gpt (5.75 gpt cut) over 13.47 m. in hole EB9705, 2.89 gpt over 16.57 m. in hole DP9701, 3.41 gpt over 6.12 m. in hole DP9702 and 12.69 gpt (12.12 gpt cut) over 3.67 m. in hole DP9707.

The drilling identified a principle gold mineralized shear zone, as well as several parallel zones, over a 200 m. length in the Breakfast prospect (EB) and 150 m. of strike in the Parbo prospect (DP).

The two prospects, Breakfast and Parbo, lie along a strongly anomalous, north-northwest oriented gold trend that was recently extended by stream sediment pan concentrate and soil sampling anomalies for a total of seven kilometres north-south to include a third gold prospect area known as Kami (KK).

There is some uncertainty regarding the orientation of the Parbo prospect as both east-west and north-south mineralized shears were exposed in previous trenching. Two very high grade assay intervals, in holes EB9705 and DP9707, were cut back to 30 gpt, as per industry norms.

Drill cores are cut with either a knife (in saprolite) or a rock saw (in bedrock) on site, one split is bagged in maximum intervals of 1.52 m. and shipped to a certified, Canadian-owned commercial assay lab, Cantech Services, in Paramaribo, Suriname. Cantech dries, crushes, rolls, splits and pulverizes each sample, followed by conventional fire assay with an AA finish. Canarc stores the other half of the split cores in boxes on site. Details of Canarc's sample collection, handling, preparation, assay and storage procedures are available on request.

"The latest drill and sample results from Sara Kreek confirm the discovery of a major gold mineralized shear system. Further drilling is needed to establish a geological resource by year-end. However, to date, the length, width and grade of the principle gold zone confirms the potential for a million ounce plus gold target," stated Godfrey Walton, Exploration Manager for Canarc.

Bulldozer trenching is now underway to expose and extend the principle gold mineralized zone in saprolite prior to further drilling. Additional soil sampling and deep augering are also being completed in the Kami and Parrot gold prospect areas to establish trench and drill targets.

The drill results are outlined as follows; as well as previous drill holes from 1995:

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.