Bulldozer Trenching Confirms Large Gold Zones on Benzdorp Property

Vancouver, British Columbia, Canada,
September 17, 1997

Vancouver, British Columbia, Canada, September 17, 1997.....Canarc Resource Corp. is pleased to announce that bulldozer trenching has confirmed widespread gold mineralization in the JQA and JQS zones on the Benzdorp property in southeastern Suriname.

At the JQA zone, previous soil sampling and deep augering (more than 150 holes) outlined a mineralized zone grading 0.9 gpt gold over an area 750 m long by 250 m wide, open in all directions. Bulldozer trench JQA-1 (trending east-west) previously returned 0.8 gpt over a 76 m width along the western edge of the JQA zone.

This trench has now been extended a further 66 m east, averaging 1.03 gpt gold, so that the entire trench grades 0.91 gpt over a 142 m width. Deep auger holes have traced the gold mineralization a further 100 m east, confirming the known width of 250 m, still open to the east and west.

Trench JQA-2 (trending north-south) previously returned 1.2 gpt over its entire 62 m length, confirming the continuity of mineralization along strike. Deep augering has traced the gold zone for a total of 750 m and anomalous soil samples are continuous over a 1.5 km strike length.

Geological mapping confirms that the JQA zone consists of intense quartz veins and stockworks in a diorite intrusion, indicating a "gold porphyry" style of mineralization. The diorite intrusion is at least 1 km wide by 1 km long and appears to be mineralized throughout.

Additional trenching in the JQS zone at the south end of the gold anomaly, has also confirmed strong gold mineralization in saprolite. Trench JQS-1 (trending east-west) recently returned 2.67 gpt over a 20 m width along the eastern edge of the JQS zone.

Deep auger holes for up to 150 m west (uphill) of this trench have also returned similar gold values, confirming that the JQS zone is also very wide and open in all directions. It could very well be a southern extension of the JQA gold zone.

The JQS prospect to the south is underlain by volcanic agglomerates which have been intruded by diorite dikes and stocks. Geological mapping once again confirmed "porphyry-type" gold mineralization contained in quartz stockwork zones.

Another 700 m west of the JQA zone, across Pointu Creek, deep auger results in the JQW zone have identified gold mineralization and grades in diorite similar to the JQA zone. Whether the JQW mineralization is a separate body or simply a western extension of the JQA zone can only be tested by diamond drilling, as the intervening ground is covered by creek gravels.

Our exploration target for the JQA prospect is a gold porphyry deposit grading 1.0 gpt over an area at least 750 m long by 250 m wide. Such a deposit would contain 1 million oz. gold for every 100 m of depth in saprolite or 60 m of depth in hardrock. If the JQS and JQW zones are added to the model, the target could in fact double or more in size. Drilling of the main zones at JQA and JQS and more trenching on JQW and JQS are now being planned for the near future.

Canarc has entered into discussions with several senior companies to explore the potential for a joint venture to further develop the Benzdorp project. Canarc holds an option to earn a 100% working interest in Benzdorp, subject to various royalties, from Grassalco, the government mining company of Suriname.

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.

For further information, contact:
Robert Carriere
Manager of Investor Relations
Tel: (604) 685-9700