News Releases

Canarc Resource Corp. (CCM: TSX and CRCUF: OTC-BB) has identified several new gold prospect areas on its Benzdorp property in Suriname. Benzdorp is one of the largest historic gold districts in Suriname, with past alluvial mine production estimated at over 1 million ounces gold.

In 2005, Canarc completed 33 km of line-cutting and collected 1189 soil samples in the Van Heemstra Kreek area, on the north part of the property. A total of 96 anomalous samples exceeded 0.25 gpt gold, including 10 samples that assayed more than 1.0 gpt gold. Two large new gold prospect areas were outlined, referred to as VHA and VHB.

The VHA target is 650 m long by up to 600 m wide, and is possibly related to two separate quartz-sericite schist and quartz vein exposures, one of which assayed over 3 gpt gold in a grab sample. The VHB target is 400 m long by 200 m wide, with peak values up to 1.7 gpt gold.

Towards the south end of Benzdorp, just north of the Rufin Kreek headwaters, garimpeiro miners have mined a 30 m long by 30 m wide by 15 m deep pit into a broad north-south oriented shear zone hosting a gold bearing stockwork of quartz veinlets. Along Rufin Kreek itself, a several hundred metre square surface area is currently being mined from the alluvial gravels up onto the surrounding hillsides where saprolitic intrusive rocks and quartz veinlets are exposed.

South of Rufin Kreek on the next hill, garimpeiro miners are excavating a pit on the apparent south extension of the mineralized shear zone and using hammer mills to crush the ore for sluicing. Detailed sampling of the mineralized zones at Rufin Kreek is now underway.

These Rufin Kreek mineralized zones lie only 2 km along strike to the north of the Haut Antino high grade gold prospect recently acquired by New Sleeper Gold Corporation. New Sleeper has reported high-grade gold values up to 30 gpt in channel samples at Haut Antino.

Sampling, trenching and drilling by Golden Star Resources also returned multiple high-grade gold intercepts over widths up to 15 km in the mid-1990’s, Haut Antino is currently being mined by excavators in an open pit and processed by hammer mills and sluicing.

In addition to completing line-cutting and soil sampling in 2005, Canarc also carried out selective re-logging and re-interpretation of the JQA drill core to better understand the controls on mineralization. In 2003 and 2004, Canarc drilled a new gold porphyry discovery at JQA. At 0.5 to 0.7 gpt average gold grades, the saprolite mineralization (top 40 m to 80m) may be of economic interest.

At the end of the 2005 exploration program, Canarc had reached the US$5 million in exploration expenditures required as part of its option to earn up to an 80% interest in the Benzdorp property. Canarc currently holds a 40% interest and is required to make certain cash payments and complete a feasibility study in order to fully vest its 80% interest.

To date, only 18% of the prospective greenstone belt that extends for over 20 km along the eastern side of the property has been explored by Canarc. Much of the untested area is drained by creeks that have been mined, or are currently being mined for gold by garimperiro miners. The government estimates over 500 miners are currently active in the Benzdorp district.

In the first half of 2006, Canarc plans to complete a further 300 km of line cutting and collect greater than 7000 soil samples over another 30% of the prospective greenstone belt, focusing on the meta-sedimentary rocks that host the Haut Antino and Rufin prospect areas. Many of the creeks being mined for gold have their headwaters in this part of the belt. The Gros Rosebel gold mine owned by Cambior in Suriname is also hosted by a meta-sedimentary rock unit within the greenstone belt.

Canarc has also commenced a 4000 km high-resolution airborne magnetic and radiometric survey over the entire greenstone belt and other prospective portions of the property in order to provide a previously unprecedented degree of geological detail and assist in identifying the structures controlling gold mineralization. Once this next $500,000 phase of exploration is completed, Canarc can better prioritize the gold prospect areas for trenching and drilling.

James Moors, B.Sc., P.Geo, is the Qualified Person who supervised the 2005 surface sampling program on the Benzdorp Property. All samples were obtained by Canarc personnel and flown to Paramaribo, Suriname for assay by The Assay Lab. Gold content was determined by fire assay with an AA finish.

Canarc Resource Corp. is a growth-oriented, gold exploration and mining 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 deposit, British Columbia and its 80% option on the Benzdorp gold property, 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
Chairman and C.E.O.

For more information, please contact Gregg Wilson at Toll Free: 1-877-684-9700,  tel: (604) 685-9700, fax: (604) 685-9744, email: invest@canarc.net or visit our website, www.canarc.net.  The TSX Exchange has neither approved nor disapproved the contents of this news release.