Canarc Resource Corp.
OTC Bulletin Board : CRCUF

Canarc Resource Corp.

October 25, 2005 14:30 ET

Canarc Commences Phase 2 In-Fill Drilling Program at New Polaris Project, BC

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 25, 2005) - Canarc Resource Corp. (TSX:CCM)(OTCBB:CRCUF) announces that it has commenced the Phase 2 in-fill drilling program at the New Polaris property in northwest British Columbia. Canarc owns a 100% interest (subject to a 10% net profit royalty) in the New Polaris property, a high grade, underground mine, that produced 238,000 oz gold between 1939 and 1951.

Since 1988, the Company has invested more than CA $16 million and drilled 160,000 feet of core in 209 drill holes to outline a 1.3 million oz inferred resource at New Polaris (3.6 million tons at 0.36 opt, now considered a historic resource, not compliant with the Canadian policy NI 43-101 and therefore not to be relied upon).

The Phase 2 in-fill drilling program consists of 9,200 feet of core drilling in 10 drill holes at 100 foot centres in the C veins. Even though it is late in the year, Canarc has a fully winterized 50-man camp and all-weather airstrip at the mine-site. Completing the Phase 2 drilling program now will give management the flexibility to continue with a Phase 3 in-fill drilling program in Q2, 2006 subject to financing.

Previous drilling in the C veins included numerous intercepts of both high grades (e.g. 1.10 opt over 16.6 feet in hole PC 89-18A) and broad widths (e.s. 0.42 opt over 112.2 feet (true width 56 feet) in hole PT 97-44). Although the in-fill drilling program will focus on blocking out proven and probable reserves in the top 1,200 feet of the C veins, previous drill holes (not included in the previous resource estimate) returned consistently high gold grades over mineable widths down to 2,200 feet, still open at depth.

Canarc Resource Corp. is a growth-oriented, gold exploration 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 property in northwest British Columbia and its 80% option on the Benzdorp gold property in Suriname. Major shareholders include Barrick Gold Corp. and Kinross Gold Corp.

On Behalf of the Board of Directors


Bradford J. Cooke, President and C.E.O.


Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. James Moors, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements.

The TSX has neither approved nor disapproved the contents of this news release.

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