Canarc Resources Corp.

Measured und indicated resources zwischen 570,000 und 457,000 Oz Gold bei Graden von 10.6 zu 14.1 g/T (0.31 zu 0.41 Oz/T) unter Berücksichtigung von Cutoff-Graden von 2 bis 8 g/T (0.06 zu 0.23 Oz/T).
Inferred resources zwischen 697,000 und 571,000 Oz Gold bei Graden von 10.5 zu 13.3 g/T (0.31 zu 0.39 Oz/T) unter Berücksichtigung von Cutoff-Graden von 2 bis 8 g/T (0.06 zu 0.23 Oz/T).
Das New Polaris-Projekt verfügt über weiteres Potential, da für diese Ressourcen-Einschätzung in der C-Zone lediglich bis 500 m Tiefe gebohrt wurde und keine Bohrungen in den anderen historischen Ressourcengebieten in den weiter oben liegenden Gängen Y und AB vorgenommen wurden.
Für die Zukunft plant Canarc ein Arbeitsprogramm, das Umweltstudien, Erweiterung des Minenschachtes, Probeabbau sowie weitere Bohrungen beinhaltet. Die Zielsetzung dieses Arbeitsprogrammes ist es, weitere Ressourcen sowie Reserven (proven and probable) festzustellen, künftige Abbaukosten einzuschätzen und metallurgische Test abzuschließen, um den Verarbeitungsprozess zu bestimmen. Dies würde Canarc die Möglichkeit geben, in 2008 eine Durchführbarkeitsstudie fortzusetzen (inkl. Genehmigung seitens der Regierung sowie Projekt-Finanzierung), in Erwartung einer Minenkonstruktion in 2009.

Am 20.08.2007 gab Canarc eine vorläufige Bewertung des Goldminen-Projektes mit positivem Ergebnis bekannt; wie das Unternehmen mitteilte, würden bei einer Kapazität von 80,000 Oz pro Jahr folgende Ergebnisse erzielt werden:
Bei einem Goldpreis von USD 650/Oz wurde ein Vorsteuer-NPV (net present value) von CAD 60.4 Mio. und ein IRR (internal rate of return) von 14.9% errechnet; diese Zahlen erhöhen sich bei einem Goldpreis von USD 750/Oz auf CAD 130 Mio. (NPV) bzw. 29% (IRR).
Canarc ist zuversichtlich, dass durch Erhöhung der Ressourcen in Verbindung mit einem längeren Minenleben, Erhöhung der Goldgrade sowie durch Reduzierung der Transport- u. Verarbeitungskosten die Möglichkeit besteht, diese Basismodellberechnung verbessern zu können.


Benzdorp-Projekt:
Im südöstlichen Surinam (Südamerika) innerhalb eines der größten Gold-Distrikte des Landes gelegen, verfügt das 1.380 km² große Projektgebiet über Potential für mehrere Gold- und Gold/Kupfervorkommen; in der Vergangenheit wurden dort bereits geschätzt über 1 Mio. Oz Gold abgebaut.
Canarc vereinbarte im Jahr 1996 ein Optionsabkommen mit dem staatlichen Unternehmen Grassalco mit der Möglichkeit, 80% an dem Projekt erwerben zu können.
Diverse Explorationsarbeiten wurden bisher durchgeführt; am weitesten fortgeschritten ist das JQA-Vorkommen, welches ausgedehnte Goldmineralisierung (low-grade) ausweist. Die JQA-Entdeckung ist in viele Richtungen offen und eine Ressourcen-Einschätzung ist in Vorbereitung.

Bellavista-Projekt:
Ca. 80 km westlich von San Juan/Costa Rica betreibt das Unternehmen Glencairn Gold Corp. die Tagebau-Goldmine Bellavista. Canarc hält an Bellavista einen Lizenzanteil in Höhe von 5,7% des Nettogewinns während des ersten Rückzahlungszeitraums, 10,4% während des zweiten Rückzahlungszeitraums und 20,2% des Nettogewinns in den darauf folgenden Jahren.
Canarc beabsichtigt, den Lizenzanteil an Bellavista zu verkaufen, um das Kapital in seine beiden Projekte New Polaris und Benzdorp zu investieren.
Glencairn Gold Corp. gab im ersten Quartal 2007 bekannt, dass die Mine in 2006 38,830 Oz Gold produzierte; der erzielte Verkaufspreis lag bei US$ 595/Oz bei Förderkosten von US$ 316/ Oz.
Die Reserven (proven und probable) betragen 7.9 Mio. Tonnen mit Graden von 1.44 g/T und beinhalten 365,500 Oz Gold; die Ressourcen (measured und indicated) belaufen sich auf 421,300 Oz Gold bei Graden von 1.5 g/T in 8.7 Mio. Tonnen Erz (Stand Ende 2006).


Des weiteren wurde am 20.03.2007 bekannt gegeben, dass Canarc eine Kaufoption für das Providencia- und Los Arrastres Gold-Silber-Projekt in Mexiko erworben hat.
Die Lizenzgebiete befinden sich nahe der Stadt San Felipe in der Provinz Guanajuato und gehören zum Providencia-Distrikt, das im Herzen des mexikanischen Silber-Belts liegt
Das 112 ha große Providencia- und San Felix-Gebiet beinhaltet zwei kleine, aber hochgradige Silber-/Goldminen, die bis 1934 geschätzte 8.8 Mio. Oz Silber produzierten.
Das 7,638 ha große Los Arrastres-Lizenzgebiet umgibt diese beiden Minengebiete; die Grupo Mexico erforschte Los Arrastres im Jahr 1990 und entdeckte - neben einer Verlängerung der mineralisierten Zonen von Providencia und San Felix - einen dritten Goldbereich namens El Payan.
Die erste Phase des Explorationsprogramms wurde im August 2007 abgeschlossen; Canarc erwartet nun die Proben, um Ziele für ein Bohrprogramm festzulegen.

Am 16.05.2007 gab Canarc bekannt, dass die Option zum Kauf des Santiago Gold-Projektes erworben wurde. Dieses Projekt liegt ca. 12 km östlich der Stadt Batopilas in der Provinz Chihuahua, Mexico; die örtliche Infrastruktur ist gut, das Projekt ist über eine Straße erreichbar und Strom ist vor Ort vorhanden.
Im März 2006 wurde ein Sampling-Programm in der Nord-Zone von Santiago durchgeführt und eine mineralisierte Zone mit Potential auf 3.78 Mio. Tonnen Erz mit Graden von 1.0 g/t Gold und 20 g/t Silber genannt.
Das Sampling-Programm wurde im September 2007 abgeschlossen; ebenso wie auf dem Providencia-Projekt stehen die Proben aktuell noch aus, mit deren Hilfe man Bohrziele festlegen wird.
Mit Meldung vom 20.09.2007 gab Canarc ein Options- und Joint Venture-Abkommen mit Exmin Resources Inc. (TSXV: EXM) bekannt, das Canarc die Möglichkeit bietet, seine Landpositionen auf dem Santiago Gold-Projekt zu erweitern. Durch Zahlung von 15,000 Aktien sowie der Summe von 25,000 USD und Explorationsausgaben in Höhe von bis zu 1 Mio. USD innerhalb von 5 Jahren kann Canarc bis zu 75% von Exmins angrenzender, 791 ha großer Huimayvo-Konzession erlangen.
Ziel ist danach ein Joint Venture zwischen den beiden Firmen, um das Gebiet gemeinsam weiter zu erforschen und zu entwickeln.

Der Abschluss einer Private-Placement-Finanzierung über 1.1 Mio. kanadische Dollar wurde am 25.07.2007 gemeldet; das Kapital soll u. a. für ein Explorationsprogramm auf den mexikanischen Goldprojekten (Providencia/Los Arrastres und Santiago) sowie für zusätzliche strategische Landkäufe verwendet werden.

Bradford Cooke, Chairman and CEO of Canarc commented, "The spin-out of Canarc's Mexican gold projects benefits shareholders in two ways: Firstly, it puts shares of the new company directly into the hands of Canarc shareholders under a Plan of Arrangement; and secondly, it allows the financing of Mexican gold projects through the new company without diluting Canarc's share capital."

Caza Gold will initially share management with Canarc but it is anticipated that a new management team will be appointed after the distribution. Caza Gold will then seek financing and a listing in order to continue acquiring and exploring strategic gold projects in Mexico. Canarc intends to focus on enhancing the value of its core asset, the New Polaris gold mine project in British Columbia and on pursuing strategic gold property acquisitions in Canada and the U.S.A.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (CCM) and the OTC-BB (CRCUF). Canarc is currently focused on advancing its New Polaris gold mine project in British Columbia, exploring the large Benzdorp gold property in Suriname and acquiring attractive gold exploration and mining projects in Mexico. Barrick Gold Corp. is a shareholder.

   * Announced plans to “spin-out” the Mexican gold projects to subsidiary company, Caza Gold Corp. and distribute shares of Caza Gold to Canarc shareholders

The Year In Review

The price of gold bullion enjoyed another steller year in 2008, rising 32% from US$636 per oz to close the year at US$837 per oz, a 27 year high. Rising investment demand, flat mine supply and the weakening US dollar continued to be the main fundamentals behind the move in precious metals.  In US dollar terms, gold remains locked in a now 7 year-old uptrend, although this is only the third year of the gold bull market denominated in other major currencies.

Junior gold stocks followed gold higher in Q1, 2007, then corrected in the now familiar annual spring-summer sell-off.  This down-trend was aggravated into a precipitous fall in Q3 due to the mortgage-backed securities crisis in August but the junior gold shares started rebounding by year-end.  Canarc’s share price opened 2007 at CA$0.78 per share but tailed off to close at CA$0.38 per share, down 51% on the year.

In 2007, Canarc set out a two-pronged strategy to create shareholder value. The primary goal was to advance our core asset, the New Polaris gold mine project, through a new NI 43-101 resource estimate and complete an initial economic evaluation to build an 80,000 oz per year gold mine. In addition, we launched a new acquisitions program to build an attractive portfolio of gold projects in Mexico.

New Polaris

Canarc launched 2007 with the appointment of two seasoned mining professionals to its senior management team, Mr. Bruce Bried, P. Eng. as the new President and Chief Operating Officer, and Garry Biles, P. Eng., as the new Vice President, Mining.  Bruce and Garry joined Canarc to help facilitate Canarc’s move from exploration to economic assessment to mine development at New Polaris.

In February, the Company released an updated NI 43-101 resource estimate for New Polaris that outlined measured and indicated resources of 519,000 oz gold contained in 1,288,000 tonnes grading 12.5 gpt gold (measured resource of 271,000 tonnes grading 11.89 gpt and indicated resource of 1,017,000 tonnes grading 12.71 gpt) and inferred resources totaling 636,000 oz gold contained in 1,628,000 tonnes grading 12.2 gpt gold, using a 6 gpt gold cutoff grade, still open for expansion in other veins and at depth.

As a result, Canarc commenced a CA$3 million pre-feasibility work program for the project, including dewatering, mapping and sampling the lowermost underground mine workings, completing additional metallurgical testwork to optimize gold recoveries, continuing the site-related environmental studies, developing a conceptual mine plan and completing the preliminary economic assessment.

In Q3, 2007, Canarc was awarded a “Citation for Outstanding Achievement for Reclamation at a Mineral Exploration Site" from the British Columbia Technical and Research Committee on Reclamation, (the Mining Association of BC and BC Ministry of Energy, Mines and Resources) in recognition of Canarc’s proactive reclamation program at New Polaris.

Canarc also released positive results from a preliminary economic assessment of New Polaris for the base case model of constructing of an 80,000 oz per year gold mine. At a US$650 per oz gold price and using a 9 gpt gold cutoff grade to revise the NI 43-101 resource to 342,096 oz gold measured and indicated in 806,000 tonnes grading 13.2 gpt gold and 361,209 oz gold inferred in 944,000 tonnes grading 11.9 gpt gold, the project generates an after-tax undiscounted NPV of CA$40.9 million and an after-tax IRR of 11.1%.  The base case production model showed positive potential so further work was recommended to optimize the project and complete a feasibility study.

However, given the modestly positive economics at US$650 gold and a CA$0.90 dollar, and the fact the next phase of underground mine development and bulk sampling required a CA$20 million budget, and with the share price trading at multi-year lows, Canarc elected to not to proceed with a large equity financing that would have caused massive shareholder dilution.  Instead, management plans to reassess the economics in 2008 based on higher gold prices and CA$ exchange rates and seek strategic alternatives such as a joint venture in order to create shareholder value at New Polaris.

Mexico

In Q1, Canarc announced it had acquired options to purchase 100% interests in the Providencia and Los Arrastres gold-silver projects located near the town of San Felipe in the state of Guanajuato, Mexico.  The 8 km by 10 km Providencia and Los Arrastres properties cover the entire Providencia mining district, which is located about 45 km north of the famous Guanajuato silver-gold mining district.

The 112 hectare Providencia and San Felix mine properties cover two small but high grade vein silver-gold mines that produced an estimated 8.8 million oz silver from 300,000 tonnes ore grading around 1000 gpt silver and 1 gpt gold (30.6 oz per ton Ag equivalents at a 50 silver: 1 gold ratio) until closure in 1934. The 7,638 hectare Los Arrastres properties that surround Providencia and San Felix were staked by Grupo Mexico to explore these mineralized structures on a district scale.

The Company subsequently acquired an option to purchase a 100% interest in a second strategic gold property, the Santiago project, located near the town of Batopilas in Chihuahua State, Mexico. Santiago covers a swarm of high grade gold veins that occupy a large alteration zone adjacent to a granodiritic intrusion only 10 kilometres east of the famous Batopilas silver district.

The SGM (Mexican Geological Survey) carried out a rock sampling program of the North Zone at Santiago and reported a 200 m long by 100 m wide  by 70 m deep mineralized zone with potential to host 3.78 million tonnes grading 1.0 gpt gold and 20 gpt silver. Even though North Zone alteration has been traced for over 400 m in length, the better potential might be the high grade veins contained within it such as the Veta Blanca that grades 30.3 gpt gold over 2.3 m in a channel sample.

At the Providencia and Santiago gold projects, the Phase 1 exploration programs of geological mapping, geochemical soil sampling, rock sampling and hand trenching were carried out during the 3rd Quarter. Canarc also announced a new option to acquire up to a 75% interest in a 791 hectare portion of EXMIN’s Huimayvo concession which surrounds the 171 hectare Santiago Gold Project.

To fund exploration on its Mexican gold projects, including Santiago and Providencia, Canarc closed a private placement totalling $1.1 million. The funds were also to be used to acquire additional attractive gold properties in Mexico and for working capital.

At the Benzdorp gold project in Suriname, additional geochemical soil and porknocker pit sampling programs were completed and applications to renew these exploration concessions were submitted to the Minister of Natural Resources.  No further work is contemplated at Benzdorp until the new concession titles are issued to Benzdorp Gold NV, the local company owned by Canarc and its partner Grassalco, the state mining company for Suriname.

In Costa Rica, Glencairn Gold (now Central Sun Mining) elected to close the Bellavista gold mine due to ground movement caused by heavy rains that negatively impacted the heap leach pad and damaged the process plant.

Both of Canarc’s growth strategies in 2007, to evaluate the economics of building an 80,000 oz per year gold mine at New Polaris and to initiate the acquisition of an attractive gold project portfolio in Mexico, were successfully executed.  Unfortunately, it would appear that these accomplishments are not yet reflected in Canarc’s share price.

That is why, in Q4, 2007, Canarc announced plans to spin-out its Mexican gold projects to a wholly-owned subsidiary company, Caza Gold Corp., and distribute approximately 80% of its shares of Caza Gold pro rata to Canarc shareholders.  By effectively issuing a “dividend in kind”, management anticipates the spin-out should help to unfold the full value of our Mexican gold portfolio for the benefit of Canarc shareholders.  Canarc expects to release further details of the spin-out in January 2008.

The Outlook For 2008

The outlook for gold and gold stocks in 2008 continues to be robust, as evidenced by the recent run in the gold price to the US$900 range.  Some forecasters are calling for US$1000 gold this year, which should bode well for Canarc, specifically in rewarding our patience in regard to New Polaris.

Canarc plans three strategic initiatives to create value for shareholders in 2008.

Firstly, management intends to evaluate the economics of New Polaris on an ongoing basis and consider strategic alternatives such as a joint venture or other means to advance this high grade gold mine project to pre-production mine development and a full feasibility study.

Secondly, the spin-out of the Mexican gold projects to subsidiary company, Caza Gold Corp., and the distribution of Caza Gold shares pro rata to Canarc shareholders will allow Caza to finance the acquisition and exploration of additional and more advanced gold projects in Mexico for the benefit of Canarc shareholders but without diluting Canarc shares.

Thirdly, Canarc is now evaluating opportunities to acquire attractive gold projects in the USA where management’s exploration and mining experience can add value.

Although the gold markets have recently pulled back from their early year highs, management is still quite bullish that the gold price will seek new highs in 2008. And due to a looming inflationary period, this should be the year that the precious metals start to separate from and outperform the base metals.

We appreciate the support of our many shareholders, and we can all look forward to a more rewarding year of growth for the Company.

James Moors, B.Sc., P.Geo, Vice President, Exploration, is the Qualified Person who reviewed the technical disclosures for this shareholder update.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (CCM) and the OTC-BB (CRCUF).  Canarc is currently focused on advancing its New Polaris gold mine project in north-western British Columbia to the feasibility stage, exploring the large Benzdorp gold belt and acquiring attractive gold exploration and mining projects in North America.  Barrick Gold Corp. is a shareholder.

CANARC RESOURCE CORP.
Per:

/s/ Bradford J. Cooke

Bradford J. Cooke
Chairman and C.E.O.

WKN: 876981
ISIN: CA13722D1015
Symbol: CAN

The Record Date for the Meeting will be on or about March 25, 2008 and the Notice and Information Circular will be mailed to the Shareholders of Record on or about April 4, 2008.  

At the Meeting, the Shareholders will be asked to vote on a special resolution to

1) transfer Canarcs’ wholly owned Mexican subsidiary which holds the rights to the Mexican gold exploration properties to the recently created Canadian subsidiary company, Caza Gold Corp., in return for all of Caza’s issued share capital of approximately 14.4 million shares (reflecting one share of Caza for each five shares of Canarc), and

2) distribute approximately 83% of the Caza shares to Canarc shareholders.   Assuming Shareholders approve the Special Resolution, Canarc will immediately thereafter seek Court approval for the transaction. The Dividend Record Date and the Effective Date for the dividend will be set shortly after receipt of Court approval of the Arrangement, in conjunction with the policies of the Toronto Stock Exchange.

Immediately following the Effective Date, Canarc will own approximately 17% or 2.4 million of the issued shares of Caza and the Canarc Shareholders of Record will own an estimated 83% or 12.0 million of the issued share capital of Caza.

On the completion of the Plan of Arrangement, all shareholders of Canarc will continue to hold their Canarc shares and they will receive, by way of a dividend in kind, one share of Caza for each six shares of Canarc held by Shareholders as of the Dividend Record Date and the Effective Date.

Bradford Cooke, Chairman and CEO of Canarc commented,

“The spin-out of Canarc’s Mexican gold projects to Caza Gold and the dividending of 80% of the Caza shares to Canarc Shareholders of Record should be very accretive for Canarc Shareholders. Firstly, it puts shares of the new company directly into the hands of Canarc shareholders under a Plan of Arrangement; and secondly, it allows the financing of the Mexican gold projects through Caza without directly diluting Canarc’s share capital.”  

Caza Gold will initially have common management with Canarc but it is anticipated that a new Caza management team will be appointed after the distribution. The boards of directors of each company are currently the same but it is also anticipated that a new Board of Directors will be nominated at the next Caza Shareholder Meeting. Canarc will provide administrative assistance on an as-needed basis to Caza pursuant to a management agreement.  Caza Gold will then seek financing in order to continue acquiring and exploring strategic gold projects in Mexico.

Canarc intends to focus on enhancing the value of its core asset, the New Polaris gold mine project in British Columbia and on pursuing strategic gold property acquisitions in Canada and the U.S.A.

Canarc Resource Corp. is a growth-oriented, gold exploration company listed on the TSX (CCM) and the OTC-BB (CRCUF).  Canarc is currently focused on advancing its New Polaris gold mine project in British Columbia, exploring the large Benzdorp gold property in Suriname and acquiring attractive gold exploration and mining projects in North America.

Barrick Gold Corp. is a shareholder.

CANARC RESOURCE CORP. Per:  /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.