Canarc Resource Corp (C-CCM) - News Release

Canarc options 75% of Exmin's Santiago fraction

2007-09-20 10:13 PT - News Release
Shares issued 70,968,893
CCM Close 2007-09-19 C$ 0.445

Mr. Bradford Cooke reports

CANARC ENTERS OPTION AND JOINT VENTURE AGREEMENT WITH EXMIN RESOURCES TO EXTEND LAND HOLDINGS OF SANTIAGO GOLD PROJECT, MEXICO

Canarc Resource Corp. has signed an option and joint venture agreement with Exmin Resources Inc. (TSX-V: EXM) to extend the landholdings of Canarc's Santiago gold project located in the Batopilas district, Chihuahua state, Mexico.

Canarc can acquire up to a 75-per-cent interest in a 791-hectare portion of Exmin's Huimayvo concession (hereafter termed the Santiago fraction), which surrounds the 171-hectare Santiago gold project, by issuing 15,000 common shares (subject to regulatory approvals), paying $25,000 (U.S.) after one year and spending up to $1-million (U.S.) over up to five years. After vesting, Canarc and Exmin will form a joint venture to continue the exploration and development of the Santiago fraction.

The Santiago gold project covers two prominent iron oxide-silica-clay alteration zones, one of which (North zone) surrounds eight parallel, gold-bearing, quartz-sulphide veins. Local infrastructure is good as the properties are road accessible and a state power line crosses the properties.

In March, 2006, the SGM (Mexican Geological Survey) carried out a rock sampling program of the North zone at Santiago and reported a 200-metre-long-by-100-metre-wide-by-70-metre-deep mineralized zone with potential to host 3.78 million tonnes grading 1.0 gram per tonne (g/t) gold and 20 g/t silver (not a resource). (This target is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the delineation of a mineral resource.) The North zone alteration has been traced for over 400 m in length and the better potential might be the high-grade veins contained within it rather than the bulk tonnage, low-grade potential.

Canarc geologists visited three of the eight known veins in the North zone and channel sampling returned consistently high-grade gold assays including 30.3 g/t gold over 2.3 m (0.88 ounce per ton over 7.5 feet) in the Veta Blanca, 7.0 g/t gold over 5.0 m (0.2 ounce per ton over 16.4 feet) in the Veta Tajos and 17.7 g/t gold over 2.5 m (0.52 ounce per ton over 8.2 feet) in the Veta Verde.

One of the prominent alteration zones trends onto the Santiago fraction and may represent a high-level extension of the high-grade gold veins exposed at lower elevations on the Santiago properties. An initial exploration program of geological mapping and rock sampling is now under way at the Santiago and newly acquired Santiago fraction properties in order to delineate targets for drilling.

Bradford Cooke, chairman and chief executive officer, commented: "We are delighted to extend our property holdings at Santiago and to have Exmin as a partner. Exmin owns a large portfolio of exploration and development projects in historic mining districts in Mexico such as Batopilas and their partners in Mexico include Industrias Penoles and Hochschild Mining. The Santiago gold project is an integral part of Canarc's new initiative to acquire high-quality gold properties in Mexico."

James Moors, BSc, PGeo, vice-president, exploration, is the qualified person who reviewed the SGM and Canarc data, and visited the properties. All rock samples were delivered to the BSI Inspectorate sample prep lab in Durango for the preparation of sample pulps. Samples are dried, crushed, split and 30-gram pulp samples are then air freighted to Reno, Nev., for analysis at the BSI Inspectorate laboratory. Gold and silver at BSI are determined by fire assay with an atomic absorption (AA) finish.

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