Canarc Resource Corporation is a small exploration company with three gold projects under its belt in North, Central and South America.

The flagship for the company is the high-grade New Polaris gold project in Canada, where the company recently reported an Updated NI 43-101 Resource Estimate of Measured and indicated undiluted resources range from 570,000 to 457,000 oz of gold contained in 1,670,000 to 1,009,000 tonnes of mineralized vein material grading 10.6 to 14.1 grams per tonne. Inferred undiluted resources range from 697,000 to 571,000 oz of gold contained in 2,060,000 to 1,340,000 tonnes of mineralized vein material grading 10.5 to 13.3 grams per tonne.

They are also in Suriname where they have the Benzdorp Gold Project
Which covers 1,380 sq. km of ground in a region with a history of gold production estimated to be over1 million ounces of gold.

The company generates a small income from its royalty rights from the Bellavista Project: in Costa Rica where an independent study placed a US$3.3 million net present value on Canarc’s royalty interest using a US$425 gold price and 5% discount rate. However this interest is up for sale as Canarc intends to use the money for further exploration in Canada.

Taking a look at the management team it is an impressive line up with Bradford Cooke, Chairman and CEO who has managed to raise over CA$100 million in equity and joint venture financings for resource projects since 1988. Without the ability to raise cash investment opportunities are dead in the water so this is a good track record.

Canarc has a Market Capitalization of just under $50 million with 69 million shares outstanding and is currently trading at around $0.71

A quick look at the chart and we can see the beginnings of a recovery being formed over the last few weeks. However the stock price is still under both the 50DMA and the 200DMA and could remain there. Should the stock price continue to rise and cross the blue line and head for the red line then this would be very positive for the company. If the blue line were then to break above the red line and hold then the stock would look very attractive to us as an investment opportunity.

In conclusion we will wait and watch a little while longer, however as we expect gold to start heading north this situation could change very quickly. If we decide to buy we will of course post an article here informing you of our actions.

Canarc Resource Corporation is listed on the Toronto Stock Exchange as CCM, the OTC Bulletin Board as CRCUF and the Frankfurt Stock Exchange as CAN.

30 March 2007