During Q2, 2008, Canarc strengthened its management team and Board of Directors with the appointments of Mr. Garry Biles, P.Eng. as the new President and Chief Operating Officer of the Company and Bruce Bried, P.Eng. as a Director of Canarc, effective June 1, 2008.

Mr. Biles, previously Canarc's Vice President, Mining, replaces Mr. Bruce Bried, who has retired after serving Canarc as President, Vice President and consultant over the past four years. Garry Biles is a professional engineer with more than 35 years experience in the mining industry, including 16 years as General Manager of operating gold-silver mines.

Garry spent 7 years as General Manager of operations at the rich Eskay Creek mine of Homestake Mining (now Barrick Gold) in northern B.C. He has excelled at maximizing gold mining operations, achieving production and cost targets and establishing excellent track records for safety first, environmental leadership and strong relations with employees and First Nations.

Mr. Bried is a professional mining engineer with over 28 years experience in the engineering, development, operation, reclamation and management of producing mines. He specializes in underground vein gold/silver mines, having worked for many years with Dickenson Mines (now Goldcorp) in Red Lake, ON, and with Homestake Mining, where he was Mine Superintendent at the Hemlo and Eskay Creek gold mines and General Manager of the Snip and Lead gold mines.

The other significant new development in the 2nd quarter was the approvals granted by the Canarc shareholders, the Toronto Stock Exchange ("TSX") and the BC Supreme Court for the spin-out of Caza Gold Corp. from Canarc by way of a plan of arrangement.

Canarc's Mexican gold projects were transferred to a new wholly owned 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. Canarc shareholders are now receiving, by way of a dividend in kind, one share of Caza for each six shares of Canarc held as of the Dividend Record Date. Canarc shares began trading "ex-dividend" at the market open on Friday, June 20, 2008. Therefore, only purchasers who purchased shares of Canarc up to the end of the day Thursday June 19, 2008 will receive the dividend of Caza shares, and be part of the Plan of Arrangement.

Canarc retained approximately 2.4 million shares of Caza, or about 16.7% of Caza Gold Corp.

The purpose of the spin-out and distribution is for Canarc shareholders to realize the full potential of Canarc's Mexican gold projects by advancing them through the financing of Caza Gold rather than financing Canarc.