Detectives first arrested the 29-year-old former science teacher - who worked at Archer Lodge Middle School - February 29 and have been searching for more alleged victims.
Now, they've identified alleged fourth and fifth victims. Chief Glen B. Allen told ABC11 that - while the alleged assaults happened in Canally's home - the latest victims were students at Archer Lodge at the time.
The alleged incidents occurred between September 2008 and December 2008 for the fourth victim and between April 2009 and May 2009 for the fifth victim.
ABC11 does not generally identify the victims of alleged sex crimes.
Canally faces new charges that include two felony counts of indecent liberties with a child and two felony counts of sex offense with a student.
An additional $300,000 was tacked on to his bond for a total of $2,480,000.
When he was first arrested February 29, Canally was charged with statutory rape, indecent liberties with a child, and misdemeanor sexual battery.
Police said the first two victims were ages 13 to 16 at the time of the alleged assaults and were not related to Canally.
March 9, police identified a third victim and charged Canally with statutory rape and soliciting a child by computer. Canally is accused of messaging the victim on Facebook.
Canally worked as a teacher at Archer Lodge Middle School from August 2007 to July 27, 2009.
In a statement Friday, Johnston County Schools spokeswoman Terri Sessoms said the district was never aware of any allegations of sexual misconduct while Canally worked at Archer Lodge. She said there was a complaint filed against him in the summer of 2009, but it was not of a sexual nature. The district initiated a review, and Canally resigned before the review was completed.
"The school system continues to cooperate fully with the ongoing law enforcement investigation and will provide support and assistance to any affected student," said Sessoms.
Clayton police said Friday they are still looking for more potential victims.
"You've got someone involved in the school system like he was, you've got someone who was around a bunch of different juveniles at the time, who other kids might have talked to and said, you know, introducing him and introducing who he is. We don't even know the magnitude at this point of how many," said Captain Jon Gerrell with the Clayton Police Department.
Police want parents - especially parents whose children were students at Archer Lodge in the 2007 to 2009 school years - when Canally was a teacher there - to talk to their children.
They said the conversations should be frank and if there's any indication of inappropriate contact, the parents should call investigators. Anyone with information is asked to contact the Clayton Police Department Detective Division.