Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

October 31, 2007 17:07 ET

Channel Closes Final Tranche of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2007) -

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Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that it has closed the final tranche of its non-brokered private placement of units ("Units") announced on August 21, 2007. In this tranche, 2,243,334 Units were issued at a price of $0.18 per Unit for gross proceeds of $403,800, bringing the total amount raised in this private placement to $1,327,501. Each Unit consists of one common share of the Company ("Common Share") and one common share purchase warrant ("Warrant"), with each Warrant being exercisable for one Common Share at $0.30 for a period of 24 months. The securities issued pursuant to this tranche of the private placement are subject to a statutory resale restriction period of four months, which expires on March 1, 2008.

Finders acting in connection with this tranche of the private placement received aggregate fees of $2,520. Following the completion of the private placement, Channel has 58,868,744 Common Shares issued and outstanding.

The proceeds of the private placement will be used for the acquisition of additional mineral projects, to help fund exploration on the Mozo Gold Project located in Ecuador, and for general corporate purposes.

Channel is an exploration stage company that is earning a majority interest in the Mozo gold project in Ecuador, in two exploration-stage gold projects in Burkina Faso, West Africa as well as the West Bienville uranium project in Quebec. The Company also has formed a strategic alliance with Azimut Exploration Inc. ("Azimut") to acquire and explore major exploration targets in Ecuador based on a country-wide mineral potential assessment carried out for the Company by Azimut.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.

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