Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

July 11, 2007 09:00 ET

Channel and Azimut Form Strategic Alliance for Ecuador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 11, 2007) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) and Azimut Exploration Inc. ("Azimut") have signed an Agreement forming a Strategic Alliance for mineral exploration in Ecuador, South America. Under the terms of this Agreement, Azimut is to supply a report based on its country-wide mineral potential assessment aimed at identifying major exploration targets, thereby assisting Channel in assembling a portfolio of projects with the best potential for hosting large scale mineral deposits.

Azimut's assessment is being conducted using rigorously screened, regional scale, proprietary and publicly available geoscientific databases including multi-element geochemistry, airborne magnetics, gravimetry, digital topography data as well as structural models. The potential for the discovery of gold and other commodities is assessed using advanced proprietary data processing methodologies.

The Target Report ("Report"), funded by the Company, has already been completed and a number of areas of interest have been identified and are under review.

Under the terms of the Strategic Alliance during the initial six month period following the delivery of the Report, Channel has the exclusive right and option to acquire any of the targets identified in the Report. Upon acquisition of its first such project, Channel will grant to Azimut:

- 250,000 common shares of the Company;

- 250,000 common share purchase warrants exercisable for two years at the market price on the date of issuance of the warrants;

- a 1% net smelter return (NSR) royalty on any and all target properties acquired as a result of the information outlined in the Report.

For the subsequent nine month period, both Channel and Azimut have the right to acquire properties based on the recommendations of the Report. For any target identified by Azimut for acquisition during this period, Channel will have a 30-day right of first refusal (the "Right") to acquire such project by assuming all acquisition costs and by granting Azimut a 1% net smelter return royalty thereon. If the Company does not exercise the Right and if Azimut then acquires such project Azimut will grant Channel a 1% net smelter return royalty thereon.

Between fifteen and sixty months following delivery of the Report, both Channel and Azimut may each pursue mineral rights on any target recommended in the Report subject only to the Company granting Azimut a 1% net smelter return royalty on any such projects acquired.

"Channel intends to escalate its participation in the emerging mining industry of Ecuador," commented Colin McAleenan, President and CEO of Channel. "We are excited to be sharing in the application of an exploration technology that has been so effective in Quebec for Azimut in a country as prospective and as under-explored as Ecuador."

This Agreement is subject to approval of the TSX Venture Exchange.

Channel is an exploration stage company that is earning a majority interest in a gold project in Ecuador (the Mozo Project) as well as holding interests in two exploration-stage projects in Burkina Faso, West Africa. Azimut is a mineral exploration company using cutting-edge targeting methodologies to discover major ore deposits.

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

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