Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

August 21, 2007 14:09 ET

Channel Announces Amendment to Non-Brokered Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) -

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Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that, due to the effects of recent market-wide events, it has amended the terms to its non-brokered private placement financing originally announced on August 20, 2007 to more closely reflect prevailing conditions.

Under the new terms, the Company will issue up to 10,000,000 units (a "Unit") at a price of CDN$0.18 per Unit. Each Unit will be comprised of one common share of the Company ("Common Shares") and one warrant (a "Warrant"), with each Warrant being exercisable for one Common Share ("Warrant Share") at an exercise price of CDN$0.30 for a period of 24 months. The Common Shares comprising part of the Units and the Warrant Shares will be subject to a four month and one-day hold or restricted period from the closing date under applicable securities legislation.

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.

Completion of the private placement is subject to execution and delivery of standard documentation and receipt of all required regulatory approvals and consents, including the approval of the TSX Venture Exchange.

About Channel Resources Ltd.

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. The Company has 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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