Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

September 10, 2007 16:34 ET

Channel Closes First Tranche of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 10, 2007) -

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Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that it has closed the first tranche of its non-brokered private placement of units ("Units") announced on August 21, 2007. An aggregate of 5,131,670 Units were issued at a price of $0.18 per Unit for gross proceeds of $923,700. 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 January 11, 2008. The second tranche of the private placement is expected to be completed shortly.

Finders acting in connection with the initial tranche of the private placement received aggregate fees of $20,475.00. Following the completion of the initial tranche of the private placement, Channel has 56,325,410 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. The final completion of the private placement of up to a maximum of 10,000,000 Units is subject to regulatory approval.

Channel is an exploration stage company that is earning majority interests in the Mozo gold project in Ecuador, the West Bienville uranium project in Quebec, and the Tanlouka gold project in Burkina Faso, as well as holding an interest in the Bombore gold project in Burkina Faso. The Company has formed a strategic alliance with Azimut Exploration Inc. ("Azimut") for mineral exploration 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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