Channel Resources Ltd.

Channel Resources Ltd.

October 18, 2007 09:00 ET

Channel Commences Drill Program at El Mozo Gold Project, Ecuador

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2007) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that a core drilling program for the Mozo Gold Project in Ecuador is commencing. Untested geophysical anomalies in the vicinity of surface mineralization and/or alteration as well as deeper levels in the Indira mineralized system are the initial targets of this minimum 1,800 metre program. Channel is pleased to have received strong support from local communities at Mozo and many of the local inhabitants are employed in project support activities.

As of 2005 the Mozo Project has a NI 43-101 compliant Inferred Resource of 3.5 million tonnes grading 2.3 grams per tonne for a total of 256,000 ounces, identified within four gold-bearing zones. Since these resource estimates were made the Company has completed 5,644 metres of core drilling in 39 holes focused mainly on the 'Indira' structure. Thirty of these holes intersected potential ore-grade zones, including 39.6 metres (true width approx. 28 metres) with a weighted average grade of 2.04 g/T gold, 10.7 metres (true width approx. 7.5 metres) at 4.38 g/T gold and 65.5 metres (true width of approx. 46 metres) at 1.59 g/T gold.

The results of the 2007 drill program will assist the Company in determining the potential for the project to contain significantly larger gold resources, will help to direct further exploration programs and will contribute to an updated resource estimate for the project to be conducted in 2008.

The exploration program at El Mozo and the contents of this news release have been approved by Colin H. McAleenan, P.Geo, who is the Company's "Qualified Person" under the definition of NI 43-101.

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 a uranium project in Quebec (West Bienville). 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.

Forward Looking Statements:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.

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

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