Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

April 22, 2008 14:43 ET

Channel Defers Exploration Activities in Ecuador

Actively Engaged on Projects in Quebec (Uranium) and Burkina Faso (Gold), Assessing New Projects for Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2008) - Channel Resources Ltd. (the "Company") (TSX VENTURE:CHU) reports that on Friday April 18, 2008 the Constitutional Assembly of Ecuador passed a 'Mining Mandate' that effectively imposes a moratorium on all exploration activities in the country until a new mining law is enacted, expected within a six-month period. Further measures in the Mining Mandate include the cancellation of all applications for new mineral concessions in Ecuador, the creation of a state-owned mining company and the imposition of a three-concession limit on companies and individuals.

Although the adoption of this Mining Mandate is a recent event, anti-mining sentiment expressed by factions within the government over the course of the past six months has already impacted mining companies in Ecuador. One direct impact on Channel is that several concessions applied for in mid-2007 under the Strategic Alliance with Azimut Exploration Inc. (press release July 11, 2007), and which have since been held pending an administrative resolution, have now been cancelled by the Mining Mandate. Channel and Azimut have agreed to extend the Option Period during which the Company has the exclusive option to acquire projects in Ecuador under the Strategic Alliance to July 9, 2008. Furthermore, Channel has reached an agreement with Minera Cachabi C. Ltda. to suspend its expenditure commitments under its option agreement for the Mozo gold project in southern Ecuador for a period of six months from March 1, 2008.

"We are very disappointed with the attitude displayed by the Constitutional Assembly of Ecuador with the adoption of this Mining Mandate and its obvious effect on investor confidence in mining investment and development in that country," stated Channel's President, Colin McAleenan in response to these developments. "Channel simply cannot justify further expenditures in Ecuador until we see a stable and fair legal framework under which investment in the sector is protected. Fortunately, we have spread the political risk and are actively engaged in a very prospective uranium exploration project at West Bienville in Quebec and in a gold exploration project at Tanlouka in Burkina Faso. We are also currently evaluating other projects for acquisition in Canada and Mexico."

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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