Channel Resources Ltd.

Channel Resources Ltd.

February 10, 2010 14:23 ET

Channel Resources Closes Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) -


Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) announces that it has closed its non-brokered private placement of units (the "Units") announced on January 29, 2010. The Company has issued 3,786,000 Units at a price of CDN$0.08 per Unit for gross proceeds of $302,880. Each unit is comprised of one common share of the Company ("Common Share") and one share purchase warrant (a "Warrant"), with each Warrant being exercisable for one Common Share at an exercise price of CDN$0.11 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 June 11, 2010.

In connection with the private placement, insiders and associates of the Company subscribed for all of the Units placed. In a separate transaction the same number of common shares were sold from the subscribers' personal holdings through the facilities of the TSX Venture Exchange (the "TSX.V") to third-party investors. Insider participation in the private placement constitutes a related party transaction pursuant to applicable securities laws and relies on exemptions under Multilateral Instrument 61-101 from valuation and minority shareholder requirements. The announcement of the proposed related party participation in this private placement was made fewer than 21 days before the closing due to the fact that the terms of this private placement and potential related party participation were not sufficiently defined until this private placement was originally announced.

Following the completion of this closing of the private placement, Channel has 68,879,744 Common Shares issued and outstanding.

The proceeds of the private placement will be used to fund exploration and pre-development work on its project portfolio, as well as for corporate development and working capital purposes. This financing has been conducted in addition to the private placement that closed on January 18, 2010, together raising aggregate gross proceeds of $640,880.

Some of the statements contained herein are 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 minerals, 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. Further disclosure on risk factors is available in the Company's various corporate filings at

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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