Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

August 22, 2005 17:08 ET

Channel Resources Ltd.: Appointment of Vice President and Country Manager, Ecuador and Grant of Stock Options

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2005) - The Honourable D. Ross Fitzpatrick, Chairman, President and CEO of Channel Resources Ltd. (the "Company") (TSX VENTURE:CHU) is pleased to announce that Mr. James M. Stonehouse has been appointed Vice President and Country Manager, responsible for the Company's operations in Ecuador which will get underway this coming fall. Mr. Stonehouse has a B.A., Geology and M.A., Geology from Dartmouth College. He has extensive exploration experience in Central and South America and has been responsible for development through feasibility and construction of several gold mine projects.

The Company has granted 250,000 stock options to Mr. Stonehouse pursuant to the Company's 2004 Stock Option Plan (the "Plan") exercisable at a price of Cdn$0.34 per share expiring on August 21, 2010. The options granted to Mr. Stonehouse will vest at 20% per year. Also pursuant to the Plan the Company has granted 400,000 stock options to The Honourable D. Ross Fitzpatrick, Chairman, President and CEO of the Company, exercisable at a price of Cdn$0.34 per share expiring on August 21, 2010. The options granted to Senator Fitzpatrick have been fully vested.

Any securities issued on exercise of the above stock options will be subject to a four-month hold period expiring December 21, 2005. Following the above grant, 2,870,000 options in aggregate are outstanding.

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

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