Channel Resources Ltd.

Channel Resources Ltd.

August 15, 2005 18:57 ET

Channel Resources Ltd. Completes $2.1 Million Private Placement

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2005) -


Channel Resources Ltd. (the "Company") (TSX VENTURE:CHU) announces that it has completed its previously announced private placement of units ("Units") of the Company for gross proceeds of $2.1 million.

Pursuant to the private placement, the Company issued 7,000,000 Units at a price of $0.30 per Unit. Each Unit was comprised of one common share of the Company (a "Common Share") and one warrant (a "Warrant"), with each Warrant exercisable for one Common Share (a "Warrant Share") at an exercise price of $0.40 per Warrant Share for a period of 12 months and $0.60 for an additional 12 month period.

Quest Securities Corporation acted as agent ("Agent") in connection with the private placement and received a cash commission of 7% of the gross proceeds raised. In addition, the Agent and members of its selling group were issued an aggregate of 700,000 broker warrants ("Broker Warrants"), with each Broker Warrant exercisable for one Common Share (a "Broker Share") at an exercise price of $0.30 per Broker Share for a period of 24 months.

The Common Shares and Warrants comprising the Units, the Warrant Shares and the Broker Shares are subject to a hold period expiring December 16, 2005.

The proceeds of the private placement will be used to fund a comprehensive exploration program on the El Mozo Property, Ecuador and for general corporate purposes.

This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities that may be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements.

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

Contact Information