Channel Resources Ltd.

Channel Resources Ltd.

January 18, 2006 16:20 ET

Channel Resources Ltd.: El Mozo Property, Ecuador

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Channel Resources Ltd. ("Channel") (TSX VENTURE:CHU) announces its first year drilling program on its El Mozo Property in South Central Ecuador is underway.

Government authorities have approved the program and a camp has been constructed on the site to house drilling and technical staff.

The Phase 1 drilling program is designed to further evaluate and quantify known mineralized occurrences. Three thousand metres of drilling is planned primarily in the Indira Zone which has a known extent of 1500 metres and a known width of up to 300 metres. Approximately 500 additional metres will be devoted to further defining the Freddy Zone where two historic holes have intercepted material with strong potential. In addition, several holes are planned to undercut areas of significant values found in outcrop or to follow-up on single hole anomalies present in earlier programs.

Work to date has concentrated on achieving a detailed appreciation for the known mineralized Indira, Monica and Freddy areas by detailed re-mapping the geology and examining previous results and alteration to help establish drill targets.

Mapping is continuing in the overall area concentrating on known mineralized sections. Work evaluating new areas and geologic projections by mapping and sampling will be carried out contemporaneously with Phase 1 drilling.

In conjunction with the mapping, a compilation of past geochemical data has been performed and a statistical analysis of this data will be done in January and February 2006. This will be followed by soil and rock chip geochemistry to define new un-explored targets.

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