Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

March 27, 2006 13:44 ET

Channel Resources Ltd. Intercepts Significant Gold Mineralization in the Freddy Zone on the El Mozo Property, Ecuador

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - March 27, 2006) - Channel Resources Ltd. ("Channel") (TSX VENTURE:CHU) is pleased to announce first phase results of drilling in the Freddy Zone situated approximately one km northeast of the Main Indira Zone.

Hole MDH-80 drilled 100 metres southwest of previous Newmont Hole MDH-17 encountered 39.63 metres (true thickness 28.02 metres) of 2.038 grams gold per tonne including 16.77 metres (true thickness 9.62 metres) of 2.808 grams gold per tonne. Newmont's Hole MDH-11 drilled in 1996 encountered 32 meters (true thickness of 22.624 metres) of 5.931 grams per tonne. This was subsequently undercut by Newmont Hole MDH-17 which encountered 58 meters (true thickness of 41.006 metres) of 1.501 grams per tonne. The Newmont holes were not drilled in compliance with 43-101 standards and no reported QA/QC program was in place to confirm these results. Future twinning of drill holes are planned to confirm the Newmont results.

Channel drilled two additional Holes MDH-81 and MDH-79 50 metres and 150 metres northeast respectively of Hole MDH-80. Hole MDH-79 was lost before hitting the ore zone although alteration encountered at the bottom of the hole was anomalous cutting 16.77 metres (true thickness 9.62 metres) of 0.657 grams gold per tonne and Hole MDH-81 determined a fault had broken the Freddy Zone into two discreet lenses.

Upon mapping and further defining the geology a second phase drilling program is planned to resume within three months to test the extent of the zone both to the southwest and northeast.

Highlights of the mineralized sections are presented in the following table (section and plan maps can be viewed at www.channelresources.ca).



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Channel Resources Ltd.
Freddy Zone - Drill Intercepts
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MDH-79(i)
UTM P56 714,613.5 E 9,620,605.3 N, Az equals 135 degrees Dip equals
-55 degrees
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From To Length True Width Grade g/t
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192.02 208.79 16.77 9.62 0.657
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(i) Lost before completion
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MDH-80
UTM P56 714,518.0 E 9,620,496.5 N, Az equals 135 degrees Dip equals
-45 degrees
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From To Length True Width Grade g/t
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15.24 21.34 6.1 4.31 0.895
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And
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42.67 82.30 39.63 28.02 2.038
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Including
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62.48 79.25 16.77 11.86 2.808
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MDH-81
UTM P56 714,547.2 E 9,620,523.7 N, Az equals 135 degrees Dip equals
-45 degrees
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From To Length True Width Grade g/t
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108.2 111.25 3.05 2.16 0.419
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And
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115.82 123.44 7.62 5.39 0.355
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First phase drilling has been completed in the main Indira area with assays pending for the five holes drilled to the northwest and one hole to the southeast of previously announced main zone results.

Analysis for this campaign was performed by ACME Analytical Laboratories Ltd. of Vancouver, Canada, an ISO 9001:2000 series accredited laboratory facility, by 30 g charge fire assay for gold, and atomic absorption for silver. Sample preparation was carried out by the ACME Ltd. preparation facility in Cuenca, Ecuador.

Dale Schultz, P. Geo. (Man, Sask) of Buscore International Consulting is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release. He has reviewed the contents for accuracy.

Forward-Looking Statement:

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

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