Channel Resources Ltd.

Channel Resources Ltd.

March 14, 2005 15:16 ET

Channel Resources Ltd.: Stock Options/Transition to New BC Business Corporations Act


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CHANNEL RESOURCES LTD.

TSX VENTURE SYMBOL: CHU

MARCH 14, 2005 - 15:16 ET

Channel Resources Ltd.: Stock Options/Transition to
New BC Business Corporations Act

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 14, 2005) - Channel
Resources Ltd. (TSX VENTURE:CHU) (the "Company") announces the Company
implemented its 2004 Stock Option Plan (the "Plan"), which Plan was
approved by the TSX Venture Exchange (the "TSXV") and by the
shareholders of the Company in March 2004. The Plan is a rolling plan
and provides that the total number of common shares issuable pursuant to
the Plan shall not exceed a maximum of 10% of the number of common
shares of the Company issued and outstanding from time to time
(including any options previously granted). In addition, the number of
shares which may be reserved for issuance to any one individual may not
exceed 5% of the issued shares on a yearly basis or 2% if the optionee
is engaged in investor relations activities or is a consultant.

Under TSXV Policy 4.4, since the Plan is considered a rolling plan the
Plan must receive shareholder approval yearly at the Company's Annual
General Meeting. In addition, the Plan must be submitted for TSXV review
and acceptance each year.

Accordingly, at the Annual and Special General Meeting held March 11,
2005 shareholders were asked to and unanimously passed an Ordinary
Resolution approving the Plan. In addition, the TSXV has conditionally
approved the Plan subject to filing of a copy of the Scrutineer's Report
from the Company's Annual and Special General Meeting held March 11,
2005, which Scrutineer's Report has been filed with TSXV.

The Company has granted 60,000 stock options to Directors of the Company
pursuant to the Plan exercisable at a price of Cdn$0.23 per share
expiring on March 10, 2008. Any securities issued on exercise thereof
will be subject to a four-month hold period expiring July 10, 2005, and
these options have been fully vested. Following the above grant,
2,240,000 options in aggregate are outstanding.

Also at the Annual and Special General Meeting held March 11, 2005
shareholders unanimously passed Special Resolutions altering the Notice
of Articles to remove the application of certain provisions prescribed
in the British Columbia Business Corporations Act called the
pre-existing company provisions and deleting the existing Articles of
the Company in their entirety and replacing them with new form of
Articles, with such new form of Articles being consistent with the
terminology and provisions of the newly enacted British Columbia
Business Corporations Act.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Channel Resources Ltd.
    The Honourable D. Ross Fitzpatrick
    Chairman, President and Chief Executive Officer
    (250) 764-7090
    (250) 764-7093 (FAX)
    ir@channelresources.ca
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this Release.