October 8, 2010
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CHANNEL RESOURCES CLOSES PRIVATE PLACEMENT FINANCING
Vancouver, BC - Channel Resources Ltd. (?Channel? or the ?Company?, TSX.V:CHU) announces that it has closed its non-brokered private placement of units (the ?Units?) of a total 9,150,000 Units at a price of $0.17 per Unit for gross proceeds of $1,555,500. Each Unit is comprised of one common share of the Company ("Common Share") and one half of one share purchase warrant (a "Warrant"), with each full Warrant being exercisable for one Common Share for a period of 24 months at an exercise price of CDN$0.21 within the first 12 months and CDN$0.25 within the second 12 months, after which they will expire. The securities issued pursuant to this private placement are subject to a statutory resale restriction period of four months, which expires on February 9, 2011. Finders acting in connection with this private placement will receive aggregate fees of Cdn$123,284 and will be issued an aggregate 906,500 finder?s warrants with the same terms as the Unit Warrants. Following the completion of this closing of the private placement, Channel has 85,627,244 Common Shares issued and outstanding. The proceeds of the private placement will be used primarily to fund further exploration and assessment work on the Company?s projects, as well as for corporate development and working capital purposes. For further information: Colin McAleenan, President and CEO Cyrus Ameli, CFO and VP Corporate Affairs Telephone 604.684.7098 www.channelresources.ca info@channelresources.ca Some of the statements contained herein are 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 price of minerals, 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 Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Further disclosure on risk factors is available in the Company?s various corporate filings at www.sedar.com. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |