Channel Resources: Material Difference in Etruscan's Samira Property Resource.VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , BRITISH COLUMBIA--(BUSINESS WIRE)--July 23, 1998--Channel Res (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CHU.) Channel Resources Ltd. ("Channel") announces a material difference when comparing the Placer Dome Placer Dome was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada. Barrick has acquired 100% of the Placer Dome shares on January 20, 2006, and has integrated the company into its own. Inc. ("Placer") and the Etruscan Resources Etruscan Resources is a mining company based in Nova Scotia, in Canada, that operates gold and diamond mines in Africa. Etruscan mines gold and diamonds in the West African countries of Burkina Faso, Cote d'Ivoire, Ghana, Mali and Niger. Inc. ("Etruscan") resource estimate of the Samira property . Placer carried out an extensive program on the property during a period of 18 months, which included drilling the deposit and along strike. Placer reported in its Annual Information Form for the year ended December 31, 1997 that a preliminary kriged estimate of gold bearing material was calculated on the Samira property in December 1997 based on 12,500 meters of drilling. Results of Placer's study indicate the existence of 9.2 million tonnes grading 2.25 grams of gold, which represents 665,505 ounces or 1,144,495 ounces less than claimed by Etruscan. Placer used a 1.0 gram cut off whereas Etruscan's resource estimate totaling 1,810,000 ounces employed a 0.5 gram cut off. Even by applying a 0.5 gram cut off, Placer's Indicated Resource totals 796,611 ounces, representing a difference of over 1,000,000 ounces of gold. Nowhere, and at no time, has Placer reported a resource of 1,410,000 ounces as incorrectly stated by Etruscan in its letter to Channel shareholders of July 13, 1998. Furthermore, in order for Channel shareholders to make an "apples to apples" comparison of the Indicated Resource at the Bombore First Target to the Indicated Resource estimated by Placer of the Samira property, the respective estimates are set out below in table form: -0- BOMBORE FIRST TARGET Indicated Resource Channel Estimate (Reviewed by Arthur Andersen) Cut off Tonnes Au g/ton oz/Au 0.5 35,000,000 1.1 1,200,000 SAMIRA PROPERTY Indicated Resource Placer Estimate Cut off Tonnes Au g/ton oz/Au 0.5 14,819,000 1.67 796,611 Even if the inferred resource estimate calculated by Placer is included, which is not an "apples to apples" comparison, the total resource (Indicated and Inferred) is still only 1,286,000 ounces. This represents 524,000 ounces less than the 1,810,000 ounces reported by Etruscan as an "in situ In place. When something is "in situ," it is in its original location. geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. mineral inventory", which is a less rigorous classification than an Indicated Resource. Channel reaffirms its Indicated Resource of 1,200,000 ounces of gold at Bombore First Target, which was evaluated by the Arthur Andersen-Centre of Excellence in Mining, and Channel Directors urge Channel shareholders not to exchange undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. shares of Channel for overvalued Overvalued A stock whose current price is not justified by the earnings outlook or price/earnings (P/E) ratio and thus, expected to drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock or from a deterioration in a shares of Etruscan and to reject the Etruscan offer.
CONTACT: Channel Resources Ltd.
D. Ross Fitzpatrick, 250/ 868-8019
Email: ir@channelr.com
Website: www.channelr.com
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