Channel Resources Announces Exploration Resumes on the Goulagou Gold Discovery, Somifa Permit, Burkina Faso, West Africa.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 14, 1999--

Channel Resources Ltd. (TSE:CHU.) ("Channel") announces that the 1999 third phase exploration program has begun on the Somifa Permit (1,725 square kilometres) located in Burkina Faso, West Africa.

The program is designed to follow up on the discovery of the Goulagou-1 and Goulagou-2 Mineralized Zones, announced by Channel April 6 and July 21, 1999.

The program, funded by Placer Dome Inc. under the terms of a Letter Agreement between Placer Dome Africa Limited ("Placer Dome") and Channel, will consist of:

    -- 1,000 metres of Diamond Core drilling at the Goulagou-2
       Mineralized Zone to:

       1. confirm results of previous Rotary Air Blast drilling and
          Reverse Circulation drilling;

       2. test deeper extensions of the zone; and

       3. obtain quality material to proceed with metallurgical
          studies;

    -- semi-detailed geochemical sampling program to identify new
shallow depth drill targets around the Goulagou-1 and Goulagou-2
Mineralized Zones. Rotary Air Blast holes averaging 10 to 15 metres
depth and totaling 4,000 metres will be used to obtain deep samples
for geochemical analysis.

The program and interpretation of results will be completed by the end of November 1999. Upon completion of this program, Placer Dome has the right to acquire up to 60% of Channel's interest by investing US $5 million in work costs over the next 3 years. Placer Dome also has the option to acquire an additional 5% interest by investing US $3 million in development work. Channel currently has a 95% interest in the Somifa Permit.