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Gold/Mining/Energy : Channel Resources (CHU T) -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (22)	7/4/1998 6:59:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 29

this was taken off Channel site " NEWS RELEASE News Releases CHANNEL RESOURCES LTD. 503 - 1726 Dolphin Avenue Kelowna, BC V1Y 9R9 Phone: (250) 868-8019 Fax: (250) 868-0829 News Release June 30, 1998 Trading Symbol: CHU Channel Board Recommends Rejection of Etruscan Offer The Board of Directors of Channel Resources Ltd. ("Channel" or the "Company") yesterday unanimously recommended that shareholders reject the offer by Etruscan Resources Inc. for all of the outstanding common shares of the Company on the basis of one common share of Etruscan for each 4.5 shares of Channel. A Special Committee of Directors of Channel, independent of management, recommended that the Board urge rejection of the Etruscan offer. The Special Committee obtained an opinion from HSBC James Capel Canada Inc. that the offer is inadequate from a financial point of view. Copies of the opinion and the valuation referred to below are contained in the Directors' Circular mailed to shareholders yesterday. "The Special Committee has clearly determined that the offer is inadequate, opportunistic, and not in the best interests of the Company and all of its shareholders" said Louis P. Salley, the Chairman of the Special Committee. Ross Fitzpatrick, Chairman of the Company, added "Channel announced yesterday an Indicated Oxide Resource of 35 million tonnes at an average grade of 1.1 grams per tonne gold or 1.2 million ounces of gold at the Bombore First Target on its Bombore Permit. This resource has been independently valued by Centre of Excellence in Mining-Arthur Andersen who concluded that the value of the Bombore First Target ranges from $37 million to $51 million. This is not currently reflected in the Company's share price and the Etruscan offer has clearly been timed to take advantage of this fact and the depressed state of the mining equity market and cyclical lows for precious metal prices." The Board reports that Channel is making excellent progress with its discoveries in Burkina Faso and is on the verge of the development of its first open pit shallow oxide heap leach mining operation and it believes it is not in the short or long term interests of existing Channel shareholders to exchange undervalued shares of Channel for over valued shares of Etruscan."