Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased
to report favorable metallurgical test results from its Tanlouka gold project in
Burkina Faso, West Africa. 


A battery of scoping level metallurgical tests including grind calibration,
gravity test, whole ore leach, gravity tailings leach, coarse ore bucket roll
tests and environmental studies were conducted on drill core composite samples
taken from near-surface oxide and deeper sulphide (un-weathered) mineralization
at the Tanlouka project's Mankarga 5 deposit. Results indicate that both
sulphide and oxide mineralization respond well to cyanide leach extraction
techniques with excellent gold recoveries from both sample-types in
non-optimized, whole-ore leach tests. Furthermore, results indicate that oxide
mineralization is amenable to heap leach extraction technologies. This work also
shows that gravity separation techniques may also be employed to enhance gold
recoveries. 




--  Six cyanide bottle roll tests, simulating carbon-in-leach (CIL) plant
    conditions, were conducted on both oxide and sulphide samples with
    results tabulated below. These tests assessed the effects of primary
    grind, cyanide dosage and density at leach times of up to 72 hours while
    maintaining a pH range of 10.5 - 11.0. For both samples, leaching did
    not appear to be complete within 72 hours indicating that further
    recovery of gold may be possible with longer leach times. 

Summary of Whole Ore Bottle Roll Cyanide Leach Test Results                 
                                                                            
----------------------------------------------------------------------------
Test         Grind    NaCN  Consumption     Pulp       Gold Recoveries      
          (P80-um)   Conc.  (kg/tonne)   Density             (%)            
                     (g/l)   NaCN   Lime     (%)  4 hrs 24 hrs 48 hrs 72 hrs
----------------------------------------------------------------------------
Oxide Sample                                                                
----------------------------------------------------------------------------
 LO-1           62     1.0   0.52   1.07      39   54.3   53.3   68.8   94.0
----------------------------------------------------------------------------
 LO-2           70     1.0   0.47   1.13      38   67.0   92.0   91.0   95.3
----------------------------------------------------------------------------
 LO-3           84     1.0   0.32   1.12      39   64.0   89.4   91.2   94.1
----------------------------------------------------------------------------
 LO-4           63     1.5   0.59   1.01      38   76.7   84.7   93.2   93.3
----------------------------------------------------------------------------
 LO-5           62     0.5   0.28   0.79      39   63.4   97.4   93.6   93.3
----------------------------------------------------------------------------
 LO-6           62     1.0   0.47   1.38      30   67.6   87.4   87.5   92.9
----------------------------------------------------------------------------
Sulphide Sample                                                             
----------------------------------------------------------------------------
 LS-1           73     1.0   1.14   0.34      43   47.6   85.7   87.0   91.3
----------------------------------------------------------------------------
 LS-2           91     1.0   1.04   0.33      39   46.1   88.2   91.5   91.5
----------------------------------------------------------------------------
 LS-3           99     1.0   0.94   0.28      40   46.1   73.5   78.6   84.7
----------------------------------------------------------------------------
 LS-4           77     1.5   2.19   0.08      40   46.2   89.0   90.0   92.3
----------------------------------------------------------------------------
 LS-5           74     0.5   0.72   0.36      36   25.6   84.7   91.4   90.3
----------------------------------------------------------------------------
 LS-6           78     1.0   0.67   0.40      31   67.1   97.0   90.0   91.2
----------------------------------------------------------------------------

--  Gravity separation tests were completed for each mineralization type to
    evaluate the potential for gravity recoverable gold from two grind sizes
    using a Knelson concentrator followed by a Mozley shaking table. The
    oxide sample yielded a 45.8% gold recovery from a 90 micron feed and a
    29.6% recovery from a 66 micron feed. The sulphide sample recovered
    27.6% gold from a 121 micron feed and 19.2% gold from a 149 micron feed.
    Bottle roll cyanide leaching of the tailings from the Knelson
    concentrator and Mozley table separation tests yielded gold recoveries
    of 92.2% from the oxide and 83.8% from the sulphide samples. Cumulative
    gold recoveries for gravity concentration followed by tailings leach
    were estimated at 95.2% from the oxide and 89.1% from the sulphide
    composite samples.

--  Five kilogram samples of coarse whole mineralized rock (-3/8" and -3/4")
    for each of sulphide and oxide composite samples were subjected to
    standard bucket roll cyanide leach tests to obtain initial indications
    of amenability to heap leach gold extraction methods. The samples were
    leached for eight days at 50% solids while maintaining a cyanide
    concentration of 1 gram per liter and a pH of 10.5 - 11.0. Leaching of
    the oxide sample recovered of 79.1% of the contained gold from the -3/8"
    material and 51.1% from the -3/4" material. Leaching of the sulphide
    samples recovered 30.1% gold from the -3/8" material and 16.6% recovery
    from the -3/4" material. Cyanide consumption in these tests was in the
    range 0.29 to 0.42 kilograms per tonne. 

--  Test charges of 10kg and 2kg were each used on composite samples of
    oxide and sulphide mineralization to construct a preliminary rod mill
    grind calibration. Results are as follows:

---------------------------------------
     Grind Calibration (30 minutes)    
                                       
Sample         Weight (Kg)          P80
---------------------------------------
Oxide                    2   54 microns
---------------------------------------
Oxide                   10   58 microns
---------------------------------------
Sulphide                 2  122 microns
---------------------------------------
Sulphide                10  142 microns
---------------------------------------



Mineralogy

Mineralogical studies indicate that the sulphide mineralization contains less
than 2% sulphide material, with pyrite dominant over pyrrhotite. This rock type
consists of quartz (32.2%), feldspar (36.7%), mica (15.4%), amphibole (5.7%),
other silicates (2.7%), carbonates (1.9%), pyrite 1.0%, and pyrrhotite 0.8% with
trace amounts of oxides, apatite and other sulphides. The oxide sample comprises
quartz (40.7%), feldspar (26.7%), mica (21.9%), amphibole (1.3%), chlorite
(1.2%), other silicates (5.6%) and oxides (1.7%) along with trace amounts of
carbonates, apatite and other sulphides (Pyrite - 0.3%). Gold occurs in trace
amounts in both the oxide and sulphide samples. Electron microprobe analysis
indicates that gold occurs mainly as native gold in the sulphide composite
sample, with an average composition of 86.8% gold, and electrum; in the oxide
composite sample gold occurs mainly as native gold with a gold content of 87.8%.



Tanlouka Project Advancing Quickly

Channel's activities at the Tanlouka gold project are focused on both advancing
the Mankarga 5 deposit as quickly as possible through to feasibility and
development, and demonstrating the additional exploration potential of the
project. The Company is meeting several critical milestones including the
demonstration of the favorable metallurgical characteristics of the Mankarga 5
deposit as outlined in this release. Upcoming news from the project includes:




--  The maiden resource estimate for the Mankarga 5 deposit; 
--  Results from 2,000 metres of core drilling recently completed in the
    area of the Mankarga 1 target, to follow up on previous high-grade
    discovery holes drilled in 2010, and also to investigate possible
    mineralized continuity between Mankarga 5 and Mankarga 1; and, 
--  Results from soil sampling programs underway on the Manesse and Tanwaka
    target areas to the north of the Mankarga Zone on the 79 square
    kilometre Tanlouka permit.



Future drill programs and other exploration activities are being planned for
Mankarga 5 and other targets on the Tanlouka project, based on the results of
current programs and will be announced as news becomes available. 


Sampling and Testing Methodology

All metallurgical testing and mineralogical studies described in this release,
including the splitting and compositing of samples, were conducted by SGS Canada
Inc. ("SGS") at lab facilities located in Vancouver, BC. 


Samples of oxide mineralization comprised 76 kilograms of material from 64 core
samples intersected in six holes in the Mankarga 5 deposit, with a weighted
average grade of 0.88 grams gold per tonne. The six holes sampled were Tan11-DD6
on section 750NE, Tan11-DD7 on Section 650NE, Tan11-DD15 on section 950NE,
Tan11-DD21 on section 250NE, Tan11-DD22 on section 500SW and Tan11-DD32 on
section 1300SW. 


Sulphide (un-weathered) material comprised 96 kilograms from 75 core samples
intersected in four drill holes, with a weighted average grade of 1.74 grams
gold per tonne. The four holes sampled were Tan11-DD3 on section 550NE,
Tan11-DD4 on section 650NE, Tan11-DD17 on section 800SW and Tan11-DD21 on
section 250NE.


SGS used a metallic screen process to establish the head grade for all samples
in order to properly account for the presence of coarse gold in mineralized
rock. In the oxidized material, 25.6% of the gold present was found to be coarse
gold (greater than 150 microns in size) whereas the sulphide material contained
7.1% coarse gold. The head grade for the oxide material was much higher than the
weighted average grade based on standard fire assay testing procedures (1.47
grams gold per tonne versus 0.88 grams gold per tonne respectively). By
comparison, the head grade for the sulphide material as determined by the
metallic screen process was much closer to its standard weighted average grade
(1.62 grams gold per tonne versus 1.75 grams gold per tonne respectively).


Metallurgical test-work described in this news release was conducted under the
guidance of Mr. Jake Lang B.E.Sc., Manager Metallurgy, SGS Canada Inc., Minerals
Services, Vancouver, British Columbia, Canada. The contents of this news release
have been reviewed by John Adams, P.Geo., the qualified person for the Tanlouka
Project as defined by NI 43-101. Weighted average grades presented in this news
release are based on fire assay results from three laboratories in Ouagadougou,
Burkina Faso including ACTLABS - Burkina Faso SARL, SGS Burkina Faso SA and
Abilab Burkina SARL (ALS Laboratory Group), and are subject to rigorous quality
control procedures involving the use of duplicate samples and blanks and
certified gold standards.


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.


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