Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

October 07, 2009 09:00 ET

Channel Resources Confirms Multi-Product Mineral Potential at Fox Creek Brine Project, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 7, 2009) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to announce that it has received results from its brine sampling program of 13 producing wells in the Beaverhill Lake gas field at its Fox Creek project in Alberta. The results confirm the potential of the project to produce multiple mineral products from the brine source, including lithium chloride / carbonate, potash, bromine, magnesium chloride and borates.

Results have been obtained from formation waters contained within a twenty-kilometer strike length of the north-northwest trending Beaverhilll Lake reef complex centered on the 369 square kilometer property. Selected results of individual well samples are presented below, with locations of sampled wells provided on a map available at Channel's website at http://www.channelresources.ca.



------------------------------------------------------------------------
Lith- Potass- Brom- Calc- Magnes- Sod-
ium ium Boron ine ium ium ium
(Li) (K) (B) (Br) (Ca) (Mg) (Na)
Well Identifier (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L)
------------------------------------------------------------------------

------------------------------------------------------------------------
01-18-060 87.5 4,260 140 413 10,900 2,250 63,600
------------------------------------------------------------------------
10-07-060 86.2 4,390 148 378 10,300 2,500 65,700
------------------------------------------------------------------------
04-08-060 86.8 4,170 149 408 10,600 2,410 60,400
------------------------------------------------------------------------
04-03-060 87.1 4,530 154 364 10,200 2,890 68,000
------------------------------------------------------------------------
10-29-059 87.3 5,500 163 17 14,100 3,390 66,200
------------------------------------------------------------------------
09-27-059 86.4 5,070 158 377 12,500 3,270 64,500
------------------------------------------------------------------------
10-22-059 77.2 4,350 153 390 11,100 3,120 56,200
------------------------------------------------------------------------
10-21-059 86.8 5,290 173 353 12,200 3,120 57,300
------------------------------------------------------------------------
05-23-059 93.9 4,720 181 378 11,700 2,930 59,900
------------------------------------------------------------------------
10-15-059 85.8 5,610 187 412 11,100 3,350 57,600
------------------------------------------------------------------------
10-11-059 79.5 4,850 194 Trace 11,200 3,410 54,900
------------------------------------------------------------------------
10-02-059 112.0 3,098 223 Trace 24,400 2,210 54,700
------------------------------------------------------------------------
04-13-058 91.5 3,904 177 91 23,300 1,780 48,600
------------------------------------------------------------------------
n.b. Three of the original 16 wells targeted for sampling were temporarily
suspended by the operators due to low natural gas prices before access was
established


The results confirm that the Beaverhill Lake aquifer at Fox Creek contains highly anomalous lithium concentrations as determined in 1995 by the Geological Survey of Alberta (see Company's Technical Report filed on May 11, 2009). The presence of significant concentrations of other minerals in the brine also validates the project's potential to support a multi-product brine processing operation.

The Company will assess the results with available data from government databases to generate resource estimates for lithium, potassium and other elements of interest at Fox Creek. The Company also plans to acquire samples from a recognized peak in lithium distribution (on a tonnes-per-square kilometer basis) in the Leduc aquifer captured within the south-eastern portion of the Fox Creek permit area.

Channel's next step in the evaluation of the brine at Fox Creek will be the extraction of a bulk sample for bench-scale process testing. This testing will assess various in-plant processing methods for optimal recoveries of each product from the brine, allowing the Company to then proceed with the drafting of a preliminary scoping study for the project.

"This sampling program has validated the concept of establishing the Fox Creek project as a potential producer of a number of high-value products, including lithium chloride, lithium carbonate, potash and borates," said Colin McAleenan, President of Channel Resources. "Channel greatly appreciates the cooperation of local gas producers in the sampling of brine from their wells, and will work to maximize the project's obvious operational synergies in any production scenario. A brine processing facility at Fox Creek would certainly take advantage of the extensive infrastructure already in place and this, together with the local availability of low-cost energy, would play a big role in the success of the project."

The National Instrument 43-101 compliant technical report on the Fox Creek Lithium Brine Project referred to in this release is authored by Michael B. Dufresne, M.Sc., P.Geol., President of APEX Geoscience Ltd. of Edmonton, Alberta, who is an 'Independent Qualified Person' as defined in the instrument. Mr. Dufresne has reviewed the contents of this news release.

Quality Control

All physical sampling, sample handling and testing undertaken as part of this work program was conducted by independent contractors. The formation water sampling procedure for this program was overseen by Michael B. Dufresne, the Company's independent 'Qualified Person'. The prepared samples were sent by courier to AGAT Laboratories ("AGAT") in Calgary, Alberta for analysis according to rigorous QA/QC and certification standards, including the insertion of analytical control samples and blanks. AGAT is accredited to ISO/IEC 17025 by the Canadian Association for Analytical Laboratories (CALA) and/or the Standards Council of Canada (SCC) for specific tests.

This news release has been prepared under the supervision of Colin H. McAleenan, P.Geo, who is the Company's "Qualified Person" under the definition of NI 43-101.

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.

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