Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

July 14, 2010 09:00 ET

Channel Resources Provides Operational Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 14, 2010) - Channel Resources Ltd. (TSX VENTURE:CHU) ("Channel" or the "Company") is pleased to report on the advancing exploration and process assessment programs on both of the Company's key projects, the Tanlouka Gold Project in Burkina Faso ("Tanlouka") and the Fox Creek Lithium / Potash Brine Project in Alberta ("Fox Creek").

Drilling Program Underway at Tanlouka

As reported on June 22, 2010, Channel has commenced a Phase I reverse circulation ("RC") drilling program focused on five discrete target areas in the Mankarga Zone situated in the southern quarter of the Tanlouka permit. Drill targets within the Mankarga Zone have been defined by gold-in-soil anomalies, results from rotary air blast ("RAB") drill profiles, the presence of extensive artisanal workings, as well as results from an induced polarization ("IP") survey that has provided a structural framework for indications of gold mineralization on surface.

This Phase I program is testing indications of mineralization at surface as well as the most compelling chargeability/resistivity anomalies in the Mankarga Zone. Nine holes have been drilled to-date in target areas MAN2, MAN3, MAN4, and MAN5 (please refer to a drill hole location map provided at http://www.channelresources.ca/i/pdf/CHUTanloukaDrilling.pdf). Investors are encouraged to review a presentation available from the Company's website for more details on the Tanlouka project. The RC samples are being assayed using standard fire assay and atomic absorption techniques at Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou, Burkina Faso and will also undergo multi-element analysis by inductively coupled plasma mass spectrometry (ICP). Channel employs a rigorous quality control program, ensuring that all sample batches sent to the laboratory contain gold standards and blanks from an accredited Canadian laboratory as well as repeat samples.

Fox Creek Phase II Process Testing Program Approved

The brine process testing program announced on March 8, 2010 is proceeding. Channel is testing a variety of methods to extract lithium, boron, potassium, bromine and other potentially economic products from a bulk sample of brine from the Beaverhill Lake aquifer on its Fox Creek project in Alberta. Following-up on interim findings the Company recently approved a second phase of testwork designed to more deeply explore promising extraction methods. This phase of testing and a final report on process and recovery is expected to be available by the end of the third calendar quarter of this year.

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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