Channel Resources Ltd.
TSX VENTURE : CHU

Channel Resources Ltd.

May 11, 2009 13:32 ET

Channel Resources Releases NI 43-101 Technical Report for the Fox Creek Lithium Brine Project, Alberta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2009) - Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased to announce that a National Instrument 43-101 compliant technical report (the "Report") on the Fox Creek lithium brine project ("Fox Creek") has been filed on the SEDAR system (www.sedar.com) and is also available on the Company's website at www.channelresources.ca.

The Fox Creek mineral permits, in which Channel can earn a 100% interest, are situated over oil and gas pools hosted in the Devonian age Beaverhill Lake and the southern Woodbend (Leduc) carbonate reef complexes at a depth of approximately 3,200 metres below surface in west central Alberta. Aquifers composed of formation water brines are spatially associated with these oil and gas pools and contain high concentrations of sodium and calcium chloride and anomalous concentrations of lithium.

The Report, prepared for the Company by APEX Geoscience Ltd. ("APEX") of Edmonton, provides the first comprehensive description of the geology and compilation of available information pertaining to a potential lithium deposit on the 369 square kilometer Fox Creek property. Highlights from the Report include:

- A review of a 1995 Geological Survey of Alberta province-wide study of formation water geochemistry that studied a total of 130,000 analyses including 708 lithium analyses. This study found that the Beaverhill Lake and Woodbend (Leduc) carbonate reef complexes in west central Alberta were the only occurrences of anomalous lithium values coupled with potentially favorable producibility parameters in Alberta. This study contains a total resource distribution estimate for lithium in aquifers that are partly captured within the boundaries of the Fox Creek property. This historical scoping type estimate is not NI 43-101 compliant and should not be relied upon. However, the estimate does provide an order of magnitude level of a resource that could be present and therefore is considered useful information in guiding future work. This historical estimate is partly based on porosity and permeability data obtained from regulatory submissions from the petroleum industry operating in the area. These indicate an average thickness for the Beaverhill Lake aquifer of 46 metres, an average porosity of 7% and an average permeability of 43 millidarcies, and an average thickness for the Woodbend (Leduc) aquifer of 25 metres, an average porosity of 6% and an average permeability of 20 millidarcies. At least 25 wells drilled in the region have yielded anomalous concentrations of lithium (to a maximum of 140 parts per million) in formation water samples from the Beaverhill Lake and/or Woodbend (Leduc) aquifers. Based on this data, the aggregate historical lithium resource contained within the Beaverhill Lake and Woodbend (Leduc) aquifers was estimated to be 515,000 tonnes of lithium (approximately 2.7 million tonnes of lithium carbonate equivalent - LCE) over an area of 3,980 square kilometres. Referencing the characteristics of the targeted aquifers, including thickness, porosity and permeability, the Report indicates that "a large portion of this potential resource would be contained within the Beaverhill Lake aquifer and the southern Woodbend (Leduc) aquifer that underlie Channel's Fox Creek Lithium Property".

- Detailed information on the 113 oil and gas wells that have been drilled on the property and that penetrate the Beaverhill Lake carbonate reef complex, 44 of which are currently active. APEX reports that active wells are producing substantial volumes of hot (80 degrees C) brines along with the petroleum products from the Beaverhill Lake and Woodbend (Leduc) aquifers. The brine is routinely separated from the petroleum products before being injected back into the aquifers to maintain reservoir pressures. No lithium production from these brines has taken place to-date at Fox Creek.

- Conclusions that based upon a review of available data and the similarities of the Fox Creek brines to those of the producing Clayton Valley project in Nevada, aquifers within the Beaverhill Lake and Woodbend (Leduc) carbonate reef complexes underlying the Fox Creek property warrant further exploration for lithium as well as other associated elements including sodium, calcium, potassium magnesium, bromine, boron and iodine.

- Recommendations for staged follow-up work including further formation water geochemistry data searches, formation water sampling and analysis, potential re-entry of strategically located abandoned or suspended wells for the purpose of direct formation water sampling, land-use permitting and consultation, bench scale process testing for the recovery of lithium and co-products and water reservoir modeling.

Channel is now following up on these recommendations and is working towards the preparation of a National Instrument 43-101 compliant lithium resource estimate for the Fox Creek 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.

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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