VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 3, 2011) - Channel Resources Ltd. ("Channel" or the "Company") (News - Market indicators) is pleased to report on results from the final fourteen Reverse Circulation (RC) holes drilled in the Mankarga 5 target area as part of a 10,000 metre RC program that commenced in November 2010. 

The holes reported are from two segments of the Mankarga 5 deposit, one in the southwestern half of the deposits currently demonstrated 1.85 kilometre strike length on sections 250SW and 300SW and the other to the northeast on five section lines from 750 to 1550NE. One of the holes drilled on the infill section line 300SW encountered wider zones of mineralization, and of a higher average grade, than that of the neighboring sections 400SW and 200SW. Holes drilled on the northern extension of Mankarga 5 appear to indicate that, if the deposit extends in a purely linear fashion from section 1050NE, the deposit breaks down from section 1150NE, as only relatively narrow, intermittent and low-grade mineralized zones were encountered on most of these sections. However, a review of a recently acquired high-resolution magnetic survey, the results of which were only available subsequent to drilling, indicates that these holes may have been located too far to the southeast.

A review of the magnetic survey maps shows that the Mankarga 5 mineralized trend correlates well with a linear transition zone between high and low magnetic rocks. Assuming that this is the principal expression of the mineralized zone on these maps, two significant implications are (a) the holes drilled on sections 1150NE to 1550NE were located too far to the southeast and should have been collared approximately 100 metres to the northwest along these lines due to a northwest embayment, or offset, located just northeast of section 1050NE with approximately 500 metres of additional strike length to the zone indicated in this direction; and (b) approximately 800 metres of untested apparent strike length remains beyond the southwestern-most drilled section at 800SW. This interpretation suggests that the Mankarga 5 structure has a strike length potential of approximately three kilometres.

A map showing this magnetic trend based on tilt derivative of reduced-to-pole total magnetic intensity, relative to drill hole locations in Mankarga 5 is available at: http://www.channelresources.ca/i/pdf/CHUmap060311.pdf

Significant intersections encountered in these recent holes are shown below from the southwestern to northeastern-most section lines:

Three of the fourteen holes drilled (TAN11-RC88, TAN11-RC89 and TAN11-RC90) were drilled as vertical wells to establish a water supply for the upcoming 15,000 metres core drill program while the balance were all inclined at 50° to an azimuth of 300°. All three of these vertical holes were sampled with the two holes on section 250SW, Tan11-RC88 and Tan11-RC89, intersecting and ending in mineralization.

On section 300SW, hole Tan11-RC77 was collared too far to the southeast and missed the zone while Tan11-RC87 intersected at least two mineralized zones from 10 to 52 metres and then from 62 to 156 metres, ending in mineralization. These zones are wider and of higher grade than that of the previously reported neighboring sections 400SW and 200SW.

On section 750NE, hole Tan11-RC85 was collared west of previously reported holes Tan11-RC61 and Tan11-RC40, and intersected mineralization in the initial four metres and then in the final eight metres of the hole. Mineralization encountered at the bottom of the hole may represent part of a mineralized footwall structure not previously intersected.

Mineralization encountered near the bottom of Tan11-RC84 helps to establish an eastern limit to the main mineralized envelope on section 950NE. Multiple relatively narrow and weakly mineralized zones were encountered in the seven holes drilled on sections 1150NE, 1250NE, 1350NE and 1550NE with the best intersection being 20 metres of 0.52 g/t gold intersected in hole Tan11-RC83 on section 1350NE.

"As Channel completes its 10,000 metre reverse circulation delineation drilling program and prepares to commence a 15,000 metre definition core drilling program, we see excellent potential to expand and to advance the exploration of the Mankarga 5 deposit in the short term," commented Colin McAleenan, President and CEO of Channel Resources. "In a very short period of time we have been able to lay the foundation for what we believe to be a significant deposit, and are now in a position to fast-track its first resource estimate by early 2012."

Channel Resources Ltd. maintains a rigorous quality control program involving the use of duplicate samples and blanks and certified gold standards from an accredited Canadian laboratory in every batch of 20 samples. Samples, taken from two metre intervals, are assayed using standard fire assay on a 50 gram charge and atomic absorption techniques at Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou, Burkina Faso. The drilling program is supervised by John Adams P.Geo., a qualified person as defined by NI 43–101, who has reviewed the contents of this news release. 

* Drilling and reporting practices:

• All holes reported are Reverse Circulation type (RC) with 2m samples for entire hole lengths
• All hole collars are set to dip at -50° to their respective azimuths, except as otherwise noted
• Cut-off grade used is 0.10 g/T Gold for most of the quoted intersections
• Internal dilution, where incorporated in the quoted interval, is generally up to a maximum of 20%
• Intervals are hole length, true widths of mineralized zones have yet to be determined
• No top cut has been applied to the grade

Channel Resources Ltd. is a Canadian TSX.V listed mineral exploration Company which has an option to earn a 90% interest in the Tanlouka Gold Project in Burkina Faso, West Africa, the terms of which the Company has already satisfied, and an option to earn 100% in the Fox Creek Lithium / Potash Brine Project in Alberta. At Tanlouka, Channel has recently discovered multiple mineralized zones that are now being explored and expanded through a 10,000 metre reverse circulation drilling program recently completed and a 15,000 metre core drilling program expected to begin soon. At Fox Creek, a bulk sample of brine sourced from producing natural gas wells is undergoing process testing to determine the most efficient method of producing various industrial minerals from the brine, including lithium carbonate, potash, bromine and borates. The Company is financed to advance both projects through their current programs, and is actively searching for additional opportunities to expand its project portfolio.

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.