The drill core has provided much more information on the structure of mineralization at Mankarga 5 than was available from cuttings produced from RC holes. Measurements of structural angles and correlations from several cross sections indicate that the mineralized zone dips steeply to the northwest rather than steeply to the southeast as previously thought.  In order to provide better angles of intersection with the mineralized  zone, the orientation for the majority of holes being drilled on the deposit will now be inclined at -50? to the southeast i.e. in the opposite direction to most of the previously drilled holes.

Hole Tan11-DD01 Tan11-DD03 and Tan11-DD006, each with an azimuth of 120?, are inclined at opposing angles, or ?scissored?, to other holes on their respective sections, which are inclined to an azimuth of 300?.  Correlations between the scissored holes and previously drilled RC holes indicate horizontal widths of the mineralized zone ranging from approximately 150 to 200 metres from section 450NE to 750NE, with mineralization extending to at least 170 metres below surface on section 450NE. The strongest mineralization and a sharp limit to the mineralization is demonstrated on the southeastern (footwall) side of the zone on sections 450NE, 650NE and 800SW.

Assay laboratories in Burkina Faso are experiencing a significant backlog of samples due to the large amount of exploration activity underway throughout the country and hence processing times for results have slowed.

Comparison of Twinned Holes

Several holes have been planned in the current core drilling program to ?twin? previously reported RC holes in order to compare grades of mineralized intercepts between the two drilling methods.  Three drill holes presented above, Tan11-DD02, Tan11-DD05 and Tan11-DD17 are twins of RC holes Tan11-RC39, Tan10-RC22 and Tan11-RC72 respectively and the grades of matching intervals are compared below.

Hole Tan11-DD02 was collared 3 metres behind Tan11-RC39 and twins the reverse circulation hole for the first 150 metres of its length.  This is the only set of twins examined to date that indicates a higher grade in the RC hole than in the Diamond hole. 

Hole Tan11-DD05 was collared very close to Tan10-RC22 on section 550NE and twins the reverse circulation hole for its entire length. This direct comparison of lower grade intersections indicates consistenty higher grades from drill core relative to RC derived samples.   

Hole Tan11-DD17 was collared five metres behind TAN11-RC72 on section 800SW and encountered the mineralized zone at 59 meters down-hole versus 42 meters in the RC hole.  The core hole then intersected 70 meters of mineralization in the main zone compared with 60 metres in the RC hole.  To achieve as direct a comparison as possible, grades from the first 60 meters of the mineralized zone in the core hole were compared with the entire mineralized intersection in the RC hole and indicates an 80% increase in the grade of the core hole over that in the RC hole.

?Channel?s confidence in the consistency of mineralization in the Mankarga 5 zone continues to grow.? commented Colin McAleenan, President and CEO of Channel Resources. ?The Company is rapidly enhancing its understanding of the deposit?s structure ahead of the project?s first resource estimate, expected in the first quarter of 2012. It is especially encouraging to see drill core results from section 800SW, the furthest section to the southwest for which drill results are available, showing higher grades than RC holes previously drilled on that line. Two holes have now been drilled, with results pending, up to 500 metres further to the southwest of this section in an effort to extend the currently delineated 1.85km strike-length of the deposit.?

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. Core samples are assayed using standard fire assay techniques on a 50 gram charge with an atomic absorption finish by SGS Burkina Faso SA in Ouagadougou, Burkina Faso. RC samples discussed in this release were assayed using the same methods at Abilab Burkina SARL (ALS Laboratory Group) in Ouagadougou. 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, sampling and reporting practices: