CHU Channel Resources Ltd.

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased
to announce that it has entered into an agreement with Wellington West Capital
Markets Inc. (the "Underwriter") to sell 14,710,000 units (the "Units") at a
price of $0.34 per Unit to raise aggregate gross proceeds of up to $5,001,400 on
a "bought deal", private placement basis (the "Offering"). Each Unit will
consist of one common share of Channel and one-half of one common share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder
thereof to purchase one common share of Channel (a "Warrant Share") at a price
of $0.50 per Warrant Share for 24 months following the closing of the Offering. 


Channel will also grant to the Underwriter an option, exercisable at any time up
to 48 hours prior to the closing of the Offering, to purchase up to 7,355,000
additional Units of Channel at a price of $0.34 per Unit for additional gross
proceeds to the Company of up to $2,500,700. 


Channel plans to use the net proceeds from the Offering to advance the Company's
Tanlouka Gold Project in Burkina Faso, and for general corporate purposes.


The Offering is scheduled to close on or about May 6, 2011 and is subject to
certain conditions typical for a transaction of this nature and the receipt of
all necessary regulatory approvals, including the approval of the TSX Venture
Exchange.


The common shares and warrants comprising the Units to be issued pursuant to the
Offering will be subject to a four-month restricted resale period, such period
to commence upon the closing of the Offering.


This news release is not an offer of Units for sale in the United States. The
Common Shares and Warrants have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration.


About Channel Resources Ltd.

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. 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.

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