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 completed its previously announced "bought deal" private
placement (the "Private Placement") of 20,590,000 units (the "Units") for gross
proceeds of $7,000,600, including 5,880,000 units issued pursuant to the
exercise of the underwriter's over-allotment option. The Units were sold
pursuant to an underwriting agreement entered into between Wellington West
Capital Markets Inc. (the "Underwriter") and the Company. The Units were issued
at a price of $0.34 per Unit, each Unit consisting of one common share in the
capital of the Company (a "Common Share") and one-half of one Common Share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle
the holder thereof to acquire one Common Share at a price of $0.50 for a period
of 24 months from the date hereof. 


The Underwriter was paid a cash fee equal to 7% of the gross proceeds from
20,440,000 Units and was issued 1,430,800 broker warrants (the "Broker
Warrants"). Each Broker Warrant will be exercisable at any time to acquire one
Common Share at a price of $0.40 for a period of 24 months from the date hereof.


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


The offering is subject to the receipt of all necessary regulatory approvals,
including the final approval of the TSX Venture Exchange.


The securities will be subject to a resale restriction for a period of four
months plus one day, expiring on September 7, 2011. 


This news release is not an offer of Units for sale in the United States. The
Common Shares, Warrants, Broker Warrants and Common Shares issuable upon
exercise of the Warrants and Broker 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 an aggressive exploration
strategy. 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 well financed to advance
both projects 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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