Vancouver, BC - Channel Resources Ltd. ("Channel" or the "Company", TSX.V:CHU) announces a private placement of up to 4,000,000 units (a "Unit") at a price of CDN$0.08 per Unit. Each Unit will be comprised of one common share of the Company ("Common Shares") and one share purchase warrant (a "Warrant"), with each Warrant being exercisable for one Common Share ("Warrant Share") at an exercise price of CDN$0.11 for a period of 24 months.

This financing is being conducted in addition to the private placement that closed on January 18, 2010 due to increasing investor interest, primarily in the assessment and development of the Company's Lithium / Potash brine portfolio in Alberta.

In connection with the private placement, insiders and associates of the Company will subscribe for all of the Units placed. In a separate transaction the same number of common shares will be sold from the subscribers' personal holdings through the facilities of the TSX Venture Exchange (the "TSX.V") to third-party investors.

The proceeds of the private placement will be used to fund exploration and pre-development work on its project portfolio, as well as for corporate development and working capital purposes.

Completion of the private placement is subject to execution and delivery of standard documentation and receipt of all required regulatory approvals and consents, including the approval of the TSX.V. Securities issued pursuant to this private placement are subject to a four month hold period in compliance with applicable securities laws and the policies of the TSX.V.

For further information, contact:
Colin McAleenan, President and CEO
Cyrus Ameli, CFO & VP Corporate Affairs
Telephone 604.684.7098
info@channelresources.ca

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.