CHU Channel Resources Ltd.

Channel Resources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) is pleased
to announce that it has received a two-year extension to the exploration permit
for the Tanlouka gold project in Burkina Faso, West Africa (the "Tanlouka
Project") from an original expiry date of January 27, 2014 to January 27, 2016,
by which time a mining lease can be established to allow for development to take
place.


"This extension to the Tanlouka exploration permit gives the Company further
opportunity to expand on its maiden resource at Mankarga 5 and to capitalize on
the significant exploration potential elsewhere on the project before proceeding
to development," commented Colin McAleenan, Channel's President and CEO. "We
appreciate the Government of Burkina Faso's timely action on this issue, which
further demonstrates its commitment to the development of the mining industry as
a major economic driver for the country."


Tanlouka Project Update

The Tanlouka Permit is situated approximately 80 kilometres east of the capital
city of Ouagadougou, and is proximal to a major highway, in an area of low
population density with good local infrastructure. It is located along the
eastern margin of the Markoye Shear Zone, a 450 kilometre-long first order
crustal scale structure that hosts many of the largest gold deposits in Burkina
Faso.


Mankarga 5 Deposit

Channel published its first National Instrument 43-101 Mineral Resource Estimate
(the "Estimate") for Mankarga 5 deposit in July of 2012, achieving an important
milestone in demonstrating the potential of the Tanlouka Project only two years
after drilling the first hole in the area and with a discovery cost of
approximately $5 per ounce. This Estimate contains Indicated and Inferred
resources for both oxide and sulphide mineralization as tabulated below:




--------------------------------------------------------------------------
                       Cut-off Grade     Quantity     Grade      Contained
Class      Rock Type         (g/t Au)     (tonnes)  (g/t Au)  Gold (ounces)
--------------------------------------------------------------------------
Indicated  Oxide                0.18    2,252,000      0.89         64,000
           Sulphide             0.27   11,814,000      0.95        361,000
                      ----------------------------------------------------
                               Total   14,066,000      0.94        425,000
--------------------------------------------------------------------------
Inferred   Oxide                0.18    6,933,000      0.78        174,000
           Sulphide             0.27   22,140,000      0.78        555,000
                      ----------------------------------------------------
                               Total   29,073,000      0.78        729,000
--------------------------------------------------------------------------

--  Gold grades have been determined using Inverse Distance Squared
    interpolation techniques into a 3-Dimensional block model constrained by
    mineralization wireframes utilizing 20 metre (along strike) by 20 metre
    (across strike) by 5 metre (vertical) blocks, with statistically derived
    top cuts applied to three-metre composited grades. 
--  Whittle pit constraints assumed wall slopes of 26.5 degrees for oxide
    and 45 degrees for sulphide mineralization. 
--  The base-case Mineral Resource Estimate assumes mining costs that are
    based on heap-leach processing for oxide material and cyanide leach
    processing for sulphide material. Metallurgical recoveries were based on
    results of preliminary testing by SGS Canada Inc. on samples of Mankarga
    5 sulphide and oxide mineralization. 
--  Specific gravity assumptions of 2.17 for oxide, 2.62 for sulphide and
    2.70 for waste rock are based on measurements by the Company on 3,494
    core samples from the Mankarga 5 deposit (approximately one sample for
    every 4.5 metres of core drilled). 



The Estimate is resilient to increases in cut-off grade; for instance, if the
cut-off grade is increased to 0.50 grams per tonne gold ("g/t Au") for both
oxide and sulphide categories, a total of 11,544,000 tonnes of Indicated
Resources at a grade of 1.06 g/t Au (395,000 ounces gold) and 19,278,000 tonnes
of Inferred Resource at a grade of 0.97 g/t Au (604,000 ounces gold) are
estimated. 


The Mankarga 5 deposit remains open both along strike and to-depth, with
excellent potential to significantly increase the quantity of gold ounces
recognized in this deposit. 


Further work is planned to prepare the Mankarga 5 deposit for economic
assessment including additional drilling and further metallurgical studies to
expand on preliminary work reported in a news release on July 7, 2012. While
these initial metallurgical results demonstrated the free-milling nature of gold
mineralization in both oxide and sulphide samples, column leach tests on both
types of rock and transition material will allow for more definitive estimates
of gold recoveries from heap-leach operating scenarios. 


Tanwaka Zone

Soil sampling surveys on 100 metre by 25 metre grids have been conducted on two
regional soil anomalies in the Manesse and Tanwaka zones. Results from Manesse
are pending; however, the Company announced results from the Tanwaka survey on
November 21, 2012, which showed gold-in-soil anomalies that encompass
approximately twice the area of those associated with the Mankarga 5 deposit.
When these soil anomalies are coupled with structural information derived from
high-resolution magnetic data, very compelling drill targets emerge in at least
two major settings in the Tanwaka zone. Grab samples taken from artisanal
workings within the anomalous zones yielded assays of up to 35.1 g/t Au. Channel
has followed up on these results from Tanwaka with some limited trenching, for
which results are pending, and the planning of drill programs to test the extent
of mineralization.


On a project-wide basis, corporate social responsibility ("CSR") related
activities have also been initiated, including community outreach programs,
surveys of culturally sensitive areas within the permit, the establishment of a
drinking water supply in the Mankarga area, and a contribution of grain to some
of the area's most in-need groups as a response to the Sahel region's food
shortage last year. 


While these exploration and pre-development activities have taken place, the
Company has also prepared for the project's future advancement through a
build-up of local corporate and project infrastructure. As Channel earned its
90% interest in the project, a Burkina Faso subsidiary, Tanlouka SARL, was
formed to hold the interest and to directly manage the project and an office has
been opened in Ouagadougou. The Company's existing exploration 'base' in the
town of Mogtedo, just north of the project permit, has been upgraded and a new
compound, complete with core storage facilities, has been constructed proximal
to the Mankarga 5 deposit to facilitate future drilling programs.


"The Tanlouka Project has exhibited a great deal of potential for further
growth, both in the expansion of known resources at Mankarga 5 and also in the
prospects for further discovery at Tanwaka and Manesse. We are very pleased with
the progress that our team has made over a relatively short period of time,"
continued Colin McAleenan. "Work programs to advance exploration and
pre-development programs over the next year and beyond have been planned, and
Channel is well positioned to unlock the value of the Tanlouka Project despite
the very difficult market conditions that have prevailed over the last year." 


For further information and illustrative figures, please refer to the Company's
recently updated corporate presentation, located on the Company's website at
http://www.channelresources.ca/i/pdf/chu-presentation.pdf.


All technical information in this news release has been prepared under the
supervision of Colin H. McAleenan, P.Geo, who is the Company's "Qualified
Person" under the definition of NI 43-101.


Mineral Resources which are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates presented in this report are by
nature imprecise and depend, to a certain extent, upon geological interpretation
and statistical inferences that are based on drilling information that may
ultimately prove to be unrepresentative or unreliable. They may be materially
affected by geology, environment, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues. Due to the uncertainty that
may be attached to Inferred Mineral Resources, it cannot be assumed that all or
any part of an Inferred Mineral Resource will be upgraded to an Indicated or
Measured Mineral Resource as a result of continued exploration. Figures may not
sum due to rounding. Significant figures do not indicate added level of
precision.


The 2012 resource model and Mineral Resource Estimate for the Mankarga 5 deposit
at the Tanlouka Project were prepared by Mr. Jeffrey K. Smith, P.Geo., Principal
Geologist at AMEC in Toronto, Ontario, who is an independent Qualified Person as
defined in National Instrument 43-101 and who has conducted a site audit at the
Tanlouka Project and reviewed data collection, quality control, geological
interpretations and modeling procedures used by the Company. The estimate by
AMEC is consistent with the standards set out in Canadian Securities
Administrators' National Instrument 43-101 and the Company is treating both the
indicated and inferred gold resource estimate as a National Instrument 43-101
resource estimate. The Company filed a National Instrument 43-101 Technical
Report for the Tanlouka Project Resource Estimate on the SEDAR system on
September 4, 2012. 


References to metallurgical test work and results for the Mankarga 5 deposit
mineralization refers to work conducted under the guidance of Mr. Jake Lang,
B.E.Sc., Manager Metallurgy, SGS Canada Inc. Mineral Services Vancouver British
Columbia, Canada.


Some of the statements contained herein are forward-looking statements involving
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.




FOR FURTHER INFORMATION PLEASE CONTACT: 
Channel Resources Ltd.
Colin McAleenan
President & CEO
604.684.7098


Channel Resources Ltd.
Cyrus Ameli
Senior VP
604.684.7098
604.684.7079 (FAX)
info@channelresources.ca
www.channelresources.ca

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