HispanicBusiness

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."