Challenger Announces Closing of Private Placement and New Coal Property Agreement

Challenger Deep Resources Corp. (TSX VENTURE:CDE) - 

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES

Challenger Deep Resources Corp. ("Challenger" or the "Company") announces that
it has successfully closed its previously announced non brokered private
placement consisting of 2,808,997 units for gross proceeds to the Company of
$2,107,498 (the "Private Placement"). All of the units were sold to arm's-length
investors at a purchase price of seventy-five cents per unit. Each unit consists
of one common share and one common share purchase warrant. Each warrant entitles
the holder to purchase an additional common share of the Company at any time
until February 28, 2014 and is exercisable at a purchase price of ninety cents
per share. All securities issued in connection with the Private Placement are
subject to a four month plus one day hold period.


Finder's fees of $140,175 cash and 180,249 warrants were paid were paid to
eligible parties in connection with the Private Placement. 


The gross proceeds from the Private Placement will be used for the
investigation, acquisition and exploration of Indonesian coal exploration
projects and for general corporate purposes. The completion of the Private
Placement is subject to final approval from the TSX Venture Exchange and release
of a final portion of the subscription funds upon satisfaction of final
documentation.


Exclusive Option to Purchase Additional East Kalimantan Coal Property

Challenger is pleased to announce that it has, through its wholly-owned
subsidiary, PT Bestindo Energy, ("Bestindo") entered into a Memorandum of
Understanding ("MOU") with the shareholders of CV Gita Pratama Lestari ("GPL"),
which gives Challenger the exclusive option, for a period of 45 days, to enter
into a Conditional Share Purchase Agreement (CSPA) to purchase all of the shares
of GPL.


GPL Property

GPL is a private Indonesian company which holds certain coal rights in an area
of approximately 100 hectares in close proximity to the Mahakam river. The GPL
property covers the Balikpapan formation which is prospective for coal in this
area. The Balikpapan formation is known to host thick seams of coal in the
general area. The coal exploration rights to the GPL property are currently in
the application stage.


A program of due diligence is to commence as soon as possible and will include
surface reconnaissance and mapping, sampling and analysis in order to evaluate
the potential of the GPL property. Challenger's exercise of the option to
acquire GPL will depend upon the results of the initial due diligence program.


Terms of the CSPA

The MOU provides that, if Challenger elects to exercise its option, the terms of
the CSPA, will include an advance royalty payment of $87,500 USD upon execution
of the CSPA, a further advance royalty payment of $87,500 USD within two months
of execution and payment of the remaining advance royalty of $1,575,000 USD once
Bestindo has produced and sold the first 100,000 tons of coal. The CSPA will
also provide that once Bestindo's production and sale of coal from the property
exceeds 250,000 tons, it will pay to the vendors of the shares of GPL, an
ongoing royalty of $7.00 USD per ton.


The Qualified Person (as defined by NI 43-101) responsible for the review and
approval of the technical material presented in this news release is Mr. Andre
Talaska, a director of Bestindo.


Challenger proposes to pay a finder's fee to an arm's length party in connection
with the introduction of this acquisition opportunity, if Challenger elects to
exercise its option. The finder's fee would be payable in common shares of
Challenger in an amount calculated in accordance with the TSX Venture Exchange
policies and subject to the approval of the TSX Venture Exchange.


"The strategic location of this property provides a key component of our plan to
establish a portfolio of projects with excellent coal transportation logistics",
states Ranjeet Sundher, President of Challenger. "Our goal is to establish
initial coal production and cash flow from smaller projects while we attempt to
delineate and aggregate a larger resource base through both exploration and
acquisition."


The Company also announces that it has granted to its investor communications
consultant, Contact Financial Corp., options to purchase 200,000 common shares
of the Company for a period of five years, exercisable at a price of
seventy-five cents per share. Such options will vest in quarters over a 12 month
period. The grant is subject to acceptance for filing by the TSX Venture
Exchange. 


For more information please visit Challenger's website at www.challengerdeep.ca.

READER ADVISORY 

Statements in this press release may contain forward-looking information
including, statements regarding expected exploration activities. Any statements
that are contained in this press release that are not statements of historical
fact may be deemed to be forward-looking statements. The reader is cautioned
that assumptions used in the preparation of any forward-looking information may
prove to be incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are beyond the
control of Challenger. Factors that could cause the actual results to differ
materially from those in forward-looking statements include, granting of
exploration permits, surface access and other licenses from Indonesian
regulatory authorities, continued exploration results, the establishment of
commercial quantities of coal, availability of new acquisitions on commercially
acceptable terms, the continued availability of capital and financing, and
general economic, market or business conditions in North America and in the Asia
Pacific region. The reader is cautioned not to place undue reliance on any
forward-looking information. There can be no assurance that the proposed project
acquisition or exploration programs or other project acquisitions will be
completed or, if completed, will be successful.


The forward-looking statements contained in this press release are made as of
the date of this press release, and Challenger does not undertake any obligation
to update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by securities law.