CDE

Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX
VENTURE:CDE) announces that, through its wholly owned subsidiary, Challenger
Deep (Indonesia) Ltd., it has exercised an option to purchase an additional coal
project in East Kalimantan, Indonesia. In exercising this option, Challenger has
entered into a Conditional Sales and Purchase Agreement (the "CSPA") with the
shareholders of PT Dua Putri Kutor ("PT DPK") for the purchase of 100% of the
issued and outstanding securities of PT DPK.


PT DPK is a privately-held Indonesian company that holds the coal exploration
rights to a property which is located in the Sangatta area in East Kalimantan,
Indonesia, known as the DPK Project. PT DPK has no other assets and has
conducted no business other than holding its interest in the coal property.


Challenger's decision to exercise the option to purchase follows a successful
program of initial due diligence conducted on the property. The due diligence
program involved field mapping, surveying and limited outcrop sampling. The
results of this preliminary program has encouraged Challenger to move to the
CSPA stage for the property. 


The acquisition of the DPK Project is subject to approval of the TSX Venture
Exchange.


DPK Project

The DPK Project is an IUP Exploration stage property with an area of
approximately 12,830 hectares and is located approximately 200km North of
Samarinda. There are 2 active large coal mining operations (PT Kaltim Prima Coal
and PT Perkasa Inaka Kerta) in the area. The DPK project area immediately
adjoins the mining activities of PT Kaltima Prima Coal.


General geological mapping indicates that the DPK Project covers the Mangkupa,
Kedango, Lembak, Balikpapan and Pulau Balang Formations. Based on management's
research of area geology and current coal production in the general Sangatta
region, the Mangkupa, Balikpapan and Pulau Balang Formations are known to
contain coal mineralizations of economic significance in this area. 


Typical coal quality of the formations in this general area (not specifically
the DPK Project) based on management's geological research and sampling outside
of the DPK Project boundaries are:




--  Balikpapan Formation coal ranges from 5,000 - 6,000 Kcal/Kg ADB 

--  Mangkupa Formation coal ranges from 6,500-8,000 Kcal/Kg ADB. This
    formation is known to have high fixed carbon (FC) coal based on
    Challenger's sampling of coal in the general area and is a potential
    source of coking quality coal in addition to high quality thermal coal. 

--  Pulau Balang Formation coal ranges from 6,000 - 7,000 Kcal/Kg ADB. 



Due Diligence Coal Quality Results

The results of three coal outcrops on the property which were sampled as part of
the due diligence program are disclosed below. 




----------------------------------------------------------------------------
                                                                      GCV
                                                                   (Kcal/Kg)
   Description  FORMATION       TM    IM   Ash    VM    FC    TS -----------
No Code         AND POSITION  %,AR %,ADB %,ADB %,ADB %,ADB %,ADB   ADB    AR
----------------------------------------------------------------------------
1  CDR - DPK -  Mangkupa      8.07  4.04  9.85 32.43 53.68  1.26 6,896 6,606
   OC 1 -       Formation,                                                  
   21112011 -   inside IUP                                                  
   AR                                                                       
----------------------------------------------------------------------------
2  CDR - DPK -  Mangkupa      7.30  3.74  8.92 32.70 54.64  1.47 7,038 6,778
   OC 2 -       Formation,                                                  
   21112011 -   inside IUP                                                  
   AR                                                                       
----------------------------------------------------------------------------
4  CDR - DPK -  Mangkupa      7.86  5.59  6.32 31.36 56.73  0.99 6,914 6,748
   OC 4 -       Formation,                                                  
   21112011 -   inside IUP                                                  
   AR                                                                       
----------------------------------------------------------------------------



Coal quality based on the above samples from the Mangkupa formation indicates
the potential for high quality thermal coal. The coal samples have high FC
content. Coal samples from the planned exploration program will determine the
potential for coking coal.


All outcrop samples were processed by SGS Coal Laboratories, Samarinda, East
Kalimantan. Industry standard Quality Control and Quality Assurance protocols
were employed in the sample acquisition, preparation and analysis procedures.


The Qualified Person (as defined by NI 43-101) responsible for the review,
verification and approval of the technical material presented in this news
release is Mr. Andre Talaska, a director of PT Bestindo Energy, a wholly owned
subsidiary of Challenger. Readers are cautioned that any potential quantity and
grade disclosed in this press release is conceptual in nature, that there has
been insufficient exploration to define a mineral resource and that it is
uncertain if further exploration will result in the DPK Project being delineated
as a mineral resource. 


Terms of the DPK Project CSPA 

The DPK Project CSPA includes a payment of Rp 500m (approximately CDN$57,226)
upon execution and payment of the remaining Rp17 billion (approximately
CDN$1.95m) over the next approximately 24 months, in three scheduled payments.
Timing of the final payment to be made is based on the date of the issuance of
an IUP Operation Production permit by the relevant Indonesian Governmental
authority. The CSPA also provides that upon Challenger's production and sale of
coal from the property, it will grant and pay to the vendors of the shares of PT
DPK, a royalty of USD $1.50 per ton.


"The potential for very high quality coal on this property, based on our limited
sampling to date, combined with the property's close proximity to the coast
makes for an exciting acquisition," stated Ranjeet Sundher, President and CEO of
Challenger. "The coking coal potential is particularly exciting and will be the
focus of our initial exploration of the property. We view this as an important
step in diversifying our portfolio of properties both geographically and by coal
quality."


Jambi Area MOU Extension

Challenger also announces that the previously reported (Press Release dated
November 1, 2011) MOUs signed in respect of the PT MBT and PT MP properties in
Jambi, Sumatra have been extended to February 1, 2012, in order to allow further
geological and legal diligence to proceed.


About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the
Indonesian coal industry. Challenger's business plan is to acquire, explore and
to bring its viable coal projects into production. Challenger has an experienced
Indonesian exploration and mining team with offices in Calgary, Singapore and
Jakarta.


CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. 


READER ADVISORY 

Statements in this press release may contain forward-looking information
including, statements regarding expected exploration activities and future
payments relating to the purchase of shares of PT DPK. 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, preliminary exploration results, 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 exploration programs in Indonesia 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.

Challenger Deep Resources Corp. (TSXV:CDE)
Historical Stock Chart
From Jun 2024 to Jul 2024

Challenger Deep Resources Corp. (TSXV:CDE)
Historical Stock Chart
From Jul 2023 to Jul 2024