CDE

Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX
VENTURE:CDE) is pleased to provide an exploration update for its recently
acquired DPK Coal Project (Dec 16/11 News Release) and a development update for
its Tabang Coal Project.


DPK Project

The DPK Project is an IUP Exploration license with an area of approximately
12,830 hectares and is located approximately 200km North of Samarinda,
Kalimantan. There are 2 active large coal mining operations (PT Kaltim Prima
Coal and PT Perkasa Inaka Kerta) in the area. The project area immediately
adjoins PT Kaltima Prima Coal and is located approximately 40km from the coast.


The DPK Project covers the Mangkupa, Kedango, Lembak, Balikpapan and Pulau
Balang Geological Formations.


Phase 1 exploration consisting of geological mapping and coal outcrop
exploration and sampling is presently underway and is initially focused on the
Mangkupa formation. The latest exploration has resulted in the discovery of 3
additional coal outcrops in the northern part of the property occupied by the
Mangkupa formation. These outcrops are located on the eastern limb of an
interpreted NNW-SSE trending anticlinal structure. This anticlinal structure is
in turn displaced by a series NE-SW faults. 


Initial reconnissance work on the DPK Project, reported in the December 16, 2011
news release, discovered coal outcrop in the southern part of the property to
the south and to the west of this newly discovered structure.


Geological interpretation now indicates that both limbs of the anticline host
multiple coal seams with at least 2 seams on each limb discovered to date. The
new coal sample assay results, set out below, continue to confirm the potential
for high quality thermal coal on the property within the Mangkupa Formation.


The projected strike of potential interest indicated is at least 4.5km on the
east side of the anticlinal structure and 7km on the west side. 


This phase of geological work is continuing on the Mangkupa formation and an
additional geological team is being mobilized to assess the potential of the
Balikpapan and Pulau Balang formations within the DPK Project area.




                        DPK Coal Quality Results                        
                                                                        
------------------------------------------------------------------------
                                                                GCV 
Sample        FORMATION                                      (Kcal/Kg) 
Description   AND           TM    IM   Ash    VM    FC    TS -----------
Code          POSITION     %AR  %ADB  %ADB  %ADB  %ADB  %ADB   ADB    AR
------------------------------------------------------------------------
CDR - DPK -   Mangkupa                                                  
 OC 2 -       Formation,                                                
 13012012 -   inside IUP                                                
 NJB                      7.45  4.49  9.44 30.96 55.11   0.5 6,656 6,450
------------------------------------------------------------------------
CDR - DPK -   Mangkupa                                                  
 OC 3 -       Formation,                                                
 15012012 -   inside IUP                                                
 HN                        7.1  3.13  19.7 29.54 47,63  0.67 6,248 5,992
------------------------------------------------------------------------
CDR - DPK -   Mangkupa                                                  
 OC 4 -       Formation,                                                
 16012012 -   inside IUP                                                
 HN                       8.08  4.25  7.44 31.06 57.25   0.6 7,138 6,852
------------------------------------------------------------------------



Tabang Project Update

Work on the Company's Tabang Project has been focused on pre-production elements
of the ATRP property development plan. Challenger's immediate objective for the
Tabang Project is to obtain a production license for the ATRP property.


The primary requirements to obtain the ATRP production license are the
preparation, submission and formal presentation of a comprehensive Exploration
Report, a Feasibility Study and the AMDAL study which assesses and addresses the
socio-economic impact of the mine development. Challenger has completed both the
Exploration Report and the Feasibility Study and the initial submission of these
documents has been made. The AMDAL study involves multiple stages, the more
significant of which is the socialization study which has been completed. The
remaining phases of this report are currently being prepared.


Challenger anticipates completion of the production license filing and
presentation phase within approximately 60 days. Issuance of the production
license is dependent upon governmental review, the timing of which is uncertain.


Challenger is also investigating other acquisitions both within the Tabang
Project area and in other areas.


"We are very excited about the high-quality thermal coal discovered on the DPK
property and its potential for coking coal discovery as we continue to explore
in this new project area," stated Ranjeet Sundher, President and CEO of
Challenger. "We are also pleased to be able to report on the substantial
progress made in the production licensing phase of our ATRP property as the
initial phase of our Tabang Project development," he continued.


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. 


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 permitting.
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.

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