CDE

Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX
VENTURE:CDE) is pleased to announce that it has entered into a Memorandum of
Understanding ("MOU") with the Indonesian coal marketing firm, PT. Surya
Dinamika Lestari ("SDL") to market domestic thermal coal from Challenger's
Tabang coal Project in East Kalimantan. Under the terms of the MOU the parties
will work together to develop a marketing plan and negotiate a formal coal sales
agreement for the Tabang coal production which is targeted for 2013. SDL will
seek to secure domestic buyers for the coal and will advise Challenger on the
best pricing parameters for different production scenarios associated with
Tabang. 


Challenger is developing the Tabang Project using a three-step approach. Step
one involves the construction of a short-haul road and jetty facility on the
Belayan River for production from the ATRP property. Steps two and three add
infrastructure and development of the Pelangi, CBM and IP properties. After
review, Challenger has determined that the Tabang project has favourable coal
economics for export to India and China, while also supplying a burgeoning
Indonesian domestic power market as its economy grows.


SDL is a Indonesian coal trading company that sources coal for domestic
Indonesian coal buyers. SDL's domestic clients include PT. Perusahaan Listik
Negara ("PLN"). SDL is also part of a consortium that has won tenders to supply
coal to the PLN for upwards of 35 coal fired power stations currently operating,
in construction and planned.


"This MOU is an important first step in the sales planning component of the
overall Tabang Project development plan," stated Mr. Ranjeet Sundher, the
President and CEO of Challenger. "This relationship is focused primarily on the
lower heating value coal component of our project and on domestic consumption,
which provides the cornerstone of our initial development plan. Moving to this
stage in the process also demonstrates our confidence in this project and in our
marketing partner, SDL."


Challenger's Tabang coal Project comprises four properties in close proximity.
Two properties, a ATRP and Pelangi, are under formal purchase contracts and two,
CBM and Inhuwa Purba ("IP") are under exclusive MOUs.


ATRP, the most advanced of the Tabang Project properties, is in the mining
permit application process. A feasibility study has been completed submitted to
the regulatory authorities and and the Environmental Study is near completion,
pending approval of the Feasibility Study. If the Feasibility Study is approved
and the Environmental Study is subsequently approved, a mining permit may be
issued as early as the end of Q2, 2012.


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. 


About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the Asian
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 exploration and production and marketing
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 and mining permits, surface access and other licenses
from Indonesian regulatory authorities, 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 and development programs in
Indonesia or other project acquisitions will be completed or, if completed, will
be successful or that coal production and sale will be achieved. Readers are
cautioned that there has been insufficient exploration to define a mineral
resource and that it is uncertain when or if the Tabang Project will be put into
production.


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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