Challenger Deep Capital Corp.
TSX VENTURE : CDE

Challenger Deep Capital Corp.

October 07, 2010 16:34 ET

Challenger Announces Closing of Private Placement and Retention of Investor Relations Consultants

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) -

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Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) announces that it has successfully closed its previously announced non brokered private placement consisting of one million five hundred thousand units for gross proceeds to the Company of $450,000. (the "Private Placement"). All of the units were sold to arm's-length investors at a purchase price of 30 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 October 7, 2012 and is exercisable at a purchase price of 45 cents per share. All securities issued in connection with the private placement are subject to a hold period expiring on February 8, 2011.

A finder's fee of $9,500 cash and 31,666 Warrants was paid to Bolder Investment Partners Ltd. in connection with the Private Placement.

The gross proceeds from the Private Placement will be used for the investigation and acquisition of Indonesian coal exploration projects and for general corporate purposes.

Challenger Retains Investor Relations Consultants

Challenger has engaged Contact Financial Corp. to develop and execute a comprehensive marketing and investor communications program to help raise awareness of the Company.

Contact is a Vancouver-based strategic marketing and communication firm with experience in creating exposure for mineral exploration companies to industry stakeholders and investors. Contact's services will include providing advice to Challenger with respect to corporate development, producing and distributing effective marketing communication tools, and increasing investor awareness.

Under the terms of the agreement, the Company will pay a monthly fee of $6,000 to Contact and will reimburse Contact for its reasonable out-of-pocket expenses (subject to prior Company approval). The Company has also granted incentive stock options to Contact to purchase 100,000 common shares in the capital of the Company for a period of five years, exercisable at a price of 40 cents per share. Such options will vest in quarters over a 12 month period. The agreement is subject to acceptance for filing by the TSX Venture Exchange.

CAUTIONARY STATEMENT

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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.

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