Challenger Deep Capital Corp.

Challenger Deep Capital Corp.

September 13, 2010 09:00 ET

Challenger Announces Corporate Update, Name Change and Financing

CALGARY, ALBERTA--(Marketwire - Sept. 13, 2010) - Challenger Deep Capital Corp. (TSX VENTURE:CDE) -


Red Rock, Nevada Gold Prospect

Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) announces that preparations are underway to commence the initial drilling program on the Company's Red Rock, Nevada gold prospect. Geological and geophysical work conducted on the property have confirmed at least three shallow gold mineralization targets to be tested (depth 1,200+ feet). Challenger's plan is to drill at least two of these targets initially, using a reverse circulation rig, contracting of which is in progress. Drill permit applications have also been submitted and Challenger anticipates that drilling will commence in October, subject to rig availability.

The Red Rock gold prospect is a 360 acre property located in the Battle Mountain Eureka gold trend of Nevada. Challenger has an option to earn a 100% working interest in this property subject to a 25% working interest back-in right held by Ansell Capital Corp.

Indonesian Coal Exploration Program

Challenger also announces that it is in the process of completing the final steps in acquiring an Indonesian company which will act as its wholly owned subsidiary for subsequent Indonesian coal project acquisitions and exploration. Challenger is investigating and evaluating several coal exploration projects in East Kalimantan, Indonesia. The coal projects are typically held by Indonesian companies. The method of acquisition is typically by means of conditional share purchase or share purchase option agreements, with staged option or purchase payments over an 18 month period.

Indonesia is one of the main players in the global coal market and is currently the world's largest exporter of thermal coal. Challenger is focussing its investigation on East Kalimantan, which hosts the majority of Indonesian thermal coal deposits, with an emphasis on location and logistics.

Corporate Name Change

Shareholders of the Company approved the change of name of the Company from "Challenger Deep Capital Corp." to "Challenger Deep Resources Corp." at the Company's annual and special meeting held on September 9, 2010. The Company will now complete the necessary regulatory filings in order to effect the name change. The Company expects that the stock symbol will remain unchanged.

Private Placement

Challenger is also pleased to announce a non-brokered private placement of up to $450,000 (the "Private Placement").

Pursuant to the Private Placement, which is subject to regulatory acceptance by the TSX Venture Exchange, Challenger intends to issue, pursuant to applicable exemptions from registration and prospectus requirements of Canadian securities laws, up to 1,500,000 units ("Units") at a price of Cdn. $0.30 per Unit, each Unit comprising one (1) common share of Challenger and one (1) common share purchase warrant (a "Warrant"). Each Warrant shall be exercisable into an additional common share of Challenger for a period of twenty-four months from the date of issuance of the Warrant, at an exercise price of $0.45. It is anticipated that the Corporation may pay finder's fees to eligible arm's length finders in connection with the Private Placement. The finder's fees may be payable in cash or Warrants.

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

All securities issued pursuant to the Private Placement including any securities issued in payment of finder's fees, will be subject to a four-month hold period, commencing at closing.

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. Garry Clark (P. GEO), an officer and director of Challenger.


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

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including future plans and objectives of Challenger, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Challenger's expectations are the inherent exploration risks detailed from time to time in the filings made by Challenger with securities regulators, the ability to identify and acquire specific coal projects and the ability to raise additional funds. Except as required by securities law, Challenger assumes no obligation to update forward looking statements.

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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