Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

January 12, 2011 17:21 ET

Challenger Announces Results of Red Rock, Nevada Drilling

CALGARY, ALBERTA--(Marketwire - Jan. 12, 2011) - Challenger Deep Resources Corp. (TSX VENTURE:CDE) ("Challenger" or the "Company") announces results of the 2010 drill program on its 100% owned Red Rock, Nevada gold prospect.

The recently completed 2010 Red Rock drill program was designed to drill two reverse circulation holes to a preliminary depth and to case the holes for possible deepening to the Roberts Mountains Formation target with a core drill rig in 2011, if warranted. Results from the reverse circulation drilling have now been received and analysed.

The two reverse circulation drill holes were collared on gold and trace element rock and soil geochemical anomalies and associated gravity highs.

Drill hole, RRC: 10-1, was drilled to a depth of 378 meters and cased to 323 meters. Low gold mineralization was encountered near the top of the hole (best 0.174 gms/ton) with associated elevated silver, arsenic, mercury, cadmium, chromium, molybdenum and zinc noted in upper-plate Devonian-age Slaven Chert and Ordovician-age Valmy Formation. Numerous zones of quartz veining and silica-flooding are associated with 1 to 3% pyrite.

Drill hole, RRC:10-2, was drilled to a depth of 475 meters and cased to 442 meters. Similar to RRC: 10-1, low gold mineralization was encountered near the top of the hole, (best 0.290 gms/ton), but with more extensive zones of associated trace elements; silver, mercury, cadmium, cobalt, chromium, molybdenum and zinc. Intervals with abundant quartz veining, high pyrite content (3+%) and extensive silica-flooding of the rock were noted. The more abundant concentration of associated trace elements, could imply that RRC:10-2 may be closer to a major, mineralized feeder zone.

Both the geochemical data (mineralization) and alteration of the drilled rocks, seem to indicate that ore-forming hydrothermal fluids have passed through the drilled section, being fed by both low and high-angle structural feeders (fluid plumbing system) suggesting the possibility of a deeper gold system.

The Company will continue to evaluate all exploration results and will consider its options for the property which may include further exploration and drilling, joint venture of the property or other disposition of its interest.

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.), a director of Challenger.

The Corporation has granted 230,000 stock options to an officer and director of the Company in accordance with the Company's shareholder-approved stock option plan. The stock options are exercisable at a price of $0.72 per share, expire in five years and vest immediately.

CAUTIONARY STATEMENT

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com and include assumptions as to the economic potential viability of the project. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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

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